Track market-moving stories before they get noisy

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.

That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.

However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

Palantir Technologies Inc. (PLTR - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

Here are three of the most important factors that make the stock of this company a great growth pick right now.

Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Palantir Technologies is 21.1%, investors should actually focus on the projected growth. The company's EPS is expected to grow 97.5% this year, crushing the industry average, which calls for EPS growth of 22.9%.

Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.

Right now, year-over-year cash flow growth for Palantir Technologies is 665.2%, which is higher than many of its peers. In fact, the rate compares to the industry average of 8.4%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 50.9% over the past 3-5 years versus the industry average of 17.3%.

Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for Palantir Technologies have been revising upward. The Zacks Consensus Estimate for the current year has surged 0.7% over the past month.

Bottom LineWhile the overall earnings estimate revisions have made Palantir Technologies a Zacks Rank #2 stock, it has earned itself a Growth Score of A based on a number of factors, including the ones discussed above.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination positions Palantir Technologies well for outperformance, so growth investors may want to bet on it.

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Nvidia CEO Jensen Huang, seen here via video link alongside Microsoft CEO Satya Nadella, said the world needs open-weight AI models. Jeffrey Dastin/Reuters In his first-ever post on X, Nvidia CEO Jensen Huang called attention to how some of the biggest names in AI and tech are rallying together to defend the future of open-weight AI models.

"AI will transform every industry, power every company, and be built by every country," Huang wrote on X. "Open models strengthen safety and cybersecurity, accelerate innovation and diffusion, and enable sovereignty."

On Friday, Nvidia, Microsoft, Meta, Mistral, and others signed an open letter that urges US policymakers not to crack down on open-weight AI models.

For my first post, I’m sharing a letter @NVIDIA signed on why open models matter.

AI will transform every industry, power every company, and be built by every country.

Open models strengthen safety and cybersecurity, accelerate innovation and diffusion, and enable sovereignty.… pic.twitter.com/t02bi51N4C

— Jensen Huang (@JensenHuang) July 24, 2026 Their statement amounts to a full-throated endorsement of open-weight AI models at a time when top Trump administration officials have suggested they might take action against Moonshot AI, the creator of the Kimi K3, the world's most powerful open-weight AI model.

"Our AI leadership will be judged not by one frontier AI model, but by whether the United States builds a strong, open ecosystem that diffuses into every sector," the signatories wrote in the letter.

The two biggest absences in the list are OpenAI and Anthropic, widely viewed as the world leaders in the frontier AI model race. Unlike Anthropic's Fable 5 and OpenAI's GPT-5.6-Sol, Kimi K3 as an open-source model will soon be available for download and customization. Both companies would stand to gain if the US government either directly blocks or significantly impedes China-based open model makers like Moonshot AI. Google also did not sign the letter.

OpenAI CEO Sam Altman later said he was "glad to see" the support for open weight models.

"i want the US to win in AI both in open source and proprietary models," Altman wrote on X.

While SpaceX is not listed as a signatory, Elon Musk later signaled his support for the message.

"This has my full support," Musk wrote on X, quoting Huang's tweet. "Jensen is right."

While the letter does not mention Moonshot specifically, its authors portray the broader development of open AI models as akin to how open software revolutionized computing in the 1980s.

"Open source did more than lower the cost of software; it created a shared foundation of knowledge on which generations of American engineers and entrepreneurs built their institutional sovereignty," they wrote.

China has thus far dominated the development of open-weight AI models, despite the US' legendary reputation in the creation of open-source software. Two of the biggest modern names in open software, Mozilla and the Linux Foundation, also signed onto the letter.

In the US, Nvidia's Nemotron model is one of the largest open weight models, though its performance pales in comparison to rivals like Kimi K3. Alexandr Wang, chief AI officer of Meta, has said that his Meta Superintelligence Labs team remains committed to open models and is developing an open variant of its Muse Spark model. Reflection AI, a startup founded by former Google DeepMind researchers, is also preparing its own open model.

On Wednesday, Michael Kratsios, director of the White House Office of Science and Technology Policy, publicly accused Moonshot of developing Kimi K3 by distilling the model from Anthropic's Fable 5. Distillation, the process of training a less powerful model on the outputs of a more powerful one, is a controversial but commonly used practice in AI development. At the same time, companies like Anthropic have accused their Chinese counterparts of abusing the distillation process to the point of essentially ripping off their intellectual property.

Earlier this week, Treasury Secretary Scott Bessent suggested that the US could sanction companies that engage in such distillation, which he compared to theft.

The letter defends the distillation process more broadly, but does open the door to the possibility that companies like Nvidia, Microsoft, and Meta would support a crackdown on those proven to be bad actors.

"Unlawful efforts to extract value from closed models raise legitimate concerns," they wrote. "Those concerns should be addressed through targeted legal and commercial frameworks rather than sweeping restrictions on techniques that play an important role in AI innovation."

In total, a combination of 25 companies, organizations, and platforms signed on to the letter. They are the American Innovators Network, Andreessen Horowitz, Arcee AI, Arena, Black Forest Labs, Box, CrowdStrike, Dell Technologies, Emergence Capital, Hugging Face, IBM, The Linux Foundation, Mariana Minerals, Meta, Microsoft, Mistral, Mozilla, Nvidia, Palantir, Perplexity, Reflection, Replit, ServiceNow, Telnyx, and Y Combinator.

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Brent D. Griffiths You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Brent Griffiths is a senior reporter at Business Insider who covers AI and tech.Previously, he worked at the Washington Post as a researcher on Power Up and the Finance 202. He started his career at Politico where he worked on the web production team and covered breaking news. His passion for covering politics has only grown since he cut his teeth covering the presidential campaign as a student journalist. He's also contributed to the Almanac of American Politics.

AI Microsoft

Once a high-flying stock, Palantir Technologies (PLTR -0.90%) isn't having a good year. The stock is down about 25% so far this year, putting it firmly in bear market territory.

But I'm convinced this is an outstanding buying opportunity for what I believe is the best artificial intelligence software company on the planet, and that's why I'm buying more shares of Palantir stock now.

Palantir CEO Alex Karp says any company involved in AI will find something to like in his company's products. Image source: Palantir Technologies.

Palantir's software can't be replicated The secret behind Palantir's success is its revolutionary software. The company collects data points from thousands of sources, including satellites, to provide real-time insights to commercial customers and government agencies. CEO Alex Karp described how the company works in a 2025 interview.

If you're an intelligence agency, you're using us to find terrorists and organized criminals while maintaining the security and data protection of your country. Then you have the special forces. How do you know where your troops are? How do you get in and out of the battlefield as safely as possible, avoiding mines, avoiding enemies? Then there's Palantir on the commercial side. The shorthand is if you're doing anything that involves operational intelligence, whether it's analytics or AI, you're going to have to find something like our products.

But the magic really began when Palantir incorporated its Artificial Intelligence Platform (AIP) into its Foundry and Gotham products, which allow users to pose detailed queries, automate tasks, and have AI propose and complete real-world tasks.

Three years after launching AIP, Palantir is continuing to grow at a staggering pace. Revenue in the first quarter was $1.63 billion, up 85% from a year ago. The company said its U.S. commercial revenue jumped 133% from a year ago to $595 million, and U.S. government revenue increased 84% to $687 million.

The company closed 206 deals in the first quarter, with at least $1 million each, 72 of them at least $5 million, and 47 at least $10 million. Overall, in the quarter, Palantir closed $2.41 billion in total contract value.

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The company increased its full-year guidance, now calling for revenue in a range of $7.650 billion to $7.662 billion. Previous guidance was for revenue between $7.182 billion and $7.198 billion.

The valuation is improving The biggest red flag for many investors has been Palantir's staggering valuation -- or, perhaps, its once-staggering valuation. In December, Palantir's forward price-to-earnings ratio was more than 240, and its forward price-to-sales ratio topped 90. But those numbers moderated in the first half of this year.

PLTR PE Ratio (Forward) data by YCharts

Yes, Palantir is still expensive. But it's a unique company providing software that is changing the way businesses operate, from managing supply chains to tracking inventory to conducting competitive analysis. And its military applications are significant enough that the Pentagon is making its AI-powered Maven Smart System an "official program of record," which would streamline Maven's adoption across all branches of the military and provide Palantir with long-term funding.

Palantir stock still has a long runway, which is why I'm buying the dip in 2026.

Key Takeaways Palantir uses Ontology to connect data, workflows, and AI into enterprise operations.PLTR's AIP Bootcamps help customers rapidly move AI from pilots to production deployments.PLTR paired 85% revenue growth with strong profitability, outperforming key AI software peers. Palantir Technologies (PLTR - Free Report) has long been recognized as a leader in enterprise data analytics. Still, its competitive advantage is increasingly being defined by something far more durable than AI software alone. The company’s growing moat stems from its ability to help organizations transition from isolated AI experiments to fully operational, enterprise-wide AI deployments.

At the center of this strategy is Palantir’s Ontology, a software layer that connects an organization’s data, business processes, assets and decision-making into a unified operational model. Rather than simply generating insights, Ontology enables AI applications to understand how an enterprise functions and execute workflows within existing business operations. This transforms AI from a standalone productivity tool into infrastructure that supports mission-critical decision-making.

Complementing this platform is Palantir’s AIP Bootcamp program, which accelerates the path from proof of concept to production. Instead of spending months evaluating AI use cases, customers collaborate with Palantir to build working applications that solve real operational problems. Successful pilots often expand into larger deployments across departments, creating deeper integration with the customer’s technology ecosystem.

This combination of Ontology and AIP Bootcamps strengthens Palantir’s competitive position in several ways. As organizations deploy more workflows, connect additional data sources and embed AI into daily operations, switching to another platform becomes increasingly difficult. Existing customers also gain opportunities to expand usage over time, reinforcing recurring revenue growth while increasing long-term customer value.

Unlike many AI vendors focused primarily on developing models, Palantir is positioning itself as the operational layer that allows enterprises to deploy AI securely, reliably and at scale. As businesses increasingly prioritize production-ready AI over experimental projects, this integrated approach could continue widening PLTR’s competitive moat and strengthening its long-term growth prospects.

Palantir vs. AI Software PeersPLTR’s competitive strengths are reflected in its financial performance. The company delivered 85% revenue growth in the first quarter of 2026, including an exceptional 133% increase in U.S. commercial revenues, while generating a 60% adjusted operating margin and a 53% GAAP net margin. Even leading AI software companies like Datadog (DDOG - Free Report) and Snowflake (SNOW - Free Report) struggle to match this combination of rapid expansion and profitability.

While DDOG and SNOW continue to benefit from AI demand, their growth rates remain significantly lower. By combining a durable software foundation with industry-specific expertise and superior execution, Palantir continues to separate itself from DDOG, SNOW and traditional enterprise software competitors.

PLTR’s Price Performance & EstimatesThe stock has declined 30% year to date compared with the industry’s 7% decrease.

                                                            Image Source: Zacks Investment Research

From a valuation standpoint, PLTR trades at a forward price-to-sales ratio of 31.47X, well above the industry’s 3.96X. It carries a Value Score of F.

The Zacks Consensus Estimate for PLTR’s 2026 earnings declined over the past 60 days.

                                                              Image Source: Zacks Investment Research

PLTR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

With 163 days left until January 2027, Polymarket does not yet have a dedicated January 2027 bracket for Palantir (NASDAQ: PLTR | PLTR Price Prediction). The most liquid forward-looking market is the July 2026 monthly, where the highest-probability strike is $144 at 10%, followed by $102 at 9% and $108 at 8%. The distribution is unusually wide, running from $72 to $150, signaling that traders are bracing for volatility rather than one clear direction into year-end. Near-term, the week-of-July 20 market centers on $123 at 83% probability, matching today’s price of $123.56 after a -6.86% session.

Fundamentals and Recent Earnings Palantir delivered Q1 2026 revenue of $1.63B, up 85% YoY, with adjusted EPS of $0.33, beating expectations by roughly 18% based on a $0.28 consensus estimate. Management raised FY26 revenue guidance to $7.650B to $7.662B, implying approximately 71% growth. CEO Alex Karp highlighted that Palantir’s Rule of 40 score reached 145%. The company reported strong profitability metrics, including a 60% adjusted operating margin, while maintaining a large liquidity position. Despite exceptional growth, the valuation remains elevated, leaving the stock vulnerable to any slowdown in execution or guidance reduction.

The Q2 2026 report lands August 3, 2026, after the market closes. Q3 2026 arrives in early November. A Q4 report will not print before early February 2027, meaning two earnings catalysts fall inside the window.

PLTR has experienced significant volatility, falling from December 2025 levels around $187.75 to about $133.25 by June 2026 after reaching a 52-week high of $207.52. Year-to-date, shares are down roughly 25%, with a 52-week trading range of $106.37 to $207.52.

Final Assessment Polymarket’s July 2026 bracket implies a base outcome near $144, aligned with the AI base case of $143.97 by late January 2027. Reaching that level requires a clean Q2 beat, sustained U.S. commercial acceleration above 120% growth, and stable sector sentiment. Risks include multiple compression from the 139 P/E and post-earnings 30-day fade patterns seen in prior quarters.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Palantir didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

Palantir Technologies Inc. PLTR shares fell on Wednesday as investors weighed fresh regulatory scrutiny surrounding the company's UK National Health Service (NHS) Federated Data Platform (FDP) contract alongside growing concerns over emerging competition ahead of its upcoming earnings report.

The decline comes as the UK's Office for Statistics Regulation (OSR) addressed concerns over how NHS England presented performance metrics related to the FDP, while investors also assessed reports of a new open-source intelligence tool that mirrors some of Palantir's core capabilities.

The UK's Office for Statistics Regulation (OSR) addressed public concerns on Wednesday regarding NHS England's communication of performance metrics for the Federated Data Platform.

On June 6, NHS England updated its methods page, adding: "We cannot therefore draw conclusions about cause and effect as other variables have not been controlled for."

According to the OSR, NHS England added the caveat following Freedom of Information requests regarding FDP data analysis. NHS England also committed to placing similar caveats on its main FDP website and said Imperial College would conduct an independent academic evaluation of the platform.

The regulatory developments add to broader scrutiny surrounding the NHS contract.

Jo Maugham, executive director of the Good Law Project, criticized the arrangement, stating: “Palantir is not — and frankly never has been — a company that can be trusted with this nationally important contract.”

Regional NHS organizations have also pursued alternative approaches.

In a Guardian letter published on July 20, Dr. Devan Moodley, CEO of Health Connect Global, said Greater Manchester's integrated care board chose not to adopt the platform, instead relying on capabilities developed with UK universities and companies.

Investor sentiment has also been pressured by reports of a new open-source "World Monitor" tool published on GitHub that is designed to replicate aspects of Palantir's global intelligence capabilities.

The development has raised concerns about potential competition in one of Palantir's core business areas ahead of the company's second-quarter earnings report, scheduled for Aug. 3.

Analysts expect Palantir to report earnings per share of 33 cents on quarterly revenue of $1.81 billion.

Options activity on the Cboe also reflects increased caution, with elevated implied volatility suggesting traders expect significant price movement around the earnings release.

Despite the recent weakness, Palantir continues to benefit from strong cash generation, healthy profit margins and long-term customer contracts, which provide financial flexibility to invest in software development and expand its sales operations.

At the same time, investors remain focused on risks including rising costs, capacity constraints and the company's reliance on US government contracts. Increased competition and slower growth could make it more challenging for Palantir to maintain the growth expectations reflected in its valuation.

Technical picture remains under pressureFrom a technical perspective, Palantir continues to trade below several key moving averages.

The stock is approximately 5.7% below its 50-day simple moving average of $132.14 and 19.5% below its 200-day moving average of $154.82, keeping both the intermediate and longer-term trend negative.

Its 20-day moving average of $126.62 remains below the 50-day average, while the Death Cross formed in February continues to weigh on the technical outlook.

Momentum indicators remain neutral, with the Relative Strength Index (RSI) at 43.62, suggesting the stock is trading in a consolidation phase rather than a strong directional trend.

Technical traders are watching resistance near $136.50 and support around $122.50 as Palantir approaches its quarterly earnings announcement.

Just a few months ago, investors couldn't get enough of Palantir Technologies (PLTR 1.57%). The company -- known for "big data" analytics -- was delivering record earnings, demand for its artificial intelligence (AI) software was surging, and the stock seemed unstoppable.

Fast-forward to today, and the mood has changed. Although the business continues to execute at a high level, Palantir's stock has fallen roughly a third from its peak. That naturally raises an important question.

Has this correction finally created a buying opportunity, or is the stock still too expensive?

Image source: Getty Images.

The business hasn't been the problem Most investors who focus only on Palantir's operating results will probably struggle to explain why the stock corrected so sharply. The company recently reported another outstanding quarter. Revenue for the period grew 85% year over year to $1.6 billion, while U.S. commercial revenue grew more than 130%, highlighting strong demand from businesses adopting its Artificial Intelligence Platform (AIP).

The quality of that growth is just as impressive. Unlike many fast-growing AI companies, Palantir is generating meaningful profits and strong free cash flow. Management has also continued to raise its revenue guidance, suggesting that demand remains healthy. In other words, the business is performing well. If anything, Palantir's business is stronger today than it was when the stock was making new highs.

Then why did the stock fall? Here's where many investors get confused. They assume a falling stock price means a weakening business. Sometimes that's true. But sometimes the business keeps improving while the stock falls. That's largely what happened with Palantir.

During the early AI boom, investors were willing to pay an extraordinary premium for companies they believed would dominate the next generation of enterprise software. Palantir was one of those companies. Eventually, however, Wall Street stopped asking one question: "Is Palantir a great company?" Instead, it started asking another: "How much is a great company worth?"

That shift in focus changed everything. Once expectations become exceptionally high, even excellent earnings may not be enough to push the stock higher. Investors simply become less willing to pay an unlimited premium for future growth.

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Has the correction made Palantir cheap? The recent pullback has undoubtedly made Palantir more attractive than it was at its peak. Investors today are paying less for the same business. That's a positive.

But that doesn't automatically make the stock cheap. Even after the correction, Palantir still trades at a huge premium multiple -- its price-to-earnings (P/E) ratio stood at 167 as of this writing -- which is significantly higher than many of the market's other AI leaders. For instance, Nvidia trades at a P/E of around 37. 

But here's the thing: A high P/E ratio doesn't necessarily mean Palantir is overvalued. It simply means investors expect Palantir to expand at hypergrowth rates over the next several years. They're paying today for profits they believe the company will generate tomorrow.

Having said that, it does mean the margin for error remains thin. If Palantir continues executing at an exceptional level, today's valuation could look reasonable. But if growth slows, investors may look back and regret paying up for the stock today.

What does it mean for investors? Palantir remains one of the most compelling enterprise AI companies in the market today. Its business continues to execute well. Commercial adoption is accelerating. And management has demonstrated that it can grow rapidly while generating meaningful profits.

The recent correction has certainly improved the investment case. But "more attractive" doesn't necessarily mean "cheap." For long-term investors, the real question isn't whether Palantir can grow. It's whether the company can grow fast enough to justify the premium investors are still willing to pay.

If you believe it can, then buying the stock today makes sense. If not, it's best to stay on the sidelines.

Zeta Global is accelerating growth, expanding margins, and scaling FCF, yet trades at a depressed valuation despite transformative partnerships. Q1 revenue grew 50% YoY, organic growth hit 29%, and FCF guidance was raised to $235 million, with 2026 set for first GAAP profitability. The 7-year Palantir partnership and deepening OpenAI integration unlock new enterprise opportunities, with at least $100 million in annual upside potential.

Posted by Defense World Staff on Jul 21st, 2026

Amova Asset Management Americas Inc. reduced its stake in shares of Palantir Technologies Inc. (NASDAQ:PLTR – Free Report) by 8.5% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 1,688,322 shares of the company’s stock after selling 157,256 shares during the quarter. Palantir Technologies comprises 3.5% of Amova Asset Management Americas Inc.’s portfolio, making the stock its 7th biggest position. Amova Asset Management Americas Inc. owned 0.07% of Palantir Technologies worth $246,900,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also modified their holdings of PLTR. Revolve Wealth Partners LLC bought a new stake in Palantir Technologies in the fourth quarter valued at approximately $450,000. Bison Wealth LLC boosted its position in shares of Palantir Technologies by 37.4% during the fourth quarter. Bison Wealth LLC now owns 17,130 shares of the company’s stock worth $1,296,000 after purchasing an additional 4,667 shares in the last quarter. Capstone Wealth Management Group LLC grew its holdings in shares of Palantir Technologies by 38.0% in the 1st quarter. Capstone Wealth Management Group LLC now owns 17,147 shares of the company’s stock valued at $1,447,000 after buying an additional 4,722 shares during the period. Schnieders Capital Management LLC. grew its holdings in shares of Palantir Technologies by 36.8% in the 2nd quarter. Schnieders Capital Management LLC. now owns 6,294 shares of the company’s stock valued at $858,000 after buying an additional 1,694 shares during the period. Finally, Vivaldi Capital Management LP bought a new stake in shares of Palantir Technologies in the 2nd quarter valued at $315,000. 45.65% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Palantir Technologies Here are the key news stories impacting Palantir Technologies this week:

Positive Sentiment: Several articles argue Palantir’s long-term growth case remains intact, pointing to its expanding AI software footprint and the strength of its AIP platform. Palantir: The Stock Is Richly Valued With a Forward P/S Multiple of Over 40x, but Is the Growth Story Still Worth Buying Into? Positive Sentiment: Commentary from top investors and market watchers says Palantir’s business momentum and product expansion could support further gains despite the stock’s premium valuation. It’s Not Crazy, Says Top Investor About Palantir Stock Positive Sentiment: Another piece says Palantir keeps defying skeptics with a string of earnings beats and a raised outlook, reinforcing the idea that fundamentals are still improving. Predicition: Palantir Defies Doubters. Here’s Our New Price Target Neutral Sentiment: Palantir is also being widely searched and discussed, which shows elevated investor interest but does not by itself change the outlook. Neutral Sentiment: Several articles revisit the stock’s big run from its IPO and its recent pullback, keeping focus on valuation and volatility rather than any new company-specific catalyst. Insider Activity In other news, insider Alexander C. Karp sold 397,744 shares of the firm’s stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $136.04, for a total transaction of $54,109,093.76. Following the completion of the transaction, the insider directly owned 6,432,258 shares of the company’s stock, valued at $875,044,378.32. This trade represents a 5.82% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider David A. Glazer sold 17,128 shares of Palantir Technologies stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $136.04, for a total transaction of $2,330,093.12. Following the completion of the sale, the insider owned 375,242 shares in the company, valued at $51,047,921.68. This trade represents a 4.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 1,112,270 shares of company stock worth $150,247,785. 9.53% of the stock is currently owned by insiders.

Palantir Technologies Price Performance Shares of Palantir Technologies stock opened at $134.85 on Tuesday. The firm has a market cap of $323.28 billion, a price-to-earnings ratio of 151.52, a price-to-earnings-growth ratio of 2.12 and a beta of 1.56. The stock’s 50-day moving average is $132.16 and its 200-day moving average is $143.69. Palantir Technologies Inc. has a one year low of $106.37 and a one year high of $207.52.

Palantir Technologies (NASDAQ:PLTR – Get Free Report) last posted its quarterly earnings data on Monday, May 4th. The company reported $0.33 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.28 by $0.05. Palantir Technologies had a return on equity of 28.34% and a net margin of 43.67%.The business had revenue of $1.63 billion during the quarter, compared to the consensus estimate of $1.54 billion. During the same period last year, the company earned $0.13 earnings per share. Palantir Technologies’s quarterly revenue was up 84.7% on a year-over-year basis. On average, equities analysts expect that Palantir Technologies Inc. will post 1.17 EPS for the current year.

Analysts Set New Price Targets PLTR has been the topic of several recent analyst reports. President Capital upgraded Palantir Technologies from a “neutral” rating to a “buy” rating and lifted their target price for the stock from $25.50 to $133.00 in a report on Monday, June 29th. UBS Group upgraded Palantir Technologies from a “buy” rating to a “buy” rating in a report on Tuesday, June 16th. Mizuho dropped their price target on Palantir Technologies from $195.00 to $185.00 and set an “outperform” rating on the stock in a research report on Tuesday, April 14th. Benchmark cut Palantir Technologies to a “hold” rating in a report on Tuesday, June 16th. Finally, BTIG Research lowered Palantir Technologies to a “neutral” rating in a research report on Tuesday, June 16th. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, eleven have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $190.85.

Read Our Latest Stock Report on PLTR

About Palantir Technologies (Free Report)

Palantir Technologies is a software company that develops data integration, analytics and operational decision-making platforms for government and commercial customers. Founded in 2003 by a team that included Alex Karp and Peter Thiel, Palantir has grown into a provider of enterprise-scale software designed to help organizations integrate disparate data sources, build analytic models and drive operational workflows. The company went public in 2020 and continues to position its products around large, complex data projects where security, provenance and real-time collaboration are important.

Palantir’s product portfolio centers on a small number of core platforms.

See Also Five stocks we like better than Palantir Technologies The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story Want to see what other hedge funds are holding PLTR? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Palantir Technologies Inc. (NASDAQ:PLTR – Free Report).

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There's no two ways about it: Palantir Technologies (PLTR +1.87%) is a battleground stock. Bulls argue that the company's proprietary artificial intelligence (AI)-infused decision-making matrix -- dubbed Ontology -- has no real competition, which is driving Palantir's blistering sales growth. Bears argue that the stock's egregious valuation is simply unsustainable, which has fueled the stock's recent declines -- and it could have further to fall.

Both arguments have merit. The artificial intelligence (AI) specialist rode the wave of AI adoption to heights, with the stock soaring more than 3,000% between early 2023 and late 2025. Since its peak in early November, however, Palantir has plunged roughly 35%.

However, I predict the company's impressive growth and its moderating valuation will fuel impressive stock price gains over the next couple of years.

Image source: Getty Images.

What's driving the financial performance? Palantir has a long history of creating AI systems for U.S. intelligence, military, and law enforcement agencies. The company's unbridled success fueled the decision to adapt its tools for commercial enterprises. Palantir developed Ontology, a process for mapping its AI across a company's siloed data and physical operations.

By compiling this data into a knowledge graph, Palantir's AI systems provide near-real-time solutions to everyday business problems -- leveraging the organization's own data to inform its decisions. The company's Artificial Intelligence Platform (AIP) provides managers with actionable insights, enabling them to make critical business decisions based on data. Users get measurable value from Palantir's solutions, which keeps customers coming back for more.

Don't take my word for it. In the first quarter, Palantir generated revenue that soared 85% year over year and 16% quarter over quarter to $1.63 billion, the company's highest-ever year-over-year growth rate and the 11th consecutive quarter of accelerating revenue growth. Its profitability also surged, as adjusted earnings per share (EPS) jumped 154% to $0.33.

The highlight was the U.S. commercial segment, with revenue up 133% to $595 million. The government segment played its part, generating revenue that grew 84% to $687 million.

This shows that Palantir's recent stock price decline was unrelated to its operating and financial results, which were superb.

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The mathematical path forward Using Palantir's most recent growth rate and Wall Street's expectations can provide an estimate regarding where Palantir's stock price could be by the end of next year -- though we'll have to make a few assumptions.

Palantir's full fiscal 2026 forecast is for revenue of $7.66 billion at the midpoint of its guidance, which would represent year-over-year growth of 71%. The company hasn't released a forecast for 2027, but Wall Street's consensus estimate is $11.22 billion, representing about 46% growth.

One of the hallmarks of Palantir's recent growth has been its expanding profit margin, currently about 53%. Let's be conservative and assume it doesn't expand any further through the end of next year (though history suggests it will). If Palantir generates revenue of $11.22 billion in 2027 with a 53% profit margin, that would put net income at roughly $5.95 billion and EPS of $2.31, using its current share count of 2.57 billion.

If Palantir's valuation remains constant at 152 times earnings, the stock price would rise 161% to $352 -- driving Palantir's market cap to $904 billion.

Fun with numbers To be clear, this is only a thought exercise, arriving at one possible scenario. Change any of the underlying assumptions, and the results could be dramatically different.

If Palantir's growth continues to accelerate, investors might continue to assign a generous valuation. If that growth were to moderate, investors might rethink its frothy multiple, which could send the stock plunging.

Despite the stock's recent reset, Palantir still trades at a premium valuation of 152 times earnings, as highlighted above. However, some investors question the use of the price-to-earnings ratio, particularly for a company with near-triple-digit top-line growth. Employing the more appropriate price/earnings-to-growth (PEG) ratio returns a multiple of 0.53, when any number less than 1 is the standard for an undervalue stock.

Given the company's accelerating growth and strong track record of execution, I would argue that Palantir stock is a buy -- especially at a 35% discount.

Palantir Technologies (PLTR +3.01%) stock may be struggling this year, but it's generated some incredible returns for investors. In each of the previous three years, it has more than doubled in value, on the way to becoming one of the most valuable tech companies in the world.

A bit of a cool-off for this red-hot stock was likely overdue, so its 24% decline this year shouldn't be a huge surprise. Sooner or later, investors would inevitably be tempted to take profits. But with the tech stock trading below $140 and down about 35% from its 52-week high, is now a good time to buy it?

Image source: Getty Images.

The business remains a growth machine Palantir has successfully unlocked significant growth through artificial intelligence (AI). Its AI platform turned the business around dramatically. Towards the end of 2023, Palantir's growth rate was declining, but with AI, that has all changed, with the company seemingly able to continually pull levers to drive even more growth. At 85% in its most recent quarter, its results have truly been exceptional.

PLTR Revenue (Quarterly YoY Growth) data by YCharts

What's perhaps even more impressive is that over the trailing 12 months, the company's profit margin has been exceptionally high at 44%, with net income totaling $2.3 billion on revenue of $5.2 billion. Those are not the type of margins that are the norm in tech, which is why Palantir is a standout in the sector, and why growth investors have been so bullish about it.

The problem, however, may still be that its valuation hasn't come down far enough.

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Palantir's stock continues to look incredibly overpriced After years of truly incredible performances, it can take a while for Palantir's stock to return to more reasonable levels. Even with a sizable decline this year, however, I don't think it's become low enough to buy. Its price-to-earnings multiple is around 150, and even based on analysts' estimates, it's trading at 90 times its future profits. The stock's valuation is mammoth, indicating that investors are pricing in significant future growth.

The danger with Palantir is that, because the stock is as expensive as it is, expectations will remain high when it reports earnings, and anything short of exceptional guidance and a continually high growth rate could make it prone to a sharp sell-off. Palantir's stock is down big this year, even without a big earnings miss and with the business performing well. If that changes, its decline could become far more significant. That's why, although its margins look good and the growth is impressive, it still doesn't look like a buy right now.

Palantir Technologies Inc. (PLTR - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this company have returned +3% over the past month versus the Zacks S&P 500 composite's +0.6% change. The Zacks Internet - Software industry, to which Palantir Technologies belongs, has gained 9.4% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Palantir Technologies is expected to post earnings of $0.35 per share for the current quarter, representing a year-over-year change of +118.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The consensus earnings estimate of $1.48 for the current fiscal year indicates a year-over-year change of +97.3%. This estimate has changed -0.7% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $2.09 indicates a change of +41% from what Palantir Technologies is expected to report a year ago. Over the past month, the estimate has changed -0.6%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Palantir Technologies is rated Zacks Rank #2 (Buy).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Palantir Technologies, the consensus sales estimate of $1.81 billion for the current quarter points to a year-over-year change of +80%. The $7.69 billion and $10.9 billion estimates for the current and next fiscal years indicate changes of +71.9% and +41.7%, respectively.

Last Reported Results and Surprise HistoryPalantir Technologies reported revenues of $1.63 billion in the last reported quarter, representing a year-over-year change of +84.7%. EPS of $0.33 for the same period compares with $0.13 a year ago.

Compared to the Zacks Consensus Estimate of $1.54 billion, the reported revenues represent a surprise of +6.04%. The EPS surprise was +13.79%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Palantir Technologies is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Palantir Technologies. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

Palantir Technologies (PLTR 1.40%) is a stock that has greatly divided investors over the years. The biggest reason for this is its valuation, as the stock trades at a forward price-to-sales (P/S) multiple of around 41 times 2026 analyst estimates and a forward price-to-earnings ratio (P/E) of nearly 90 times. Despite those high valuation metrics, though, the stock looks like it could be a top stock to own for the long term.

Top growth stocks rarely trade cheaply, and Palantir has proven to have one of the best growth stories for a large-cap stock not involved in the artificial intelligence (AI) infrastructure boom. The company has seen its revenue growth accelerate for 11 consecutive quarters, with growth of 85% in the first quarter. Meanwhile, its growth is being led by a combination of new customer additions and rapid expansion from existing customers.

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A unique offering with a long runway of growth What makes Palantir special is its unique solution, which is becoming an integral part of the AI ecosystem. Instead of trying to build the next great AI model, Palantir turned to its roots in data gathering and analytics to develop an application layer that makes AI more useful for enterprises in the real world.

Its solution gathers information from a variety of disparate sources and then organizes it into an ontology, where it links data to physical assets and real-world processes. This gives AI models a single source of truth grounded in real objects and tasks, greatly reducing AI hallucinations and helping organizations apply AI to solve the actual problems they face.

Being AI-model agnostic is a big plus, as it doesn't tie its customers to one company's models. This gives its customers flexibility that reduces risks and allows it to sell its Artificial Intelligence Platform (AIP) solution across a wide array of industries. The use cases for its solution are enormous, as is its growth runway.

Image source: The Motley Fool.

Palantir's solution has been a hit with its customers, and its net revenue retention (NRR), which measures revenue growth from existing customers who have been with the company for a year or longer, is a testament to how important its solution becomes once it gets a foothold in an organization. Over the past 12 months, Palantir's NRR is a whopping 150%, which essentially means customers who have been with Palantir for a year or more are increasing their spending with the company at a 50% annual clip.

That's remarkable. At the same time, Palantir's AI bootcamps, where it helps potential clients solve an actual issue they are facing within seven days, have become a strong selling point that greatly speeds up sales cycles.

While the stock is not cheap, this all provides the foundation for Palantir potentially becoming one of the largest companies in the world over the next decade, making it a top AI stock to own.

Space Exploration Technologies (SPCX 5.41%), AMD (AMD 0.66%), and Palantir Technologies (PLTR 1.53%) may seem like an odd grouping of companies. But I have a good reason to consider them together: They're all incredibly overvalued.

While that may sound like a shocking statement, after digging into each stock, that's the reality, and investors sitting on them may want to consider swapping them out of their portfolios for some more reasonably valued counterparts in their industries.

So, just how pricey are they? Let's take a look.

Image source: Getty Images.

Although SpaceX just went public a few weeks ago, I think it's one of the most overvalued stocks on the market. But that's only if you value the company based on what it has already done.

The majority of SpaceX investors are buying into the stock because of what it could achieve under Elon Musk's leadership. That's a fair investment thesis, and it's what has allowed Tesla to remain one of the largest companies in the world despite its business struggles over the past few quarters. If that's your angle, I'm not going to argue, but it doesn't alter the fact that SpaceX's business as it stands now does not justify the company's valuation.

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SpaceX hasn't reported earnings results as a public company yet, so the only information investors have to go on is from its IPO presentation. According to that, in 2025, SpaceX generated $18.7 billion in revenue and reported negative net income. So if we value the company using 2025 sales, that would price SpaceX at 92 times sales.

Even if SpaceX could snap its fingers and become instantly profitable with a 45% profit margin (its stated long-term goal), that would value the stock at 204 times earnings. That's an incredibly expensive stock, and with 2025 revenue growth coming in at only 33%, those numbers don't jibe.

That's not to say SpaceX cannot overcome this with future growth, but even then, a lot of hoped-for growth is already priced into the stock, so I'm avoiding it.

AMD AMD stock has risen by about 150% so far in 2026. While some of that gain was earned, the rest of it is a real head-scratcher.

AMD is constantly compared to Nvidia, as these two compete against each other in many product lines, but the most important arena for both right now is the data center market. Nvidia's data center division is far larger and growing much faster than AMD's, which makes it odd that AMD is now valued at such a premium to Nvidia.

NVDA PE Ratio (Forward) data by YCharts.

With Nvidia's growth this fiscal year expected at 82% versus AMD's 43%, the justification for AMD's premium over Nvidia is a mystery. As a result, I think investors would be far better off selling AMD stock and scooping up Nvidia while it's as cheap as it is.

Palantir Technologies Lastly, there is Palantir, which has been a popular AI stock pick over the past year. Its business continues to excel, and it grew by a strong 85% in the past quarter.

But the problem is that a growth deceleration could be on the way. Wall Street estimates that Palantir's growth rate, which is projected to be 72% this year, will decline to about 45% next year.

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While that's still rapid, it's not enough to warrant the 90 times forward earnings valuation the stock carries. That's an expensive premium for any stock, even one growing as fast as it is today. If Palantir's growth rates start to decline at any time, the market could send its shares lower, as a ton of anticipated success is already priced into the stock.

That makes it a bit of a precarious investment, and I think there are far better AI stocks to invest in than Palantir right now.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Hypergrowth is a demanding label in 2026. To wear it, a company needs to expand revenue at a pace that leaves the broader market in the dust, and it needs to do so while the market is actively rewarding profitable, cash-generating stories. Three names screen through that filter right now.

Each is compounding topline at a rate well above the 20% threshold, each has a specific catalyst driving it in the second half of the year and each carries a real caveat. These are high-risk, high-reward growth positions. Here is the July setup for all three, using the latest earnings prints and live analyst consensus.

Palantir (NASDAQ: PLTR) Palantir (NASDAQ:PLTR | PLTR Price Prediction) posted the fastest revenue growth in its history last quarter. Q1 FY2026 revenue landed at $1.63 billion, up 84.7% year over year, with adjusted EPS of 33 cents versus a 27-cent consensus. U.S. commercial revenue, the segment the bull case hangs on, expanded 133% year over year to $595 million and U.S. commercial remaining deal value now stands at $4.92 billion. Management raised full-year 2026 guidance to approximately 71% growth.

The bull case is simple: AIP is now a budget line item at large U.S. enterprises, and the numbers are inflecting higher. CEO Alex Karp put it this way on the call: “Palantir’s Rule of 40 score has soared to 145%. We have shattered the metric, a feat matched only by other fellow AI infrastructure companies: NVIDIA, Micron and SK hynix.” If you want a cleaner way to think about who benefits when hyperscaler AI spend flows downstream into the enterprise, our team’s 7 Stocks Powering the AI Boom (That Aren’t Chipmakers) is a good frame for the ecosystem trade.

The caveat: valuation. Shares trade at a trailing P/E of 143 and a price-to-sales ratio of roughly 60. That is why the stock is down 26.84% year to date at $131.73, even as fundamentals accelerate. Analyst consensus target sits at $183.12, and the model implies roughly 22% upside. Any deceleration in U.S. commercial bookings would compress the multiple quickly.

Snowflake (NYSE: SNOW) Snowflake (NYSE:SNOW) is the AI-consumption re-rate story of 2026. Q1 FY2027 product revenue came in at $1.33 billion, up 34% year over year, with total revenue of $1.39 billion (+33.5% YoY) and non-GAAP EPS of 39 cents versus the 31 cents expected. Remaining performance obligations reached $9.21 billion, up 38% year over year, and net revenue retention held at 126%. Management raised full-year product revenue guidance to $5.84 billion (31% growth).

The bull thesis rides on AI workloads. There are now more than 13,600 accounts using Snowflake AI capabilities, with Cortex Code deployed across 7,100+ accounts. A new $6 billion multi-year AWS agreement and a deepened OpenAI partnership give the platform hyperscaler-level distribution. As CEO Sridhar Ramaswamy framed it: “AI continues to be a powerful tailwind for Snowflake, and Q1 marks a clear inflection point in that journey.”

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Shares have already responded, rallying more than 23% year to date and climbing toward the 52-week high of $284.99. But Snowflake still runs a GAAP loss with an operating margin of -22.2% and a forward P/E of 135.

The caveat: A consensus target of $292.53 implies limited near-term upside from here, and a single soft consumption quarter could crack the momentum.

Uber (NYSE: UBER) Uber (NYSE:UBER) is the profitable hypergrowth pick. Gross Bookings in Q1 2026 hit $53.72 billion, up 25% year over year on a constant-currency basis, with 3.6 billion trips (+20%) and 199 million monthly active platform consumers. Non-GAAP EPS came in at 72 cents, up 44% year over year, and operating income grew 56.6%. The Delivery segment posted 34% revenue growth.

The setup is compelling: real growth, real free cash flow and a rational multiple. Uber trades at a trailing P/E of 18 and forward P/E of 22, with 50 million Uber One members now driving half of Gross Bookings across Mobility and Delivery. Management repurchased $3.01 billion of stock in Q1 alone. Dara Khosrowshahi has framed the AV path this way: “We enter 2026 with a rapidly growing topline, significant cash flow, and a clear path to becoming the largest facilitator of AV trips in the world.”

The caveat: optics. GAAP net income fell to $263 million on a $1.5 billion equity investment revaluation headwind, and reported revenue growth was held back by about 9 percentage points from business model changes. Shares are down more than 10% year to date. Against that, the analyst consensus target of $104.51 and an 88% bullish analyst reading suggest the disconnect between price and fundamentals is stretching.

What to Watch Next Palantir reports Q2 in early August, with guidance calling for revenue of $1.797 to $1.801 billion. Snowflake’s next print will test whether the AI consumption inflection continues past a single quarter. Uber’s Q2 guide of 18% to 22% constant-currency Gross Bookings growth and 31% to 38% EPS growth is the cleanest bar to clear in the group. All three are volatile. All three are growing faster than the broader tech tape. That is the trade-off for July.

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Palantir Technologies (PLTR +0.49%) CEO Alex Karp recently highlighted a small cohort of companies as the true standouts of the artificial intelligence (AI) infrastructure build-out. He placed Palantir alongside Nvidia (NVDA 2.43%), Micron Technology (MU 5.97%), and SK Hynix (SKHY 13.69%) as the only names that truly matter in this new era.

Admittedly, this list feels mismatched upon first glance. Nvidia supplies the GPUs that train and run AI models, while Micron and SK Hynix dominate the memory side of the equation. Palantir sits further downstream, providing the software layer that turns raw data into actionable intelligence.

What could tie these four different businesses together? The answer is a single financial benchmark that reveals how each company is delivering both rapid growth and expanding profitability at the same time.

Image source: Palantir Technologies.

What is the Rule of 40? The Rule of 40 is a simple yet useful tool for assessing whether a high-growth technology company is building a durable business. It is calculated by adding a company's annual revenue growth rate to its operating profit margin.

As a rule of thumb, a sum above 40 is considered the threshold at which growth and profitability reinforce each other rather than compete. This means companies that clear this hurdle can feasibly reinvest in the business while still generating healthy bottom-line results.

Throughout the AI revolution, Palantir's Rule of 40 score has climbed exponentially. During the first quarter of 2025, the company's Rule of 40 score was 83%. One year later, it soared to 145%.

The improvement comes from two reinforcing trends. First, Palantir's revenue is accelerating as more commercial customers adopt its Artificial Intelligence Platform (AIP). Second, operating margin is expanding because the company can spread its fixed development and sales costs across a larger, growing revenue base. This means that new customers add incremental revenue with relatively little extra cost, improving profitability in tandem with sales growth.

This virtuous cycle is exactly what the Rule of 40 is designed to capture, and Palantir's consistent progress proves the company is executing on both fronts at once.

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Why Nvidia, Micron, SK Hynix, and Palantir all generate strong Rule of 40 scores Despite operating in different parts of the AI stack, these four companies share two traits that drive leading Rule of 40 performance: surging revenue tied directly to insatiable AI demand and meaningful operating leverage that turns accelerating sales into outsize profit.

Nvidia's revenue has exploded because its GPUs are the default engines for AI training and inference in hyperscale data centers. Micron and SK Hynix enjoy parallel tailwinds as AI workloads require ever-larger amounts of specialized high-bandwidth memory (HMB). Without enough memory, even the most capable GPU clusters hit latency issues. Palantir's growth stems from corporations and government agencies needing software to organize siloed data sets used to feed AI systems and to turn model outputs into operational decisions.

Operating leverage compounds the effect. Each business requires significant up-front capital outlays for research, chip fabrication, and software development. But once those investments are in place, new revenue flows through the business with high incremental margins.

Nvidia can sell more GPUs without proportionally increasing its core design expenses. Memory producers invest in improving factory utilization rates to spread fixed costs across higher sales volumes. Meanwhile, Palantir's software model leverages the fact that the cost to acquire a new customer or expand use cases within an existing client is nominal once AIP is integrated.

The result across all four companies is the same: Revenue growth and profit margins rise together, producing a Rule of 40 score that stands out even in a crowded AI landscape.

Which of these four companies should you invest in right now? Among the four stocks explored in this piece, I think Nvidia offers the most compelling risk-reward profile. The company's forward price-to-earnings (P/E) ratio looks reasonable when measured against its expected growth, considering its position spans the entire AI compute layer -- from chips to networking equipment and the surrounding software ecosystem. This breadth gives Nvidia multiple levers to benefit as AI capex accelerates.

NVDA PE Ratio (Forward) data by YCharts

Palantir trades at a richer valuation that already prices in high expectations for continued commercial acceleration. While its Rule of 40 trajectory is impressive, the stock leaves little margin of safety if growth rates moderate. While Micron and SK Hynix are essential memory suppliers, their role is narrower within the broader AI chip stack. In other words, they do not control the foundational compute architecture in the same way Nvidia does.

Nevertheless, all four companies are well-positioned for the multiyear AI infrastructure build-out. Their shared ability to generate both accelerating revenue growth and expanding profit margins makes them natural complements rather than competing alternatives. A diversified AI-themed portfolio that includes exposure to compute, memory, and platform leaders will capture the full scope of AI infrastructure spending while balancing the unique risks and opportunities each company carries.

Palantir (PLTR +0.01%) and Nvidia (NVDA +0.29%) made a big announcement the other day that flew under many investors' radars. Nvidia and Palantir said they formed a partnership to deploy sovereign artificial intelligence (AI) for government agencies.

Why is that a big deal? Well, government agencies can't just plug information into a model like Gemini or ChatGPT as most others can. That's because the information put into these generative AI models is retained by the companies that run them, so sensitive information could be entered that could have national security implications.

Palantir and Nvidia's announcement remedies that situation and clears the way for these two to build the future of AI for government agencies. This is a big deal, but which company benefits most? Let's take a look.

Image source: Getty Images.

Palantir is using Nvidia's base model Nvidia has an open AI model called Nemotron that is perfect for deploying AI agents. It's an open model, so developers know what's going on in the background and can understand what it's doing. It works perfectly on Nvidia's computing platforms, and having companies use the Nemotron model as a base ensures that its hardware is being used to run AI workloads. When the client is the U.S. government, that's a huge contract to capture.

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Palantir will then use Nvidia's Nemotron model to develop tailored software for applications that its clients need. Palantir already has deep relationships in government and industry, making its software a trusted, go-to solution whenever a specific application is needed. This partnership should help boost Palantir's government business, leading to strong revenue growth.

Palantir is a much smaller business than Nvidia, and it generates more than half of its revenue from government sources. Nvidia has a much wider client base, and the AI hyperscalers are some of Nvidia's largest clients. However, AI could become so powerful for the federal government and its agencies that it would need to spend hundreds of billions of dollars on data centers like the AI hyperscalers, which could propel the U.S. government into becoming a large client of Nvidia's.

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Palantir stands to benefit the most from this partnership, but Nvidia also has major upside depending on how widespread AI adoption becomes in the government. However, Palantir also needs this growth far more than Nvidia does.

Palantir's stock is expensive Switching over to looking at the stocks, one is valued higher than the other.

NVDA PE Ratio (Forward) data by YCharts

Palantir has a valuation four times that of Nvidia, and that's despite the two companies having the same growth rate in Q1: 85%. If I were to present an investor with these two stocks, growing at the same rate, yet one is valued four times higher than the other, most investors would choose the cheaper stock, and that's exactly what I think investors should do here.

The AI build-out is far from over, and there is still plenty of room for both Nvidia and Palantir to grow into this generational opportunity. However, if an appropriate long-term valuation for each stock is 25 times forward earnings, that calculation becomes much harder to justify for Palantir's stock.

Palantir must essentially increase its earnings by 350% after this year's growth. That's a lot of growth priced into the stock, and may make future gains difficult. On the flip side, Nvidia is much less richly valued, and any future growth will likely drive the stock higher. With 41% growth expected next year, that leaves a lot of room for upside during the next year.

This is a huge partnership for both companies, and Palantir stands to benefit more than Nvidia, but I still think that Nvidia stock is the better buy overall.

HomeStock IdeasLong IdeasTech 

SummaryPalantir generated 85% revenue growth while operating expenses rose only 32%, driving 60% adjusted operating margins and 57% free cash flow margins.Stable stock-based compensation alongside rapidly growing revenue is allowing earnings and free cash flow to compound much faster than sales.Remaining performance obligations surged 134% to $4.5 billion, while 150% net dollar retention highlights expanding customer spending after deployment.Although Palantir trades near 38x forward sales, its long-term economics increasingly resemble software infrastructure rather than traditional enterprise software. South_agency/iStock via Getty Images

My earlier Palantir Technologies (PLTR) thesis was that the market mistakenly viewed AI as a threat to Palantir, whereas I believed it would become one of the key platforms enabling enterprise AI deployment. While I

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of PLTR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Palantir Technologies (PLTR +2.91%) is one of the few companies that has consistently delivered breathtaking results, living up to all the hype around artificial intelligence (AI). Yet many investors who bought Palantir stock near its highs last year have lost money. It's another reminder that the price investors pay for a stock matters.

Fast-forward to today, when Palantir trades at 64 times its trailing-12-month sales. That's still a significant premium over most stocks on Wall Street. Although the stock burned investors last year, I believe Palantir's exceptional business justifies its current premium. That said, investors who buy Palantir stock will want to be careful how they do it.

Image source: The Motley Fool.

First, it's crucial to understand why Palantir's valuation is so high I like to think of the AI models developed by OpenAI or Anthropic as similar to humankind's discovery of fire. People needed to control and refine it before it could really change the world. Palantir's software technology does just that with these AI models, enabling government and corporations to safely and securely wield AI for various tasks and applications.

Palantir launched its AIP (Artificial Intelligence Platform) in mid-2023, and the company has grown profitably faster and faster ever since.

PLTR Revenue (TTM) data by YCharts

The most exciting aspect of Palantir might be just how high its ceiling could be. It recently expanded its partnership with Nvidia to provide the government and other sovereign customers access to Nvidia's open-source AI models running on Palantir's application technology layer. The company also still only has 832 commercial customers, so Palantir is barely scratching the surface of its addressable market. There are over 20,000 large companies in the United States alone.

Palantir won't grow at over 80% forever, but there might be many years of strong growth ahead.

The risks of paying the Palantir premium With a jaw-dropping Rule of 40 score of 145% in the first quarter, Palantir's sales growth and cash flow margins are among the best of any company on Wall Street. When you combine that with Palantir's explosive top-line growth, it becomes apparent why the stock has traded at such high valuations.

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But even the best companies shouldn't command a blank check. Buying Palantir last year at over 120 times sales hasn't worked out very well for many investors so far. Shares look far more attractive now at 64 times sales.

Still, the stock could easily slide further from here. What if Palantir's growth slows or even levels off? The market's perception could change in an instant, and the stock's premium suddenly evaporates.

The best plan for investing in Palantir is to do it slowly. Consider dollar-cost averaging to help mitigate the stock's volatility. Hold it for the long term, letting the business grow into its lofty valuation. That will dramatically increase your odds of success.

Palantir stock is having a rough year as investors rotate out of software names and into memory plays like Sandisk and Micron. PLTR has fallen 36% from its all-time high last year, but despite the pullback, the company still has notable catalysts that should support stronger performance over the long term.

Palantir is a top technology company that offers its services to companies and governments globally. It largely offers three products: Gotham, Foundry, and Artificial Intelligence Platform (AIP).

Gotham, its flagship product, is used by government agencies to identify threats and deliver actionable intelligence. Foundry, on the other hand, combines data analytics and predictive modelling to help companies with supply chain management, risk forecasting, and quality assurance. 

AIP, its newest product, is a product that lets customers deploy large language models (LLM) and AI agents against their own data. It also has Apollo, an orchestration engine that deploys, integrates, and manages platforms across the cloud, on-premises, and classified networks. 

Palantir, a highly controversial company, has continued doing well in the past few years, helped by the robust government and corporate spending. Its annual revenue has jumped from $1.5 billion in 2021 to $4.47 billion last year.

The most recent financial statement showed that its revenue jumped by 85% in the first quarter, driven by its US business, which grew by 104%. It made $1.6 billion in Q1, more than its 2021 revenue. 

This growth happened as more large companies became its customers. It closed 206 deals worth at least $1 million and 72 deals worth at least $5 million. This growth will likely continue as more companies embrace its technology. Its total contract value (TCV) during the quarter rose to over $2.41 billion. 

Third-party data shows that the company’s business will continue growing. Yahoo Finance numbers show that the average estimate is that its quarterly revenue will jump by 80% to $1.8 billion. The estimate is that its annual revenue will soar by 72.4% to $7.72 billion. 

Palantir has a long history of beating analyst estimates, meaning that its numbers will likely be better than estimates. As such, there is a likelihood that its annual revenue will cross the $8 billion mark this year. 

This view likely explains why analysts expect its stock to do well over time. DA Davidson’s Gil Luria recently upgraded the stock from neutral to buy, with the target moving from $165 to $175. Wedbush’s Dan Ives has an outperform rating, while Rosenblatt Securities has a target of $225.

Some analysts have slashed their ratings, with Benchmark and BTIG lowering to hold and neutral, respectively. A key concern is that the company is highly overvalued, with its forward price-to-earnings (PE) ratio being 88. 

Still, the company justifies its valuation metrics by pointing to the Rule-of-40 metric, which stands at 145%. This metric is calculated by adding a company’s revenue growth and its profit margins.

PLTR stock chart | Source: TradingView

The weekly chart shows that the PLTR stock has slumped in the past few months and bottomed at $106, which coincided with the 50% Fibonacci Retracement level. This retracement connects its lowest level in 2022 and its all-time high.

The stock also formed a falling wedge pattern, which is formed by two descending and converging trendlines. It also settled at the 100 moving average. 

Therefore, the stock will likely bounce back, potentially to $160, the 23.6% Fibonacci Retracement level.

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Meta Platforms (NASDAQ: META | META Price Prediction) and Palantir Technologies (NASDAQ: PLTR) both posted Q1 2026 results that widened an already yawning valuation gap. Meta ran its ad machine at scale while ramping AI infrastructure. Palantir kept doubling its U.S. commercial business and pushing multiples that pin the next decade of execution to the current share price.

Ad Dollars Compound While Palantir Sells Rule of 40 Meta pulled in $56.31 billion in revenue, up 33.08% year over year, with advertising alone at $55.02 billion and price per ad rising 12%. That is real pricing power on 3.56 billion daily users. Reported EPS of $10.44 was flattered by an $8.03 billion CAMT tax benefit worth $3.13 per share, so the underlying beat is smaller than the headline suggests.

Palantir grew revenue 84.71% to $1.63 billion, with U.S. commercial up 133%. Alex Karp led with a “Rule of 40 score has soared to 145%” boast, comparing Palantir to NVIDIA and Micron. The growth is real. The problem is the price tag attached to it.

Cash Machine Versus Story Multiple Lens Meta Palantir Trailing P/E 21 145 Price/Sales (TTM) 7 59 Operating margin 41.4% 31.6% 2026 capex $125 to $145 billion Minimal Meta is funneling a $125 billion-plus AI build through an insulated advertising monopoly, with Zuckerberg pitching “personal superintelligence to billions of people”. Palantir must convert Gotham, Foundry, and AIP wins into decades of clean compounding to grow into 88x forward earnings. Contracts remain terminable for convenience, and $201.6 million in quarterly stock-based comp keeps diluting the story.

The Next Test Is Capex Payback I want to see Meta’s Reality Labs $4.03 billion quarterly loss stabilize and its AI compute find external monetization. Prediction markets already price 84.5% odds Meta outvalues OpenAI at year-end, a useful sanity check. For Palantir, Polymarket clusters near-term outcomes at $129 with sharp probability drop-off above $138. Traders doubt the multiple can stretch further, even after guidance was raised to 71% annual growth.

Why I Would Own Meta and Rent Palantir At Most For me, Meta screens as the cleaner setup here. You get a 21x earnings multiple, a $26.25 billion buyback pace, and pricing power that already survived a 18.05% one-year drawdown. Palantir’s platform is genuinely differentiated, but paying 59x sales for software with lumpy government contracts asks too much. If you are a turnaround or momentum investor comfortable with 27% YTD volatility, a small Palantir exposure can still be defensible. My core capital sits with Meta.

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Key Takeaways PLTR's Ontology organizes enterprise data into an operational framework that becomes more valuable over time.Palantir delivered 85% revenue growth, 133% U.S. commercial growth and a 60% adjusted operating margin.PLTR combines rapid growth and profitability, distinguishing it from AI software peers. Palantir (PLTR - Free Report) is increasingly distinguishing itself through an advantage that extends well beyond artificial intelligence models. At the heart of its platform is the Ontology, which organizes enterprise data into a connected operational framework that customers can continuously build upon.

Years of deployments across hundreds of organizations have created deeply integrated systems that are difficult and time-consuming to replace. This accumulated implementation expertise, strengthened by Palantir’s forward-deployed engineering model and long-standing government security credentials, makes the platform more valuable with every deployment.

Unlike AI developers that primarily compete on models, Palantir monetizes the operational layer where AI is applied, allowing its software to retain value even as foundation models become increasingly commoditized.

Palantir vs. AI Software PeersPLTR’s competitive strengths are reflected in its financial performance. The company delivered 85% revenue growth in the first quarter of 2026, including an exceptional 133% increase in U.S. commercial revenues, while generating a 60% adjusted operating margin and a 53% GAAP net margin. Even leading AI software companies like Datadog (DDOG - Free Report) and Snowflake (SNOW - Free Report) struggle to match this combination of rapid expansion and profitability.

While DDOG and SNOW continue to benefit from AI demand, their growth rates remain significantly lower. By combining a durable software foundation with industry-specific expertise and superior execution, Palantir continues to separate itself from DDOG, SNOW and traditional enterprise software competitors.

PLTR’s Price Performance & EstimatesThe stock has declined 27% year to date compared with the industry’s 5% fall.

                                                          Image Source: Zacks Investment Research

From a valuation standpoint, PLTR trades at a forward price-to-sales ratio of 33.13X, well above the industry’s 4.08X. It carries a Value Score of F.

                                                                    Image Source: Zacks Investment Research

The Zacks Consensus Estimate for PLTR’s 2026 earnings declined over the past 60 days.

                                                                       Image Source: Zacks Investment Research

PLTR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

MIAMI--(BUSINESS WIRE)--Palantir Technologies Inc. (NASDAQ: PLTR) announced today that results for its second quarter ended June 30, 2026 will be released on Monday, August 3, 2026, following the close of U.S. markets. Palantir will host a webcast to discuss its results at 5:00 PM ET.A live webcast and replay will be available at investors.palantir.com, and participants can pre-register here. In addition, shareholders can submit and vote on questions by visiting https://app.saytechnologies.com/p.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

© JHVEPhoto / iStock Editorial via Getty Images

Palantir is back on every screen this month, up 14.55% in a single week as retail traders pile back into the AI infrastructure trade that briefly wobbled in June. But here is what you should actually be watching.

Palantir Technologies (NASDAQ:PLTR | PLTR Price Prediction) now trades at a trailing P/E of 145 and a forward P/E of 89, with a price-to-sales multiple of 59. That reads like a lottery ticket. The company’s $309.9 billion market cap is being underwritten by $5.22 billion in trailing revenue and CEO Alex Karp’s assertion that “Palantir’s Rule of 40 score has soared to 145%”. Even after the recent bounce, the stock sits 25.43% lower year to date and 17.5% below its June 1 level, and Reddit engagement has cooled to predominantly neutral chatter across investing forums. The story is intact. The math is stretched.

Now look at Salesforce (NYSE:CRM), which the same market has punished to $165.65, off 37.14% year to date and 38.61% over the last twelve months. Contrarian setups like this are rare.

Three reasons Salesforce screens better on valuation 1. Real earnings at a real multiple. Salesforce trades at a trailing P/E of 19 and a forward P/E of 12, backed by $8.64 in trailing EPS and a PEG ratio of 0.779. Fifth consecutive quarterly EPS beat: $3.88 versus a $3.13 estimate, a 24.08% beat. Revenue reached $11.13 billion, up 13.3% year over year. The analyst target of $246.44 implies a gap the market has yet to close.

2. Cash returned to shareholders. Salesforce returned $27.5 billion to shareholders in Q1 alone, anchored by a $25 billion accelerated share repurchase that took the diluted share count from 970 million to 871 million. Free cash flow was $6.556 billion in a single quarter. Palantir, by contrast, pays no dividend and continues to lean on $201.6 million of quarterly stock-based comp that pushes dilution the other direction.

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3. The same AI catalyst, at a fraction of the price. Agentforce ARR hit $1.2 billion, up 205% year over year, and combined Agentforce plus Data 360 ARR reached nearly $3.4 billion, up more than 200%. Salesforce processed 28.6 trillion tokens to date and delivered 3.8 billion agentic work units. Marc Benioff called it “an outstanding quarter for Salesforce, record revenue, record deals, and cash flow”. Same agentic AI story Palantir sells. Attached to a 77.68% gross margin, a 21.8% operating margin, and current RPO of $33.6 billion.

Why Wall Street has not caught up yet Retail is still sifting the wreckage. One Reddit post that gathered 807 upvotes and 308 comments in late June asked, “Salesforce down 30% in 14 straight red days at 10.5x forward earnings… What is anyone actually doing here?” When a mega-cap software leader with 36.73% net income growth and a $63 billion FY30 revenue target gets discussed like a burning house, the mispricing is nearly finished.

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An investment of $1,000 in shares of Palantir Technologies (PLTR +2.18%) five years ago is worth just over $5,500 as of this writing, though it is worth noting that a significant chunk of the stock's gains came in 2024 and 2025.

Palantir's stock hit a purple patch during these two years. Investors were buying the stock hand over fist as the adoption of the company's artificial intelligence (AI) software platform supercharged its growth. Specifically, Palantir stock soared a whopping 935% in 2024 and 2025. However, it has hit a rough patch in 2026, losing 24% of its value so far.

Ideally, investing in this AI stock right now may not seem like the right move due to its valuation. But I think that it remains a solid long-term investment despite its poor performance this year. It won't be surprising to see Palantir's shares stepping on the gas once again, making investors significantly richer over the next five years.

Let's see why that may be the case.

Image source: The Motley Fool.

Palantir Technologies is dominating the fast-growing AI software platforms space Palantir's Artificial Intelligence Platform (AIP) helps organizations connect their proprietary data and operations with AI models. Doing so allows Palantir's customers to securely automate operations, make real-time decisions with AI, and eliminate redundancies. Organizations can reduce costs, increase sales, or streamline their operations using Palantir's AIP.

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The gains fueled by AIP adoption have helped Palantir record phenomenal growth in its customer base since the platform was launched in April 2023. The company's total customer count was 391 at the end of the first quarter of 2023, and its revenue growth during the quarter was just 18%. Another point worth noting is that Palantir had only 8 contracts worth $10 million or more in Q1 2023.

For comparison, the number of $10 million-plus contracts jumped to 47 in the first quarter of 2026. The company's overall customer count jumped to 1,007, and its revenue growth accelerated to 85%. Another notable point is that Palantir's total contract value (TCV) increased by 61% year over year in Q1 2026 to $2.4 billion. That's well above the $397 million TCV it reported in Q1 2023, before AIP was launched.

So, it is quite clear that AIP has transformed Palantir's business. The bigger contracts, the growing customer base, and the secular growth opportunity in the AI software platforms space have supercharged the company's margins and bottom line.

Data by YCharts

The good news for investors is that the AI software platforms market that Palantir serves is poised to grow at a healthy pace over the long run. According to one estimate, the generative AI software platforms market was worth just $19 billion in 2024. Palantir reported a 29% increase in revenue in 2024 to $2.9 billion, indicating that it controlled just over 15% of this market.

However, Palantir's growth rate has accelerated, as evidenced by its Q1 revenue growth. This is precisely why I believe that this AI stock could deliver substantial gains by 2030, as it is becoming more dominant in a highly lucrative market.

How much upside can investors expect by 2030? The generative AI software platforms space is forecasted to clock an annual growth rate of 29% through 2034, according to a third-party estimate. Palantir's revenue, meanwhile, is projected to almost double this year to $7.72 billion. What's more, Palantir's remaining deal value (RDV), which is the total value of contracts yet to be fulfilled at the end of a quarter, almost doubled in Q1 to $11.8 billion.

Palantir, therefore, has a robust revenue pipeline, which should ensure that its phenomenal growth continues over the long run. Assuming Palantir's revenue increases at an annual rate of 50% between 2026 and 2030, given its growing share of the AI software platforms market, its top line could reach $39 billion after five years (using this year's estimated revenue of $7.72 billion as the base).

If this growth stock trades at 15 times sales at that time, a significant discount to its current price-to-sales multiple of 62, its market cap could jump to $585 billion. That suggests potential upside of 92% compared to its current market cap. However, I won't be surprised to see Palantir delivering bigger gains than that, as its above-average growth should ideally be rewarded with a premium valuation.

So, it would make sense for Palantir investors to continue holding this growth stock over the next five years, as it could emerge from its recent slump and soar higher.