Palantir Technologies Inc. (NYSE:PLTR) CEO Alex Karp attributes the company’s remarkable success to ignoring critics and staying focused on building essential software tools for government and enterprise transformation.
What Happened: “When all the idiots hate you… and you ignore them, and you build the single set of software products you would need to actually transform your company or your government… you get breakout growth,” Karp told Fortune. “That’s what’s happening.”
His comments come as Palantir’s stock has surged 350% over the past year, with its market cap exceeding $200 billion. The company was recently added to the S&P 100 index, marking its arrival among America’s corporate elite.
In February, Palantir reported 2024 revenue of $2.87 billion, up 29% year-over-year, with U.S. commercial revenue growing at an impressive 54%.
Karp, known for his unfiltered communication style, has maintained a consistent message throughout Palantir’s 20-year history: Silicon Valley should embrace partnerships with the U.S. government and defense sector. This stance once made Palantir an outlier but has since proven prescient as more tech companies pursue defense-related contracts.
What Happened: The CEO also revealed he faced significant opposition when Palantir sued the U.S. Army a decade ago over procurement practices. “The most important people in the defense world came in and told me, ‘If you sue the U.S. government, everyone will know you’re an as**ole,’” Karp recalled. The company ultimately won the lawsuit and secured a contract worth over $600 million.
Palantir shares gained additional momentum this week after announcing a new partnership with NATO Allied Command Operations to provide AI-enabled warfighting technology, further validating Karp’s long-term strategy.
According to the Benzinga Edge Stock Ranking, Palantir performs poorly on valuation and short- to medium-term price trend, but it has strong momentum, growth, and long-term price trend. Sign up for more insights.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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