Palantir rises to the top ten US tech companies: Market value reaches $2,810 billion, driven by government contracts and the US-UK trade agreement.

Taiwan • Business • 05/09 03:09
Palantir rises to the top ten US tech companies: Market value reaches $2,810 billion, driven by government contracts and the US-UK trade agreement.

On May 8, 2025, Palantir Technologies (NASDAQ: PLTR) experienced a 7.85% increase in its stock price, closing at $119.15 per share, with its market capitalization reaching $281 billion, making it the tenth-largest tech company in the United States, surpassing Salesforce. The stock price increase was driven by strong financial results, an upward revision of the annual forecast, the US-UK trade agreement, and support from government contracts. The market expressed concerns about its price-to-earnings ratio of 520, reflecting both high expectations and potential risks associated with its valuation.

Key Updates

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05/09 15:03

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05/09 03:09

Palantir rises to the top ten US tech companies: Market value reaches $2,810 billion, driven by government contracts and the US-UK trade agreement.

On May 8, 2025, Palantir Technologies (NASDAQ: PLTR) experienced a 7.85% increase in its stock price, closing at $119.15 per share, with its market capitalization reaching $281 billion, making it the tenth-largest tech company in the United States, surpassing Salesforce. The stock price increase was driven by strong financial results, an upward revision of the annual forecast, the US-UK trade agreement, and support from government contracts. The market expressed concerns about its price-to-earnings ratio of 520, reflecting both high expectations and potential risks associated with its valuation.

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05/08 11:04

U.S. stock futures are steadily rising: Dow Jones Industrial Average rises 224 points, led by tech stocks

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Palantir's Market Value Soars, Surpasses Salesforce to Join the Top Ten

According to reports from CNBC and MoneyDJ, Palantir's stock price surged nearly 8% on May 8, pushing its market value to $281 billion, surpassing Salesforce's $268 billion, making it the tenth largest tech company in the United States. This achievement marks a significant milestone for Palantir since its founding in 2003 and reflects its growing influence in the government and enterprise data analytics sector.

Currently, the highest-valued tech companies in the U.S. are Microsoft ($3.3 trillion), Apple ($2.95 trillion), and NVIDIA ($2.86 trillion). Although Palantir's market value is still far from these giants, its stock performance has been remarkable. As of 2025 to date, Palantir's stock price has risen by 57.54%, continuing the impressive 198.58% increase throughout 2024. In contrast, the Nasdaq index fell by 7.16% during the same period, indicating Palantir's breakout performance in a generally sluggish tech stock environment.

Government Contracts and US-UK Trade Agreement Drive Growth

Palantir's core business has long focused on government agencies, particularly intelligence units like the U.S. Department of Defense and the Department of Homeland Security. Its Gotham platform is widely used for counter-terrorism and intelligence analysis, having assisted the U.S. military in successfully locating and killing Bin Laden in 2011. This deep collaboration has brought Palantir stable and high-value government contracts.

In the first quarter of 2025, Palantir's revenue from the U.S. government increased by 45% year-over-year, reaching $373 million, indicating continued expansion in the public sector. The company also raised its full-year financial forecast, estimating 2025 revenue to reach $3.89 billion to $3.902 billion, higher than the previous expectation of $3.741 billion to $3.757 billion, and exceeding Wall Street's forecast of $3.752 billion.

Additionally, the recent U.S. administration's breakthrough trade agreement with the UK has provided further benefits for Palantir. The agreement mentions "closing loopholes and enhancing the competitiveness of U.S. companies in the UK government procurement market," which is widely interpreted as making it easier for Palantir to secure UK government contracts. This is undoubtedly a strategic advantage for Palantir, which already has an established business foundation in the UK.

Impressive Financial Data but Valuation Raises Concerns

Despite strong operational performance, Palantir's valuation has drawn significant market attention. According to Yahoo Finance and NBC reports, Palantir's current trailing P/E ratio is as high as 520, far exceeding the average of 58 for the top ten U.S. tech stocks. Even when calculated using the forward P/E ratio, it reaches 232.56, indicating high market expectations for its future growth potential.

Other financial indicators also highlight its high valuation characteristics. Palantir's price-to-sales ratio (P/S) is 105.86, and its enterprise value to EBITDA ratio (EV/EBITDA) is as high as 839.40. These figures reflect investors' willingness to pay a high premium for its future potential, but also suggest that any slowdown in growth or operational underperformance could have a significant impact on its stock price.

Technical Platform and Business Model Support Growth

Palantir's core products include the Gotham, Foundry, and Apollo platforms, targeting government intelligence analysis, enterprise data integration, and software deployment management, respectively. In recent years, the company has also actively promoted its artificial intelligence platform (Palantir AIP), integrating large language models (LLMs) to enhance data processing and decision-making efficiency.

As of 2025, Palantir has 3,936 full-time employees, primarily located in the U.S. and the UK. Its business model is primarily based on long-term contracts, especially in the government sector, which provides strong customer retention and makes its revenue structure relatively stable.

Market Performance and Trading Data

According to Yahoo Finance data, as of May 8, 2025, Palantir's stock closed at $119.15, with a daily increase of 7.85%. The 52-week stock price range is $20.50 to $125.41, indicating a significant rise in its stock price over the past year. The trading volume on that day reached 198 million shares, far exceeding the average trading volume of 111 million shares, indicating strong market interest and active trading.

References

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