Should You Buy Palantir Stock After Its 57% Gain in 2025? Wall Street Has a Clear Answer for Investors.

1 month ago 19

Trevor Jennewine, The Motley Fool

Fri, May 2, 2025, 12:55 AM 4 min read

Among 27 Wall Street analysts, Palantir has a median people terms of $96 per share, which implies 20% downside from its existent terms of $120 per share.
Forrester Research precocious ranked Palantir arsenic a person successful artificial quality platforms, a marketplace forecast to turn astatine 40% annually done 2028
Palantir presently has a price-to-earnings-to-growth (PEG) ratio that exceeds 8, which is an outrageously costly valuation by immoderate standard.

Palantir Technologies (NASDAQ: PLTR) was the champion performing banal successful the S&P 500 (SNPINDEX: ^GSPC) successful 2024. The institution saw its stock terms surge 340% arsenic robust request for its artificial quality level led to awesome fiscal results passim the year.

Palantir has maintained its momentum successful 2025. Its year-to-date instrumentality of 57% means it is erstwhile again the champion performer successful the S&P 500, partially due to the fact that investors person shown a wide penchant for bundle and services companies that whitethorn flight tariffs unscathed.

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However, Wall Street intelligibly thinks investors should debar the banal astatine its existent valuation. Among the 27 analysts who travel Palantir, the media, people terms is $96 per share. That implies 20% downside from the existent stock terms of $120.

Read connected to larn more.

Palantir develops information analytics bundle for commercialized and authorities organizations. Its halfway products, Gotham and Foundry, fto customers use instrumentality learning models to analyzable information to uncover insights and optimize decision-making. Its artificial quality platform, AIP, enhances the halfway products with enactment for ample connection models.

Palantir sees itself arsenic the lone bundle institution that tin assistance businesses operationalize AI -- that is, determination AI capabilities from prototype to accumulation successful a mode that creates existent operational value. CEO Alex Karp told analysts, "We are the lone institution successful America, the lone applicable market, that volition let you to bash utile things with ample connection models."

Palantir reported beardown fourth-quarter fiscal results that crushed expectations connected the apical and bottommost lines. Customers accrued 43% to 711 and the mean existing lawsuit spent an further 20%. In turn, gross accrued 36% to $828 million, the sixth consecutive acceleration, and non-GAAP nett income roseate 75% to $0.14 per diluted share. The institution is good positioned to support that momentum.