Opinions Stockchase Insights
Palantir TechnologiesPLTRHOLDNov 05, 2025
Stockchase InsightsStock price when the opinion was issued
As of Jun 10, 2026. Market Open.
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Executing well. Increasingly employing AI in day-to-day operations. Growing use in government/defense plus strong adoption by commercial customers.
Proving it can turn demand into profit and cashflow. Revenue grew an exceptional 85% last quarter. Valuation remains her biggest concern (roughly 40x next year's sales), leaving little room for disappointment/error. Be cautious.
The only software name he owns. Beaten down because it's put in the software bucket, plus relatively expensive compared to peers. Sometimes you have to pay up for a best-in-class asset. Last quarter's numbers blew it out of the water. Growing 80% YOY, very profitable.
Accelerating commercial revenue on top of government contracts. Helping companies adopt AI.
Nick Mersch, CFA
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Premium contentLast year, the company generated 4.48 B USD, the most of which — 2.40 B USD — came from its top-performing segment, Government, compared to 1.57 B USD the previous year. The greatest contribution came from United States, which accounted for 3.32 B USD last year, with 1.90 B USD the year before. Social media mentions are up 325% in the past 24h.
Only drawback is that the stock's very expensive. So there's no good valuation support, and she doesn't own it.
But nothing really wrong with the story, so she wouldn't recommend a Sell. If you liked it a month ago, nothing has changed. Pretty well positioned on defense. Fundamentals are in favour of it, so she'd hold.
For these high-beta stocks, you can't be getting nervous about them. If you don't want to stomach the high volatility, look for a more diversified solution or for a stock that's less volatile.
PLTR's numbers were solid: 63% revenue growth, high margins, strong balance sheet, and guidance was raised. Business is good. But the stock dropped, on usual valuation concerns. Also, Michael Burry (famous from 'The Big Short') has bet against the company, and this has worried some investors. EPS of 21c beat estimates of 17c; revenue of $1.18B beat estimates of $1.09B. EBITDA of $606B beat estimates by 21%. Palantir's accelerated sales cycle continues to be fueled by expanding use of its Ontology product with large language models for mission-critical applications. US Commercial customer growth eased slightly to 9% sequentially vs. 12% in the prior two quarters, while remaining deal value growth improved to 30% in 3Q from 20% in 2Q, indicating larger up-front orders. The net retention rate climbed to 134%, with strong results in the Government segment serving as a key driver. Though Palantir's Commercial segment gains outside the US remain tepid, the company likely lifted its US win rates against traditional data-warehousing vendors by using its Ontology offering to differentiate integrations with frontier LLM providers.
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