Palantir’s Stellar Growth Faces Valuation Concerns Amid 400% Stock Surge
Palantir Technologies Inc. delivered another blowout quarter, with Q3 2025 revenues soaring 63% sequentially to $1.2 billion and net profit jumping 46% to $476 million. The data analytics firm's U.S. commercial segment more than doubled year-over-year to $397 million, cementing CEO Alex Karp's bullish narrative. "This ascent has confounded most financial analysts," Karp noted in his characteristic defiance of skeptics.
Yet the stock's meteoric 400% rally over twelve months gives even bullish investors pause. With shares trading at 250x adjusted earnings, top investors like Jonathan Weber flag valuation risks despite operational excellence. The disconnect between Palantir's execution and its premium pricing creates a conundrum for growth-oriented portfolios.
