Palantir (PLTR) keeps its AI-market star power. Shares ripped to an all-time closing high of $186.97 on Aug. 12 after tagging $190 intraday. The mood changed days later as expensive tech sold off. The stock has bounced since, but it still sits roughly 4% below the record close and about 6% below the intraday peak.
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On Monday, shares slipped 1.1% to $180.36 while peer C3.ai (AI) rose 1.8% and the S&P 500 (SPX) added 0.2%. Even with that dip, Palantir is still up nearly 140% in 2025, powered by relentless AI enthusiasm and heavy hyperscaler spending.
Analysts Praise Execution Yet Hold Back on Ratings
D.A. Davidson’s Gil Luria, rated 5-star on TipRanks, kept a Neutral rating. He said Palantir’s recent performance “made us question everything we know about software.” He meant that as praise. Palantir’s strength is stitching together many data sources without breaking security, which shortens rollout time for AI inside large organizations. This plays well with teams that need working tools now, not pilots that drag on.
Luria also said Palantir’s model lets it embed engineers at customers and sell “outcome-based” deals that CFOs prefer. In his view, today’s AI urgency lets Palantir tap business-line budgets that sit outside tight IT buckets. That urgency keeps pipelines full in both government and commercial accounts.
Palantir Sells Confidence as a Product
Luria called it “main character energy.” The company’s brash style, led by CEO Alex Karp, once turned some buyers off. In a period of uncertainty, that edge now attracts customers who want conviction and a mission. Palantir’s roots in national security give it a clear story, and some buyers want a partner that talks about defending Western institutions and then shows up to deliver.
This aura pairs with momentum. Government demand remains steady. Commercial demand is expanding. The company packages software and services into one offer and promises results. That formula has worked in a market racing to adopt AI quickly.
Palantir’s Valuation Forces Hard Questions
The stock is expensive by any normal yardstick. As of Friday, Palantir traded at a forward P/E near 233 versus about 23 for the S&P 500. That gap requires years of high growth and clean execution. It also leaves little room for stumbles if budgets slow or competitors close the gap.
Mizuho’s Gregg Moskowitz kept a Neutral rating with a $165 target. His team called the execution “stunning” across government and commercial but said shares trade at an “extreme” multiple of 2025–2026 EV/sales. They warned of “material multiple reversion” in coming quarters if expectations get too far ahead of reality.
Wall Street Splits While Fundamentals Improve
According to TipRanks, 13 analysts rate Palantir a Hold, four say Buy, and two say Sell. This distribution tells the story. Analysts like the business. They do not like the price. Many want to see more time, more revenue diversity, and more proof that outcome-based deals scale without crushing margins.
None of that erases the operating progress. The company keeps landing new commercial logos while staying entrenched in government work. The AI budget “urgency” theme is real. The product architecture is sticky once deployed. The question is how much of that is already in today’s share price.
Investors Weigh Hype against the Math
For believers, Palantir has the right product, the right posture, and a long runway. If the company keeps turning urgency into long contracts and expanding seats, the story can compound. Bulls argue that a premium is the cost of owning category leaders early.
For skeptics, the entry point matters. A forward P/E above 200 leaves thin downside protection if growth cools or if cheaper rivals gain ground. A Neutral stance is not a knock on the business. It is a guardrail on valuation. In plain English, Palantir can be a great company and still be a so-so buy at the wrong price.
Overall, Palantir has the attention and the results to back it up. It also has a valuation that assumes the movie never slows down. If you want in, size the position and respect the risk. If you are already in, the next leg likely depends on sustained commercial wins and proof that “main character energy” translates into durable, profitable growth.
Is Palantir Stock a Buy, Hold, or Sell?
Fresh data from Wall Street shows analysts aren’t rushing to call Palantir a screaming buy. Out of 19 analysts tracked in the past three months, 13 rate the stock a Hold, four call it a Buy, and two say Sell. This distribution leaves Palantir with a consensus rating of Hold.
The average 12-month PLTR price target sits at $154.47, about 14% below the latest trading price.
