Palantir Stock: Buy Now or Brace for Impact? 2025’s Ultimate Verdict

Data-mining giant Palantir either revolutionizes governance—or just sells high-tech snake oil. Its stock dances on a razor's edge.

The AI Gold Rush

Palantir's artificial intelligence platforms attract government contracts like moths to a flame. Gotham and Foundry software don't just analyze data—they predict outcomes, slicing through bureaucratic red tape.

Commercial Expansion Hits Turbulence

While government work provides stability, commercial growth sputters. Enterprise sales teams face fierce competition from cloud-native upstarts offering cheaper—if less sophisticated—solutions.

Financials Under the Microscope

Revenue climbs steadily but profitability remains elusive. The stock trades at premium multiples, betting heavily on future dominance in a market that changes overnight.

Wall Street's Love-Hate Relationship

Analysts can't decide whether Palantir represents visionary tech or overhyped vaporware. Price targets swing wildly—because nobody actually understands how to value a company that treats its financials like state secrets.

Bottom Line: High-Risk, Higher-Reward

This isn't an investment—it's a speculation on Peter Thiel's ability to outsmart entire industries. Buy if you believe in data-driven clairvoyance; avoid if you prefer companies that generate actual profits instead of PowerPoint prophecies. After all, what's more speculative than betting on surveillance tech? Maybe crypto—but at least blockchain doesn't come with ethical baggage.

Image source: Getty Images.

The short answer to whether or not you should buy Palantir's stock right now is no, but it doesn't have to do with its business performance. The reason is its extremely high valuation. Palantir is currently trading at 275 times its projected earnings over the next 12 months.

With such a high valuation, it's obvious that investors have extra lofty expectations for Palantir. In fact, many WOULD argue that they are too lofty. To grow into this valuation, Palantir would need to sustain earnings growth over many years that seems very far-fetched. Anything short of Palantir meeting its lofty expectations would likely lead to a sharp pullback in its stock price.

If you currently hold Palantir's shares, I would hold on to them. But now doesn't seem like an ideal time to make your first investment or add to your stake.