Palantir Technologies Stock

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Palantir Technologies Stock

Can Palantir Technologies Stock Give 100x Returns?

There are a lot of AI companies in the spotlight, but one of the most popular ones is Palantir Technologies. It is different from others in the sense that it offers practical ways for firms to use AI.

Palantir Technologies is also used a lot by business customers and even the US government agencies. So, this makes it different from other AI companies, which are yet to turn a profit.

Palantir Technologies' Market Cap Is $350 Billion

But can Palantir Technologies stock help you turn $10,000 into $1 million? That's a valid question considering the strong performance of Palantir Technologies' stock in the last few years.

A 100x return is normally seen in companies that are small at the start. But Palantir Technologies is not a small company at all and has a market cap of almost $350 billion.

So, in order for Palantir Technologies to give a 100x return, it would need to become a $35 trillion company. Right now, there's no company on earth that's worth as much. In fact, the market cap of all the Magnificent Seven combined is also not equal to $35 trillion.

The short answer is that Palantir Technologies stock can not turn $10K into a $1M as it is just not feasible. But is a 4x return possible for Palantir Technologies?

Given the higher spending on the AI infrastructure, Palantir Technologies is in a very good spot. As Palantir Technologies manages to gain more customers, its bottom line will improve, and this will also reflect in the company's stock price.

In order for Palantir Technologies to have a market cap of $1.3 trillion and a P/E of 40, it must have a net income of $32.5 billion.

Right now, Palantir Technologies has only managed to generate $1.6 billion based on the last 4 quarter reports. In order to reach these numbers, the earnings of Palantir Technologies must grow at a rate of 35% annually.

So, it will not be easy for the Palantir Technologies stock to give 2x or 4x returns in the coming years. But, this also doesn't mean it will be impossible as Palantir Technologies is in a very good spot when compared to other AI firms.

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