Palantir Technologies (PLTR) had a stellar 2025, with a 146% increase following a 340% rise in 2024. However, renowned investor Michael Burry has voiced skepticism, comparing Palantir to the former firm DiamondCluster, which saw a similar meteoric rise and fall during the dot-com bubble.

Palantir, known for its government work, offers a powerful AI-driven software system that aids military units and intelligence agencies. Its commercial product, utilizing the Artificial Intelligence Platform (AIP), helps clients manage inventory, supply chains, and competitive analysis, with overwhelmingly positive feedback from users.

Despite a strong 2025, Palantir’s stock growth has slowed recently, with a 12% increase in the last three months. Concerns arise over the stock’s high valuation, with a P/E ratio of 425. However, the company’s rapid growth cycle is evidenced by a $1.18 billion Q3 revenue, up 63% YoY, and numerous lucrative deals closed in the quarter.

Analysts are cautiously optimistic on Palantir, with a mix of “Hold,” “Buy,” and “Sell” ratings. The stock’s mean price target suggests a potential 4% gain, with bullish and bearish targets indicating a 38% increase and a 73% decline, respectively. Palantir remains a momentum play, balancing rapid growth and valuation concerns.

Read more at Yahoo Finance: The Future of Defense Contracts or DiamondCluster 2.0? What Michael Burry Has to Say About PLTR Stock.