Silicon Valley-based Palantir Technologies (PLTR, Financial) has surpassed traditional defense leader Lockheed Martin in market valuation, marking a significant shift in the U.S. defense and technology sectors. As of the latest market close, Palantir's market value reached $137.17 billion, outpacing Lockheed Martin's $135.25 billion. This change highlights Palantir's growth in modern defense and security through artificial intelligence and data analytics.
Palantir's stock rose by 3.17% to close at $60.24, achieving a record high with a year-to-date increase of 263.33%. In contrast, Lockheed Martin's stock has risen by 25.09% in 2024, reaching $570.58. The vast difference in valuation metrics between the two companies underscores their distinct market positions. Palantir's price-to-earnings ratio stands at a substantial 304.78, while Lockheed Martin maintains a more traditional defense industry ratio of 20.64.
This development underscores Palantir's rapid rise and its growing influence in the market. Before the surge in valuation, Palantir made strategic moves including collaborations with Amazon and Meta for U.S. defense projects. Palantir's robust financial performance, marked by a 30% year-over-year revenue increase and a 39% growth in customer count, has won praise from analysts. Wedbush analyst Dan Ives described the company as the "Messi of AI."
Meanwhile, Lockheed Martin has been executing its own strategic initiatives, collaborating with Meta, Amazon, and Microsoft on defense AI projects, and reported a strong $2.1 billion in free cash flow for the third quarter.
