Is Palantir Technologies Stock a Buy Now?

Palantir Technologies (PLTR) has been on a rollercoaster ride since its IPO in September 2020, with its stock price surging and plummeting in equal measure. As of February 10, 2025, PLTR shares have gained 340.48% year-to-date (YTD) and 315.32% over the past three years, but they have also experienced significant drawdowns. So, the question remains: is Palantir Technologies stock a buy now? Let's dive into the data and expert opinions to find an answer.



Strong Fundamentals and Growth Prospects

Palantir's fundamentals are robust, with a market cap of $252.52 billion and an enterprise value of $247.53 billion. The company's revenue has been growing rapidly, with a 340.48% YTD increase and a 315.32% increase over the past three years. Earnings have also been strong, with a 155.16% YTD increase and a 155.16% increase over the past year. Palantir's gross margin is an impressive 80.25%, with an operating margin of 10.83% and a profit margin of 16.13%.



Palantir's growth prospects are promising, with analysts forecasting a 21.04% revenue growth rate and a 41.59% EPS growth rate over the next five years. The company's strong focus on AI and data analytics positions it well in the market, with a competitive advantage over traditional data analytics providers.

Geopolitical Risks and Regulatory Changes

Geopolitical risks and regulatory changes can impact Palantir's business model and stock price. For instance, geopolitical conflicts and instability can increase demand for Palantir's services, driving revenue growth. However, trade restrictions and sanctions can also impact Palantir's ability to operate in certain regions. Additionally, changes in data privacy and security regulations can impact Palantir's operations and compliance costs.



Analyst Opinions and Price Targets

Of the 19 analysts covering Palantir, the average rating is "Hold," with a price target of $74.59, which is a -32.71% decrease from the current price. However, some analysts are more bullish on Palantir's prospects. For example, Tyler Radke of Citigroup has a "Buy" rating on the stock, with a price target of $110. Karl Keirstead of UBS also has a "Buy" rating, with a price target of $105.



Conclusion

Palantir Technologies' strong fundamentals, growth prospects, and focus on AI and data analytics make it an attractive investment opportunity. However, geopolitical risks and regulatory changes can impact the company's business model and stock price. While some analysts are bullish on Palantir's prospects, the average rating is "Hold," with a price target that suggests a potential decrease in the stock's value. Ultimately, investors should weigh the risks and rewards before making a decision on Palantir Technologies stock.