Another quarter, another revenue record for Palantir Technologies (NASDAQ:PLTR). The company managed to blast through already high expectations with its Q2 2025 earnings, surpassing the $1 billion revenue mark for the first time while raising full year guidance (yet again) to a $4.14 to $4.15 billion.

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Both U.S. commercial and government revenue continues to reflect impressive year-over-year growth, by 93% and 53%, respectively, while the company’s sales backlog remains robust. In short, company management is fully justified in its confidence going forward.

“We believe that Palantir will become the dominant software company of the future,” exclaimed CEO Alex Karp. The company’s share price, which has surged by over 100% year-to-date, was up another 5% in the after-hours trading session after the results were published yesterday after the market closed.

While top investor Jonathan Weber lauds Palantir’s performance, he urges investors to proceed with cautioun.

“Despite excellent fundamentals, PLTR stock’s valuation is now extremely high, making it less attractive for new investors at current prices,” explains the 5-star investor, who is among the top 2% of TipRanks’ stock pros.

Weber further details that PLTR clearly has a good thing going, with rocketing revenues a concrete demonstration that plenty of customers find enormous value from the company’s technologies. In fact, if commercial growth continues apace, the investor even foresees a scenario in the not-too-distant future when this segment could pass government sales.

“Many U.S. businesses being eager to use AI to become more efficient and to improve their operations, which is why Palantir has a fast-growing market,” emphasizes Weber.

And yet, Weber notes that the valuation is already pricing in massive growth going forward. This simply can’t continue in perpetuity – “no company trades at a 100x sales multiple forever” – meaning that eventually the valuation will come back down to earth.

While the investor acknowledges that PLTR has been an incredible investment for those who bought in a few years back, those considering jumping in now should think twice.

“PLTR has become a pretty pricy stock — too expensive for my taste,” sums up Weber. “I’m not bearish on PLTR and an investment at current prices may very well pay off, but I do not consider it a great value investment today.”

Weber is therefore assigning PLTR a Hold (i.e. Neutral) rating. (To watch Weber’s track record, click here)

That’s the sentiment that pervades throughout Wall Street as well. With 7 Hold ratings outpacing 4 Buys and 3 Sells, PLTR has a Hold consensus rating. Its 12-month average price target of $116.17 has a downside approaching 30%. (See PLTR stock forecast)

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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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