Palantir (NASDAQ:PLTR) stock has been the subject of a mad scramble in recent years, as investors rush to ride the big data company’s momentum. Its Q2 2025 earnings release once again topped expectations, with revenues surpassing the $1 billion mark for the first time.
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That milestone reflects more than just solid sales figures – it underscores how Palantir has carved out a distinctive niche, offering platforms that empower sovereign actors and government clients to dramatically increase efficiency and make faster, better-informed decisions in real time.
Capitalizing on these gains, the company has continued to raise guidance and secure major deals, the latest being a U.S. Army contract worth up to $10 billion over the next decade. With revenue growth seemingly on autopilot, it might appear there’s little reason for long-term holders to waver.
But not everyone is convinced. One investor, known by the pseudonym Weebler, just can’t justify PLTR’s valuation – despite being a fan of the company’s incredibly impressive moat.
“Even when we hold an almost stubborn conviction in any company’s long-term potential, we must strive to be willing to set aside personal bias when new variables shift the risk-reward equation,” admits the 5-star investor.
For Weebler, the problem lies in what the market is currently pricing in. A forward P/E multiple near 420x is “beyond excessive,” and even dialing that back to a lofty 60x assumes Palantir will grow earnings tenfold in just two years, a feat no large-cap tech company has historically achieved.
“That is beyond what even the most elite, high-growth tech companies have historically achieved at this scale,” emphasizes Weebler, adding that such assumptions also hinge on the share price holding steady.
While acknowledging that irrational exuberance could keep fueling the rally in the short term, Weebler has decided it’s time to step aside, cutting his rating on PLTR from Buy to Sell.
“The market seems to be getting irrationally greedy, and the growth expectations have stepped beyond what the most hypergrowth plays have ever achieved,” the investor concludes. (To watch Weebler Finance’s track record, click here)
There is clearly an abundance of caution on Wall Street as well. With 13 Hold ratings far outweighing 5 Buys and 2 Sells, PLTR holds a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $154.56 implies a 17% downside from current levels. (See PLTR stock forecast)
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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.