Had You Invested $10,000 in Palantir Stock 5 Years Ago, This Is What You Would Have Now

Palantir Technologies: A Rollercoaster Journey

Palantir Technologies (NASDAQ:PLTR) made its debut on the stock market with an initial public offering (IPO) on September 30, 2020. Since then, it has generated a lot of interest among investors. The company’s valuation has seen quite a bit of ups and downs, and there have been phases where growth slowed dramatically.

If someone had put $10,000 into Palantir five years ago and held onto that investment, they would be looking at a very significant return today.

Over the past five years, Palantir’s stock price has skyrocketed by over 1,890%, far surpassing general market performance. For comparison, the S&P 500’s total return during the same timeframe was a solid 125%. This means that a $10,000 investment made five years ago would be worth more than $199,120 now for those who took a buy-and-hold approach.

The company’s growth in revenue and profits picked up after the launch of its artificial intelligence platform (AIP). This suite of software helps organizations integrate large language models (LLMs) and other AI capabilities into their operations. Since its introduction in April 2023, AIP has notably boosted Palantir’s financial growth.

With its stock price rising quickly, Palantir now stands as one of the most growth-dependent tech stocks available. As it is, the current price is about 113 times expected sales and a staggering 308 times expected earnings. While these numbers do indicate some risk, Palantir’s expertise in AI and its steady progress with both public and private clients suggest it might still be a worthwhile option for long-term investors.

Before deciding to invest in Palantir Technologies, it’s worth considering a few points.

The Motley Fool Stock Advisor has identified other stocks that may offer impressive returns in the near future, and Palantir wasn’t included on that list. So, at this moment, there might be better options for investors looking to maximize their gains.

For instance, one could think about Netflix, which was recommended back in December 2004. An initial investment of $1,000 then would have grown to $587,288! Or consider Nvidia, which was a great pick since April 2005, with a $1,000 investment ballooning to $1,243,688!