Palantir’s stock is trading at 73 times its revenue, nearly a 400% premium over other artificial intelligence (AI) software companies which Giarelli believes might not be justifiable from a simple earnings beat.
Morningstar’s analyst Mark Giarelli has raised his fair value estimate on Palantir’s stock by 11% to US$100 ($129) up from his previous estimate of US$90 in his report released on May 6. This revision of his estimate is attributable to increasing demand from government and commercial customers for Palantir's optimisation software.
Palantir’s shares dipped 9% post-trading hours on May 6 after their Q1 2025 earnings release despite the firm having beaten both management's guidance and FactSet analyst expectations on revenue by 3%.
