Palantir (PLTR) stock has been falling since its a record-high of $45 in late January. Some investors are concerned that the company is too dependent on government contracts to achieve rapid growth in its performance, but it also means stable and long-term for its revenue.
Palantir is a software company that builds enterprise data platforms for use by organizations with complex and sensitive data environments. For governments, organizations, and companies, there is a large demand for the company's products. In addition, the company's products can also be used in fields such as artificial intelligence, the Internet of things, healthcare, retail and cyber security. Although its revenue proportion from those customers related to these fields is small, it is a huge space to up.
The company has signed new contracts with Rio Tinto, PG&E, the U.S. Army, U.S. Air Force, FDA, and the UK’s National Health Service in Q4. At time same time, it has also partnered up with Amazon’s AWS service platform recently. In the long run, these partnerships will well support the steady growth of the company's performance.
In 2020, the company generated $1.1 billion in revenue, up 47% year-over-year. The company previously expected that it would achieve a 45% year-over-year revenue growth in Q1 2021. Despite the recent decline, the company is still a well stock for long term investment in the long-run.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.