Palantir Technologies (NASDAQ:PLTR) blazed through expectations once more with its Q3 2025 earnings report, demonstrating improving numbers across the board.
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The big headline was the company’s expanding revenues, which increased by 63% on a year-over-year basis. While the company’s U.S. government sales grew by 52%, U.S. commercial sales surged an even more impressive 121% from Q3 2024.
And yet, despite the phenomenal performance, the company saw its share price drop by some 8% yesterday. Many stock market watchers are wary of PLTR’s exceptionally high valuation, and there are plenty of fears that much of the company’s high-octane growth is already priced into the share price.
While one top investor known as The Techie understands this concern, the 5-star investor still believes that PLTR is worth it.
“What saves the day for Palantir, in my opinion, is growth and profitability, both of which are off the charts relative to its peers,” says The Techie, who is among the top 2% of stock pros covered by TipRanks.
The investor highlights Palantir’s impressive quarter, citing the company’s growing revenues, sizzling net income (which more than tripled year-over-year to reach $475.6 million), and rising guidance. The company’s Rule of 40 score, which combines revenue growth and operating margin, has now ascended to 114%.
Of course, it’s the valuation that bears find problematic, acknowledges The Techie. Everyone agrees that PLTR trades at a steep price.
“Saying that Palantir is expensive is like saying that water is wet. That is a fact at this point,” emphasizes The Techie.
However, that doesn’t invalidate PLTR as an investment, further details the investor. It just means that the company will need to continue growing at a brisk pace.
The Techie argues that Palantir’s business is “resilient,” while noting the promising U.S. commercial growth. The investor also cites the company’s recent partnerships with Snowflake, Lumen, and Nvidia as evidence of Palantir’s designs on increasing its presence throughout the enterprise AI world.
“While valuation may be stretched, Palantir’s fundamentals justify a premium,” sums up The Techie. “It’s the classic case of a high-multiple stock that’s actually earning its multiple.”
It’s therefore a Buy rating for The Techie. (To watch The Techie’s track record, click here)
Wall Street isn’t quite as ready to embrace PLTR. With 11 Holds outpacing 3 Buys and 2 Sells, PLTR carries a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $185.20 implies minimal downside. (See PLTR stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.