Palantir Stock Is Near a Record High. Should Investors Sell?

PLTR is trading near all-time highs, and The Motley Fool is asking whether existing holders should take profits. The case for caution rests on valuation: the stock carries a 171 P/E ratio, which leaves little room for disappointment.

The fundamentals behind the rally are strong. Palantir's Q2 2026 results showed 93% revenue growth and 62% adjusted operating margins. Those figures explain why buyers have pushed the shares to records, but they also set a high bar for every quarter that follows.

The article's core argument is about framing. Shareholders should judge a position by its future return potential, not by past gains. That means asking two questions: does a 171 P/E justify continued holding, and does the position's size create excessive portfolio concentration risk?

Our interpretation: at that multiple, the market is already pricing in sustained hypergrowth. The 93% growth rate and 62% margins are the numbers that must hold. Any deceleration in either would test a valuation with a thin cushion, while continued execution may be needed just to keep the multiple where it is.