‘This is a Chaos Trade,' Says Investor About Palantir Stock
The international storm clouds have grown darker throughout 2025, with geopolitical flashpoints popping up left and right. In part due to these tensions, Palantir Technologies (NASDAQ:PLTR) – which touts its capabilities in the defense and security sectors – recently reached an all-time high this week.
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The company has been riding a supercharged wave of growth, demonstrated in its most recent earnings report. Record revenues and a 'Who's Who' of clientele – including NATO, Qualcomm, and a slew of others – have given investors plenty of confidence in Palantir's ability to continue growing.
Of course, the big (perhaps, only) caveat when it comes to Palantir is the company's inflated valuation, which is trading at an EV/EBITDA ratio north of 700x.
One investor known by the pseudonym Weebler Finance thinks that the expensive Palantir is appropriate, in no small part because it could be a safe harbor during times of turmoil.
'While Palantir appears overvalued by traditional metrics, its explosive growth trajectory could justify its high multiples if geopolitical catalysts continue,' explains the investor.
Weebler points to the company's Maven Smart Systems, a central component of its defense-related AI offerings. Maven has seen its usage double in less than half a year, which the investor notes is a strong indication that sovereign nations are going to increase their engagement with Palantir.
'I believe that this exponential ramp-up reflects growing institutional dependence,' adds Weebler. 'The company is uniquely positioned to actually benefit from crisis-driven demand.'
Moreover, the investor notes that Palantir's products become 'deeply wired into core workflows,' meaning that replacing the company is no easy feat.
Regarding its valuation, while admittedly expensive, Weebler believes that PLTR's share price can be justified if the company can achieve 75% EBITDA growth year-over-year for 2025. Pointing out that Palantir grew by 210% in 2023 and 120% in 2024, this seems like a reasonable assumption to Weebler – especially given the situation around the world.
'Palantir is a company primly suited to thrive in times of geopolitical turbulence,' concludes Weebler Finance, who rates PLTR a Buy. (To watch Weebler Finance's track record, click here)
Wall Street offers a mixed picture when it comes to Palantir. With 3 Buy, 10 Hold, and 4 Sell ratings, PLTR has a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $104.27 has a downside of ~25%. (See PLTR stock forecast)
To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
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