Wall Street’s Bearish Stance on Palantir: Valuation Concerns Eclipse AI Success

Palantir's stock (PLTR) has been a standout performer during the AI boom, with revenue growth accelerating and operating margins expanding following the launch of its Artificial Intelligence Platform (AIP). The stock doubled this year, defying expectations of a pullback, yet Wall Street remains skeptical.

Only five out of 20 analysts rate PLTR a buy, while 13 label it a hold and two recommend selling. The average price target of $155 suggests 7% downside—a stark contrast to Nvidia, where 58 of 65 analysts advocate buying. The hesitation stems from Palantir's sky-high valuation.

With a price-to-sales ratio of 119—triple that of any S&P 500 peer—the stock's surge reflects multiple expansion rather than fundamental growth. Such extremes rarely sustain long-term, casting doubt on its current trajectory.