Palantir Technologies: Time To Tread Carefully

  • Palantir delivered strong Q1 results, with 39% YoY revenue growth and surging operating profits, driven by momentum in both government and commercial AI contracts. The company's AI platform is fueling rapid profit and free cash flow growth, with 2025 guidance pointing to robust margins and continued scaling. Despite operational strength, Palantir's valuation—trading at nearly 100x next year's sales—is extremely aggressive and detached from fundamentals.