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.com 

Palantir's free-cash-flow growth makes it relatively more attractive as higher rates make capital more selective. Its free cash flow is now growing more than 100% year over year; the earlier case favors businesses growing free cash flow per share faster than the market. x.com 

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.com 

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.com 

Better AI models make Palantir more valuable to customers, whose higher spending makes it more cash generative. Its chart shows net dollar retention at 157% and quarterly free cash flow per share at $0.47, roughly 8x its level three years earlier. Palantir will soon be a 100-bagger alongside AMD. x.com 

Palantir Technologies is exceptional as a business but overpriced at about 90 times forward earnings, so much of its future is already paid for. Revenue is growing 85% with a 60% operating margin, 150% net dollar retention and about $7.7 billion in revenue guided for the year, numbers that are genuinely rare at its size. Being right about the business and wrong about the price is still a loss. x.com 

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.com 

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.com 

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.com 

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.com