Palantir Technologies (NASDAQ:PLTR) has ridden a rocket ship of AI-inspired growth, delivering returns north of 2,000% over the past three years. Its Q2 2025 numbers reflected little doubt that this is a company that is firing on all cylinders – with revenue growth up 48% year-over-year.
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The company’s momentum shows no signs of slowing down, as Palantir is guiding for its largest sequential quarterly revenue growth in its history. So, if everything is so groovy, what’s the catch?
That would be the company’s valuation, which is steep by pretty much any possible metric. Indeed, PLTR is trading at a 1-Year Forward Price-to-Sales ratio north of 100x – in other words, not cheap.
Is PLTR’s price simply too much? Not according to the top investor known by the pseudonym Deep Value Investing, who isn’t deterred by the premium price.
“Palantir is not for traditional value investors, let alone deep value investors (like I was before the AI wave). This is a growth stock and one of the few pure plays on AI implementation,” explains the 5-star investor, who is among the top 2% of stock pros covered by TipRanks.
Deep Value notes that Palantir’s growth cadence is skipping along quite nicely, including a number of high-profile deals announced since the last quarterly release. The investor is also taking a special interest in Palantir’s strategic partnership with the UK government, which Deep Value predicts will help Palantir achieve further growth with both NATO and European Ministries of Defense.
“Any catalyst to the international segment is music to my ears,” adds the investor.
While the valuation is high, so are the odds that Palantir will continue to deliver another earnings beat when it reports its Q3 2025 numbers on November 3rd, assesses Deep Value.
“I am now ultra-bullish on PLTR, expecting the company to outperform Street estimates in Q3 and maintain its upward trajectory,” sums up Deep Value Investing, who is upgrading PLTR to a Strong Buy. (To watch Deep Value Investing’s track record, click here)
Wall Street is a bit more circumspect when it comes to PLTR. With 13 Holds – along with 5 Buys and 2 Sells – PLTR carries a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $158.39 points to a downside of ~12%. (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.