"When a stock rallies sharply, is a downward correction inevitable? That's the billion-dollar question for anyone who owns or is considering buying Palantir Technologies ( NASDAQ:PLTR) stock. An argument can be made that Palantir shares are overvalued. As we'll discover, PLTR stock may appear to be stretched to the upside. Moreover, a commonly cited metric seems to suggest that Palantir Technologies is very richly valued."
"As we near the end of 2025, PLTR stock is up by roughly 148% year-to-date. Beyond the price action of the stock, 2025 has been stellar for Palantir Technologies. Just in the month of December, Palantir inked potentially lucrative deals associated with the U.S. Army and, separately, with the U.S. Navy. Those are just a couple of recent examples demonstrating Palantir's status as a go-to public-sector provider of AI and threat detection services."
Palantir Technologies rallied roughly 148% year-to-date in 2025 as demand for its AI and cyber-defense offerings surged. The company signed potentially lucrative December deals with the U.S. Army and the U.S. Navy and maintains a large pipeline of private-sector contracts. Some investors view the current price as stretched and point to valuation metrics that imply rich pricing. A bearish scenario projects a decline to $100 in 2026. Supporters counter that the market may already be pricing future growth from government and commercial engagements. Uncertainty persists about whether the rally will be followed by a sharp correction.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]