Palantir, known for its data analysis work with the US and Israeli militaries, Palantir was the top-performing S&P 500 stock in 2024, soaring 340 per cent.
The stock has continued to surge since reporting blockbuster earnings, and is up more than 50 per cent in 2025. There’s more to come, suggests chief executive Alex Karp.
Like his friend Elon Musk, Karp is no stranger to hyperbole, bragging that Palantir’s results “continue to astound” and that we are “still in the earliest stages, the beginning of the first act, of a revolution that will play out over years and decades”. Palantir’s products, he told analysts, are “powerful as f**k”.
Perhaps, but analysts wonder if this “revolution” is already priced in. Palantir, already worth $265 billion, trades on more than 200 times expected earnings and more than 50 times revenue estimates for 2026. Valuation concerns mean Wall Street has been consistently wary. One such sceptic is Deutsche Bank’s Bard Zelnick, who says Palantir’s price-sales ratio is at levels that “history suggests is nearly impossible to grow into”.
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Palantir trades at more than three times the sales multiple of the next most expensive stock covered by Zelnick. Indeed, note that another famously expensive stock, Tesla, has never traded at more than 24 times sales.
In other words, Palantir’s current valuation is more than twice as high as Tesla’s highest-ever valuation. Still, analysts have been sounding the valuation alarm for months, but Palantir keeps soaring. For now, momentum continues to trump valuation concerns.
