Veteran analyst sounds alarm on Palantir stock after Venezuela raid

Core Viewpoint - Palantir Technologies' stock has experienced a significant rebound due to speculation regarding its software's involvement in a recent Venezuela raid, leading to a three-day increase in share price [1] Group 1: Stock Performance - Palantir's shares rose 3.7% on January 5, followed by a 3.3% increase on January 6, and continued to rise by 3.4% on January 7 [1] - The stock has seen a remarkable increase of nearly 3,000% over the past three years, with gains of 340% in 2024 and 135% in 2025 [2] Group 2: Financial Performance - For Q3 2025, Palantir reported revenue of $1.18 billion, representing a 63% increase year-over-year, with U.S. commercial sales surging 121% to $397 million [5] - Adjusted earnings for Q3 were 21 cents per share, surpassing analysts' expectations of 17 cents [5] - Wall Street anticipates adjusted earnings of 23 cents per share on revenue of approximately $1.34 billion for the upcoming fourth-quarter report, indicating a year-over-year revenue growth of roughly 62% [6] Group 3: Government Contracts and Valuation - Demand from U.S. government agencies, particularly military, has significantly contributed to Palantir's stock momentum, highlighted by a $10 billion contract awarded by the U.S. Army in July 2025 [3] - Despite strong financial results, there are concerns regarding the stock's valuation, which stands at approximately 245 times forward earnings, raising questions about sustainability [7]