Palantir Just Made Company History. Is the Stock a Buy?

PLTR just flipped a key revenue mix: U.S. commercial revenue surpassed U.S. government revenue for the first time in Q3, a company first. Total revenue rose 96% year over year to $2.3B, and the company posted a 49% profit margin.

The growth and margin figures are strong by any standard, but the valuation is where the debate sits. The analyst behind the piece flags PLTR at 110x current-year earnings and 76x next year's earnings. That multiple is rich against other AI investments, and the analyst's verdict is to avoid the stock despite the business fundamentals.

Our interpretation: the commercial crossover suggests PLTR's growth is no longer anchored to government contracts alone, which supports the bull case on durability. But a 110x multiple leaves little room for error. Any deceleration from 96% growth would pressure the multiple before it pressures the business. The drop from 110x to 76x also implies the market is already pricing steep earnings growth, so the stock needs to deliver that growth just to hold its valuation.