Caution on Palantir's Risky Valuation Heading into 2026

22 days ago

Joseph Carlson

"Next up, we have Palantir, which obviously just looking at the numbers here by any relative scale, this thing is goated. Like it's been an insane year in 2025 for Palunteer. Now you can complain. You can say that it's not deserved or the stock is comically overvalued, but say whatever you want. The numbers are the numbers. First of all, the revenue is growing very fast, 47%. Like I said earlier, premium revenue growth equals premium multiples, premium valuation. Palenter investors are betting that this continues because if this reverts, if it slows down or decelerates, the multiple will come down dramatically. Now this again is very impressive how fast they've been able to grow. But I am concerned if the revenue does slow down because I think we'll see a big derating in this company if it does. So while this company has been goated, I feel like going into 2026, it's much higher risk than an ASML or Google. I think you're really playing a dangerous game investing in Palunteer in 2026 at these valuations."

The speaker reviews Palantir's explosive performance in 2025, noting its 148% gain and high revenue growth of 47%, while warning that a slowdown in growth could lead to a significant multiple compression. Despite the impressive numbers, he cautions investors that entering at such high valuations in 2026 is dangerous compared to more stable plays like ASML or Google.

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