Why Palantir Stock Is the Ultimate Bet on the Future, According to Top Investors
Palantir's stock isn't just a trade—it's a wager on the next big disruption. The data-mining giant has long been a favorite of governments and institutions, but its AI ambitions are now catching Wall Street's attention.
Bulls see a monopoly in the making. Bears see hype. Either way, the stakes are high.
Here's why the smart money is doubling down—and why the skeptics might regret sitting this one out. (Bonus jab: Just don’t ask them about profitability timelines.)
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Revenue jumped 63% year-over-year to $1.18 billion, total contract value soared 151% to $2.8 billion, and its Rule of 40 score hit a stunning 114%, a figure you almost never see from a company of this scale.
The big fear, however, is that much of Palantir’s future growth has already been factored into its share price, as its valuation metrics have run up to exceptionally elevated levels that are in some cases thousands of percent over its sector averages.
That’s why top investor Rick Orford remains a bit skeptical about PLTR, even as he acknowledges the company’s remarkable performance and long-term potential.
“Palantir right now isn’t just another AI story. It’s a full-blown bet on whether governments and corporations will let a single company become the brain behind their decision making,” explains Orford, who is among the top 1% of stock pros covered by TipRanks.
Orford is quick to praise Palantir’s rapid ascent, calling its growth “numbers that most companies WOULD kill for.” But at the same time, he cautions that Palantir’s influence runs far deeper than traditional client relationships – the company isn’t merely serving its customers; it’s embedding itself within their most sensitive decision-making systems.
“Palantir doesn’t just show you the data, it tells you what to do with it. And that’s so powerful,” declares Orford, who adds that ultimately “it’s about control.”
That’s another level of “stickiness” that Palantir brings to the table, according to the investor. The company has had plenty of success with U.S. government clients, and more recently has been able to secure a healthy number of industry customers.
And that’s another wager those considering PLTR need to weigh, as strong future growth rates will depend on its ability to continue appealing to the private sector.
“When you buy Palantir today, you’re betting that its commercial revenue is going to outpace what they get from the government,” sums up Orford. (To watch Rick Orford’s track record, click here)
Wall Street is on the fence when it comes to PLTR. With 3 Buys, 11 Holds, and 2 Sells, the stock carries a consensus Hold (i.e., Neutral) rating. The 12-month average price target of $187.87 suggests the shares will stay rangebound for the time being. (See)
To find good ideas for AI stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.
