Palantir, Trump’s ‘big brother’ dominating the stock market

Wall Street’s darling of the past year — Palantir — also seems to be one of the companies that best represents the sign of the times that we’re living in. The powerful, yet secretive data analytics firm (it takes its name from the visionary stones in J. R. R. Tolkien’s Lord of the Rings) has long been a star in the world of defense contracts, big data and artificial intelligence.

In 2024, Palantir was the best-performing company in the S&P 500 index. Its stock value has risen by over 500% since January of that year, despite falls in recent days. And the firm’s CEO — Alex Karp — has just published a book titled The Technological Republic (2025), in which he makes an impassioned call for Silicon Valley to collaborate in government projects. According to him, this will allow for innovation in national security and artificial intelligence: music to the ears of the new U.S. administration.

In the book — which is co-authored by Nicholas Zamiska, Palantir’s head of Corporate Affairs — says that the “computer elite” has “lost its way” and is dedicated to developing consumer products. Meanwhile, the government has ceded leadership in the creation of disruptive technologies to the private sector. “The software industry should rebuild its relationship with the government and redirect its efforts and attention to constructing the technology and artificial intelligence capabilities that will address the most pressing challenges that we collectively face,” says the book.

This is a summary of the company’s spirit. It was established in Palo Alto by Karp — an executive who defines himself as a progressive — and the ultraconservative PayPal founder Peter Thiel. The two men attended Stanford Law School together. Other co-founders include Nathan Gettings, Joe Lonsdale and Stephen Cohen.

The firm — now based in Denver, Colorado — has become a technological giant thanks to its software programs, which are dedicated to processing and analyzing huge volumes of data for its clients, ranging from intelligence services to health insurance. Its computer scientists are deployed in the war in Ukraine on the side of Kyiv and are assisting Israel in Gaza. Its CEO boasts that Palantir is at the forefront of making America “more lethal” to deter its adversaries.

Palantir is already fighting the battles of the future. Its programs were used to detect explosive devices in Afghanistan. They now intercept missiles, detect dangers, and indicate where it’s most effective to bomb and shoot. Artificial intelligence makes it less necessary to have troops on the ground, thus saving manpower and creating new advantages for forces that may be outnumbered or outgunned, but are technologically superior, more agile and efficient in their use of available resources.

“We are at the beginning of our trajectory. We are at the way beginning of a revolution. And we plan to be a cornerstone, if not the cornerstone company, and driving this revolution in the U.S.,” Karp said, during a call in February with investors.

A company shrouded in secrecy

Palantir has been shrouded in secrecy since its creation in 2003, a couple of years after the September 11 attacks in the United States. It was set up to detect patterns in data without a necessarily apparent relationship between them, which would allow for the identification and dismantling of terrorist plans.

The firm’s software is credited with locating Osama bin Laden in the countryside home in Pakistan, where he was killed by U.S. soldiers in 2011. However, Karp — who is always willing to feed the aura of mystery surrounding his company — has never wanted to confirm this. In an interview with The New York Times in August 2024, the son of a Jewish father and an African-American mother said: “If you have a reputation for talking about what the pope says when you meet him, you’ll never meet the pope again.” The 57-year-old holds a PhD in Philosophy from the Goethe University in Frankfurt and is passionate about cross-country skiing and long-range shooting.

Over time, the company’s various platforms have diversified. Gotham — aimed at intelligence services, the military and police — uncovers hidden connections by sifting through vast amounts of information. Foundry focuses on the commercial sector, helping companies analyze data to improve their decision-making processes and optimize their operations. Apollo ensures that complex software systems are constantly updated. AIP — the Artificial Intelligence Platform — uses real-time AI to process data faster and more efficiently in all kinds of fields.

While it has depended on government contracts since its founding, Palantir has been aggressively expanding into the private sector, from pharmaceutical companies using its programs to develop new drugs, to car manufacturers looking to improve their supply chains.

Rapid growth on the stock market

In 2020, after years of anticipation, the company went public and was listed on the New York Stock Exchange, with an initial public offering price of $10 per share. 2024 was a golden year for Palantir. While its share price soared, revenue grew by 29% compared to the previous year, reaching $2.87 billion. Its main market was the United States, with revenues of $1.8 billion (an increase of 38%) and where the commercial sector contributed $702 million, an increase of 54%. The government sector remained its main source of income at $1.2 billion, with an increase of 30%. For fiscal year 2025, the company expects growth of around 31% compared to the previous year, which would bring its revenues to $3.75 billion.

However, behind its dazzling financial results, large shadows hang over the ethical implications of its technology, especially regarding data privacy — an issue that has caused the firm problems in Europe. In 2023, Palantir’s contract with the U.K.’s public health system — the NHS — was surrounded by protests.

Civil rights advocates argue that Palantir’s data surveillance tools evoke the world of the novel 1984 and “Big Brother,” as it can allow governments to infringe on the individual privacy of citizens. Its support for Israel — some experts suggest that Palantir’s programs may have played a significant role in enabling Israel to intercept the majority of the hundreds of missiles fired by Iran in April — has led to criticism regarding its respect for human rights during the Gaza war.

In 2019, during the Trump era, it also received harsh criticism for its collaboration with the Immigration and Customs Enforcement Service (ICE), which has used the technology company’s programs to locate and detain undocumented immigrants.

Palantir’s secrecy and ties to the world of intelligence have also raised questions about its transparency. While other tech giants openly disclose their advances in artificial intelligence, Palantir acts more opaquely, shielded by confidentiality agreements and classified projects.

Karp is an ardent defender of AI. He told The New York Times: “I think a lot of the issues come back to: ‘Are we in a dangerous world where you have to invest in these things?’ And I come down to ‘yes.’ All these technologies are dangerous. The only solution to stop AI abuse is to use AI.”

Indeed, the new Trump administration’s emphasis on using technology and artificial intelligence to improve government efficiency and reduce bureaucracy may prove to be an important driver for this data analytics company.

Such expectations continued the rise in Palantir’s share price, which reached $124 this month. They’ve since fallen by more than 25% to below $90 after the Pentagon — their largest customer — announced budget cuts of around 8% for this year. But the market seems to remain optimistic about its darling: after five days of continuous declines, its stock price rose again this week.

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