Palantir Technologies(US:PLTR) The Motley Fool·2025-12-27 00:06Core Viewpoint - Palantir Technologies has experienced significant stock price appreciation, driven by strong financial performance and heightened investor interest in AI, but its current valuation suggests that flawless execution is expected going forward [2][4]. Financial Performance - Palantir's third-quarter revenue increased by 63% year over year to approximately $1.2 billion, with U.S. revenue rising 77% and U.S. commercial revenue growing 121% to $397 million [6][7]. - The company raised its full-year 2025 revenue guidance to between $4.396 billion and $4.400 billion, up from a previous estimate of $4.142 billion to $4.150 billion [8]. Valuation Concerns - The stock is currently trading at a valuation multiple of about 126 times sales and a price-to-earnings ratio of 448, with a forward price-to-earnings ratio of 192, indicating high expectations for future growth [10]. - Such high valuations make future returns fragile, as even a slight slowdown in growth could lead to significant declines in stock price due to multiple compression [11]. Strategic Considerations - Investors may consider trimming their positions rather than selling entirely to mitigate potential losses while maintaining some exposure to Palantir's growth potential [12].