Palantir Technologies Inc. (NYSE:PLTR) has emerged as the brightest star of the S&P 500 over the past year, but its meteoric rise — up 440% in twelve months and 53% year-to-date through May 9 — is now confronting a valuation wall that even the hardest bulls are struggling to justify. Is Palantir Trading At Bubble-Like Valuations: How High Is Too High? With shares closing at $115 on Friday and peaking at a record $125 this week, Palantir is now trading at 500 times trailing twelve-month earnings, an outlier among all companies in the S&P 500 and Nasdaq 100. That’s nearly triple the valuation of most AI-linked stocks and more than 14 times higher than tech heavyweights like Nvidia Corp. (NASDAQ:NVDA) and Microsoft Corp. (NYSE:MSFT), which trade at price-to-earnings ratios of 37x and 32x, respectively. While many would argue that Palantir is a bet on the future rather than the past, even when factoring in […]

Friday looks set to be a crucial day for Palantir Technologies’ after its two-day 15% slump as investors assess whether the weakness is a blip, or something more sustained. The shares are pointing 1.1% higher ahead of the open so the damage seems to have paused for now. It’s still the third-best performer in the S&P 500 this year, climbing 40% so far in 2025. Two things in particular spooked investors earlier this week — CEO Alex Karp’s new plan to sell up to $1.2 billion worth of shares and reports that the Trump administration has warned the U.S. Department of Defense about budget cuts. The data analytics company has a number of military contracts for the use of its artificial intelligence technology. Both of those things, in the context of Palantir’s impressive rally and lofty valuation, have been cause for concern and raised questions over whether a period of