Palantir is trading like it’s already won the next decade. The stock hit $150.62 this week before settling at $148.58, putting its market cap at $350.6 billion. Volume came in at 59.1 million shares, below its 77 million average, but the price action is still vertical. The valuation is now sitting at 84x EV/Revenue and 651x earnings. That’s not a typo. It’s higher than Cloudflare’s peak during the 2021 mania, and Cloudflare didn’t hold.
The setup is clean but stretched. Palantir’s Q1 revenue grew 39% year over year. Commercial revenue jumped 71%. Government contracts are still the backbone, but the private sector is catching up fast. The Artificial Intelligence Platform is pulling in NATO deals, federal bootcamps, and enterprise conversions. Analysts are hiking targets across the board. Wedbush is calling for $160. Loop Capital raised to $155. Even Mizuho, still bearish, bumped their target to $116.
$PLTR is now trading at 84x EV/Revenue, even higher than $NET during the 2021 craze.
That didn’t end well for $NET stock in the months that followed.
Will history repeat itself, or is this time different?🤔 pic.twitter.com/6FTj2StlGc
— Investing visuals (@InvestingVisual) July 15, 2025
The bullish case is built on momentum and contracts. Palantir is now the top performer in the S&P 500 and Nasdaq-100 for 2025. It’s riding a wave of AI spending, federal infrastructure upgrades, and defense digitization. The company is profitable. Free cash flow is positive. Net income is growing. The software stack is sticky. Gotham, Foundry, Apollo, and AIP are all scaling. The modular sales model is pulling in smaller clients and expanding wallet share.
The bear case is valuation. EV/Revenue at 84x is nosebleed territory. P/S ratio is over 100. That’s triple what most SaaS leaders trade at. Even Nvidia peaked at 45x sales during its run. Palantir is priced for perfection. Any earnings miss or contract delay could trigger a sharp reversion. Insiders are trimming. Druckenmiller exited. Cathie Wood is reducing exposure. The stock has baked in years of growth already.
Technically, the chart is strong. RSI is elevated but not overbought. Support sits at $125 and $107. If momentum holds, $195 is in play by late August. If it breaks, the retrace could be brutal. Watch volume and institutional flows.
Palantir is a great company. The software is real. The contracts are real. The growth is real. But the price is running ahead of fundamentals. History says these setups don’t last forever. The next earnings call will be critical.
Disclaimer: This is not financial advice.