Dray
Finance Student, Stock Investor, Technology & Business
Palantir is worth its expensive valuation because its growth should carry it into a reasonable multiple over the years. It is projected to grow over 80% by the end of 2027, remaining deal value topped $6B, up 123.6% year over year, customers rose 23.6% to only about 1,000, leaving plenty of room, and its Rule of 40 score is 155%. x.comÂ
Continued improvement in fundamentals and technicals could carry Palantir to megacap scale. A $1 trillion market cap is a realistic destination for strong growth companies, and Palantir appears on that path, though its timing is uncertain. Drawdowns remain opportunities to accumulate until the thesis changes. x.comÂ
Palantir may be undervalued because the market values it as a software company while its opportunity is much bigger. It spans AI deployment, government contracts, enterprise adoption and mission-critical data infrastructure, and expensive stocks can stay expensive when the business keeps expanding. x.comÂ
Palantir is still expensive even after falling about 45% from its highs, so it is a great business but not yet a great stock to add. At its $207 peak it priced in perfection, at roughly 70x 2026 sales and 230x trailing earnings; near $113 it trades at about 38x sales and 127x earnings as the business keeps executing. Interest returns near $100, with more aggressive buying in the $80-90 range or if the stock moves sideways long enough for revenue and earnings to grow into the multiple. x.comÂ
Palantir's government contract activity is growing sharply, supporting its resilience despite the share-price pullback. Its $2.1 billion in 12-month obligations is up 184% from the prior year, among the strongest increases tracked. The Cryptic Bottom Index remains green despite the pullback. Its score is among the highest in the Cryptic Research System, led by growth and profitability, though catalysts and valuation score weakest. x.com x.com x.comÂ
Palantir was undervalued going into Q2, and its results prove it. Revenue rose 93% YoY and EBITDA 155%, and with estimates rising it entered earnings at under 45x NTM EBITDA, perhaps closer to 40x, too cheap for 90-95% revenue growth at 62% EBITDA margins. The sell side's 45-50% revenue CAGR for 2027-2030 looks achievable or even conservative, implying $25-30B of 2030 EBITDA or free cash flow before any acquisitions. x.comÂ
Palantir's share price demands unusually fast cash and profit growth despite its strong business. At roughly $210, it implies 48.5% annual growth for five years; at 32% annual growth, the shares would be worth $96.64. It is a Watch, not a Buy at today's prices. Q2 sales rose 93% and cash flow after employee stock pay was $2.52 billion over 12 months, but government concentration, cancellable contracts and rising stock pay remain risks. x.com x.com x.com x.com x.com x.com x.com x.comÂ
Palantir's accelerating commercial growth, sticky contracts and high margins make it a standout aggressive growth name despite its premium valuation. Q1 2026 revenue rose 85% to $1.63B, US commercial revenue grew 133% and government 84%, and full-year guidance was raised to about 71% growth. CEO Alex Karp cites overwhelming demand it cannot fully meet, showing real platform adoption rather than hype. x.comÂ
Palantir has grown into its multiple and could look cheap within a year, as earnings rise faster than the Street moves estimates. At about $155, or 69x 2027 consensus EPS of $2.29, it looks expensive, but it trades at a lower next-year P/E than Datadog and Snowflake while growing about twice as fast, and its P/E per point of growth is under half MongoDB's. Revenue rose from $1.41B to $1.63B to $1.94B over three quarters, with Q3 guided near $2.16B, and EPS keeps rising about 8 cents a quarter. … Show more
Palantir remains a great company, but after a roughly 60% run in two months its valuation is much less compelling; price still matters. Its edge is connecting data across an organization and turning it into decisions and actions as companies and governments spend heavily on AI. Last quarter US commercial revenue grew 150%, US government revenue 90%, operating margin reached 62% and free-cash-flow margin 63%. A meaningful pullback would be worth watching closely. x.comÂ
Palantir makes an amazing product no one else can match, and once customers are in the system it becomes incredibly difficult to leave. That has driven immense growth in customers, earnings and backlog, making it one of five growth stocks set to dominate over the next decade. x.comÂ
