Palantir Just Hit a Record High. What's the Smart Move Now?
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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July 19, 2025
04:45 PM
The Motley Fool
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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.
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