‘Nothing Lasts Forever,' Says Top Investor About Palantir Stock

Business Insider

10-06-2025

Palantir (NASDAQ:PLTR) stock presents investors with quite a quandary.
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On the one hand, there is no denying that the company has delivered incredible growth over the past few years. Its revenues are skyrocketing, its margins are strong, and its list of customers continues to grow by leaps and bounds. Its share price has responded in kind, surging by over 466% over the past twelve months.
And therein lies the rub, as PLTR is now trading at elevated multiples that are far and above the sector average. This leads to the question of whether all that company growth has led to enthusiasm that is a bit too optimistic.
Top investor Riyado Sofian is decidedly on the fence, and is not sure which way the winds will blow.
'It's hard to decide whether to buy or sell — best to just hold it,' states the 5-star investor, who is in the top 3% of TipRanks' stock pros.
Sofian outlines the bull case, describing a company that has introduced game-changing AI technology that sets the firm apart from its peers. Beyond the growing sales, profits, and customers, the investor also points out that revenues from Palantir's top 20 customers increased by 26% year-over-year, a strong indication of customer satisfaction.
While the company continues to raise its guidance, it often succeeds in going well beyond these numbers, notes Sofian, and it has repeatedly 'destroyed its guidance' in previous quarters. In other words, more massive growth could be on the horizon for Palantir.
'All things considered, this is execution on an elite level — there's no denying it,' adds Sofian.
And yet, judging by traditional metrics, the company is overvalued, the investor acknowledges, and its narrative as 'the most important AI company in the West' is what has powered its continuing ascent. For that reason, as long as the company's growth continues apace, PLTR should continue to rise as well.
However, that is far from certain, and at a valuation of 100x its revenues, there is practically no room for error if the impressive rate starts to slow. To this point, Sofian reminds investors that nothing lasts forever.
With neither a Buy nor a Sell looking particularly appealing, Sofian is splitting the difference and rating PLTR shares a Hold (i.e. Neutral). (To watch Sofian's track record, click here)
That stance is echoed across Wall Street. Of the 18 analyst reviews on file, 11 say Hold, while just 3 recommend Buy and 4 suggest Sell, making PLTR a consensus Hold. The average 12-month price target sits at $101.06, implying a ~23% downside from current levels. (See PLTR stock forecast)
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