Top Investor Warns: Palantir Stock ’Too Volatile for Most’ as 2025 Rollercoaster Continues

Palantir's wild ride leaves institutional investors clutching their pearls—while retail traders eye the volatility like kids in a candy store.

Market Whiplash

The data analytics giant's shares swing like a pendulum on steroids, making traditional fund managers break out in cold sweats. One top fund manager calls it "uninvestable" for risk-averse portfolios, citing 20% intraday moves that'd give a heart attack to any dividend-focused boomer.

Volatility Playground

Meanwhile, degenerate traders pile into options contracts like it's a Vegas weekend—because who needs stability when you've got gamma squeezes and meme potential? The stock's become a battleground between institutional caution and YOLO mentality.

Reality Check

Let's be real: this isn't investing, it's speculative gambling with extra steps. But in today's market, that's practically a business model. Palantir either moonshots or crashes—no in-between.

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On the one hand, the company’s fundamentals are certainly strong, and Palantir just seems to continue getting better with age. Its Q2 2025 earnings report reflected stellar revenue growth (north of $1 billion for the first time ever, representing a 48% year-over-year increase) and an increasing swath of clientele (up 43% year-over-year).

PLTR’s share price has shot up through the roof, swarming to gains north of 2,000% over the last three years. While this growth is certainly backed up by the company’s performance, the market’s exhilaration has arguably outpaced its muscular revenue gains.

That makes this investment decision an especially tricky one, explains top investor Keith Noonan.

“For investors with a long-time horizon and a high-risk tolerance, I think Palantir can be a long-term winner — but its risk profile suggests it’s likely to be too volatile for many potential buyers,” details the 5-star investor, who is among the top 3% of investors covered by TipRanks.

Noonan notes that yesterday’s interest rate cut sparked some losses for Palantir, as the 25-basis points was less than the 50 that some had been pining for. The investor further points out that PLTR’s Forward Price-to-Earnings multiple of 261x and its Forward Price-to-Sales multiple of 96x make it exposed to sentiment-based swings.

“The company trades at a valuation that sets the stage for big sell-offs if business momentum falls short of expectations or conditions emerge that drive sell-offs for the broader market,” adds Noonan.

Therefore, even with a “huge runway for growth,” Noonan urges investors to exercise caution when considering this AI stock. (To watch Noonan’s track record, click here)

Wall Street seems content to stick around for now, though they are also treading cautiously. With 13 Holds – to go along with 4 Buys and 2 Sells – PLTR carries a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $154.47 implies losses of ~8% for the year ahead. (See)

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