Palantir Technologies Gained AI-Related Contracting Momentum, but High Stock Valuation Raises Eyebrows

Palantir Technologies Inc. (PLTR) continues to grow significantly, up 288% year to date (YTD). The company's, which went public in September 2020, momentum is supported by recorded and undisputable success stories, including a $480 million contract with the Pentagon for Project Maven, and its first income in 2023, with the company having reported a net income of $144 million in Q3 2024.

Many top brokers’ optimistic forecasts lie in line with Palantir's recent performance, with its market value rising to around $140 billion, surpassing defense giant Lockheed Martin (LMT).

The company's growth has been particularly noteworthy in the wake of recent geopolitical and political developments, with its stock price reaching almost $66 per share. However, some investors are cautious about the valuation. The company's price-to-earnings, P/E ratio of 329 and its heavy reliance on retail counterparts of more than 50% have been raising concerns.