Palantir Technologies: You Missed Out, What's The Next Palantir?
One of the most common reactions to seeing a stock quote rise rapidly is to have a sense of having missed out. I am often asked the question, “What’s the next Palantir?”, but the answer is a lot simpler than most people might think. The companies who are renowned enough to be referenced in the context of “What is the next X?”, such as Tesla, Nvidia and Palantir, typically never have a “next” version of them.
In my opinion, they are all their own next iteration, as none of these businesses are mature. Why search for the next Palantir when Palantir is just now getting started?
Company profile
Theme: Dominance, Direction: Hold
Symbol: PLTR, Exchange: NASDAQ
Sector: Technology, Industry: Software - Infrastructure
Fair intrinsic value: $72.08 (-46%), as of July 7, 2025
Market capitalization: $342 997 million
Pricing data: P/S 110x, P/E 592x
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This article is for informational purposes only and does not constitute investment advice or an offer to buy or sell securities.
Investors tend to stare themselves blind at a stock chart, and a common instinct is to avoid purchasing businesses that have had aggressive stock appreciation in recent times. When we are talking about 700% appreciation to date in Palantir stock since the start of 2024, the feeling of having missed out is overwhelming for many. This tends to lead investors to start looking elsewhere for a successor, rather than studying the business in question and understanding why the stock may have appreciated to such an extreme degree. In Palantir’s case, they are just getting started.
Figure 1: Revenue reacceleration with the launch of AIP
Since going public, Palantir had been decreasing their revenue growth rate steadily, bottoming out in Q2 of 2023 with 13% year-over-year growth. At this point, the excitement surrounding Palantir was bleak, and most were not paying attention to the company, dismissing it as a consultancy and a black box. However, during the first half of 2023, Palantir unveiled and launched AIP. This is the product that is responsible for reinvigorating the business, and Palantir has since then had 7 straight quarters of increasing revenue growth. That’s it, time to look elsewhere, right? Well, if we stop and look at what has happened, I would not be surprised if Palantir has many more quarters of increasing revenue growth:
Per a UBS report from 18 December 2024, AIP pricing is based on usage. Utilizing AIP for one specific business use case might increase the billing slightly, while implementation across a whole business could 2-3x the billing.
Palantir only has 622 commercial customers, with 432 of them being based in the U.S. For reference, Salesforce is closing in on 200,000 total customers.
While the U.S. market is far from saturated, the international commercial opportunity is completely untapped, with flat revenues since the company went public.
The go-to-market strategy is extremely efficient from a customer acquisition standpoint. Utilizing bootcamps increases margins meaningfully, and leveraging consultancy partnerships will further accelerate growth.
Remaining deal value and remaining performance obligations are ever increasing, creating a safety net into the future for further revenue recognition.
The company is launching best-in-class products continuously, with many still yet to see true scale, such as Apollo and Warp Speed.
Figure 2: 769 total customers is far from saturation
The case can be made that Palantir is still in its infancy, with many untapped opportunities ahead. For example, the developer community is just now being built out, but we are already seeing companies built completely on Palantir software. Fujitsu in Japan is noted for having built over 100 applications internally, and with the Foundry Marketplace, it will provide important network effects.
On the government side, Palantir is increasingly cementing themselves as the go-to software provider across more than 15 different U.S. agencies, and the list is increasing. Similarly, they are just now beginning to become sticky across different geographies, accelerated by geopolitical tensions across the globe.
One final, and perhaps the most important, note, is the receipt that Palantir is working and delivering improved KPIs across the businesses they are deployed at. The scalability and pricing power that Palantir has is more or less endless. Companies will be willing to pay $1 million per year for Palantir if Palantir can generate more than that in value. Similarly, companies would also be willing to pay $1 billion per year for Palantir if the software provided enough efficiencies and value across the business to justify the cost. CEO Alex Karp prides Palantir on being able to do just that, so where is the limit?
Figure 3: A majority of revenue growth comes from existing clients
The stock price is volatile and goes up and down. While it may not always trade at an attractive quote for purchase, your time is better spent researching the business rather than looking for its successor while staying patient for an opportunity.
Palantir is only getting started.