TLDR
- Palantir CEO Alex Karp denied surveilling U.S. citizens during podcast appearance, causing stock to jump 9%
- Leaked NSA documents from 2017 show Palantir software integrated with mass surveillance programs
- Stock has gained 370% in 12 months but trades at 90x forward earnings
- Wall Street analysts maintain Hold rating with 10% downside price target
- Investor recommends waiting for pullback before buying more shares
Palantir Technologies stock climbed 9% over five days after CEO Alex Karp addressed surveillance concerns on the All-In Podcast. The data analytics company continues facing questions about its government monitoring role.
Karp claimed Palantir is the “single worst technology to use to abuse civil liberties.” When asked directly about surveilling Americans, he responded with hesitation: “No, we are not surveilling… uh, U.S. citizens.”
The CEO insisted intelligence agencies like the NSA and FBI refuse to buy Palantir products. However, this statement contradicts documented evidence from government contracts and leaked materials.
NSA Documents Tell Different Story
Leaked NSA files published by The Intercept in 2017 reveal a different picture. These Edward Snowden documents showed Palantir software worked with the NSA’s XKEYSCORE program. This system collected global internet data including emails, social media messages, and webcam footage.
One NSA presentation described Palantir’s role in “Mastering the Internet,” a joint surveillance project with Britain’s GCHQ. The documents directly contradict Karp’s claims about agency relationships.
Civil liberties experts note that surveillance programs routinely capture American data “incidentally.” Under FISA Section 702, the NSA shares this information with domestic agencies like the FBI.
Palantir’s government contracts have expanded under the current administration. The company plays a key role in White House data-sharing initiatives across federal agencies.
Strong Performance Meets Valuation Concerns
Despite controversy, Palantir’s financial metrics remain strong. The company posted a Rule of 40 score of 94, combining 48% revenue growth with 46% operating margins.
Q2 results showed impressive growth across key metrics. Customer count increased 43% year-over-year while U.S. commercial revenues jumped 93%. The company also secured the NATO Maven Smart System contract.
CEO Karp guided for “highest sequential quarterly revenue growth” in Q3. These fundamentals have driven the stock’s 370% gain over 12 months.
However, valuations have reached extreme levels. The stock trades at 90 times forward earnings, far above sector averages.
Wall Street Takes Cautious View
Analyst sentiment remains mixed despite strong performance. Based on 19 recent ratings, PLTR holds a Hold consensus with four Buy ratings, 13 Holds, and two Sells.
The average price target of $154.47 implies 9.9% downside from current levels. This suggests analysts expect cooling despite operational strength.
Five-star investor Bohdan Kucheriavyi acknowledges Palantir is “thriving” but warns about timing. He compares current valuations to Tesla before its correction when interest rates rose.
Kucheriavyi remains long but won’t add shares now. He recommends waiting for a “major pullback caused by macro developments” before increasing positions.
The investor believes macroeconomic factors now drive the stock more than company fundamentals. This shift makes timing crucial for new investments.
Palantir continues expanding internationally while maintaining controversial government relationships. The company has guided for accelerating growth in the current quarter.
