PLTR Stock Rises 90% in Six Months: Still a Buy, or Time to Wait?

Core Insights - Palantir Technologies Inc. (PLTR) has experienced a 90% increase in stock price over the past six months, significantly outperforming the broader industry and S&P 500 [2][6] - The company's Artificial Intelligence Platform (AIP) has become the primary growth driver, with U.S. commercial revenues rising 93% year over year and total U.S. commercial contract value increasing by 222% [2][4][6] Financial Performance - As of June 30, 2025, Palantir reported $6 billion in cash and zero debt, providing financial flexibility for growth investments [9] - The second quarter of 2025 marked a significant milestone, with sales surpassing $1 billion for the first time, reflecting a 48% year-over-year increase [10] - The Zacks Consensus Estimate for third-quarter 2025 EPS is projected at 17 cents, indicating a 70% increase from the previous year, with expected earnings growth of 61% in 2025 [11][13] Market Position and Competitive Edge - Palantir's AIP bootcamps and implementation sessions have accelerated client adoption, showcasing the platform's intuitive interface and scalability [3] - The company differentiates itself by focusing on mission-critical sectors such as defense and healthcare, where security and performance are paramount, unlike competitors who emphasize customer-facing tools [8] Valuation Concerns - Palantir's forward P/E ratio stands at 214, significantly higher than the industry average of 37, indicating high expectations for future AI monetization [14] - The aggressive valuation suggests limited room for error, with potential volatility if execution falters or earnings are revised downward [15] Investment Outlook - While Palantir demonstrates strong commercial traction and financial health, the current valuation implies that much of the optimism is already reflected in the stock price [16] - Long-term investors are advised to hold their positions, while new investors may consider waiting for a more favorable entry point [17]