Palantir Technologies (NASDAQ: PLTR) has had a remarkable run with its stock price more than quadrupling in 2024 and up over 147% this year. The company initially served the U.S. government with data analytics but has since expanded into the commercial sector with its AI platform, driving impressive revenue growth.

The launch of Palantir’s Artificial Intelligence Platform (AIP) in 2023 has accelerated revenue growth, with a 63% increase last quarter. The company’s U.S. commercial customer segment saw a 121% revenue spike, with a 45% rise in customer count year over year. Palantir’s net revenue retention was 134% over the past 12 months.

Despite its strong performance, Palantir’s stock valuation is high, trading at a price-to-sales multiple of nearly 70 times 2026 analyst estimates. The forward price-to-earnings ratio stands at 183, making the stock a risky buy at these levels. While Palantir has potential to be a top AI company, caution is advised due to its lofty valuation.

Investors should consider the risks associated with buying Palantir stock at its current valuation levels. While the company has shown significant growth and potential, the stock’s price could be subject to volatility. Keeping an eye on potential pullbacks and maintaining a long-term outlook may be a prudent approach for interested investors.

Read more at Yahoo Finance: Should You Buy Palantir Stock Before Year-End?