Palantir Technologies Inc. (NASDAQ: PLTR) traded lower this morning after a blistering multi‑month rally. New opinion pieces and analyst chatter out today are zeroing in on the same tension investors have wrestled with all year: explosive AI-driven growth vs. a sky‑high valuation.
What’s new today (and why the stock is down)
- Valuation takes center stage. A widely read column from The Motley Fool cautions that Palantir’s near‑$450B valuation leaves little room for error, laying out “two reasons to sell” despite the company’s surging AI traction. [1]
- Skeptical take from Forbes. A same‑day analysis argues “why Palantir doesn’t look like a buy right now,” pointing to exceptional recent growth but warning that expectations embedded in the share price remain extreme. [2]
- Fresh analyst color. MarketBeat reports that CICC Research lifted its PLTR price objective to $150 while keeping a neutral stance—another data point underscoring how divided Wall Street is at current levels. [3]
- Momentum vs. prudence narratives collide. Investor roundups highlight PLTR among the day’s notable calls and ideas, reflecting the ongoing “momentum stock with a valuation problem” debate. [4]
Stock check: Shares were recently trading lower intraday (see live chart above). Market‑cap services place Palantir’s value roughly in the $440B–$455B range depending on price ticks and share‑count methodology. [5]
The backdrop: jaw‑dropping Q3, equally intense scrutiny
Palantir’s latest quarter (reported last week) was objectively strong:
- Revenue:$1.18B, +63% Y/Y (and +18% Q/Q)
- U.S. commercial revenue:$397M, +121% Y/Y (and +29% Q/Q)
- U.S. government revenue:$486M, +52% Y/Y (and +14% Q/Q)
- Adjusted EPS:$0.21
These headline numbers come directly from Palantir’s Q3 investor materials. [6]
Management also guided Q4 revenue above consensus, even as some analysts flagged decelerating growth rates vs. Q3—a nuance that helped ignite today’s valuation debate after last week’s euphoria. [7]
Why today’s pieces matter
- The bull case (still): Proponents say the company is hitting escape velocity in commercial AI while its long‑standing government franchises remain robust. Partnerships announced in recent weeks—e.g., Nvidia–Palantir to speed enterprise decision‑making and Lumen–Palantir to pair AIP/Foundry with high‑performance networks—bolster the story that this is becoming a default platform for operational AI. [8]
- The bear case (louder today): Skeptics argue that even great execution can’t justify multiples far above large‑cap software peers. Today’s commentary from Forbes and Motley Fool crystallizes that worry, and a flurry of split analyst targets reinforces the “great company, tough entry point” theme. [9]
Street positioning: where consensus sits now
- Ratings/targets: Aggregators show an average Hold rating with an average target not far from spot levels, a sign that many analysts see shares as fairly valued to rich after the run. [10]
- Sentiment drivers to watch next:
- Further traction for AIP in regulated industries and defense;
- Concrete revenue tied to newer partnerships (e.g., Nvidia, Lumen);
- Any incremental updates on large U.S. government agreements (the Army’s 10‑year enterprise framework, announced earlier this year, remains a key context item for long‑term demand). [11]
Key numbers investors are quoting today
- Valuation talk: Commentators repeatedly reference a $440B–$455B market cap as shares oscillate. (Ranges vary by source and by the minute.) [12]
- Growth mix: The U.S. commercial line has become the headline growth engine (+121% Y/Y in Q3), while U.S. government remains large and accelerating (+52% Y/Y). [13]
- Guide: Palantir projected Q4 revenue above estimates and raised its full‑year outlook again last week. [14]
Bottom line
Palantir’s fundamentals remain hot; today’s selloff speaks more to how hot the expectations already were. If the company keeps converting its AI pipeline into durable, high‑margin revenue—and if large partnerships start showing up in reported numbers—the bull case persists. But with the market‑cap conversation now hovering near half‑a‑trillion dollars, even minor disappointments can sting.
This article is for information purposes only and is not investment advice.
Sources & further reading:
- The Motley Fool: Palantir “2 Reasons to Sell” (valuation critique). [15]
- Forbes: Why PLTR may not be a buy at today’s price. [16]
- MarketBeat: CICC Research raises target to $150, neutral. [17]
- Palantir Q3 Investor Presentation (official KPIs). [18]
- Reuters: Q4 revenue outlook above estimates; prior partnership items for context. [19]
- MarketWatch/YCharts/StockAnalysis: Market‑cap snapshots used in range. [20]
References
1. www.fool.com, 2. www.forbes.com, 3. www.marketbeat.com, 4. finance.yahoo.com, 5. finance.yahoo.com, 6. investors.palantir.com, 7. www.reuters.com, 8. www.reuters.com, 9. www.forbes.com, 10. www.marketwatch.com, 11. www.reuters.com, 12. finance.yahoo.com, 13. investors.palantir.com, 14. www.reuters.com, 15. www.fool.com, 16. www.forbes.com, 17. www.marketbeat.com, 18. investors.palantir.com, 19. www.reuters.com, 20. www.marketwatch.com
