Amongst 27 Wall Avenue analysts, Palantir has a median goal worth of $96 per share, which suggests 20% draw back from its present worth of $120 per share.
Forrester Analysis not too long ago ranked Palantir as a frontrunner in synthetic intelligence platforms, a market forecast to develop at 40% yearly by means of 2028
Palantir at present has a price-to-earnings-to-growth (PEG) ratio that exceeds 8, which is an outrageously costly valuation by any customary.
Palantir Applied sciences(NASDAQ: PLTR) was the very best performing inventory within the S&P 500(SNPINDEX: ^GSPC) in 2024. The corporate noticed its share worth surge 340% as sturdy demand for its synthetic intelligence platform led to spectacular monetary outcomes all year long.
Palantir has maintained its momentum in 2025. Its year-to-date return of 57% means it’s as soon as once more the very best performer within the S&P 500, partly as a result of buyers have proven a transparent choice for software program and companies firms that will escape tariffs unscathed.
The place to speculate $1,000 proper now? Our analyst group simply revealed what they consider are the 10 finest shares to purchase proper now. Continue »
Nonetheless, Wall Avenue clearly thinks buyers ought to keep away from the inventory at its present valuation. Among the many 27 analysts who comply with Palantir, the media, goal worth is $96 per share. That means 20% draw back from the present share worth of $120.
Learn on to study extra.
Palantir develops information analytics software program for industrial and authorities organizations. Its core merchandise, Gotham and Foundry, let prospects apply machine learning fashions to complicated information to uncover insights and optimize decision-making. Its synthetic intelligence platform, AIP, enhances the core merchandise with assist for big language fashions.
Palantir sees itself as the one software program firm that may assist companies operationalize AI — that’s, transfer AI capabilities from prototype to manufacturing in a fashion that creates actual operational worth. CEO Alex Karp informed analysts, “We’re the one firm in America, the one related market, that may permit you to do helpful issues with massive language fashions.”
Palantir reported robust fourth-quarter monetary outcomes that crushed expectations on the highest and backside strains. Prospects elevated 43% to 711 and the common current buyer spent a further 20%. In flip, income elevated 36% to $828 million, the sixth straight acceleration, and non-GAAP internet revenue rose 75% to $0.14 per diluted share. The corporate is nicely positioned to take care of that momentum.
Forrester Analysis not too long ago acknowledged Palantir as a know-how chief in synthetic intelligence and machine studying platforms, awarding AIP greater scores that related options from Alphabet‘s Google and Microsoft. That makes the corporate a key participant in a really massive addressable market. Worldwide Knowledge Corp. estimates AI platform gross sales will develop at 40% yearly to hit $153 billion by 2028.
Picture supply: Getty Pictures.
Palantir will announce its first-quarter monetary outcomes after the market closes on Monday, Could 5. Wall Avenue analysts anticipate one other distinctive print. The consensus estimate says income will enhance 36% to $862 million, whereas adjusted earnings enhance 62% to $0.13 per diluted share.
Nonetheless, the market could have larger expectations on condition that Palantir beat the consensus earnings estimate by a median of 13% over the past six quarter. Failure to satisfy these excessive expectations might trigger a steep sell-off, particularly when the inventory trades at greater than 100 instances gross sales, a valuation a number of few software companies have ever attained.
Additional forward, Wall Avenue estimates Palantir’s earnings will enhance 35% in 2025. That consensus makes the present valuation of 290 instances earnings look very costly. These figures give a price-to-earnings-to-growth (PEG) ratio above 8, which screams overvalued. Historically, PEG ratio above 2 or 3 are thought of excessive.
With that in thoughts, probably the most prudent plan of action for potential buyers can be to attend for a greater entry level earlier than buying the inventory. That does not imply shares will not rocket greater after the corporate reviews earnings subsequent week. However the risk-reward profile is closely tilted towards danger proper now, which suggests there are higher locations for buyers to place their cash.
Before you purchase inventory in Palantir Applied sciences, contemplate this:
The Motley Idiot Inventory Advisor analyst group simply recognized what they consider are the 10 best stocks for buyers to purchase now… and Palantir Applied sciences wasn’t one in every of them. The ten shares that made the reduce might produce monster returns within the coming years.
Contemplate whenNetflixmade this listing on December 17, 2004… in the event you invested $1,000 on the time of our advice,you’d have $610,327!* Or when Nvidiamade this listing on April 15, 2005… in the event you invested $1,000 on the time of our advice,you’d have $667,581!*
Now, it’s value notingInventory Advisor’s complete common return is882% — a market-crushing outperformance in comparison with161%for the S&P 500. Don’t miss out on the most recent prime 10 listing, out there once you be part ofInventory Advisor.
Suzanne Frey, an govt at Alphabet, is a member of The Motley Idiot’s board of administrators. Trevor Jennewine has positions in Palantir Applied sciences. The Motley Idiot has positions in and recommends Alphabet, Microsoft, and Palantir Applied sciences. The Motley Idiot recommends the next choices: lengthy January 2026 $395 calls on Microsoft and quick January 2026 $405 calls on Microsoft. The Motley Idiot has a disclosure policy.
