‘Make a Fast Exit,' Says Top Investor About Palantir Stock

Business Insider

6 days ago

Some companies are riding the AI wave — and then there's Palantir (NASDAQ:PLTR) stock, practically surfing it into the stratosphere with a whopping 538% gain over the past year.
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That surge has been fueled by results that keep smashing expectations. In its Q2 2025 earnings release last week, Palantir not only crossed the $1 billion revenue mark for the first time, but also showed no signs that its white-hot momentum is cooling. While defense-related government contracts remain its bread and butter, U.S. commercial revenue soared 93%, underscoring that PLTR is firing on all cylinders.
But eye-popping numbers can also draw sharp scrutiny. One top investor, known by the pseudonym JR Research, warns that the growth party may be nearing its peak – and that overoptimistic bulls could be in for a harsh reality check.
'With PLTR's growth rate potentially peaking this year, the market momentum could reverse to the downside, ensnaring the overoptimistic bulls,' who is among the very top 1% of TipRanks' stock pros.
JR acknowledges the company's strong fundamentals, including a recent $10 billion, 10-year deal with the U.S. Army, but questions whether Wall Street's sky-high expectations are sustainable. With valuations approaching a staggering 250x P/E, JR suggests the stock's rally assumes a 'never-ending' pace of growth, which he doubts is realistic.
'Don't you think that when the chickens come home to roost, the pain might also be as equally 'intense' as the excitement that was felt on the way up?' the investor asks, advising both current and would-be investors to tread carefully, or consider exiting altogether. (To watch JR Research's track record, click here)
Wall Street isn't as blunt, but skepticism is still in the air. The consensus rating sits at Hold, with 13 analysts on the sidelines versus just 4 Buys and 2 Sells. The average 12-month price target of $152.12 implies ~19% downside from current levels. (See PLTR stock forecast)
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