Palantir (PLTR) Climbs to Record High; Bulls Stay Confident Despite Lofty Valuation

Palantir (PLTR, Financials) hit a fresh all-time high last week; and for long-term believers, that's a moment worth pausing for. Shares touched nearly $150 before settling into a range between $125 and $150 and even though analysts are waving the overvalued flag, investors aren't backing down.

For some, that disconnect is enough reason to walk away. But for others especially those who bought in earlier the ride isn't over; not by a long shot.

The company's forward revenue growth sits around 31%; yes, that's only a bit higher than its five-year average of 27.4%, but bulls see the big picture. Palantir's 14-week Relative Strength Index is hovering around 63 below the classic overbought line suggesting the move hasn't been purely hype. At the same time, Palantir has consistently traded above its 50-week moving average since its 2023 rally began; for a company in a volatile space, that's not nothing.

The valuation, of course, is massive; a forward P/S of nearly 80 isn't easy to justify on paper. But Palantir's appeal isn't just about revenue forecasts it's about belief in its moat, brand, and leadership. With $5.4 billion in cash and no debt; plus a business model that's deeply tied to recurring software contracts; the company has real staying power.

Its commercial and government revenue split makes it nimble; geopolitical stress doesn't knock it off balance it makes Palantir more relevant. In fact, EPS has grown 111% year over year; compare that to 7.5% for the broader sector, and the stock's premium starts to make more sense.

That said, this isn't a risk-free bet. A slowdown whether due to shifting defense budgets, stiffer competition, or simple execution risk could force a sharp re-rating. At this price level, Palantir needs to deliver near-flawless performance; otherwise, sentiment can turn quickly.