Wall Street analysts have a history of misunderstanding Palantir Technologies (NYSE: PLTR), and Brent Thill from Jefferies is keeping that tradition alive. Despite Palantir’s 65% stock surge in 2024, a blowout Q4 earnings report, and a 30% revenue growth forecast for 2025, Thill still insists on pushing his ‘underperform’ rating.

His latest argument? Palantir isn’t hiring fast enough.

Yes, you read that correctly. Thill is concerned that Palantir’s headcount only grew by 5% last year, suggesting this could mean one of three things:

1. Palantir’s AI opportunity isn’t as big as people think.

2. Palantir is cutting jobs elsewhere to offset engineering hires.

3. Palantir over-hired two years ago.

These theories sound compelling—until you remember that Alex Karp has already debunked them on multiple earnings calls.

Palantir Doesn’t Need a Massive Workforce—AI Does the Heavy Lifting

Karp has repeatedly stated that Palantir doesn’t need to hire thousands of employees because its own AI makes the company more efficient.

This isn’t some vague corporate buzzword. Palantir’s AI-first approach allows them to scale revenue without scaling headcount.

• Karp has explicitly said Palantir can “power whole industries with 100 people.”

• The company’s AIP (Artificial Intelligence Platform) automates complex processes, replacing the need for an army of engineers.

• Unlike traditional enterprise software companies, Palantir isn’t interested in chasing 10,000 clients. Instead, it focuses on dominating key industries and defense contracts.

Thill’s argument is based on an outdated assumption that companies must throw bodies at problems to grow. Palantir is proving that AI-first businesses don’t play by those rules.

If Headcount = Growth, Why Is Palantir’s Revenue Soaring?

Let’s talk numbers:

• Palantir’s Q4 revenue surged 36% YoY to $828 million.

• Adjusted earnings hit $1.16 billion in 2024 and are projected to reach $1.56 billion in 2025.

• Commercial revenue grew 70% as Palantir expands its enterprise AI solutions.

All of this happened without a hiring explosion. If Thill were correct, Palantir’s revenue would be stagnant—but it’s accelerating.

Brent Thill’s Track Record on Palantir: Wrong, Wrong, and More Wrong

This isn’t the first time Thill has completely missed the mark on Palantir.

• He had a $28 price target on the stock before earnings. Oops, it nearly doubled.

• Now he’s bumped it up to $60 while still calling it an ‘underperform.’

• Palantir’s market cap continues to grow, and Thill keeps pretending AI-powered efficiency is a bad thing.

Conclusion: Wall Street Doesn’t Understand AI-Driven Efficiency

Palantir isn’t running an old-school tech company. It’s leading the charge in AI-powered enterprise solutions, streamlining operations, and maintaining profitability—all without mass hiring.

Brent Thill is stuck in the past, judging Palantir by metrics that don’t apply to AI-driven companies. His take that “not hiring enough” is a red flag completely ignores Palantir’s business model and the clear financial results that prove otherwise.

Palantir doesn’t need thousands of extra employees. AI is already doing their jobs.

Maybe it’s time for Wall Street analysts like Brent Thill to upgrade their own understanding of AI—before they get left behind.