Palantir (PLTR) Stock Soars on 2Q Blowout—But Is It Too Expensive to Buy Now?

Palantir Technologies Inc. (NASDAQ:PLTR) is one of the Top AI Stocks Taking Wall Street by Storm. On August 5, Raymond James analyst Brian Gesuale reiterated a Market Perform rating on the stock. The rating affirmation follows Palantir’s blowout quarter, exceeding across multiple metrics.

“PLTR posted another exceptionally strong 2Q25 and guide that was above our Street high model. The fundamentals were strong with a 7% top-line beat, U.S. commercial growth of 93% and a AEBIT beat of ~15%. The strong AIP momentum and demand across virtually all markets supported management’s raised guide (midpoint $4.15B vs. Street at $4.05B) that was 6.4% higher, AEBIT that was 11.6% better and a new FCF expectation of $1.9B (vs. prior $1.7B). Key metrics also impressed with $843M of U.S. Comm TCV closed (up 4% q/q, and 222%+ y/y), U.S. comm RDV of $2.8B (up 145% y/y), net dollar retention of 128%.”

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According to the firm, Palantir’s momentum is being fueled by both new customer adds (up 43% y/y to 849) and expansion with existing customers considering TTM revenue from top 20 was up 30% y/y to $75M/customer.

“The company is obliterating Rule 40/50 metrics posting 94, is talking about a 10x increase in revenue with a simultaneous reduction in headcount, and has truly established itself as a unicorn in such a way that seeing Palantir execute makes us want to revisit our thesis on Santa Claus and the Easter Bunny!”

While the firm is in awe of Palantir’s results and future potential, it did note valuation concerns considering the stock has expanded from 7x sales in 2023 to 74x sales currently. The firm continues to look for a better entry point as “  “fundamental momentum is only gathering steam”.

Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems.

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