Wall Street Can’t Agree on Palantir: Bubble or Billion-Dollar Breakout?
The AI darling just crushed earnings and surged nearly 8%, but skeptics say the numbers don’t justify the hype
Palantir Technologies Inc (PLTR, NASDAQ) is a equity in the USA market. The price is 179.19 USD currently with a change of 5.92000 (0.03417%) from the previous close. The intraday high is 180.485 USD and the intraday low is 171.07 USD. The latest open price was 171.28 USD and the intraday volume is 41,828,043. The latest trade time is Wednesday, August 06, 15:10:33 UTC.
Palantir shot up nearly 8 percent on August 5, 2025, after beating Q2 expectations with over $1 billion in revenue, marking the company’s first-ever billion‑dollar quarter. U.S. government revenue climbed 53 percent YoY to $426 million, while U.S. commercial revenue jumped 93 percent to $306 million. Management also raised the 2025 revenue forecast to $4.14–$4.15 billion, signaling continued momentum across both public and private sectors.
As PLTR approaches a $400 billion market cap, bulls underscore its rapid expansion: AI tailwinds, record contract values, and placement in the S&P 500 as the top performer—up over 130 percent year‑to‑date and 340 percent in 2024. Wedbush analyst Daniel Ives even envisions a potential $1 trillion valuation if growth continues.
Yet skeptics highlight a dizzying P/E ratio—around 660–700x trailing earnings—far above the 12‑month average of ~386x, and well above the typical software sector norms. This elevated metric stirs concerns of overvaluation and vulnerability to any growth slowdown or missed projections. Only 2 out of 12 analysts now rate it a strong "buy", while most advise "hold" or even "sell", with average price targets near $107, nearly 30 percent below current levels.
On the technical front, the stock shows clear bullish signals: a pattern of higher highs, firm support above its 50‑day moving average, and strong options positioning hinting at both enthusiasm and wariness in future price action.
The debate extends to execution risk: can Palantir continue doubling deals larger than $1 million, expand from defense into commercial sectors like healthcare and manufacturing, and manage rising costs tied to aggressive hiring? Bulls argue yes—citing AI platform AIP and large federal contracts (including a $10 billion U.S. Army deal), while bears caution that much of its growth is already priced in.
In summary, Palantir (PLTR, NASDAQ) remains a lightning rod. Bulls see explosive AI-driven growth, major government wins, and a trajectory toward unprecedented scale. Bears point to sky‑high valuation, potential for sharp pullbacks, and reliance on execution to justify the lofty price.
