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Is Palantir Technologies (PLTR) the Best Stock to Buy According to Marjorie Taylor Greene?

Cyrus ColeWednesday, Apr 23, 2025 2:34 pm ET

25min read

Introduction
U.S. Representative Marjorie Taylor Greene’s recent stock purchases have ignited debates about congressional financial ethics—particularly her repeated buys of Palantir Technologies (PLTR). While Greene has not explicitly endorsed PLTR, her transactions signal confidence in the company’s potential. But is Palantir truly a top stock pick, or is its soaring valuation masking risks? Let’s dissect the data.

Greene’s Investment History: A Pattern of Confidence

Greene has purchased PLTR shares at least three times since April 2024, investing between $1,000 and $15,000 per transaction. These purchases align with Palantir’s 300% stock surge since early 2024, driven by robust financial performance and strategic AI advancements. Her roles on committees overseeing government efficiency and counterterrorism (key areas for Palantir’s $3.75 billion 2025 revenue forecast) raise questions about whether her investments reflect insider knowledge of policy tailwinds.

Palantir’s Financial Momentum: Growth Meets Ambition

Palantir’s Q4 2024 results underscore its potential:
- 36% YoY revenue growth to $828 million, with U.S. commercial revenue up 64% and government revenue rising 45%.
- Earnings per share jumped 75% to $0.14, outperforming analyst estimates.
- The Foundry platform (for enterprises) and Gotham platform (for government) are powering demand, with clients like a major U.S. pharmacy chain automating prescription fulfillment and defense firm Anduril achieving 200x supply chain forecasting improvements.

The Elephant in the Room: Valuation Risks

While Palantir’s growth is undeniable, its valuation is stratospheric:
- Forward P/E of 324x, P/S of 80.6x, and P/CF of 144.66x—all far exceeding sector averages.
- Analysts are split: 10 of 19 rate it a “Hold”, while three recommend a “Strong Buy” with a $141 price target (55% upside from early 2025 lows). However, five analysts issue “Strong Sell” warnings, citing competition from Amazon and Microsoft.

Institutional and Insider Activity: A Mixed Signal

Inflows: BlackRock and Goldman Sachs increased holdings in late 2024.
Outflows: Vanguard sold $1.7 billion in shares, and CEO Alex Karp offloaded $1.5 billion in insider sales over six months—a red flag for some investors.

Political Ties: Advantage or Conflict?

Greene’s alignment with Elon Musk’s Department of Government Efficiency (DOGE) and her oversight roles amplify Palantir’s appeal. The company’s NATO AI battlefield system deal and IRS data integration projects reflect its deep government entrenchment. However, critics argue her influence creates a conflict of interest, as Palantir’s contracts could benefit from her committee decisions.

Key Risks to Consider

Valuation Bubble: The stock’s 300%+ rally may have priced in future growth, leaving little margin for error.
Competitive Threats: Tech giants like Amazon (AWS) and Microsoft (Azure) are encroaching on Palantir’s enterprise AI space.
Regulatory Scrutiny: Congressional calls to ban stock trading by lawmakers could impact Palantir’s political allies.

Conclusion: A High-Reward, High-Risk Play

Palantir’s 36% revenue growth, AI-driven innovation, and government contracts make it a compelling long-term bet—especially under Republican priorities like federal efficiency. However, its 324x forward P/E and insider selling suggest caution for short-term investors.

Final Analysis:
- Bull Case: Palantir’s AI integration (e.g., Grok LLM) and $3.75 billion 2025 revenue target could justify its premium valuation if execution continues.
- Bear Case: Overvaluation and competition could lead to a correction, especially if government spending slows.

Greene’s bets reflect belief in Palantir’s strategic moat, but investors must weigh its 300%+ stock surge against its $12 billion market cap and $82 median analyst target. For risk-tolerant, long-term investors, PLTR may still offer upside—but tread carefully.

Data as of early 2025. Past performance does not guarantee future results.

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