Lian Loo @Chongloo: "🚨 **PALANTIR JUST EXPLODED 26%..."

Singapore

🚨 **PALANTIR JUST EXPLODED 26% — BUT I DON’T THINK THE REAL STORY IS THE EARNINGS BEAT.** The real story is this: **The biggest bear argument against $PLTR (Palantir Technologies Inc.) just took a serious hit.** Investors were worried that Palantir’s U.S. commercial growth was finally slowing down — and that companies like Anthropic could eventually take its customers. Then Q2 happened. 🔥 **U.S. commercial revenue: +149% YoY** After slowing from 137% → 133%, growth suddenly accelerated back to **149%**. And management wants to maintain or even exceed that growth rate over the next **18 months**. That changes the narrative. ### 📈 And the rest of the quarter? Pretty ridiculous. • Revenue: **$1.935B, +93% YoY** • EPS: **$0.41 vs $0.35 expected** • U.S. government revenue: **+90%** • Adjusted operating margin: **61.7%** • Net Dollar Retention: **157%** • Remaining deal value: **$4.9B, +103% YoY** And management raised guidance again. 2026 revenue is now expected around **$8.15B**, implying roughly **82% growth**. So we're looking at a company growing revenue at ~90% while generating operating margins above 60%. That's not normal software-company economics. --- ### 🤖 BUT HERE'S THE REALLY INTERESTING PART What happens if AI models become commodities? At first glance, that sounds terrible for Palantir. But it could actually be the opposite. If Claude, GPT, Gemini and other models become increasingly interchangeable, enterprises may not want to bet their entire business on one model provider. They need a layer above the models. Data. Permissions. Security. AI agents. Workflows. Governance. Deployment. That's where Palantir's **AIP + Ontology** strategy becomes interesting. Instead of competing with every AI model, Palantir could become the **enterprise operating layer that sits above them.** In other words: **AI models provide the intelligence. Palantir provides the operating system.** If that thesis plays out, the rise of AI models could actually increase the value of Palantir. --- ### ⚠️ SO WHY AM I NOT CHASING $159? Because there's a huge difference between: **"Palantir is an amazing company"** and **"Palantir is a great buy at any price."** After a 26% explosion, expectations are now extremely high. At around $159, the stock is roughly **84x forward earnings**. That's expensive. Yes, if Palantir can really compound EPS around 50% annually over the next few years, the valuation becomes much easier to justify. But software stocks have also rallied hard recently. I'd rather see the stock **cool off while the fundamentals remain strong**. If $PLTR eventually revisits the **$125 area**, I'd personally find the risk/reward much more interesting. --- ## 🧠 MY TAKE The most bullish thing about this earnings report isn't the 93% revenue growth. It's the fact that: **Growth is accelerating. Margins are expanding. Customers are spending more. Contracts are exploding. And guidance is going UP.** The biggest risks? 👉 Valuation 👉 Competition from AI platforms 👉 Whether Palantir can sustain today's extraordinary growth rates But for now, the numbers are making the bearish narrative much harder to defend. **I don't want to buy Palantir because it's going up.** I'd rather buy it when the market starts doubting it again — **while the business keeps executing.** 🔥 **Would you buy $PLTR at $159?** $TSLA (Tesla Motors, Inc.) 🎯 **Or would you wait for $125?** Drop your target below. I'm curious where everyone stands. *Not financial advice. Do your own research and consider your risk tolerance.* $U (Unity Software Inc.) $ORCL (Oracle Corporation) $MSFT (Microsoft) $AMD (Advanced Micro Devices Inc) $NVDA (NVIDIA Corporation) $TSLA $VOO (Vanguard S&P 500 ETF) $QQQ (Invesco QQQ)

Not investment advice. The author may have financial interests in the mentioned instruments.