RPX Gold Inc. (TSXV: RPX)
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Over the past three years, Palantir Technologies (NASDAQ: PLTR) has been one of the brightest stars in the U.S. stock market: up 167% in 2023, 340% in 2024, and 135% in 2025 – three straight years of triple-digit gains crushing the Nasdaq. But entering 2026, this AI darling has fallen from grace – as of May 13, the stock is down more than 25% year-to-date, retreating over 35% from its all-time high.
In stark contrast to the stock’s trajectory, the company’s fundamentals have not only failed to weaken but have continued to accelerate. In the first quarter of 2026, Palantir delivered a stunning report card: total revenue of $1.63 billion, soaring 85% year-over-year – the highest growth rate in company history and the 11th consecutive quarter of accelerating revenue growth. Within that, U.S. commercial customer revenue grew 133%, and U.S. government revenue grew 84% – truly firing on all cylinders.
Even more striking was the net dollar retention rate of 150%. This means that after a year, existing customers are not only staying but significantly expanding their spending. Behind this is the deep lock-in effect of the company’s Artificial Intelligence Platform (AIP) – which functions more like an AI operating system, integrating disparate data within an organization into a unified ontology, drastically reducing costly AI hallucinations, and making AI truly useful in real-world scenarios.
From a contract foundation perspective, remaining performance obligations (RPO) stood at $4.45 billion, providing a solid foundation for future growth. The Pentagon has also designated Palantir’s Maven Smart System as an official “program of record,” effectively giving it the green light for widespread adoption across all branches of the U.S. military.
The core reason for the stock’s decline is not deteriorating fundamentals, but rather a broader sell-off in SaaS stocks and Palantir’s own lofty valuation. The stock currently trades around $134, corresponding to a forward P/S ratio of approximately 40.5 times 2026 estimates and 28 times 2027 estimates. By traditional P/E metrics, it still trades at 151 times earnings – clearly not cheap.
However, given the company’s phenomenal growth rate, the more appropriate metric is the PEG (price/earnings-to-growth) ratio. Currently, Palantir’s PEG is just 0.52 – and any number below 1 is typically considered undervalued. This suggests the market has not yet fully priced in the company’s future earnings growth potential.
Assuming the company maintains its full-year 2026 revenue guidance of $7.66 billion. If the profit margin remains at 53%, net income would be roughly $7billion,or $2.70 per share. If the valuation multiple remains unchanged, the stock price would rise about 205% from current levels to $408, corresponding to a market cap exceeding $1 trillion.
Of course, this is just a mathematical exercise based on linear extrapolation. Real-world risks cannot be ignored: revenue acceleration will eventually slow, at which point valuations could be significantly re-rated; the company could invest heavily in future growth, pressuring margins; a competitor could invent a better mousetrap; or an economic downturn could cause businesses to cut IT spending.
Conclusion
As of mid-May 2026, Palantir’s long-term thesis remains solid: the AIP platform has become deeply embedded in both government and commercial customers, with extremely high switching costs. Despite near-term stock volatility, for investors who believe in AI’s real-world deployment, the current pullback offers a window to build a position in batches. Investors can start with a small stake and add on any further dips. After all, an engine that has delivered 11 consecutive quarters of accelerating growth isn’t likely to stall just because of market sentiment.
