Here's Why I Wouldn't Touch Palantir Stock With a 10-Foot Pole

Core Viewpoint - Palantir is a complex stock with impressive revenue growth and profitability, but its high valuation makes it a challenging investment choice [1][7]. Company Performance - Palantir's AI-powered software enables real-time decision-making and has expanded from government clients to commercial use [5]. - In Q4, Palantir generated $730 million in government revenue and $677 million in commercial revenue, with commercial revenue growing at 82% compared to 60% for government revenue [5]. - The company achieved a 43% profit margin in Q4 2025, ranking among the best in the software industry [6]. Valuation Concerns - Palantir's stock trades at 80 times sales, making it one of the most expensive stocks in the market [7]. - Despite being fully profitable, the stock's valuation remains high when assessed using forward earnings, indicating it is still considered expensive [8].