- Palantir Technologies is set to make a significant leap as it joins the prestigious S&P 500 on Monday, marking a milestone for the data analytics giant. This achievement comes after years of founder Alex Karp criticizing Wall Street, preferring the support of Palantir’s loyal retail investors. Despite his distaste for stock analysts and short sellers, Karp has led Palantir through a winning streak, with its stock nearly quintupling since 2022. The company finally meets the S&P’s criteria after recording its first profitable year in 2023, aided by the relaxation of rules around multiple-class shares that had previously blocked its inclusion.
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Palantir's AI-driven success and its focus on defense and national security have earned it significant government contracts, further fueling its stock’s rise. However, not all analysts are impressed—many remain skeptical about the company’s management and its ability to scale AI products quickly. Despite these concerns, Palantir's enthusiastic retail investor base continues to support the company, reflecting Karp's unconventional leadership and resistance to Wall Street norms.
Why it matters
Palantir’s entry into the S&P 500 cements its place among America’s top companies, signaling its arrival as a major player in tech and AI.
