'Expect Drastic Changes,' Says Investor About Palantir Stock

Palantir Technologies (NASDAQ:PLTR) continues to defy expectations. While the naysayers have been predicting multiple contraction for some time now, PLTR's rising share price has by-and-large stubbornly stuck to its upward ascent.Claim 50% Off TipRanks Premium and Invest with Confidence Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential That's certainly been the case for the bulk of 2025. Though there have been dips here and there, PLTR is up over 150% year-to-date. The most recent valley occurred following the company's blow-out Q3 2025 earnings report, when Palantir delivered record revenue growth (among other superlatives). Still, worries of an AI bubble, profit taking, and of course, its high valuation combined to pressure the share price during most of November. While PLTR has been climbing back upward over the past few days, investor David Jagielski predicts the coming year might not be quite as cheery for investors. "Although Palantir's stock has looked unstoppable in recent years, that doesn't mean it will keep going up forever," posits the investor. Jagielski cites PLTR's price-to-earnings ratio north of 400x, which he terms an "egregious valuation." The investor further points out that while stocks can sometimes fly up to this level, eventually they tend to fall back down to earth. Palantir has been trading above 400x for most of 2025, and the investor is convinced that the long-awaited correction will be coming. This is especially relevant if the overall economy begins to cool off, and Jagielski lists several signs that this is already happening. "Things could change drastically for the stock market next year," emphasizes the investor. Jagielski expects PLTR to sink a fair amount by the end of next year. He predicts that it will finish the year below $100, and even suggests an "outside chance" that it falls lower than $50. "Investors should be careful not to ignore valuations, because buying a good company at an egregious price can still turn out to be a bad choice in the end," concludes the investor. (To watch David Jagielski's track record, click here) Caution appears to be the name of the game for Wall Street analysts as well. With 11 Holds outweighing 3 Buys and 2 Sells, PLTR carries a consensus Hold (i.e., Neutral) track record. Its 12-month average price target of $187.87 reflects expectations of minimal movement in the year ahead. (See PLTR stock forecast)