Shares in Palantir Technologies surged as much as 15 per cent in after-hours trading on Monday as Peter Thiel’s data analytics group reported record quarterly income and raised its revenue forecast, citing high demand for its artificial intelligence software. Palantir shares have risen 140 per cent this year, adding about $60bn in market value. It means it now trades at more than 100 times future earnings, making it the most expensive software stock on the market.
The group has become a marquee stock for the AI investor frenzy as well as a so-called meme stock among retail investors who follow Karp’s proclamations on patriotism and national defence. Its share price was further boosted by its inclusion in the S&P 500 in September. “The growth of our business is accelerating, and our financial performance is exceeding expectations as we meet an unwavering demand ,” Karp wrote to shareholders on Monday.