PLTR has a long runway to exceed $1T valuation due to strong fundamentals (93% rev growth) despite current price drop and high multiples; requires long-term conviction.

Palanteer just dropped another monster quarter just like I told you it would. And just like I told you back in 2022 when this stock was $6. We still have a long runway to go with this company. This is far from the end.

Look at the actual numbers and you will find out in today's video line by line, data by data, why these earnings prove Palanteer is not just a $1 trillion company. It might actually be a lot bigger than that.

I might have actually undersshot the true potential of this business.

Now, as it stands, Palunteer came in into these earnings down almost 40% from the November peak of 205, right? So, this stock basically plummeted for the past few months, came into earnings.

It's up now a little bit, a lot, depends on who you ask, but it's still a long ways ahead if it to be back at the $200 mark. Which means the stock is down significantly from its peak just right after delivering 93% revenue growth in this quarter.

And from this point on, we're talking about one of the best setups in history. Find the misunderstanding, make the money. This company, despite all the numbers I'm going to show you, as it stands today, as of the making of this video, right after the earnings, it is still down year to date.

It is still down for the past 6 months significantly. And it's definitely down a lot from November 2025 despite giving you wonderful fundamentals.

Now, the quarter has to be one of the best we've seen from any company in recent history. So, we got revenue of 1.94 billion. That's a 93% growth. We've got adjusted EPS at.41 beating by 17%.

We got US commercial 764 million up 150%. We got US government 890 million up 90%. We got rule of 40 of 155 operating margin of 62%. US commercial remaining deal value of 6.2 billion up 124%.

And the guidance to 8.2 billion for 2026 which means that according to this guidance the second half of this year is significantly better than the first. And the first is already astonishing.

Look at the deals Palunteer just presented to you in this quarter. 220 deals worth a million or more. 98 deals worth 5 million or more. 73 deals worth 10 million or more. A third of the million dollar deals are 10 million.

You have to understand the complexity of existing customers in your own business spending more and more every year inside the platform. That's very hard to get and just shows you that the switching cost out of Palunteer are literally not surmountable, impossible.

Once you go in, you'll never leave. This is Hotel California by the Eagles.

Now a lot of people talk about the valuation and they say well you know despite the beat you know the numbers are phenomenal I'm not going to repeat the numbers the numbers are phenomenal right but the trading PE is 138 the Ford P is 77 Tom and the PEG ratio the price to earnings to growth ratio is 1.5 now by your own admission 1.5 is expensive yeah of course 1.5 is expensive and Palanteer is expensive expensive.

Okay. Is Palanteer overvalued? Well, that depends on your thesis. The one thing I can tell you is I don't want you to buy the stock. It's expensive. If you don't have the long-term belief in this company, don't buy it for the wrong reasons.

Don't buy it because of FOMO. Because I can guarantee you one thing, there's way more chaos ahead than you think. If you think that from this point on we're going all the way to the moon, I got another thing coming for you.

Do not buy this stock on pure excitement about what happened yesterday. Build a thesis, build long-term conviction and patience.

Now, the revenue split in Palunteer in this particular quarter, if you can actually read the financials, which is what most people are too lazy to do, read the financials. The revenue split is insane.

Commercial revenue is at 149% growth. government government the dying business 90% and the base of the government is actually bigger so it's growing at 90%. It's not just about commercial anymore.

There is an arms race in the AI sector in the government as well.

Now a lot of people say well Tom your one trillion valuation doesn't make any sense does it? Well let's do a reverse calculation. It's as simple as that. A reverse calculation shows you that a terminal PE of 2030 of 40 gives us 61% revenue growth in order to hit that target.

Basically what this means if at 2030 Palanteer is trading at 40 time earnings which is half of what it's trading right now we will need 61% revenue growth going forward in order to make that happen. significantly less than the current 93% revenue growth.

At 50, that's 53%. At 60 trailing PE, we're talking about 46%. So, if Pilent is trading at 60, which is a hell of a lot lower than the current 139 and the forward PE of 77. If it's trading at 60, we're talking about 46% revenue growth, which is literally half of what it's doing right now.

That's a massive deceleration. And of course, we can go on and on, but you understand the point. The numbers are not crazy.

Now, the $1 trillion case is not a case for acceleration. It's a case that's built on Palunteer decelerating revenue growth. That's what is dumbfounding to me that most people don't get.

In order for Palunteer to hit that trillion dollar mark that I've been talking about for the past four years from this point, it assumes that the revenue is going to decelerate, that the revenue growth is not going to be as fast as it is right now.

Imagine what happens to Palunteer share price if it just maintains the current revenue growth. If it doesn't change, think about it. If it doesn't change the current revenue growth, we're talking about astronomical valuations.

Okay, let me show you three cases. Obviously, you have the bare case. The bare case assumes 40% revenue growth and that's a hell of a lot lower than we have today. That's significant cut.

Well, in order for Palunteer to hit 1 trillion in 2030, it will have to be trading at 109, which is about 30 less than its current trailing PE. Okay. If we're talking about the base case of 55 growth rate, which is again much slower and lower than we have today, then we're talking about 67 trailing PE.

That's actually lower than what is trading right now. And if Palanteer gives you 70% of revenue growth, which is significantly lower than the current 93%, then it needs to be trading at 51P in order to hit that 1 trillion.

It's not that complicated. 77 versus 67 based on the actual medium case of 55% annual revenue growth. The base case literally works as multiples compress and revenue growth slows down. That's the part most investors miss out.

In fact, it could happen a lot sooner. It could happen in 2028, but for that we have to assume a lot. And I don't like to assume, but if you'd like to play this game, well, you know, at 70% revenue growth by 2028, if Palunteer is trading at 94 time sales, which is a lot lot lower than what is right now at 140.

Well, that case, we should get it in 2028. But I'm not playing these games. I'm playing conservative. And a lot of people have their head explode when they said, "Hey, Palanteer at 1 trillion is a conservative assumption.

It's not a risky play. It's a very, very conservative play." And people 2022 thought I was crazy. And I'm saying it today at the car price. Yes, this is still conservative. Of course, if you have patience, if you have long-term mindset, if you're ready for the volatility, but yeah, it's still early for Palanteer.

Even if you assume that the share count is going to continue to grow at its current rate of about 3.24% 24% per year. We're talking about $367 to hit 1 trillion. $367 for this year, the way it's going right now.

That means 3x your money. To me, that's a very cautious assumption given the fact that Palunteer is not expected to decelerate revenue growth anytime soon.

Now, of course, there are risks here and nothing is risk-free. Palunteer has one of the biggest, if not the biggest keyman risk in the entire stock market. If Alex Karp leaves, I don't think this company is worth a lot.

It has obviously the pricing issue. If all of a sudden everybody piles into Palunteer, takes it up to $600 per share in two years. Yeah, that might be a problem because the misunderstanding is gone, right?

What if commercial growth slows down? What if government slows down? Right? That could happen. Okay? There's a lot of risks like in every company. It is a very volatile stock. I expect a lot of chaos.

It's never going to go up in a straight line. It hasn't in history. Why would you assume that would be the case now?

So, what I'm doing, I'll tell you exactly. You have to follow two simple rules with Palunteer if you want to make money from the stock. Number one, buy at all times dollar cost average at fixed amounts and double down when the stock is 20% or more below the 52- week high.

And the second rule is every time you make 50% of profit off the stock, take 10% off. Trim. Simple as that. You're up 100%, you can trim more and so forth and so forth. I mean, it's pretty straightforward.

Trim as you go and keep buying at all times with 93% growth with 155 rule of 40, which is literally four times higher than the gold standard of insanely good scores. and it's down a lot from the November 2025 highs from the 200s.

This is as simple as it gets. Palanteer has a simple path to 1 trillion. It's not that complicated.