<div id="readability-page-1"><div> <p>Palantir Technologies <strong>gained 150%</strong> in its share price, before falling 2.4 % that day; the market capitalization of the company had soared to about <strong>$438.98 billion</strong>.</p> <p>According to historical precedence, high levels of valuation usually lead to extreme market corrections. </p> <p>Palantir is currently the most expensive stock in the S&amp;P 500 by a significant margin, trading at <strong>115 times sales</strong>. With 44 times sales, AppLovin comes in second. </p> <p>This implies that even if Palantir’s share price fell by 60%, it would still be the most costly stock in the index. </p> <h2>Artificial Intelligence Dominance of the Market Optimization</h2> <p>Palantir is a top in AI and machine-learning solutions, and Gotham, Foundry, and AIP product offerings transform complicated data collections into practical insights. </p> <p>The third quarter growth of revenue was <strong>63%</strong> year on year and it is the ninth quarter of acceleration whereas non-GAAP net income grew by 110% to a per-share amount of $0.21. </p> <p>Warren Buffett once <strong>warned</strong>, </p> <blockquote> <p>“A too-high purchase price for the stock of an excellent company can undo the effects of a subsequent decade of favorable business developments.”</p> </blockquote> <p>Forrester and IDC have listed the company as the most significant AI/ML and decision-making tools. By the year 2033, the amount of the AI-platform market is estimated to increase by <strong>38% per year</strong>. </p> <h2>Valuation Trap Ahead  </h2> <p>The analysis of more than 70+ software stocks of Jennewine during the last twenty years has shown that only 7 others achieved a price-to-sales (PS) ratio <strong>above 100</strong> during the last 20 years. All seven stocks eventually crashed, falling at least 65% after reaching their peak valuation. The average decline was 79%, as detailed below:</p> <p>The price drop of Snowflake was more than any of the others, 73%, after peaking 222x and Zoom 90% after peaking 123x; the mean of these two results and many more numbering 79%. </p> <p>The peak of Palantir in August of 1<strong>37 times sales</strong> and at $187 a share, indicates that the company has a probability of falling to approximately $39 per share. </p> <h2>Bull vs Bear Table </h2> <figure><table><tbody><tr><td><strong>Aspect</strong></td><td><strong>Bull Case</strong></td><td><strong>Bear Case</strong></td></tr><tr><td><strong>Growth Momentum</strong></td><td>Q3 revenue surged 63% YoY (9th straight acceleration); non-GAAP EPS up 110% to $0.21. AI/ML market grows 38% annually through 2033.</td><td>Extreme 115x sales ratio tops S&amp;P 500 (vs. AppLovin at 44x); unsustainable per history.</td></tr><tr><td><strong>Analyst Outlook</strong></td><td>Median Wall Street target $200 (6% upside from $184); strong Q4 beat on Feb 17, 2026 could extend 150% YTD rally.</td><td>Only Cloudflare recovered from 100x+ peaks; 6/7 peers down 44-90% from highs (avg 79% drop).</td></tr></tbody></table></figure> <h2>Strategic Outlook  </h2> <p>Based on 16 Wall Street analysts offering 12-month price targets for Palantir Technologies in the last 3 months. </p> <div> <figure><img src="https://imageproxy.pbkrs.com/https://lh7-rt.googleusercontent.com/docsz/AD_4nXe4zw9SNnxQ8liEDeDiVab90Grc9SG7Bxo7QRGGjJt0xE6JEzvA429NezbcRO7AwxpMoR1VSO-FmnMQ4pE7YVtxR--I2jTl_Y9RVBfZTu7InsMqWjyVqkr1sc59LiFB0-sSB_NC7Cjl72qvHT2F5Uo/query-a2V5PWFJTWlxY1pMNDBSdDV4VHJZcTlSRnc?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1405" height="610" original-src="https://imageproxy.pbkrs.com/https://lh7-rt.googleusercontent.com/docsz/AD_4nXe4zw9SNnxQ8liEDeDiVab90Grc9SG7Bxo7QRGGjJt0xE6JEzvA429NezbcRO7AwxpMoR1VSO-FmnMQ4pE7YVtxR--I2jTl_Y9RVBfZTu7InsMqWjyVqkr1sc59LiFB0-sSB_NC7Cjl72qvHT2F5Uo/query-a2V5PWFJTWlxY1pMNDBSdDV4VHJZcTlSRnc"/></figure> </div> <p>The average price target is $187.87 with a high forecast of $255.00 and a low forecast of $50.00. The average price target represents a 2.00% change from the last price of $184.18.</p> <p>The year-to-year-performance gains boosted by AI enthusiasm, however, hide distorted valuation of risks, among similar companies Cloudflare is the only one with a complete recovery </p> <p>The following <strong>fourth-quarter earnings announcement</strong> on February 17, 2026, will be a crucial one; when the performance is stronger than it is expected, it will be possible to continue its momentum; otherwise, the influence of market forces tends to take advantage. </p> <p>Restricting exposure can be regarded as a wise strategy in the case of risk-averse investors in the current conditions of valuation.</p> </div></div>

PLTR

<p>Palantir Technologies' stock surged 150% in 2025, reaching a market cap of $438.98 billion, but fell 2.4% on the same day. It is the most expensive stock in the S&P 500, trading at 115 times sales. Despite a 63% year-on-year revenue growth and a 110% increase in non-GAAP net income, historical trends suggest a potential market correction. Analysts have mixed views, with a median price target of $187.87, while cautioning about the risks of high valuations. The upcoming Q4 earnings on February 17, 2026, will be pivotal for its future performance.</p>

- Palantir Technologies experienced a significant 150% increase in share price, followed by a 2.4% drop, raising its market capitalization to approximately $438.98 billion.  
- The company's valuation, trading at 115 times sales, suggests potential market corrections ahead, as historical data shows that high-price-to-sales ratios often lead to substantial declines.  
- Analysts indicate mixed sentiment, with a median price target of $187.87, while cautioning about the risks of overvaluation compared to past trends in software stocks that faced severe downturns.

Palantir Stock Surged 150 % in 2025