‘It’s All About the Math,’ Says Top Investor About Palantir Stock

Palantir Technologies (NASDAQ:PLTR) poses quite a conundrum for many. On the one hand, the company’s fundamentals are rock solid and seem set to continue flying upward. On the other hand, there’s that pesky valuation question that hasn’t gone away, even after a ~24% dip year-to-date.

Looking at the positives, Palantir remains on a rip-roaring pace of growth. Its revenues are rising, its profits are impressive, and CEO Alex Karp’s earnings letters are full of powerful reminders that the company’s ambitions are about as muscular as they come.

“Palantir is now literally one of the most impactful companies on the planet,” he wrote earlier this month.

While it’s nearly impossible to argue with Palantir’s financials, there’s no escaping another figure that investors also pay attention to. That would be its premium valuation.

So, is Palantir a solid buy or a value trap? Top investor Danny Vena says it all comes down to the math.

“Given what we know now, the company’s accelerating growth, and vast opportunity ahead, I would submit that Palantir stock is a buy,” shares the 5-star investor, who is among the top 1% of stock pros covered by TipRanks.

Vena appreciates both the bull and the bear argument. When it comes to the rosier side of the ledger, he points to the company’s astonishing growth trajectory. For instance, Q1 2026 was the 11th straight quarter of accelerating revenue, with sales of $1.63 billion representing 85% year-over-year growth.

Both U.S. commercial sales and government contracts are growing as well, giving Palantir multiple drivers for growth. Moreover, that seems primed to continue, as the company’s remaining performance obligations have reached $4.45 billion.

And if past is prologue, Vena notes math shows a glistening road of gold up ahead. Its full-year 2026 forecast is for $7.66 billion, which would represent 71% year-over-year growth. If this pace continues, Vena calculates that Palantir will bring in $13.1 billion in revenue in 2027.

However, there’s the very real issue of Palantir’s valuation, and Vena acknowledges that bears find this “egregious.” He lists several risks facing the company that could cause its growth begins to decelerate.

For instance, the competition could create a better solution, or perhaps the overall economy could take a hit. Moreover, Vena also believes that at some point PLTR’s valuation will become more “moderate.”

However, that doesn’t temper the investor’s view that PLTR is a winner. He cites its PEG ratio of ~0.52, which suggests that the share price remains undervalued for this company and its “phenomenal growth rate.”

“Palantir’s stock could move significantly higher over the next couple of years,” states Vena. (To watch Vena’s track record, click here)

That’s the overall direction on Wall Street as well. With 13 Buys, 4 Holds, and 2 Sells, PLTR carries a Moderate Buy consensus rating. Its 12-month average price target of $188.31 points to an upside approaching 40%. (See PLTR stock forecast)

Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.