Key Stats for Palantir Stock:
- Price Change in the last 12 months: 437%
- Current Share Price: $124
- 52-Week High: $125
- Analysts’ Price Target: $87
What Happened?
Valued at a market cap of $293 billion, Palantir (PLTR) has delivered close to 400% returns in the last 12 months. The tech stock went public in late 2020 and has since returned over 1,200% to investors.
So, can it continue delivering returns like this in the next 5 years?
Palantir’s sales increased from $1.1 billion in 2020 to $2.86 billion in 2024. The tech stock gained over 24% in a single trading session back in February after it reported Q4 results that exceeded Wall Street estimates.
Palantir also provided strong forward guidance, projecting Q1 revenue between $858 million and $862 million (above the $799 million consensus estimate) and full-year 2025 sales of $3.74-$3.76 billion (exceeding the $3.52 billion analyst estimate).
See Palantir’s full Q1 earnings estimates (It’s free) >>>
Particularly impressive was the 64% growth in U.S. commercial revenue, while U.S. government revenue rose 45% year-over-year to $343 million.
What the Market Is Telling Us
While other big tech stocks, including Apple, Tesla, and Nvidia, are struggling in 2025, PLTR stock continues to soar.
This outperformance reflects investors’ confidence in Palantir’s unique positioning in the current macroeconomic and political environment.
Notably, the Trump administration’s focus on government efficiency and shift from consulting contracts to commercial software providers has also benefited Palantir.
Can Palantir Stock Keep Going Higher?
Back in 2020, if we had known Palantir would deliver over 1,200% returns in just five years, it would’ve made sense to go all in.
But hindsight is always 20/20. The real question now is: What’s next? Can Palantir keep up the momentum?
At today’s prices, the stock trades at around 225 times forward earnings and 77 times forward revenue. Over the next three years, analysts expect revenue to grow about 30% per year, with earnings growing closer to 50% annually.
To put this in perspective:
- Tesla (TSLA) trades at roughly 9 times forward revenue and 135 times forward earnings for about 15% expected annual revenue and earnings growth over the next 3 years.
- NVIDIA (NVDA) trades at roughly 14 times forward revenue and 26 times forward earnings for about 60% expected annual revenue and earnings growth over the next 3 years.
- Snowflake (SNOW) trades at roughly 12 times forward revenue and 144 times forward earnings for about 25% expected annual revenue and about 17% expected annual earnings growth over the next 3 years.
High-quality companies often justify a price-to-earnings ratio that’s about twice their expected EPS growth. So Palantir’s 50% annual earnings growth could easily support a 100x forward P/E. But a lot of future success is already baked into Palantir’s share price if you buy the stock today at 225x earnings.
Palantir might keep outperforming, but as the price climbs, the risk/reward becomes harder to justify.
Right now, Wall Street analysts have an average price target of $87 per share for Palantir, suggesting that the stock has about 30% downside from where the stock trades today.
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Hasn’t Palantir Always Been Overvalued?
Now, you might be thinking, “Analysts thought Palantir was overvalued for the past year, and it delivered 400% returns. Why start listening now?”
Nobody knows how a stock will perform, especially in the short term. Palantir could very well outpace the market over the next 5 years.
However, one thing to keep in mind is that even high-performing stocks can see years of underperformance if they’re bought too high.
As an example, Tesla has seen negative returns over the past 3 years. Of course, Tesla’s business is facing some pressure today, but it goes to show that if investors significantly overpay for a stock, it can be just as bad as buying a losing business.
Find better stocks to buy today than Palantir. (It’s free) >>>
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
