A Closer Look at Palantir’s (PLTR) Valuation Concerns

1 month ago 16

Soumya Eswaran

Wed, February 4, 2026 astatine 7:56 AM CST 4 min read

Legacy Ridge Capital Management, an concern absorption company, released its Q4 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. The Partnership returned 7% nett of a 1% show interest successful 2025. Market volatility led to the Partnership's weaker-than-expected show past year. The twelvemonth started powerfully but faced challenges aft Liberation Day, contempt wisely investing during the market's lows. The Partnership showed advancement from November to mid-December. The missive besides noted that a displacement successful the calendar extremity day would person improved returns by implicit 4%, highlighting the unpredictable quality of concentrated worth investing. The portfolio is concentrated successful 10 names, and the dividend output is astir 6%. Please reappraisal the Partnership’s apical 5 holdings to summation insights into their cardinal selections for 2025.

In its fourth-quarter 2025 capitalist letter, Legacy Ridge Capital Management highlighted stocks similar Palantir Technologies Inc. (NASDAQ:PLTR). Palantir Technologies Inc. (NASDAQ:PLTR) is simply a exertion institution that develops a bundle level for investigations and operations. On February 3, 2026, Palantir Technologies Inc. (NASDAQ:PLTR) banal closed astatine $157.88 per share. Palantir Technologies Inc. (NASDAQ:PLTR) delivered a -13.10% instrumentality successful the past month, and its shares are up 55.76% implicit the past 12 months. Palantir Technologies Inc. (NASDAQ:PLTR) has a marketplace capitalization of $376.297 billion.

Legacy Ridge Capital Management stated the pursuing regarding Palantir Technologies Inc. (NASDAQ:PLTR) successful its 4th fourth 2025 capitalist letter:

"At the precise least, caller show for the broader indices is agelong successful the tooth. Most valuations are stretched and immoderate are conscionable bat*hit crazy. We had akin sentiments backmost successful 2019 and wrote astir it. Back past the posterchild of the speculative mania was Tesla (TSLA). Now determination are dozens of candidates, including TSLA still, but Palantir Technologies Inc. (NASDAQ:PLTR) whitethorn beryllium successful the rod position. We admit we don’t wholly recognize what the institution does, but it seems ace cool. What we bash recognize is basal arithmetic, and erstwhile the CEO goes connected CNBC and passionately attacks abbreviated sellers, who are conscionable betting the banal is expensive, and helium says, “pick thing that is not doing a noble task”, not erstwhile mentioning valuation during the 10-minute interview, the hairsbreadth connected our cervix stands up. We don’t abbreviated (we don’t peculiarly similar that mathematics either), but the implied mathematics astir Palantir’s valuation is concerning.