Palantir Stock: Here’s What Really Matters in 2025, According to Top Investors
Big data's black box just got a spotlight. Palantir—the CIA-backed, AI-driven analytics giant—is either the ultimate growth play or a geopolitical gamble. Here's why Wall Street can't look away.
The bullish case: Contracts, contracts, contracts
Government deals keep stacking up. Defense budgets aren’t shrinking, and neither is Palantir’s pipeline. Commercial adoption? Slowly ticking upward—though 'enterprise sales cycles' still sound like a corporate snoozefest.
The bear trap: Valuation vertigo
Trading at 25x revenue? Even crypto degens might blush. Bears argue it's priced for perfection in a world where 'AI' gets slapped on every earnings call like cheap cologne.
Bottom line: This stock moves on two things—big contract wins and geopolitical chaos. Pick your side. (And maybe hedge with Bitcoin—at least that volatility comes with memes.)
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The company shows no signs of slowing down, with a total contract value of $2.8 billion – an increase of 151% year-over-year. And yet, despite the stellar report, PLTR’s share price has sagged by double digits since the earnings call.
While some of the dropping share price can be chalked up to overall worries about an AI bubble percolating throughout the market, PLTR’s high valuations have been dogging the company as well.
While acknowledging PLTR’s “prohibitively expensive valuation,” top investor Harsh Chauhan believes the company’s growing customer base should be the real focus of attention.
“The company is now attracting new customers at a faster pace, and that’s one big reason to buy this high-flying stock right now,” explains the 5-star investor, who is among the top 1% of stock pros covered by TipRanks.
Chauhan notes that Palantir reported a 45% year-over-year increase in customers, a clear reflection of the company’s success supporting automation, efficiency, and removing redundancies. Commercial customers grew at an even faster clip, surging by 49% during the latest quarter.
Beyond new clientele, Palantir does an enviable job of upselling existing clients, points out the investor. On the earnings call, Palantir shared that multiple customers sought to increase their engagement with the company, with one medical device manufacturer signing a multiyear extension just five months after its initial contract.
Chauhan predicts that this ability will propel PLTR to even greater heights going forward, while also helping to improve the company’s margins.
“Palantir doesn’t need to spend any extra money to acquire new business from them, contributing toward positive unit economics,” adds Chauhan.
The investor notes that analysts are forecasting an earnings increase of greater than 30% next year, though even this could be understated. In other words, don’t count out Palantir’s ability to continue surprising on the upside.
“Palantir has shown that it has the ability to grow at a significantly faster pace, and that could give this AI stock additional fuel to fly higher,” concludes Chauhan. (To watch Harsh Chauhan’s track record, click here)
Wall Street is not quite as bullish, however. With 3 Buys, 11 Holds, and 2 Sells, PLTR carries a consensus Hold (i.e., Neutral) rating. Its 12-month average price target of $187.87 implies minimal movement going forward. (See)
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