Stock-Split Watch: Is Palantir Next?

The stock market’s recent obsession with splits—from NVIDIA’s historic $1,000+ price tag to Broadcom’s 2023 split—has investors wondering: Could Palantir Technologies (NASDAQ: PLTR) be next? Despite its 2025 stock price rebound to over $100, the answer, based on valuation metrics, market trends, and corporate behavior, is a resounding no. Here’s why.

Palantir’s Stock Performance: A Comeback, Not a Split Candidate

Palantir’s shares have surged from a 2022 low of $6 to around $110 by early 2025, a 400%+ gain over 12 months. This rebound stems from its AI-powered Foundry platform, which has helped clients like global insurers and defense contractors achieve dramatic efficiency gains—reducing a two-week process to three hours for one client. Revenue hit $2.9 billion in 2024, a 29% jump, with net income soaring to $462 million. Yet, despite this growth, no split has been announced, and none is likely in 2025.

Why a Split Is Unlikely: Four Key Barriers

1. Price Thresholds: Splits typically occur when stocks hit stratospheric levels. NVIDIA split at $1,000+, and Broadcom at $500+. Palantir’s $110 price is far below these thresholds. Competitors like IBM ($140) and Snowflake ($130) operate at higher prices without splits, suggesting no urgency for Palantir to follow suit.

2. Valuation Overhang: Palantir’s valuation metrics are eye-popping. Its trailing P/E ratio exceeds 600x, its forward P/E is over 200x, and its price-to-sales ratio is a staggering 100x—all multiples that dwarf the S&P 500’s median P/S of 2.8x. Such numbers imply the stock is pricing in perfection, making splits irrelevant to affordability.

3. Index Dynamics: Unlike Dow Jones components (which are price-weighted), Palantir isn’t part of this index. Only eight of the 30 Dow stocks currently trade below its price, eliminating external pressure to split.

4. Market Trends: Stock splits are out of favor. The Nasdaq 100 has seen fewer splits since 2020, and even highfliers like Amazon ($130+) avoid them. A split would do nothing to change Palantir’s $25 billion market cap—it’s purely symbolic.

Analysts See Overvaluation, Not a Split

The Motley Fool recently rated Palantir a hold, citing its “nosebleed” valuation and risks like Pentagon budget cuts (which account for half its public-sector revenue) and U.S. tariffs on Chinese imports. Analysts tracking its May 2025 earnings gave an average price target of $88—far below its then-$124 share price—suggesting skepticism about its ability to sustain growth at current multiples.

The Bottom Line: Focus on Fundamentals, Not Symbolism

While Palantir’s AI platform and revenue growth are undeniable strengths, its stock is not a split candidate. The math is clear: splits occur at much higher prices, and Palantir’s valuation already reflects extreme optimism. Investors would do well to heed analysts’ warnings: a 2025 split isn’t coming, and the real question is whether the stock can justify its current price—or if it’s due for a reality check.

Final Take: Palantir’s stock may continue to climb, but splits won’t be part of the equation. For now, the focus should stay on whether its fundamentals can catch up to its sky-high valuation.

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