In 2024, Palantir’s stock skyrocketed by 340%, and in 2025, it rose by over 105%, totaling an 800% increase. The company’s first-quarter revenue hit $884 million, up 39% from the previous year, with 55% U.S. revenue growth. Palantir closed 139 deals over $1 million, raising full-year revenue guidance to $3.89-3.90 billion.

Despite impressive growth, Palantir’s market cap is $365 billion, with a price-to-sales ratio of 123 and a price-to-earnings ratio of 672. Management’s guidance suggests investors may have overvalued the stock. CEO Alexander Karp remains optimistic, but investors are cautioned to wait for a better entry point. The Motley Fool did not include Palantir in its top 10 stock picks.

Read more at Yahoo Finance: Palantir Just Hit a Record High. What’s the Smart Move Now?