Wall Street Analyst Urges Caution on Palantir Stock Amid Valuation Concerns
Palantir's stock has experienced significant volatility following its Q3 earnings report, despite delivering a beat-and-raise performance. Shares remain approximately 16% below pre-earnings levels as investors grapple with the company's lofty valuation. Freedom Broker analyst Almas Almaganbetov highlights growing risks in the 2026 outlook, citing slower growth from a high base and an unsustainable price-to-earnings ratio of 301x.
The stock's recent swings—including an 8% jump followed by a pullback—reflect broader market skepticism. While Palantir's commercial traction and AI potential are acknowledged, Almaganbetov warns that even mild deceleration could trigger a sharp re-rating. The 121% YoY surge in U.S. Commercial revenue for 2025 sets an exceptionally high bar, making 2026 growth targets increasingly precarious.
