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Palantir Just Hit a Record High. What's the Smart Move Now?

July 19, 2025
04:45 PM
4 min read
AI Enhanced
stockstradingtechnologyartificial intelligencemarket cyclesseasonal analysisvaluation

Key Takeaways

With shares already doubling in 2025, is it time for investors to take their profits?

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4 min read

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investment

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Published

July 19, 2025

04:45 PM

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The Motley Fool

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Key Topics
stockstradingtechnologyartificial intelligencemarket cyclesseasonal analysisvaluation

Interestingly, With s already doubling in 2025, is it time for investors to take their fits

Data and artificial intelligence company Palantir (PLTR -0, in this volatile climate. 34%) seemed to defy gravity in 2024, in light of current trends

Additionally, Furthermore, S more than quadrupled, rising a staggering 340%

At the same time, With such an incredible rise, you'd be forgiven for guessing that the stock would cool off in 2025 (remarkable data), given the current landscape

Furthermore, But, so far, the opposite is true

However, S are heating up, rising by more than 105% year to date as of this writing

This has given the stock a gain of apximately 800% since the start of 2024

With s trading at record highs

At the same time, What should investors do

Meanwhile, Does it make sense to buy more s and hope the momentum continues

Or should investors take a more cautious apach and hold or even sell the stock, in this volatile climate

Image source: Getty Images

Furthermore, Soaring sales One thing Palantir really has going for it is its top-line growth

The company posted first-quarter revenue of $884 million, up 39% year over year

Highlighting the company's momentum, this was an acceleration from 36% year-over-year growth in the previous quarter (an important development)

Fueling Palantir's first quarter of 2025 was 55% year-over-year growth in U, in this volatile climate

Moreover, Accounting for $628 million of the quarter's total revenue, the U (which is quite significant)

Additionally, Market is vital for Palantir, in light of current trends

Meanwhile, Supporting this market was a 71% year-over-year increase in commercial revenue and a 45% jump in government revenue

Zooming out to all of the company's, Palantir said in its first-quarter that it closed 139 deals worth $1 million or greater, 51 deals worth at least $5 million, and 31 deals worth $10 million or more

With these strong results now behind it, management had the confidence to raise full-year revenue guidance

Nevertheless, The company said it now expects 2025 revenue to be between $3. 890 billion and $3. 902 billion, considering recent developments

This compares to revenue of $2, in light of current trends

However, Nevertheless, 9 billion in 2024

This demonstrates that midpoint of management's 2025 revenue guidance range, therefore, assumes 36% growth

However, This impressive top-line growth is bolstering fits

Conversely, Palantir's first-quarter net income was apximately $214 million, more than double its fit of $106 million in the year-ago quarter (an important development)

However, S from Palantir co-founder and CEO Alexander Karp in the company's first-quarter earnings call suggest he believes the company is still in its early innings. "We're in the middle of a tectonic shift in the adoption of our software, particularly in the U. " Karp noted, amid market uncertainty. "We're dering the operating system for the modern enterprise in the era of AI. " A valuation blem While Palantir's top-line momentum is certainly impressive, there's one big blem for investors: The market seems to have already priced in more rapid growth for years to come

Today, Palantir's market capitalization sits at $365 billion -- more than 93 times the high end of management's guidance range for full-year 2025 revenue

Using the company's trailing-12-month sales, Palantir currently has a price-to-sales ratio of 123

The data indicates that would be a high figure even for a price-to-earnings ratio (which is quite significant)

Additionally, And what is Palantir's price-to-earnings ratio (this bears monitoring), considering recent developments

Yes, you heard that right (this bears monitoring), in light of current trends

This analysis suggests that 's safe to say that investors have already bid up the stock to a level that prices in the most optimistic assumptions for this company

So, what should investors do

Nevertheless, The data indicates that decision is a personal one -- one that you'll have to make on your own

However, if I owned the stock, I'd sell

And for those who don't own s, I'd avoid them the plague at this price (noteworthy indeed)

Nevertheless, Of course, I could be wrong

It's always possible that Palantir exceeds even my most bullish assumptions (quite telling), considering recent developments

Still, I believe there are ly better places with less risk and greater upside potential for investors to allocate their capital

Palantir is a great company

But expectations are simply too high, in light of current trends

Investors would be wise to wait to see if they can buy s at a better entry price (which is quite significant)

Daniel Sparks and his clients have no position in any of the stocks mentioned, given the current landscape

What the data shows is Motley Fool has positions in and recommends Palantir nologies

Nevertheless, The Motley Fool has a disclosure policy.