Palantir stock surged but caution is advised due to high valuation

From Yahoo Finance: 2025-04-24 18:06:00

Palantir (NASDAQ: PLTR) stock surged 6.9% in Thursday’s trading, outpacing gains in the S&P 500 and Nasdaq Composite. Reports hint at U.S. prioritizing trade negotiations, potentially with India. Despite strong performance, Palantir stock is up 42.5% in 2025 but still down 13.5% from its high.

Valuation metrics suggest caution with Palantir stock, trading at 194 times expected earnings and 97 times sales. The bull case hinges on AI growth prospects and software bets. While the company’s recent wins support its strategy, the high valuation poses significant downside risks for investors.

Considerations before investing in Palantir Technologies should include opportunities identified by the Motley Fool Stock Advisor team. Palantir Technologies didn’t make the list of the 10 best stocks for investors to buy now. Past recommendations have yielded significant returns, with the Stock Advisor’s total average return at 829%, outperforming the S&P 500.

Read more: Palantir Surged Again Today — Is the Artificial Intelligence (AI) Stock a Buy?