Alex Karp Says Elon Musk's DOGE Initiative Will Be 'Very Good' For Palantir: 'Expecting To See Really Unexpected Things And To Win'
Palantir Technologies Inc. (NYSE:PLTR) CEO, Alex Karp, has shown enthusiasm for the Elon Musk-led Department of Government Efficiency (DOGE) and its potential influence on his company.
What Happened: Established by President Trump two weeks ago with Elon Musk at the helm, DOGE aims to implement cost-cutting measures. Despite the possible effects on companies dependent on government contracts, Karp views DOGE as a positive disruptor.
During Palantir’s Q4 earnings call on Monday, Karp referred to the DOGE initiative as a “revolution” that will be “very good” for the company in the long run.
"There will be ups and downs. There's a revolution. Some people are going to get their heads cut off. We're expecting to see really unexpected things and to win."
Palantir, well known for landing significant federal contracts, reported a 36% year-over-year revenue increase in Q4 2025, with U.S. government contracts contributing $343 million—up 45% from the previous year.
Palantir's CTO, Shyam Sankar, reiterated Karp’s sentiments, stating that the company’s values align with DOGE’s mission. He believes that DOGE’s emphasis on accountability and transparency will create opportunities for Palantir’s work.
SEE ALSO: Palantir Stock Is Surging Tuesday: What’s Going On?
Why It Matters: Palantir has traditionally relied on federal contracts as the foundation of its revenue. The company’s Gotham platform, a vital resource for defense and intelligence agencies, highlights its strong foothold in the government arena.
Palantir’s CEO, Karp emphasized a surge in ‘untamed’ demand for its artificial intelligence software. The company forecasted revenue of $3.75 billion in 2025, surpassing analysts' estimates. Following the company’s better-than-expected financial results for the fourth quarter, several analysts also lifted price targets. The total revenue grew 36% year-over-year, driven by strong U.S. revenue growth of 52% year-over-year.
Wedbush's Dan Ives in an interview on CNBC's "Closing Bell: Overtime." said that buying Palantir stock right now could be like buying Tesla Inc. (NASDAQ:TSLA) stock in 2015. He stated, "When you start to look out to the next three, four, five years … this could be a $1 trillion market cap."
Price Action: PLTR stock ended 23.99% higher at $103.83 at the market close yesterday, according to data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.