Prediction: This Will Be Palantir's Stock Price in 2030

Core Viewpoint - Palantir's stock is currently overvalued despite strong growth and improving profitability, with a projected five-year price target around $100, significantly lower than its current trading price in the mid-$150s [2][3][15] Financial Performance - In Q2 2025, Palantir's revenue increased by 48% year-over-year to approximately $1.0 billion, with U.S. commercial revenue soaring by 93% [6] - Management has raised its full-year 2025 revenue outlook to a range of $4.142 billion to $4.150 billion, indicating strong product demand and effective execution [6] - GAAP operating margin improved to 27%, up from 20% in Q1 and 16% in the same quarter last year, reflecting enhanced profitability [6] Growth Projections - If Palantir achieves a revenue compound growth rate of 25% annually over the next five years, it could reach about $12.6 billion in revenue by 2030 [12] - Assuming a net income margin of 30% and a price-to-earnings ratio of 65, the projected earnings per share (EPS) would be around $1.45 to $1.55, leading to a stock price estimate of approximately $100 [12][15] Market Sentiment - The current market price suggests that investors are anticipating a more optimistic growth trajectory than what the conservative estimates indicate [14] - The stock's valuation is influenced by the prevailing AI optimism, but future market conditions could lead to a lower price-to-earnings multiple if competition increases or government budgets tighten [13][15]