It currently receives 0.15% of all US defense spending, which accounts for 55% of its revenue and it operates at a 16% margin. So it would need...
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The original was posted on /r/wallstreetbets by /u/LawrenceSellers on 2025-05-05 23:48:29+00:00.

It currently receives 0.15% of all US defense spending, which accounts for 55% of its revenue and it operates at a 16% margin. So it would need about 66x that to grow into its current valuation assuming an eventual PE ratio of around 20 once its growth stabilizes.

For comparison, Lockheed Martin, the largest US defense contractor, only receives 6% of all US defense spending, or about 40x what PLTR gets.

Anyone buying PLTR at its current valuation is betting that it will not only catch up to LMT in terms of revenue from US defense spending (a tall order), but also that it will eventually capture almost twice as much US defense spending as Lockheed (again, the largest US defense contractor) does.

And even that far-fetched scenario happened, let’s not forget: you still have to find someone to pay you more for your shares than you bought them for to have any return on your investment.

Btw, PLTR is currently valued at the equivalent of THREE Lockheed Martins.

TL;DR: LOL at PLTR bag holders.