"Analysts who have been ringing the bell on an AI bubble expect Palantir to be the first domino to fall, even ahead of . That's because, unlike Nvidia, the stock price is far ahead of the earnings curve. Buying PLTR stock at ~$180 today means you're paying for results over a decade in advance. PLTR stock trades at almost 180 times forward earnings. Even on a free cash flow basis, you're paying in excess of 130 times FCF. In comparison, NVDA stock trades at 25 times forward earnings with stronger and more durable sales growth."
"The company can scale once it gets its foot in the door, but there's only so much market it can capture. Analysts thus expect sales growth to come down a notch from ~54% for all of 2025 to ~42% in 2026. EPS growth is also expected to come down from 77% to less than 40% this year. In short, you may not be getting your money's worth."
Palantir's share price has plateaued and sits below its August 2025 level despite prior rapid appreciation from $20 in April 2024 to over $200 in October 2025. Defense-technology spending remains strong and 2026 could bring meaningful changes. The company reports full-year 2025 plus Q4 results on February 2, which could push the stock back above $200 if results are exceptional. Some analysts project far larger valuations, including a $1 trillion scenario. Valuation metrics are extreme: roughly 180 times forward earnings and over 130 times free cash flow, versus Nvidia at about 25 times forward earnings. Sales and EPS growth are expected to moderate in 2026.
Read at 24/7 Wall St.
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