In 2025, Palantir Technologies (NASDAQ: PLTR) rose to be the S&P 500’s top-performing stock before dropping 17% within a six-day period, as government scandals and short sellers joined with Wall Street analysts in probing if momentum can be maintained for the AI defense contractor above its valuation which have stock sellers asking themselves if ‘should I sell my Palantir stock?’
Palantir revenue growth margin is a representation of the greater supportive surrounding of AI, where positive energy surrounding might be able to overcome money reality. Palantir’s unique status at the intersection of technology, defense, and politics has triggered both massive appreciation of its shares and mounting criticism propelling its phenomenal rise.
Pltr revenue growth is among the most recognized AI names, which relies on defense, intelligence, and law enforcement contracts to gain its fame. Its software platforms such as Gotham scan massive data streams, identify threats, and recommend battlefield action.
Earlier this year, the US Department of Defense awarded Palantir a $795 million contract for its Maven Smart System, following an earlier $480 million prototype deal, nearly $1.3 billion in total. Similar deals in the UK, including a £330 million NHS contract, have positioned Palantir at the center of sensitive government work.
Yet such times come with scrutiny, with British critics in Britain calling Palantir a “dirty company,” for its controversial track record.
“The government needs to move away from Palantir, not invest more of our tax money to promote a company that benefits no one but itself,” said Amnesty International’s Naomi McAuliffe.
Is Palantir a Good Investment?
On Wall Street, optimism about Palantir market cap May 2025 is colliding with cold financial realities. The stock has soared 144% this year, far outpacing revenue growth of 80% since 2023.
Analysts say retail enthusiasm, fueled by geopolitical headlines, has pushed deployment strategist Palantir well beyond fair value.
Head of technology research at D.A. Davidson, Gil Luria, argues Palantir’s valuation “suggests that the company will need to maintain high revenue growth for three times longer than CloudFlare and CrowdStrike.”
Should I sell Palantir stock?
FactSet data shows Palantir trades at an enterprise value to revenue ratio of 78, compared to an industry average of 16.
While companies like Palantir posted 48% overall revenue growth in its latest quarter, much of its business remains reliant on government contracts. About 55% of 2025’s sales are expected to come from government sources, exposing it to policy changes or budget cuts risks.
Even at its strongest, analysts warn the math is unforgiving, applying generous growth and profit assumptions still suggest Palantir’s stock could be worth half its current level in three years.
Should I Sell Palantir?
Investors now face a dilemma and ask themselves “should I sell Palantir stock?”
Palantir technologies stock analysis 2025 is clearly a leader with contracts spanning defense, health, and commercial industries. On the other hand, short sellers, led by Citron Research, argue the company’s growth model is closer to “locked-in consulting wrapped in software” than scalable AI.
A Citron report estimated Palantir’s top-rated platforms for AI-based stock trading fair value at $40 per share, well below current levels, saying, “even at a 17x sales multiple, Palantir would still be expensive,” contrasting its slower contract-driven growth with OpenAI’s self-reinforcing AI flywheel.
The recent 17% stock drop, wiping out $73 billion in market value, highlights the volatility. While contrarians may still see the upside, the real matter is all about timing. If years of growth are already priced in, the stock could be underperformed while the stocks are on a rise.
For now, Palantir stands as both the best and worst story on Wall Street as a case study in how AI hype, government reliance, and valuation excess can collide.
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