Palantir Technologies is at the forefront of the AI boom, transforming into an enterprise AI powerhouse. Despite a stellar Q3 report, shares dropped due to high expectations and valuation concerns. Analysts are divided on Palantir’s worth, with some cautioning about the sky-high valuation. The stock surged but has since cooled off, leaving investors wondering if now is a buying opportunity.

Palantir’s Q3 earnings were impressive, showcasing revenue growth, expanding margins, and record deal signings. The company’s elite execution is evident in its growing commercial business and government contracts. Palantir’s software is in high demand, driving significant revenue growth and client retention. The company boasts a high Rule of 40 score, combining growth and profitability effectively.

While Palantir’s numbers are strong, its valuation remains a point of contention. Despite the company’s profitability and growth, the stock’s high multiples leave little room for error. Analysts have mixed opinions, with some praising Palantir’s execution and dominance in AI, while others raise concerns about the valuation. The stock’s recent slip has analysts split on its future potential.

Michael Burry’s move to bet against Palantir’s shares has raised caution about the overheating AI market. Market watchers draw parallels to the dot-com bubble, highlighting risks of cyclical downturns and questions about revenue sustainability. Corrections are inevitable, but timing them is challenging. While concerns linger, today’s AI leaders are fundamentally different from the dot-com era, with real-world demand backing their growth.

Read more at Yahoo Finance: Is It Too Late to Buy Palantir Stock in November 2025?