Core Viewpoint - Palantir Technologies is experiencing significant growth and profitability, but its stock is overvalued, reflecting expectations for extraordinary future performance [1][9][10]. Financial Performance - In Q4, Palantir's revenue increased by 70% year over year to $1.4 billion, with a GAAP net income of $609 million [5]. - For the full year 2025, revenue rose by 56% year over year to $4.5 billion, and GAAP net income was $1.6 billion [6]. - The company reported adjusted free cash flow of $791 million in Q4, representing 56% of its revenue during that period [5]. Valuation Concerns - Despite recent declines, Palantir's stock trades at approximately 200 times earnings and 70 times sales, indicating extreme valuation levels [9]. - Investors are paying for sustained high growth rates, with expectations of 50% year-over-year growth needed to justify current valuations [10][11]. - A hypothetical 50% drop in stock price would still leave the company with a price-to-earnings ratio of about 100 and a price-to-sales ratio of about 35, suggesting continued overvaluation [12][13]. Growth and Future Guidance - Palantir's CEO highlighted a Rule of 40 score of 127%, indicating strong revenue growth and operating margin, with 2026 revenue guidance suggesting 61% year-over-year growth [7]. - The company faces challenges from stock-based compensation expenses, which totaled $684 million in 2025, adding pressure to maintain rapid growth [11]. Market Sentiment - The recent stock pullback is viewed as a necessary correction after years of substantial gains, but the current valuation remains high, leaving little room for error [2][14]. - There is a possibility that investors may have the opportunity to acquire Palantir shares at a lower valuation in the future [15].

Core Viewpoint - Palantir Technologies has experienced significant stock price decline despite strong growth and excellent Q4 2025 results, indicating that valuation concerns are driving the market's negative sentiment [1][2][4]. Group 1: Stock Performance - Palantir's stock reached an all-time high in October 2025 but ended the year approximately 10% lower and has since dropped around 35% from that peak in 2026 [1][2]. - The current stock price is $130.60, with a market capitalization of $323 billion, and it has a 52-week range of $66.12 to $207.52 [7]. Group 2: Valuation Concerns - The stock is considered expensive, trading at over 100 times forward earnings, which is a high valuation metric for a company with its growth profile [4][6]. - Analysts project Palantir's growth at 62% for 2026 and 41% for 2027, totaling 129% growth over two years, which is insufficient to justify the current stock price based on a more realistic valuation of 30 times forward earnings [6][8]. Group 3: Market Sentiment - The market appears to be reflecting skepticism about paying a premium for Palantir's stock, given that the expected growth is already factored into the price [8]. - There are other rapidly growing AI stocks available at more reasonable valuations, which may offer better long-term return potential [9].

Group 1: Investment Opportunities in AI Stocks - The article highlights three AI stocks: Nebius Group, Nvidia, and Palantir Technologies, which are expected to perform well due to strong revenue growth and their roles in AI platform development [2][4]. - Nebius Group is noted for its potential, with an annualized run rate revenue of $1.25 billion in 2025, and projected revenue between $7 billion and $9 billion for the current year [5][7]. - Nvidia has a market capitalization of $4.6 trillion and reported a 62% revenue growth to $57 billion for its fiscal 2026 third quarter, with $51.2 billion coming from data center sales [8][10]. - Palantir Technologies reported a revenue of $4.475 billion in 2025, a 56% year-over-year increase, and projects revenue between $7.182 billion and $7.198 billion for 2026, indicating a 60% growth [11][13]. Group 2: Company Profiles - Nebius Group is focused on building data centers that provide full-stack AI cloud platforms, essential for developers and hyperscalers [4][5]. - Nvidia's GPUs are in high demand, contributing to its status as the largest publicly traded company, with significant investments in AI from major tech firms expected to drive further revenue growth [8][10]. - Palantir Technologies offers advanced AI software that aggregates data from various sources for real-time analysis, making it a leader in AI software solutions [11][12].

Palantir declined as tariff worries and broader risk-off sentiment weighed on AI software stocks. Governance disclosures and mixed institutional positioning added to the cautious tone.NASDAQ : PLTRPalantir TechnologiesToday's Change( -3.51 %) $ -4.75Current Price$ 130.49Key Data PointsMarket Cap$323BDay's Range$ 127.40 - $ 132.0052wk Range$ 66.12 - $ 207.52Volume1.5MAvg Vol45MGross Margin82.37 %Palantir Technologies (PLTR 3.51%)develops data integration and analytics platforms for government and commercial ...

Palantir (PLTR) shares have cratered 26% in 2026. And they’ve corrected a menacing 39% since November. But don’t fear an end-of-days situation for PLTR stock. Exploit it with a bullish married put spread. If misery loves company, PLTR stock is far from alone. A risk-off trade in software-as-a-service or “SaaS” stocks has taken Wall Street by storm. More News from Barchart There’s extreme worry that AI agents are displacing traditional layered or “seat-based” software subscriptions and are set to render ...

tied to durable trends, especially AI deployments inside large enterprises and government agencies.But bears have math on their side.Even after the drop, Palantir's valuation remains extreme versus typical software peers, which means the stock can still slide if growth expectations wobble or if markets turn more defensive.And the skepticism isn't limited to anonymous traders.MarketWatch reported Michael Burry has been digging into Palantir's filings, highlighting that accounts receivable have been rising fa ...

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the tr ...

Palantir Technologies (PLTR) is a company that’s in the news a lot. From its innovative and powerful software revolutionizing businesses and government agencies to its controversial government contracts that include support of U.S. Immigration and Customs Enforcement (ICE), Palantir has a high profile. PLTR stock has been a big winner as well, up more than 460% in the last five years. Now Palantir is making news for a new reason — a sudden relocation of the company’s corporate office from Denver, Colorad ...

Core Viewpoint - Palantir Technologies Inc. (PLTR) is experiencing a price downturn despite strong earnings and operational performance, currently trading at a 34.8% discount from its all-time high, presenting a potential investment opportunity due to significant short-term price upside potential [1]. Financial Performance - Government revenues increased by 60.4% year over year to $730 million, while commercial revenues surged by 81.8% annually to $677 million, with a total customer count of 954 as of December 31 [4]. - The company is projected to achieve first-quarter revenues of $1.53 billion, indicating an 8.5% sequential growth, and expects full-year revenues of approximately $7.19 billion, reflecting a 61% year-over-year growth [12]. Business Model and Strategy - Palantir's core customer base includes large government and corporate clients seeking tailored AI/ML services, contributing to a 21.3% compound annual growth rate (CAGR) from 2020 to 2024 [5]. - The launch of the Artificial Intelligence Platform (AIP) in 2023 has accelerated growth in the commercial sector, allowing clients to analyze data effectively and adapt to business goals [6][8]. - AIP provides access to various large language models (LLMs), enabling organizations to transform data into actionable insights, reducing dependency on government contracts [7]. AI Integration and Market Position - Palantir's AI strategy integrates its Foundry and Gotham platforms, promoting AI adoption across government and commercial sectors, particularly in data-intensive industries like defense, healthcare, and finance [9][10]. - The company is involved in significant defense initiatives, such as the Department of Defense's Open DAGIR project, enhancing military operations through AI solutions [10]. Customer Acquisition and Growth - AIP boot camps have successfully engaged over 1,000 companies, showcasing the platform's capabilities and facilitating customer acquisition across various sectors [11]. - The modular sales approach allows clients to purchase specific product components, lowering entry barriers and expanding the U.S. commercial customer base [14][15]. Future Outlook - The Zacks Consensus Estimate for 2026 indicates revenues of $7.22 billion and earnings per share of $1.34, representing year-over-year increases of 61.3% and 78.7%, respectively [16]. - For 2027, revenues are expected to reach $10.11 billion, with earnings per share projected at $1.89, indicating a 40% year-over-year growth [17]. - Long-term growth potential is strong, with earnings per share growth estimated at 49.5% compared to 16.3% for the S&P 500 [18]. Price Target and Investment Thesis - The short-term average price target for PLTR suggests a potential increase of 48.2% from the last closing price of $135.24, with a maximum upside of 92.3% and a downside of 33.3% [19]. - Palantir holds a Zacks Rank 2 (Buy), indicating confidence in its ability to capitalize on the AI boom through robust execution and a leading product portfolio [20].

In this article, we discuss Goldman Sachs’s Top 12 Growth Stock Picks.During much of the market cycle leading up to 2026, the United States equities markets were largely defined by growth stocks. However, data shows a clear shift in tone as 2026 drags on. In 2025, for instance, the S&P 500 Growth Index gained 22.18%, and this was an underperformance based on 2024 performance, which was 35.66%. As of February 18, 2026, however, the index was down 2.46% year to date. In contrast, the broader S&P 500 was up 0. ...