Should You Buy Palantir Technologies Stock Before Aug. 4?
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The Motley Fool

Should You Buy Palantir Technologies Stock Before Aug. 4?

July 27, 2025
03:02 AM
7 min read
AI Enhanced
investmentfinancial

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The data mining and artificial intelligence (AI) specialist is firing on all cylinders, but the answer is still complicated.

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7 min read

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investment

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Published

July 27, 2025

03:02 AM

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The Motley Fool

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Interestingly, The advent of artificial intelligence (AI) several years ago sparked a paradigm shift in nology that will ly continue for the next decade

Nevertheless, Generative AI has the potential to line cesses, increase ductivity, and drive more fits to the bottom line (something worth watching)

This has large and small es a eager to join the AI revolution, but many simply don't know how to get started

Moreover, Palantir nologies (PLTR 2 (fascinating analysis) (something worth watching). 59%) recognized the need and responded accordingly

The company developed a system designed to vide real-time, data-driven solutions while viding companies with a way to get started, and the results speak for themselves, in today's financial world

The stock has gained 421% over the past year (as of this writing) and is up 1,890% since AI went viral in late 2022

The company faces a key test with investors when Palantir reports its second-quarter results after the market close on Aug

Nevertheless, Given the stock's blistering returns over the past year, should investors buy Palantir stock ahead of this crucial financial report, or wait until after the results have been made public

Let's see what we can learn from the available evidence, in today's market environment

Image source: Getty Images, given the current landscape

AI before it went viral While generative AI has been all the rage over the past couple of years, Palantir has been data mining and AI solutions long before it became fashionable

The company worked in relative obscurity for years, designing AI-powered solutions for U

Intelligence agencies and other federal departments

After establishing itself as the gold standard for government AI solutions, Palantir turned its attention to corporate America and created a platform that could devise elegant solutions to everyday blems

In contrast, By connecting siloed software systems through a central dashboard, Palantir created a system that vides data-driven intelligence and actionable insights

The evidence shows company's most recent brainchild, its Artificial Intelligence Platform (AIP), leverages company-specific information to craft custom solutions, considering recent developments

Many executives are keen to benefit from the windfall of AI, but have no idea how to implement the appriate systems, amid market uncertainty

Additionally, That's where Palantir comes in, in today's market environment

Executives and developers are partnered with Palantir engineers to create solutions for their most pressing issues. "These immersive, hands-on sessions allow new and existing customers to build alongside Palantir engineers, all working toward the common goal of deploying AI in operations," Palantir said, given the current landscape

Nevertheless, Its success is irrefutable

In the first quarter, Palantir's revenue grew 39% year over year, while adjusted earnings per (EPS) jumped 63%

That's only part of the story (something worth watching)

Commercial revenue -- which includes AIP -- surged 71%, while the segment's customer count climbed 65%

Additionally, the segment's remaining deal value (RDV) -- which vides a glimpse into the company's future growth trajectory -- soared 127% (an important development)

Nevertheless, It's also worth noting that each of these growth rates is accelerating

Furthermore, sales and fits have ratcheted higher for nine consecutive quarters, with no signs of slowing, in today's financial world

Wall Street's (short-term) view The stock's parabolic run over the past few years has kicked its valuation into the stratosphere

Palantir is currently selling for 255 times forward earnings and 90 times forward sales, which most investors would concede is a pricey valuation, and Wall Street seems to agree

Of the 25 analysts who offered an opinion on Palantir in July, only four rate the stock a buy or strong buy, while 16 recommend holding, and five rate it underperform or sell

That means 84% of analysts don't believe Palantir is a buy right now

Moreover, However, it's important to point out that Wall Street analysts tend to focus on the next 12 to 18 months

Given that Palantir's growth story is expected to play out over the next decade or longer, the two views are at odds

Furthermore, those disparate opinions can both be right: In the short run, Palantir stock could fall or enter a period of multiple compression, in which the fundamentals continue to imve while the stock remains range-bound

It could also be a massive winner over the next decade for investors with the intestinal fortitude to hold through the volatility that's sure to come

Focus on the long-term Given the current environment and the unresolved issues of inflation and tariffs, it's easy to imagine executives delaying unnecessary spending

That said, the economic uncertainty could be a catalyst for Palantir, according to Ark Investment Management CEO Cathie Wood. "When es and consumers are scared, they'll change the way they do things, and that's usually good for the companies that are helping others do things better, cheaper, faster, more creatively, and more ductively," she said

Wood believes Palantir's prietary solutions position the company well for the continued adoption of AI (remarkable data). "We think Palantir is going to be one of the biggest beneficiaries as companies try and make themselves more efficient and move into the AI age," she said, "You've got the C-suite really trying to figure this out, understanding strategically that if they don't jump into the AI age, they'll be left behind, in today's market environment

Conversely, " There's more

In a post on X (formerly Twitter) on Saturday, Wood said (emphasis mine), "CEO Alex Karp believes that [Palantir] will become the largest pure-play enterprise AI software company in the world (remarkable data)

I believe him, considering recent developments. " Image source: Getty Images

Additionally, Should you buy before Aug

Moreover, As a general rule, I shy away from date-driven stock buying

I tend to be more successful when I take a step back and view the company's execution, competition, and market opportunity holistically

Palantir's execution thus far has been stellar

The company's unique apach will make it hard for would-be competitors to replicate Palantir's results

Additionally, It's difficult to accurately size the market opportunity for AI, and estimates vary wildly

Additionally, In Ark Invest's Big Ideas 2025 report, Wood calculates that the AI software opportunity alone could be worth $13 trillion by 2030

On the other hand, There's a lot to Palantir, and I have purchased the stock several times in recent years

In most instances, valuation isn't something I consider, but it's hard to ignore in the case of Palantir (this bears monitoring)

That said, I still believe the stock is worth owning -- as long as investors know what they're getting into, in today's financial world

Palantir comes with extraordinarily high multiples, in this volatile climate

That, combined with the company's rapid growth, is the very recipe for extreme volatility, in light of current trends

I'd be comfortable predicting that, at some point over the next 18 months, Palantir stock will ly plunge by 50%, in light of current trends

Does that mean I plan to sell the stock, amid market uncertainty

Additionally, Not at all

It simply means I'm prepared for the inevitable ups and downs that are part of the cost of admission for owning a high-growth stock such as this, in today's financial world

Those disclaimers aside, investors looking to establish a position in Palantir should consider a small position and add opportunistically on any weakness

Dollar-cost averaging is another potential strategy, as it allows investors to build a position over time, adding more s when the price is lower and fewer when the valuation is higher, considering recent developments

I stand by the assertion that being a Palantir holder isn't for the faint of heart (this bears monitoring)

That said, for those who adopt a long-term outlook and can withstand the inevitable volatility, I expect it to be a fitable investment 10 years from now.