Is It Too Late to Buy Palantir Stock in November 2025?

Core Insights - Palantir's shares have surged approximately 204% over the past year, driven by its growing presence in AI, defense, and enterprise software, with year-to-date gains near 141% [1][3] - The company reported a record Q3 earnings on November 3, showcasing significant revenue growth and profitability, yet the stock experienced a decline post-report due to high expectations and valuation concerns [4][9] Company Overview - Founded in 2003 with CIA support, Palantir has evolved from a counterterrorism startup to a leader in AI and data analytics, with a current valuation of $453 billion [2] - Its platforms, including Gotham, Foundry, Apollo, and AIP, are utilized across various sectors such as defense, healthcare, and finance [2] Financial Performance - Q3 revenue reached $1.18 billion, a 63% year-over-year increase, with the U.S. market contributing $883 million, or 75% of total sales [10] - Government contracts saw a 55% revenue increase, with U.S. government sales climbing 52% annually, indicating strong demand in national security [11] - Total contract value bookings hit a record $2.8 billion, a 151% year-over-year increase, with a customer count up 45% to 911 [12] Profitability Metrics - Palantir achieved its highest adjusted operating margin of 51%, with adjusted EPS at $0.21 and free cash flow of $540 million [13] - The company has a cash cushion of $6.4 billion, allowing for further investment in AI initiatives [13] Future Guidance - Q4 revenue is projected between $1.327 billion and $1.331 billion, with full-year revenue expected between $4.396 billion and $4.4 billion [14] - Analysts forecast fiscal 2025 EPS to be around $0.52, a 550% annual increase, and a further rise to $0.79 in fiscal 2026 [15] Market Sentiment - Following the Q3 report, analysts expressed mixed sentiments; some viewed the results as a validation of AI demand, while others raised concerns about the stock's high valuation [16][17] - The consensus rating for Palantir is currently "Hold," with a majority of analysts cautious about its valuation despite impressive growth metrics [21] Risks and Considerations - The stock's recent dip, influenced by profit-taking and concerns over valuation, suggests that investors are betting on flawless execution moving forward [8][22] - Michael Burry's recent move to purchase put options on Palantir shares has raised caution among investors, reflecting concerns about potential overheating in the AI sector [23]