Top Investor: Palantir Stock Unlikely to Hit $1 Trillion Soon
Palantir Technologies Inc. (NASDAQ: PLTR) is currently facing skepticism regarding its stock’s potential to reach a valuation of $1 trillion. The company’s shares have experienced substantial fluctuations despite gaining over 150% in value over the last year. Following robust financial results for Q3 2025, which were announced in early November, Palantir’s stock has seen a decline of 25%.
Recent Performance Metrics
Palantir reported impressive year-over-year revenue growth of 63%. Alongside this, it garnered a Rule of 40 score of 114%, indicating strong performance compared to industry peers. Additionally, the company recorded a total contract value (TCV) of $2.8 billion, marking a 151% year-over-year increase.
Expert Insights on Valuation
Notable investor Adam Spatacco, ranked among the top 1% of analysts by TipRanks, has expressed caution regarding Palantir’s valuation. He suggests that, while Palantir has the potential to join the ranks of trillion-dollar companies, current valuations may be too optimistic in light of future growth prospects.
- Concerns over “historically pricey” valuation multiples.
- Investor sentiment may shift if growth stabilizes.
- Possibility of institutional investors pulling back due to recent stock surges.
Current Market Sentiment
Wall Street analysts reflect a lukewarm outlook on Palantir’s stock. Currently, the consensus rating is a Hold, with 3 Buy ratings, 11 Holds, and 2 Sells. The average price target over the next 12 months is estimated at $187.87, suggesting a potential upside of about 21% from the current price.
Conclusion
While Adam Spatacco maintains a long-term bullish outlook on Palantir, he advises caution regarding its stock valuation. As investors consider placing bets on Palantir’s future, it is essential to weigh these factors carefully against the backdrop of current market conditions.
