Palantir’s New $100 Million Contract Has Redditors Ready to Risk It All

If you’ve ever thought, “Hey, what if my entire life savings were tied to a company run by a guy who looks like Albert Einstein’s rebel grandson?” (well, you’re not alone). 

Palantir Technologies (PLTR) just landed another massive contract, and their Reddit fans are losing it. I popped over to r/PLTR, where one of the top posts was debating whether or not to bet the farm on the stock.

 

You read that right. Palantir, the mysterious “we don’t make consumer products, but we help win wars” company, just scored big again. And yes, the fanbase is ready to send “Daddy Karp” to Valhalla (little reference for all you Assassin’s Creed fans).

Let’s cut to the chase: Palantir just landed a $100 million contract to expand its AI-powered targeting tools for the US military. That means more troops will now get access to their Maven Smart System, which uses AI and computer vision to help military operators spot targets and make real-time battlefield decisions. It’s already helped the Pentagon and allies like Ukraine pinpoint targets for airstrikes.

(Source: Gigazine)

This $100 million contract is another step forward in Palantir’s growing relationship with the US military. The contract means their AI tools are getting rolled out to all five branches of the military: Army, Navy, Air Force, Marines, and, yes, even Space Force. That’s right, Space Force—because apparently, even in space, you need AI to tell you who the bad guys are.

 

But don’t think this is a one-off deal. Back in May, Palantir was rewarded a $480 million contract to extend Maven to military commands worldwide, making this latest contract part of a much bigger picture. Even the haters have to admit, Palantir isn’t a small defense contractor anymore—it’s becoming the backbone of the military’s AI strategy, and their role in digital warfare is only going to grow.

I know what you’re thinking: “Isn’t $100 million kind of...small potatoes for the defense industry?”—well, you’re not wrong. The US military spends more on fuel in a day, but for Palantir, this deal solidifies their position as the go-to tech company for AI-driven defense solutions. (Not bad for a company whose CEO spends more time in the mountains than his office.)

(Source: Unofficial Networks)

Speaking of unique, let’s get back to the fans. Palantir’s Reddit page is like if WallStreetBets and a cult of tech nerds had a baby. They affectionately call the company “Pili” (a nod to the all-seeing orbs from Lord of the Rings) and their CEO Alex Karp is lovingly referred to as “Daddy Karp.” 

One of the hottest debates? Whether to bet everything on Palantir hitting it big. Like, should you sell your car, your kidney, and maybe even your soul to ride this stock to the moon? Some of these folks are convinced Palantir’s going to hit $504 a share. For reference, it's currently chilling at around $36. So, yeah, you do the math.

Palantir’s no joke when it comes to numbers—it’s far from your typical meme stock. In Q2 2024, they pulled in $678 million in revenue, up 27% from last year, thanks to growing demand for their AI platform. Net income? $134 million, with earnings per share at $0.06, blowing past Wall Street analyst’s expectations. So, while the Reddit fanbase might make you think it’s all memes and “Daddy Karp” jokes, the company’s actually backing it up with some serious results.

If you're optimistic, Palantir’s growing reliance on AI contracts—particularly with the U.S. government—is a huge plus. Government revenue grew 24% year-over-year, and U.S. commercial sales shot up 55%. Palantir’s ability to land big contracts (like the recent $100 million military deal) shows they’re not slowing down. Full-year revenue is projected to hit up to $2.75 billion, and with that kind of growth, some investors are betting this is just the beginning. (Although Wall Street has yet to get onboard, which may be another bullish case.)

But don’t ignore the risks. Palantir’s valuation is no small number. The stock currently trades at a hefty price-to-sales (P/S) ratio of around 15x, which is high compared to other tech companies. For context, most of its competitors sit around a P/S ratio of 6-8x. This lofty valuation means Palantir is priced for significant future growth, so any slowdown in revenue (especially from their heavy reliance on government contracts) could spell trouble.

At the end of the day, Palantir’s future hinges on whether you believe in the AI revolution they’re banking on. They’ve got the contracts, the tech, and the momentum, but high expectations come with higher risks.

Palantir’s stock is up 122% year to date.

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Stock.News does not have positions in companies mentioned.