Latest news with #PalantirTechnologies
Globe and Mail
13 hours ago
- Business
- Globe and Mail
Is Palantir Technologies a Once-in-a-Generation AI Stock?
Palantir Technologies (NASDAQ: PLTR) has been one of the hottest AI stocks over the past year and a half. Since the start of 2024, it's up over 700% and has risen over 80% in 2025 alone. Those are incredible returns in a short time frame, but many investors are convinced that Palantir can go higher from here. If it does, Palantir could be marked as a once-in-a-generation AI stock. So, does Palantir fit the criteria to become a once-in-a-generation stock, or is something else happening here? Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Palantir's business has rapidly expanded over the past year Palantir's business is split into two primary units: Government and commercial. Palantir originally started as a software intended for government use and saw tremendous success in this field. However, use cases were developed for commercial products, and Palantir has also successfully expanded into that world. Its software is all about data analytics and giving its users actionable insights based on its information flows. This is all powered by AI and has transformed how some businesses operate. Palantir has seen success in its financials, with impressive growth accelerating quarter after quarter. In Q1, Palantir's U.S. commercial revenue rose 71% year over year to $255 million, and U.S. government revenue rose 45% year over year to $373 million. However, overall commercial growth was 33% to $397 million. This clearly indicates that other areas of the world (namely Europe) aren't embracing AI as much as the U.S. is. However, that could quickly change as several positive developments have been rolling out AI in Europe over the past few weeks. Should Europe more widely adopt AI, that could boost Palantir's commercial sales to even higher levels. Overall, government revenue rose 45% year over year to $487 million, so governments around the globe are adopting AI just as fast as the U.S. government is. Palantir's total year over year growth was an impressive 39%, and management gave guidance for a 38% growth rate in Q2. However, that figure should be taken with a grain of salt, as management consistently beats its own expectations. While this all sounds impressive, investors should be alarmed by Palantir's growth in conjunction with its valuation. Palantir's stock comes with a hefty price tag As mentioned above, Palantir's revenue rose 39% year over year in Q1, yet the stock is up over 700% since the start of 2024. That indicates that the stock far exceeds actual business growth, which shows up in Palantir's valuation. PLTR PS Ratio data by YCharts Palantir has risen from a stock that traded in the 10 to 20 times sales range (normal for a software company) to 110 times sales, a level that few stocks ever trade at. That's because the expectations are unbelievably high at these levels, and it's unlikely that Palantir will be able to live up to them. To illustrate, let's make a few assumptions: Palantir's revenue growth accelerates to 50%, maintaining that level for five years. Palantir's profit margins reach industry-leading 30% Palantir's share count doesn't rise (a terrible assumption; its share count is up 7% year over year). Should all three occur, Palantir's revenue and profits will rise from $3.12 billion and $571 million, respectively, to $23.7 billion and $7.1 billion. If it did that, Palantir would undoubtedly be a once-in-a-generation company. However, at today's current market cap and five years from now's profits, Palantir's stock would trade at 46 times earnings, which is still quite expensive. For reference, Nvidia (NASDAQ: NVDA) grew revenue at a 69% pace in Q1 and trades for 46 times earnings right now. This tells me that there's almost no upside left in Palantir's stock besides what's driven by hype. Palantir's stock has run up too far, too fast, and is now in a precarious situation. While Palantir could be a once-in-a-generation company (its business is fantastic), the stock is incredibly overvalued. It could be prone to a drastic sell-off if Palantir has a slip-up in execution. Should you invest $1,000 in Palantir Technologies right now? Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor 's total average return is995% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
Fast Company
a day ago
- Business
- Fast Company
What to know about billionaire Mark Walter, the L.A. Lakers' new owner
The billionaire slated to take over the controlling interest in the Los Angeles Lakers has built a career leading businesses investing in everything from sports franchises to artificial intelligence. Mark Walter is CEO of the global investment and advisory company Guggenheim Partners, which is estimated to have more than $325 billion in assets. He's also co-founder and CEO of holding company TWG Global. Forbes estimates Walter's net worth is $6.1 billion. The publication ranked him at No. 216 on its Forbes 400 list last year. Walter received an undergraduate degree in business administration from Creighton University and a law degree from Northwestern University, but ultimately chose business over a career in law. In the mid-1990s, he co-founded Liberty Hampshire, an investment management firm in Chicago. That business became part of Guggenheim Partners, which Walter co-founded in the late 1990s. In addition to Guggenheim, Walter co-founded TWG Global with film producer Thomas Tull. The company holds a portfolio of finance and insurance sector companies, including Guggenheim Investments, Guggenheim Securities, Group 1001 Insurance and Delaware Life. It also includes aerospace and defense technology company Shield AI. Last month, TWG Global announced a partnership with Palantir Technologies and Elon Musk's AI company, xAI, maker of Grok, aimed at developing artificial intelligence for use in the financial services industry. TWG Global also includes investments in sports, media and entertainment franchises, such as the controlling interest in the Los Angeles Dodgers, Premier League club Chelsea, the Professional Women's Hockey League and — through TWG Motorsports — ownership of several auto racing teams including Cadillac Formula 1. Beyond business, Walter and his wife, Kimbra, have founded or contributed to various philanthropic organizations, including the Los Angeles Dodgers Foundation, the Academy Group, Chicago Beyond and OneGoal.
Al Arabiya
2 days ago
- Business
- Al Arabiya
Billionaire Mark Walter, set to own controlling stake in Lakers, built fortune in investing
The billionaire slated to take over the controlling interest in the Los Angeles Lakers has built a career leading businesses investing in everything from sports franchises to artificial intelligence. Mark Walter is CEO of the global investment and advisory company Guggenheim Partners, which is estimated to have more than $325 billion in assets. He's also co-founder and CEO of holding company TWG Global. Forbes estimates Walter's net worth is $6.1 billion. The publication ranked him at No. 216 on its Forbes 400 list last year. Walter received an undergraduate degree in business administration from Creighton University and a law degree from Northwestern University, but ultimately chose business over a career in law. In the mid-1990s, he co-founded Liberty Hampshire, an investment management firm in Chicago. That business became part of Guggenheim Partners, which Walter co-founded in the late 1990s. In addition to Guggenheim, Walter co-founded TWG Global with film producer Thomas Tull. The company holds a portfolio of finance and insurance sector companies, including Guggenheim Investments, Guggenheim Securities Group, 1001 Insurance, and Delaware Life. It also includes aerospace and defense technology company Shield AI. Last month, TWG Global announced a partnership with Palantir Technologies and Elon Musk's AI company xAI, maker of Grok, aimed at developing artificial intelligence for use in the financial services industry. TWG Global also includes investments in sports, media, and entertainment franchises, such as the controlling interest in the Los Angeles Dodgers, Premier League club Chelsea, the Professional Women's Hockey League, and – through TWG Motorsports – ownership of several auto racing teams, including Cadillac Formula 1. Beyond business, Walter and his wife, Kimbra, have founded or contributed to various philanthropic organizations, including the Los Angeles Dodgers Foundation, the Academy Group, Chicago Beyond, and OneGoal.
Yahoo
2 days ago
- Business
- Yahoo
Billionaire Mark Walter, set to own controlling stake in Lakers, built fortune in investing
The billionaire slated to take over the controlling interest in the Los Angeles Lakers has built a career leading businesses investing in everything from sports franchises to artificial intelligence. Mark Walter is CEO of the global investment and advisory company Guggenheim Partners, which is estimated to have more than $325 billion in assets. He's also co-founder and CEO of holding company TWG Global. Forbes estimates Walter's net worth is $6.1 billion. The publication ranked him at No. 216 on its Forbes 400 list last year. Walter received an undergraduate degree in business administration from Creighton University and a law degree from Northwestern University, but ultimately chose business over a career in law. In the mid-1990s, he co-founded Liberty Hampshire, an investment management firm in Chicago. That business became part of Guggenheim Partners, which Walter co-founded in the late 1990s. In addition to Guggenheim, Walter co-founded TWG Global with film producer Thomas Tull. The company holds a portfolio of finance and insurance sector companies, including Guggenheim Investments, Guggenheim Securities, Group 1001 Insurance and Delaware Life. It also includes aerospace and defense technology company Shield AI. Last month, TWG Global announced a partnership with Palantir Technologies and Elon Musk's AI company, xAI, maker of Grok, aimed at developing artificial intelligence for use in the financial services industry. TWG Global also includes investments in sports, media and entertainment franchises, such as the controlling interest in the Los Angeles Dodgers, Premier League club Chelsea, the Professional Women's Hockey League and — through TWG Motorsports — ownership of several auto racing teams including Cadillac Formula 1. Beyond business, Walter and his wife, Kimbra, have founded or contributed to various philanthropic organizations, including the Los Angeles Dodgers Foundation, the Academy Group, Chicago Beyond and OneGoal. Alex Veiga, The Associated Press
The Independent
2 days ago
- Business
- The Independent
Billionaire Mark Walter, set to own controlling stake in Lakers, built fortune in investing
The billionaire slated to take over the controlling interest in the Los Angeles Lakers has built a career leading businesses investing in everything from sports franchises to artificial intelligence. Mark Walter is CEO of the global investment and advisory company Guggenheim Partners, which is estimated to have more than $325 billion in assets. He's also co-founder and CEO of holding company TWG Global. Forbes estimates Walter's net worth is $6.1 billion. The publication ranked him at No. 216 on its Forbes 400 list last year. Walter received an undergraduate degree in business administration from Creighton University and a law degree from Northwestern University, but ultimately chose business over a career in law. In the mid-1990s, he co-founded Liberty Hampshire, an investment management firm in Chicago. That business became part of Guggenheim Partners, which Walter co-founded in the late 1990s. In addition to Guggenheim, Walter co-founded TWG Global with film producer Thomas Tull. The company holds a portfolio of finance and insurance sector companies, including Guggenheim Investments, Guggenheim Securities, Group 1001 Insurance and Delaware Life. It also includes aerospace and defense technology company Shield AI. Last month, TWG Global announced a partnership with Palantir Technologies and Elon Musk's AI company, xAI, maker of Grok, aimed at developing artificial intelligence for use in the financial services industry. TWG Global also includes investments in sports, media and entertainment franchises, such as the controlling interest in the Los Angeles Dodgers, Premier League club Chelsea, the Professional Women's Hockey League and — through TWG Motorsports — ownership of several auto racing teams including Cadillac Formula 1. Beyond business, Walter and his wife, Kimbra, have founded or contributed to various philanthropic organizations, including the Los Angeles Dodgers Foundation, the Academy Group, Chicago Beyond and OneGoal.
