There were few better stocks to own in 2024 than Palantir ( PLTR 5.00%). It rose 341% in just a year, and 2025 hasn't been so bad, either. It has risen around 20% so far this year, but at the time of this writing, it is down 30% from its all-time high set just a few weeks ago.

Shares of the data-analytics firm have tumbled on expectations that the Trump administration will cut defense spending.

To illustrate, consider that Palantir generated $2.87 billion in revenue last year. If the company grows its revenue by 30% annually for the next five years, its top line will reach $10.65 billion. Apply a 30% profit margin -- which would be a significant expansion from current levels -- and you get $3.20 billion in annual earnings.