Palantir Technologies Inc. (PLTR): A Bull Case Theory

We came across a bullish thesis on Palantir Technologies Inc. (PLTR) on Substack by Deep Value Returns. In this article, we will summarize the bulls’ thesis on PLTR. Palantir Technologies Inc. (PLTR)'s share was trading at $108.86 as of May 6^th. PLTR’s trailing and forward P/E were 473.30 and 196.08 respectively according to Yahoo Finance.

Palantir Technologies (PLTR) experienced a sharp 10% drop in its share price after earnings, following a strong rally into the event—typical of a “sell-the-news” reaction. Despite the short-term decline, the market's response is viewed as temporary and unlikely to impact the company’s long-term trajectory. Palantir remains one of the few software companies delivering over $1 billion in quarterly revenue while projecting more than 35% year-over-year growth through the end of 2024. While the stock trades at a steep valuation of 135x forward free cash flow, this premium is justified by its exceptional combination of scale, growth, and market leadership in artificial intelligence and data analytics. Palantir’s ability to grow rapidly while maintaining profitability sets it apart from peers, making it a rare asset in the current tech landscape. Investors are encouraged to look beyond short-term volatility and focus on the company’s long-term value creation. With a robust product suite, deep government and commercial contracts, and accelerating momentum, Palantir is well-positioned for continued success. A long-term price target of $160 per share by summer 2026 reflects strong conviction in its growth potential. The company remains a compelling buy for investors seeking durable, high-growth exposure.

Palantir Technologies Inc. (PLTR) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 64 hedge fund portfolios held PLTR at the end of the fourth quarter which was 43 in the previous quarter. While we acknowledge the risk and potential of PLTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PLTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.