Reassessing Palantir Technologies’s Valuation Following Security Concerns in Defense Project Collaboration

Palantir Technologies (PLTR) shares dropped sharply after reports surfaced about security concerns in a battlefield communications project the company is developing with Anduril. The Army later clarified the issues had been identified early and resolved.

See our latest analysis for Palantir Technologies.

This episode comes after a run of headline-making moments for Palantir, including its expanding partnership with Boeing Defense and a pop-up retail launch in Seoul. Despite mounting excitement around AI and robust growth in both government and commercial arms, the latest business setback sparked notable volatility. Still, Palantir’s total shareholder return stands at 3.5% for the past year. Momentum has cooled from the frenzy seen earlier as investors weigh high expectations against ongoing operational risks and valuation concerns.

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This volatility raises a crucial question for investors: with Palantir’s rapid growth and recent stumbles, is Wall Street underestimating the company’s true potential, or has all the future upside already been priced into the stock?

Most Popular Narrative: 55% Overvalued

At $173.07 per share, Palantir’s recent surge has taken it far above the $111.66 fair value estimated by the narrative from user BlackGoat. This sharp gap illustrates just how ambitious the market’s expectations have become for the company’s growth and profitability.

"Palantir remains an exceptional company with groundbreaking technology and a clear mission. I have high conviction in its long-term potential and believe it could evolve into another Salesforce, Oracle, or SAP. However, even when factoring in flawless execution and strong future growth, the stock appears overvalued following recent price surges."

Read the complete narrative.

Curious what bold assumptions fuel this sky-high valuation? The narrative is built on aggressive growth targets and profit projections that rival industry titans. But what numbers are really driving that hefty price, and why is the market still betting big? Dive in to discover the forecasts behind the future value.

Result: Fair Value of $111.66 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, even with Palantir’s strong market position, any slowdown in revenue or a shift in government spending could quickly challenge the bullish narrative.

Find out about the key risks to this Palantir Technologies narrative.

Build Your Own Palantir Technologies Narrative

If you have alternate views or want to examine the numbers firsthand, you can shape your own perspective in just a few minutes. Your insights could start here: Do it your way

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Palantir Technologies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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