Stock-Split Watch: Is Palantir Technologies (PLTR) Next?

Palantir's stock surge puts it squarely in the stock-split conversation—joining the ranks of tech giants who've sliced shares to attract retail investors.

Riding the AI wave

PLTR's artificial intelligence platforms are driving institutional adoption, pushing valuations into nosebleed territory. The stock's run-up mirrors crypto's best performers—without the regulatory headaches.

Retail appeal meets institutional muscle

A split could democratize ownership while Wall Street whales keep accumulating. Because nothing says 'mainstream adoption' like lowering the entry barrier for mom-and-pop investors chasing the next big thing.

Because sometimes the real alpha isn't in the technology—it's in the financial engineering that makes expensive stocks look cheap.

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Stock splits can be a great tool

For high-flying stocks, a stock split can be very helpful. It increases the investor base by making the stock more accessible to smaller investors. It also makes the stock more accessible to options traders, as options have a 100 contract multiplier -- a single options contract controls 100 shares of stock. So, it's easier for more people to trade options when a company's stock is $50 rather than $500.

Finally, a stock price that's too high can affect whether a company can appear in the prestigious. Companies want to be in the Dow because there are exchange-traded funds that track the index's movements, which instantaneously means more shares are sold. However, the Dow only has 30 companies and is highly selective. And it's also price-weighted, which means a company whose stock has a higher price can have a disproportionate influence over the movements of the index.

For example,completed a 10-to-1 stock split in June 2024 and then was added to the Dow later that year.

Is a Palantir stock split in the cards?

That brings us to(PLTR -0.19%). The data mining company has a one-of-a-kind artificial intelligence platform that helps both commercial businesses and government agencies perform analyses and make decisions in real time. The company's stock began its mammoth rise in 2023 and is up more than 2,000% in the last three years. Palantir's 340% gain in 2024 made it the's top gainer, and its 118% year-to-date return ranks it No. 2 behind just.

Palantir scored its first quarter of $1 billion revenue this year, as second-quarter sales jumped 68% from a year ago. The company also closed $2.27 billion in total contract value sales, up 140% from last year, and its customer count grew 43% for the quarter. So, the company's growth ramp is just beginning.

Does that mean that Palantir will be the next company to split its stock? That's hardly likely. The company's stock price is just $165 per share at this writing, which still makes it accessible to retail investors and options traders. I've already talked about how Nvidia and Chipotle were more than $1,000 per share when the boards of those companies approved a split.shares were $2,255 in 2022 before the company executed a 20-for-1 split;shares were $2,000 when it did a 5-for-1 split in 2020 and around $900 in 2022 before its 3-for-1 split;, which performed a 15-for-1 stock split in June, was trading at $1,348.

Palantir has a long way to go before its board should even consider a stock split. But if it ever crosses the $500 mark, then it would likely be something to consider.