If you are a PALANTIR shareholder….GET READY

Tom presents a highly bullish thesis for Palantir following what Tom describes as a "monster quarter." Tom highlights that the company achieved 93% revenue growth, reaching $1.94 billion, with US commercial revenue surging 150% and US government revenue increasing 90%. Tom emphasizes that the company's Rule of 40 score of 155 is significantly higher than industry standards, proving the business's efficiency and scale. Tom also points out that Palantir is securing a massive volume of high-value deals, including 220 deals worth over $1 million, which creates high switching costs for customers.

Tom addresses the high valuation, noting a trailing P/E of 138 and a forward P/E of 77. However, Tom argues that a $1 trillion market cap is a conservative assumption rather than a risky one. Tom performs a reverse calculation showing that even if revenue growth decelerates significantly from the current 93% to around 55% or 60%, the company can still reach the $1 trillion mark by 2030 as multiples compress. Tom warns of volatility and "keyman risk" associated with CEO Alex Karp but suggests a strict investment strategy of dollar-cost averaging and doubling down during 20% dips.