Palantir Technologies has seen impressive growth, but may not split its stock in 2025

From Nasdaq: 2025-02-27 08:45:00

The “Magnificent Seven” of AI stocks include Nvidia, Microsoft, Alphabet, Amazon, Tesla, Meta Platforms, and Apple. Palantir Technologies has also shown remarkable performance in the AI realm, with shares up over 1,000% since going public in late 2020.

Palantir was the top-performing stock in the S&P 500 last year, gaining nearly 340%. Despite its meteoric rise, the stock has become pricey, limiting access for some investors. While a stock split may seem likely, there are reasons why Palantir may not split its stock in 2025.

Palantir has earned respect on Wall Street, transitioning to profitability and forming partnerships with major tech players. Institutional investors now own roughly 54% of the company, leading to increased visibility and inclusion in indexes like the S&P 500 and Nasdaq-100.

A stock split for Palantir could be counterproductive, potentially leading to increased volatility and a shift in the company’s reputation. While retail investors may view a lower share price as more affordable, it could result in inflated valuations and a “meme stock” perception, risking relationships with institutional investors.

Before investing in Palantir Technologies, consider insights from The Motley Fool Stock Advisor analyst team. While Palantir isn’t among their top 10 stock picks, the service offers guidance on building a successful portfolio and has outperformed the S&P 500 since 2002. Past recommendations like Nvidia have yielded significant returns for investors.



Read more at Nasdaq: Prediction: This Artificial Intelligence (AI) Stock — a 1,020% Gainer Since Its IPO — Won’t Split Its Stock in 2025. Here’s Why