Is Palantir Stock a Buy Above $150?

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4 days ago

Once known for its secretive government work, Palantir Technologies (PLTR) has risen to prominence as a data analytics and artificial intelligence (AI) powerhouse. Its flagship AI Platform (AIP) is now being adopted across industries, from defense to healthcare to finance, cementing the company's shift from niche contractor to global AI enabler. With soaring demand for secure, scalable AI tools, Palantir looks poised to thrive in the AI arms race.
Now, PLTR stock is back in the spotlight. Shares popped 5% on July 14 and hit an all-time high of over $155 on July 17, eclipsing the July 14 peak of $149.58. The rally follows a flood of government contracts, surging commercial adoption, and bold analyst forecasts placing Palantir among the world's top AI contenders.
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Clearly, momentum is strong, and investor sentiment is even more enthusiastic. But with the stock soaring and valuation risks emerging, can PLTR still be considered a buy above $150?
About Palantir Stock
Founded in 2003, Palantir has evolved from a counterterrorism-focused startup into a leading force in AI and data analytics. Backed early by the CIA's In-Q-Tel, Palantir has built tools like Gotham, Foundry, Apollo, and now AIP — each powering decisions from battlefield to boardroom.
Palantir's deepening ties with the U.S. military, including the recent launch of Warp Speed for Warships, highlight its strategic role. Today, Palantir stands as a global player redefining how governments and enterprises turn data into action.
Valued at $356 billion by market capitalization, PLTR stock has become a heavyweight in the large-cap software arena, and shares are putting on a show. Up 104% year-to-date (YTD), the stock first broke the $140 mark on June 11 and kept pushing, recently crossing $150. No surprise then, Palantir stands as the top-performing stock in the S&P 500 Index ($SPX) in 2025, surging past the broader market.
But the long-term view is where things get jaw-dropping. PLTR stock is up 445% over the past year, 785% over the past two, and an eye-popping 1,433% across three years.
Palantir's rise may feel like an AI fairytale, but its valuation tells a sharper story. Priced at 406 times forward earnings and 122 times sales, PLTR is trading at a premium, well above tech giants and AI peers. The question isn't whether Palantir is winning in AI, but whether investors are paying today for a future that's still unfolding.
Palantir's Q1 Results Exceeded Projections
On May 5, Palantir delivered a stronger-than-expected first-quarter 2025 earnings report, generating revenue of $884 million, up 39% year-over-year (YOY). The U.S. market stole the show, with revenue surging 55% annually to $628 million, led by a 71% spike in commercial growth and a 45% rise in government contracts.
Profitability followed suit. Adjusted net income soared nearly 70% to $334.4 million, while EPS climbed 62.5% to $0.13, topping estimates. Adjusted free cash flow doubled to $370.4 million, boasting a 42% margin, showcasing operational muscle and improved cash generation.
Backed by these blowout numbers, Palantir raised its full-year revenue guidance, now expecting between $3.89 billion and $3.902 billion, with the U.S. commercial revenue alone expected to grow at least 68%. Management also upped its adjusted income from operations target to the $1.71 billion to $1.72 billion range, signaling strong confidence.
Analysts monitoring Palantir expect the company's EPS to climb 362% YOY to $0.37 in fiscal 2025, then rise another 16% to $0.43 in fiscal 2026.
What Do Analysts Expect for Palantir Stock?
Palantir's stock surge is riding Wall Street's growing optimism. Wedbush analyst Dan Ives just bumped PLTR's target from $140 to $160. With AI spend expected to hit trillions, Palantir's positioning as a foundational platform is catching fire and, despite its lofty valuation, bulls still see the firm as a core AI winner.
Wall Street's take on the software stock feels like a cautious handshake — firm, but not overly enthusiastic. PLTR stock has a consensus rating of a 'Hold' overall. Out of 20 analysts tracking the stock, only three are all-in with a 'Strong Buy" while the majority of 13 analysts play it safe with a 'Hold" rating, signaling respect for the momentum but wariness about the valuation. Meanwhile, one analyst leans slightly bearish with a 'Moderate Sell' while three others are outright skeptical, recommending a 'Strong Sell."
While PLTR stock is trading at a premium to its mean price target of $106.12, Wedbush's Street-high target of $160 suggests that the stock can rally 4% from current levels.
On the date of publication, Sristi Suman Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com