Overview

• Palantir's market capitalization surged to $281 billion, placing it among the top 10 U.S. tech companies and surpassing Salesforce.
• The company has gained 58% in stock value in 2025, becoming the S&P 500's top performer for the second straight year.
• Palantir's government business grew 45% last quarter, fueled by a $178 million U.S. Army AI contract, highlighting its defense-sector strength.
• Analysts have raised concerns over Palantir's valuation, which trades at 520× trailing earnings and 90× revenue, far exceeding industry norms.
• Following Q1 results, shares dropped 12% due to slowing international commercial sales, with an additional 5% weekly decline raising valuation sustainability questions.