Should You Buy Or Sell Palantir Stock Today?

Core Viewpoint - Palantir Technologies (PLTR) stock has decreased by 5.6% and is currently valued at $177.29, despite strong operational execution and financial health, leading to skepticism among investors regarding the broader AI trade [2][5] Valuation - PLTR's stock trades at a valuation exceeding 100 times sales, indicating a very high valuation that leaves little margin for error [2][3] Growth - Palantir has experienced significant revenue growth, with an average increase of 29.3% over the past three years and a 47% rise from $2.6 billion to $3.9 billion in the last 12 months [7] - Quarterly revenues surged by 62.8% to $1.2 billion from $726 million a year ago [7] Profitability - The operating income for PLTR over the last 12 months was $850 million, resulting in an operating margin of 21.8% [8] - The company generated nearly $1.8 billion in operating cash flow, with a cash flow margin of 46.6% [8] - PLTR produced approximately $1.1 billion in net income, indicating a net margin of around 28.1% [8] Financial Stability - At the close of the most recent quarter, PLTR's debt amounted to $235 million, leading to a Debt-to-Equity Ratio of 0.05% [9] - The company holds $6.4 billion in cash (including cash equivalents), which constitutes 79.3% of its total assets of $8.1 billion [9] Market Performance - PLTR stock has shown moderate resilience during economic downturns, experiencing a decline slightly worse than the S&P 500 index [10] - The stock dropped 84.6% from a peak of $39.00 in January 2021 to $6.00 in December 2022, while the S&P 500 saw a peak-to-trough decline of 25.4% [12] - PLTR fully recovered to its pre-crisis peak by October 2024 and reached a high of $207.18 in November 2025 [12]