Palantir (NASDAQ:PLTR) stock has long moved past its newcomer status, establishing itself as a central player in the race to adopt AI. The company’s Q3 2025 earnings release last week offered clear proof that its momentum – and its staying power – are anything but a fluke.
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Revenue jumped 63% year-over-year to $1.18 billion, total contract value soared 151% to $2.8 billion, and its Rule of 40 score hit a stunning 114%, a figure you almost never see from a company of this scale.
The big fear, however, is that much of Palantir’s future growth has already been factored into its share price, as its valuation metrics have run up to exceptionally elevated levels that are in some cases thousands of percent over its sector averages.
That’s why top investor Rick Orford remains a bit skeptical about PLTR, even as he acknowledges the company’s remarkable performance and long-term potential.
“Palantir right now isn’t just another AI story. It’s a full-blown bet on whether governments and corporations will let a single company become the brain behind their decision making,” explains Orford, who is among the top 1% of stock pros covered by TipRanks.
Orford is quick to praise Palantir’s rapid ascent, calling its growth “numbers that most companies would kill for.” But at the same time, he cautions that Palantir’s influence runs far deeper than traditional client relationships – the company isn’t merely serving its customers; it’s embedding itself within their most sensitive decision-making systems.
“Palantir doesn’t just show you the data, it tells you what to do with it. And that’s so powerful,” declares Orford, who adds that ultimately “it’s about control.”
That’s another level of “stickiness” that Palantir brings to the table, according to the investor. The company has had plenty of success with U.S. government clients, and more recently has been able to secure a healthy number of industry customers.
And that’s another wager those considering PLTR need to weigh, as strong future growth rates will depend on its ability to continue appealing to the private sector.
“When you buy Palantir today, you’re betting that its commercial revenue is going to outpace what they get from the government,” sums up Orford. (To watch Rick Orford’s track record, click here)
Wall Street is on the fence when it comes to PLTR. With 3 Buys, 11 Holds, and 2 Sells, the stock carries a consensus Hold (i.e., Neutral) rating. The 12-month average price target of $187.87 suggests the shares will stay rangebound for the time being. (See PLTR stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.