4. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders as of Q4: 64
Ark Invest’s Equity Stake: $589.42 Million
Palantir Technologies Inc. (NASDAQ:PLTR) is a data analytics company that builds software platforms for data-driven operations and decision-making, primarily focused on helping government agencies and organizations analyze and visualize data from various sources. It reported its financial results for Q4 and fiscal year 2024 on February 3, 2025, with CEO Alexander C. Karp emphasizing the company’s integral role in the AI revolution. Karp highlighted how Palantir’s early predictions about the commoditization of large language models have materialized, reinforcing the company’s strategic direction. He also acknowledged the contributions of Palantir employees, noting their efforts in driving growth and the well-earned rewards from market-vesting stock appreciation rights (SARs). His statement reflects confidence in Palantir’s ability to maintain its leadership in AI-driven analytics and software solutions.
For Q4 2024, Palantir Technologies Inc. (NASDAQ:PLTR) reported strong growth across key financial metrics. Total revenue increased 36% year-over-year to $828 million against expectations of $776 million, with U.S. revenue growing 52% to $558 million. The company closed 129 deals worth at least $1 million, with 32 surpassing $10 million, showcasing robust enterprise demand. Customer count rose by 43% year-over-year, and Palantir Technologies Inc. (NASDAQ:PLTR) achieved a net income of $79 million and an EPS of $0.14 against analyst predictions of $0.11, underscoring its ability to drive profitability while scaling its operations.
For the full year 2024, Palantir recorded a 29% year-over-year revenue increase to $2.87 billion, with notable growth in both its U.S. government and commercial sectors. U.S. commercial revenue surged 54% to $702 million, while government revenue climbed 30% to $1.2 billion. Palantir Technologies Inc. (NASDAQ:PLTR) reported net income of $462 million and income from operations of $1.13 billion. With $5.2 billion in cash, cash equivalents, and short-term U.S. Treasury securities, Palantir is well-positioned for continued expansion in 2025.
By the end of Q4 2024, hedge fund interest in Palantir Technologies Inc. (NASDAQ:PLTR) had grown significantly, with 64 hedge funds holding positions valued at $3.88 billion. This marked a substantial increase from the prior quarter, where 43 hedge funds had investments totaling $3.09 billion. This rising institutional confidence indicates Palantir’s continued expansion and strong financial performance in the following year.
Baron Asset Fund stated the following regarding Palantir Technologies Inc. (NASDAQ:PLTR) in its Q4 2024 investor letter:
“Two software stocks that the Fund did not own, Palantir Technologies Inc. (NASDAQ:PLTR) and AppLovin Corporation, each gained more than 100% and accounted for 52% of the Benchmark’s gain during the quarter. At year end 2024, Palantir was valued at approximately 200 times its expected 2024 earnings, while AppLovin was valued at 80 times. The market cap of each exceeded $100 billion, and the two stocks represented nearly 8% of the Index. Neither company met our criteria for investment. The total impact on relative performance from Palantir and AppLovin was about 7 times higher than we have seen historically for two securities that are unique to the Benchmark, showing just how unparalleled the event was and something that we believe is unlikely to be repeated.”
