Is Palantir Stock a Buy Now?

Published: Friday, October 31, 2025 at 8:25 am

Palantir's Ascent: A Deep Dive into the AI-Powered Data Analytics Firm

Palantir Technologies, a company specializing in AI-based deep data analytics, has experienced a meteoric rise in the stock market. Since the beginning of 2023, the stock has surged by nearly 3,000%, outperforming many major market players. This remarkable growth has transformed Palantir from an unprofitable entity with moderate growth to a highly profitable software engine, now boasting a revenue increase of approximately 50% year over year.

This transformation is largely attributed to the emergence of artificial intelligence (AI) and the launch of Palantir's artificial intelligence platform (AIP). The company's platforms include Gotham, Foundry, and Apollo. Gotham, the original platform, focuses on government, defense, and intelligence agencies, aiding in data analysis for counterterrorism and other critical operations. Foundry serves commercial businesses and civil government agencies, assisting them in optimizing operations. Apollo acts as the backbone, ensuring continuous software updates for Gotham and Foundry. AIP, launched in 2023, integrates generative AI and large language models to enhance the capabilities of Gotham and Foundry, enabling users to extract actionable insights from data more efficiently.

Palantir's U.S. business has seen significant growth, particularly in the commercial sector. In the second quarter, U.S. revenue jumped 68% year over year, driven by substantial growth in both commercial and government sectors. The company has benefited from its preferred contractor status with the U.S. government and its efforts to expand platform adoption among agencies. Palantir claims a competitive advantage due to its unique offerings and the evolving nature of its technology, including AIP.

However, despite the company's impressive performance, the stock's valuation has become a point of concern. The stock's price-to-sales ratio has increased dramatically, indicating that a significant portion of the stock's growth has been driven by investors placing a higher premium on the stock. This high valuation raises questions about the sustainability of the stock's current price.

BNN's Perspective: While Palantir's technological advancements and revenue growth are undeniable, the current valuation appears inflated. Investors should proceed with caution, recognizing the potential for a market correction. A balanced approach, considering both the company's strengths and the stock's high price, is advisable.

Keywords: Palantir, PLTR, AI, artificial intelligence, AIP, Gotham, Foundry, Apollo, data analytics, stock, investment, valuation, revenue growth, U.S. government, commercial sector, price-to-sales ratio.

Full Story