Palantir Stock Forecast 2025: Is PLTR Overvalued?

Palantir Technologies (PLTR) has seen its stock price soar almost 250% since the start of the year on the back of unprecedented artificial intelligence demand.

The US-based business, which specializes in software platforms for big data analytics, has enjoyed phenomenal revenue growth in 2024.

This has lit a fire under the PLTR stock price and paved the way for Palantir to join the S&P 500 index of leading US companies in September.

But have the shares become overvalued? Can investors realistically expect further increases over the coming months, or should they prepare for a spectacular fall?

In our Palantir stock forecast 2025 and beyond, we’ll chart the PLTR stock price movements and gauge the prospects for the company, which hit the list of the best tech stocks to watch in 2024.

Table of Contents Table of Contents

1. Key Takeaways
2. Summary of the Latest Palantir Stock Predictions
3. Palantir Stock Analysis: Key Drivers to Consider
4. Palantir Stock Forecast 2025: Analysts' Views
5. Palantir Stock Predictions 2025-2030: Where Will the PLTR Price Go Next?
6. The Bottom Line: Should I Invest in Palantir?
7. FAQs
8. References

Show Full Guide

Table of Contents

1. Key Takeaways
2. Summary of the Latest Palantir Stock Predictions
3. Palantir Stock Analysis: Key Drivers to Consider
Show Full Guide
4. Palantir Stock Forecast 2025: Analysts' Views
5. Palantir Stock Predictions 2025-2030: Where Will the PLTR Price Go Next?
6. The Bottom Line: Should I Invest in Palantir?
7. FAQs
8. References

Summary of the Latest Palantir Stock Predictions

Here, we examine the Palantir stock projections of analysts and algorithmic forecasters to give an idea of what investors may experience over the coming years.

Palantir Stock Analysis: Key Drivers to Consider

Let’s start our PLTR stock price forecast with an overview of the business and how its stock price has performed over the past year.

PLTR Stock Price Performance

Palantir builds software that enables organizations to create and run artificial intelligence across both public and private networks.

It’s used in areas as diverse as anti-money laundering, defense, data protection, and cryptocurrency, while clients include the US government.

The company’s stock price has enjoyed a remarkable 2024, having soared almost 250% from less than $17 back in January to $59.85 as the market closed on November 12, 2024.

It means it currently has a market capitalization of $106.9 billion, making it the ninth largest AI company in the world.

The next stage in our Palantir stock forecast looks at the crucial factors that have been influencing the PLTR stock price.

Joining The S&P 500

Palantir’s stock price rises also saw it join the coveted S&P 500 index of leading US shares in September 2024, four years after going public.

Alex Karp, its co-founder and chief executive, pointed out that such a goal would have been seen as “fanciful” by most people.

“Many in the market left us, abandoning hope, at precisely the wrong time,” he stated. “Our entry into the index, comprised of the most profitable and significant corporate enterprises in the United States, and by extension the world, has been made possible by the strength of our business and expanding demand for our software.”

Booming Revenue Growth

In its third-quarter results ended September 30, 2024, the company announced revenue growth of 30% year over year to $726 million.

It also closed 104 deals for over $1 million and grew its customer count by 39% year-over-year and 6% quarter-over-quarter.

The announcement also revealed that GAAP net income was $144 million, representing a 20% margin.

Adjusted free cash flow was also $435 million, representing a 60% margin and over $1 billion on a trailing twelve-month basis.

As far as the US is concerned, which remains the company’s main market, revenue grew 44% year-over-year to $499 million.

Within that figure, US commercial revenue was up 54% to $179 million, while US government revenue increased by 40% to $320 million.

According to chief executive Alex Karp, the whole story for the period has been about the remarkable rise in artificial intelligence.

“We absolutely eviscerated this quarter, driven by unrelenting AI demand that won’t slow down,” he said. “This is a US-driven AI revolution that has taken full hold. The world will be divided between AI haves and have-nots. At Palantir, we plan to power the winners.”

A Positive Outlook

Palantir also gave a positive outlook for the full year 2024, raising revenue guidance to between $2.805 billion and $2.809 billion.

It stated: “We are raising our US commercial revenue guidance to in excess of $687 million, representing a growth rate of at least 50%.”

The company also increased its adjusted income from operations guidance to between $1.054 billion and $1.058 billion.

The adjusted free cash flow guidance, meanwhile, has been raised to in excess of $1 billion, while GAAP operating and net income is expected in each quarter of this year.

Focus on AI: This Is Just The Beginning

In his most recent letter to shareholders, chief executive Alex Karp insisted Palantir was still only at the beginning of its AI journey.

He wrote: “The growth of our business is accelerating, and our financial performance is exceeding expectations as we meet an unwavering demand for the most advanced artificial intelligence technologies from our US government and commercial customers.”

Karp believes the world is in the midst of a “US-driven AI revolution that is reshaping industries and economies,” with Palantir at the center.

He also claimed the “unrelenting march” of the business is due to its “early and decades-long investment” in the technical infrastructure required.

“A juggernaut is emerging,” he added. “This is the software century, and we intend to take the entire market.”

Views on Israel

Despite the stock price’s blockbuster performance, there has been some negative Palantir news over the past year.

For example, chief executive Karp admitted in an interview that the company had lost employees over his public support for Israel.

“We’ve lost employees. I’m sure we’ll lose employees,” he said. “If you have a position that does not cost you ever to lose an employee, it’s not a position.”

In a letter to shareholders last November, Karp had reiterated his support for Israel in the ongoing conflict.

“We are one of a few companies in the world to stand up and announce our support for Israel, which remains steadfast,” he wrote. “Palantir stands with Israel.”

At the time, Susannah Streeter, head of money and markets at Hargreaves Lansdown, warned that the outspoken executive’s views may cause more personnel problems.

She told Techopedia:

“It could throw up recruitment challenges given that the fight for talent in the AI industry, to keep powering new innovations, is still super-strong.”

Palantir Stock Forecast 2025: Analysts’ Views

So, what are the Palantir stock predictions of analysts and industry observers?

It has been a terrific year for Palantir, but Danni Hewson, head of financial analysis at AJ Bell, questions whether the good times can continue.

She told Techopedia:

“Palantir is the AI stock that keeps on giving. Revenues keep going up, and it’s incredibly profitable, especially for a growth stock.”

Hewson also pointed out that it had recently “bagged a host of new corporate customers,” along with a five-year strategic partnership with BP.

“With an ‘America First’ Trump White House, ongoing restrictions in Europe look far less concerning, but the stratospheric rise in the stock does warrant at least a slight question mark,” she said. “Can it keep the white-hot momentum going long-term or is it heading towards a peak?”

Dan Ives, a managing director and senior equity research analyst at Wedbush Securities, branded Palantir as the “Messi of AI” in an upbeat statement.

The Messi of AI Palantir delivered a masterpiece with total revenues came in at $725.5 million well above both the Street’s $705.1 million estimate while its US commercial business grew a staggering 54% y/y above the company’s guidance range of 47%+. Robust 4Q guide. ????????

— Dan Ives (@DivesTech) November 4, 2024

Malik Ahmed Khan, an equity analyst at Morningstar, recently increased his fair value PLTR price target from $19 to $21 but believes shares are currently overheated.

“We view the long-term growth implied in Palantir’s current valuation as unrealistic,” he said. “With the firm’s shares priced for perfection, we’d remind investors that any bump in the road – such as sales execution challenges or weaker-than-expected top-line growth or guidance – could materially affect the stock’s valuation.”

Khan believes investors should pay close attention to what growth and margin expansion expectations are baked into the firm’s market price.

“Using our model, to arrive at the current share price for Palantir (which was $41.41 at that stage), we estimate that the firm’s top line needs to grow at a whopping 34% compound annual growth rate for the next five years,” he explained.

This, he pointed out, would imply Palantir’s top line in 2028 would be north of $6 billion.

However, Khan was impressed by the strength of Palantir’s business and highlighted how it’s showcasing the value of its platform and securing more significant deals.

“As Palantir lands larger customers and gains share of software spending among existing ones, the firm’s churn should also decrease, enabling it to increase its customer lifetime value,” he added.

According to Matt Britzman, senior equity analyst at Hargreaves Lansdown, you can think of Palantir as the essential tool for turning complex data into actionable intelligence.

“In the world of AI, data is king,” he said. “The larger the data set, the more you can leverage the power of AI. Palantir is seeing a spike in demand as businesses look to get their hands on its AI-powered solutions, a trend we expect to continue.”

Britzman pointed out that Palantir’s growth prospects are closely tied to its ability to continue expanding its customer base while navigating the complex regulatory environments.

“As a software name, its earnings are high-quality,” he said. “There’s plenty of cash to back up its accounting profits and it doesn’t need to spend loads to make money.”

Looking ahead, he believes the company is well-positioned to capitalize on the increasing demand for data analytics solutions as demand for AI accelerates.

“Perhaps the biggest risk to short-term performance is around expectations,” he said. “The valuation is lofty, and analysts have been upgrading profit estimates after a good start to the year, leaving little room for missteps.”

In the next section, we’ll consider the Palantir stock forecast 2025 of analysts.

Palantir Stock Predictions 2025-2030: Where Will the PLTR Price Go Next?

There is currently a rating of ‘Reduce’ on Palantir stock, as of November 13, 2024, according to the views of 16 Wall Street analysts compiled by MarketBeat.

Eight of them have ‘Hold’ recommendations in place, while six see the stock as a ‘Sell’ and two view it as a ‘Buy.’

As of November 12, 2024, the stock price stood at $59.85.

But what about a Palantir stock long-term forecast?

According to the algorithmic forecasts of Wallet Investor, the stock could soar to $155.08 over the next five years.

Although a Palantir stock forecast for 2030 is considered too far into the future for most analysts to predict, Coincodex has the stock at $210.63 by November 2030.

However, it’s important to remember that analysts and algorithm-based predictions might prove to be wrong.

The Bottom Line: Should I Invest in Palantir?

Investors in Palantir will have been cracking open the champagne this year as the PLTR stock price has soared 250% since the start of 2024.

Revenue has been increasing rapidly, while the management team has enthused that the company is still only at the start of its AI journey.

However, many observers are concerned that the shares have become overvalued despite all the positivity that’s surrounding the business.

This is illustrated by the Palantir stock expectations of Wall Street analysts, with the consensus view being that investors need to steel themselves for a significant fall.

Therein lies the conundrum for would-be investors. Have they already left it too late to get involved with this story, or can Palantir continue surprising people?

Of course, the final decision as to whether an investment in Palantir makes sense will be down to your own analysis and conclusions. Remember that you should never invest more than you can afford to lose.

FAQs

Rob Griffin

Financial Journalist

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Rob Griffin

Financial Journalist

Rob is a seasoned journalist with over three decades of experience spanning across business and finance journalism. Before embarking on a freelance career in 2002, he contributed his expertise to the business desks of notable publications such as The Guardian, Yorkshire Post, Sunday Business (now Business Post), and Sunday Express. Throughout his freelance journey, Rob has been a regular contributor to a wide range of national newspapers, consumer magazines, trade publications, and websites. His work has appeared in titles such as The Independent, Citywire, Daily Express, FT Adviser, and Sunday Telegraph, covering an array of subjects from market trends to…

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