Is Palantir Stock Still a Buy After Its 135% Gain in 2025? History Says This Will Happen Next.

Group 1 - Palantir Technologies has been one of the top five stocks in the S&P 500 for two consecutive years, with shares increasing 135% in 2025 after a 373% rise in 2024 [1][2] - The company is recognized as a leader in decision intelligence and AI/ML software, providing analytics and AI solutions for both commercial and government sectors [4][5] - Palantir's sales growth has accelerated for eight consecutive quarters, with revenue jumping 48% to $1 billion and non-GAAP earnings rising 77% to $0.16 per diluted share [6][7] Group 2 - The International Data Corporation (IDC) ranked Palantir as the market leader in decision intelligence software, and the data analytics software market is projected to grow at 28% annually through 2030 [5] - Palantir currently trades at 131 times sales, making it the most expensive stock in the S&P 500, significantly higher than its closest competitor, AppLovin, at 41 times sales [9][10] - Historical data shows that only three other software stocks have achieved a price-to-sales ratio higher than 120, all of which eventually experienced significant declines [10][12]