To The Moon

Palantir Technologies Inc. (PLTR) recently hit a new all-time high of $176.33 on August 5, 2025, driven by a stellar Q2 2025 earnings report. The company reported a record $1 billion in quarterly revenue, up 48% year-over-year, with adjusted EPS of $0.16, beating estimates of $0.14. U.S. commercial revenue surged 93% to $306 million, and U.S. government revenue grew 53% to $426 million. Palantir also raised its full-year revenue guidance to $4.142–$4.150 billion, signaling confidence in continued growth. The stock surged 6.9%–9.8% in trading sessions following the report, reflecting strong market enthusiasm.

Reasons to HoldStrong Growth Momentum: Palantir’s revenue growth, particularly in AI-driven solutions, is robust. The company’s U.S. commercial customer count grew 64% year-over-year, with a 222% increase in total contract value to $843 million. Its AI platform is gaining traction, and a $10 billion U.S. Army contract underscores its expanding government business.

Analyst Optimism: Several analysts raised price targets post-earnings. Wedbush lifted its target to $200, calling Palantir a “transformational” tech stock, while Morgan Stanley upgraded to “equal-weight” with a $95 target. Piper Sandler and UBS also raised targets to $170 and $165, respectively.

Market Positioning: Palantir’s software, including Gotham and Foundry, is deeply embedded in government and commercial sectors, with clients like the U.S. Department of Defense and Amazon. Its AI and data analytics capabilities position it well in a growing market.

Reasons to Reconsider HoldingHigh Valuation: Palantir trades at 246–276 times forward earnings, far exceeding peers like Tesla (177x). Some analysts, like RBC Capital’s Rishi Jaluria, argue the valuation is unsustainable without continued “beat-and-raise” quarters.

Mixed Analyst Sentiment: Despite upgrades, the overall analyst rating is “Neutral,” with 5 of 9 analysts recommending “sell” and an average price target of $113.54, implying a 34.5% downside from the current $173.30 price.

Reputational Risks: Palantir’s work with U.S. government agencies, particularly in surveillance, has drawn scrutiny. Reports highlight concerns over data privacy and potential misuse, which could impact public perception and stock performance.