Palantir, the AI-powered software company, has hit a new milestone by surpassing $200 billion in market valuation following a sharp rise in its stock.
Palantir became the 47th publicly traded U.S. mega-cap company with a market value exceeding $200 million.
The rally came after the firm handily beat analyst expectations with record earnings of $0.14 per share and $828 million in revenue for the fourth quarter, beating consensus projections by 26% and 7%, respectively, according to FactSet .
For 2025, the company projects revenue of $3.74 billion to $3.76 billion, with adjusted free cash flow of $1.5 billion to $1.7 billion, which would imply 30% growth in both revenue and profitability.
AI-driven growth
Palantir has had a meteoric rise: its stock has increased tenfold in two years, when its market cap was less than $20 billion. By 2024, government contracts accounted for 55% of its revenue. The company provides AI-powered data analytics to clients including Amazon and the Department of Defense .
It was the best-performing stock in the S&P 500 in 2024 and started 2025 strongly, gaining 40% so far this year.
According to Forbes’ valuation, Karp ‘s net worth has grown by $1.5 billion today, from $7.8 billion to $9.3 billion, catapulting him from 374th to 281st among the richest people in the world. Palantir co-founder Peter Thiel ‘s fortune, meanwhile , increased by $2.9 billion to $18.8 billion, making him the 106th richest person on the planet.
In a speech to retail investors, Karp said: «We’re getting there, and I’m sure you’re enjoying it as much as I am,» at the end of Monday’s earnings call.
It is by far the most expensive stock in the S&P 500 based on the price-to-sales metric, which compares market value to revenue over the last 12 months. Its ratio is 70, more than 20 times the index average (3) and well above the 35 of Nvidia, another AI giant.
«Track history suggests this is nearly impossible to sustain, especially at this scale,» Deutsche Bank analyst Brad Zelnick wrote in a note to clients. While he called Palantir’s latest results «very impressive,» he maintains a sell rating on the stock.
Meanwhile, the audio streaming service Spotify also experienced a strong rally on Wall Street following the publication of its results. Its shares, listed in New York, rose by more than 10%, reaching a new daily record of $618.55.
