Should I buy Palantir stock in 2025?

What is Palantir?

How much is the Palantir stock?

The price of Palantir stock is slightly down this week. As of now, the stock trades at $122.32, with a 24-hour decrease of 1.16% and a marginal weekly change of -0.02%. Palantir’s market cap stands at $288.66 billion, supported by an average 3-month trading volume of 104.1 million shares.

The P/E ratio is notably high at 534.15, the stock does not pay a dividend, and the beta sits at 2.62, indicating elevated volatility.

Investors in South Africa should be aware that while recent returns are impressive, the high beta and valuation suggest potential for both rapid gains and sharp swings.

Our full analysis of the Palantir stock

In our latest comprehensive review of Palantir Technologies (NASDAQ: PLTR), we have carefully analysed the company’s Q1 2025 results and evaluated its stock trajectory over the past three years. Harnessing a blend of fundamental metrics, technical indicators, peer comparison, and real-time market data—using proprietary analytical models—we uncover an increasingly attractive opportunity in the heart of the AI-driven software sector. So, why might Palantir stock once again become a strategic entry point for investors seeking exposure to disruptive technology in 2025?

Recent Performance and Market Context

Palantir's share price has demonstrated extraordinary resilience and momentum in 2025, trading recently at $122.32. While the past week has seen minor consolidation (-0.02%), the year-to-date performance stands at an impressive +61.73%, and the 12-month return eclipses +460%—placing PLTR among the true outperformers of the high-growth tech universe. This multi-bagger status has significantly outpaced leading indices and most sector peers.

Key milestones underpin this momentum. In May 2025, Palantir secured a landmark partnership with Fannie Mae to deploy AI-driven fraud-detection for mortgages, signalling material revenue expansion and technological validation. Additionally, the company’s involvement in the U.S. missile defence “Golden Dome” initiative (alongside SpaceX and Anduril) cements its reputation as a critical enabler in both commercial and government domains.

These successes unfold against a sector backdrop that remains deeply constructive. The AI revolution is accelerating enterprise demand for advanced analytics and secure data platforms. Amid ongoing digital transformation, tech adoption across financial services, defence, and industry verticals creates a macro tailwind. For South African investors looking for offshore allocation, Palantir’s exposure to U.S. and global secular growth themes provides compelling portfolio diversification.

Technical Analysis

The technical configuration of PLTR is highly supportive of a bullish perspective. Key technical indicators as at 29 May 2025 include:

• RSI (14-day): 58.81—signalling a neutral but healthy uptrend, with potential runway before “overbought” territory is reached.
• MACD: 5.62—a robust buy signal, confirming medium-term positive momentum.
• Moving Averages: All major timeframes (20-day: $119.72; 50-day: $104.02; 100-day: $95.76; 200-day: $72.53) are flashing buy signals, with price well above critical moving averages.

Major support remains in place at $113.22, providing a strong technical floor, while resistance sits at $134.22, with a key congestion area between $125 and $128. The technical consensus—based on 16 bullish signals versus only one bearish on most platforms—points unmistakably towards continued upward movement, especially considering the positive divergence between price structure and medium-term oscillators.

Taken together, PLTR appears to be consolidating above support after its recent surge. This structure typically precedes further bullish extension, suggesting a potential new leg higher once near-term resistance is absorbed.

Fundamental Analysis

Palantir’s recent quarterly results underscore the exceptional strength of its business fundamentals:

• Q1 2025 revenue: $884 million (+39% YoY), beating consensus estimates ($862.8 million).
• Profitability: Net income of $214 million (+24% YoY), EPS in line at $0.13.
• Commercial momentum: U.S. commercial revenue surged 71% YoY—highlighting rapid adoption of Palantir’s AI-powered enterprise solutions, notably its Artificial Intelligence Platform (AIP).
• GUIDANCE RAISED: Management now forecasts 36% annual revenue growth, up from 30%, a signal of remarkable operational confidence.

Palantir continues to boast best-in-class fundamentals:

• Gross margin: 80.0%, reflecting scalable, high-value offerings.
• Net margin: 18.6%, exceptional for a growth technology stock.

While the current P/E ratio (TTM: 534x; forward: ~199x) suggests a premium multiple, the rapid earnings expansion and sector leadership help justify this valuation. Additionally, robust cash flows and a fortress balance sheet lower long-term financial risk.

From a qualitative stance, Palantir’s structural advantages are evident:

• Industry-leading AI/analytics platform serving blue-chip clients and government agencies.
• A suite of sticky, mission-critical solutions with high switching costs.
• Consistent investments in R&D ensure its competitive edge in a fast-evolving market.

Volume and Liquidity

Liquidity metrics point towards strong market conviction. The average daily volume is 104.1 million shares—a notable figure even amongst the largest technology stocks—and the free float stands at 2.14 billion shares. This sustained volume denotes unwavering institutional and retail interest, supporting effective price discovery and dynamic valuations.

Such liquidity reduces bid-ask spreads and facilitates efficient portfolio management, making Palantir suitable for both active traders and longer-term investors. In times of market volatility, this abundant float provides natural buffers against excessive price swings, even as the stock’s high beta (2.62) underscores its growth-oriented nature.

Catalysts and Positive Outlook

Looking ahead, several powerful catalysts could reinforce Palantir's robust outlook:

• AI Commercial Expansion: With U.S. commercial segment revenue growth at 71% YoY during Q1, Palantir’s increasing penetration into private-sector enterprises represents a monumental growth lever.
• Contract Wins and Renewals: Government contracts remain a foundation for Palantir, offering multi-year visibility and high recurring revenues. The company's participation in high-profile defence programs further entrenches its strategic importance.
• Artificial Intelligence Platform (AIP): Heavy client adoption positions this platform as a central node for next-generation data analytics, AI deployment, and real-time decision-making.
• Strategic Partnerships: Alliances with industry leaders (such as SpaceX, Anduril) and innovative programmes (Fannie Mae fraud detection) are likely to amplify revenue streams and cross-sector market share.
• Tech Ecosystem Tailwinds: Palantir operates in a sector benefiting from relentless innovation, growing regulatory clarity, and increasing corporate investment in AI-driven efficiencies—particularly relevant to global, and where applicable, South African corporate governance trends.

Collectively, these factors suggest that the company is well-positioned to compound growth and capture ever-larger slices of high-value markets.

Investment Strategies

Palantir’s risk/reward profile appears attractive across multiple investment horizons:

• Short-term:
• Price is consolidating near recent support ($113.22), potentially offering appealing entry points for technical traders.
• Anticipation of new contract announcements and ongoing AI newsflow could act as near-term catalysts.
• Medium-term:
• As current and forthcoming partnerships take effect and revenue guidance remains aggressive, further earnings beats or upward revisions could spur additional re-rating potential.
• Recent strong technical signals and relative stability above support reinforce the medium-term bullish thesis.
• Long-term:
• Exposure to the transformative AI adoption cycle gives Palantir a compelling secular tailwind, underpinned by its entrenched government relationships and deepening private sector expansion.
• With innovation and R&D at its core, Palantir seems well-placed to capitalise as digital adoption increases worldwide—including growing enterprise digitalisation trends in the broader EMEA region (of clear relevance to South African institutional allocators).

Overall, current price levels, especially near technical support, seem to represent an excellent opportunity for portfolio positioning ahead of multiple positive catalysts.

Is it the right time to buy Palantir?

To summarise, Palantir stands out with its formidable financial performance, relentless innovation, and premium positioning at the intersection of AI, big data, and security. Its revenue growth is accelerating, profitability expanding, and technical signals are aligning in its favour. Although the valuation remains elevated, this is justified by sector leadership and the company’s unique capacity to shape the future of enterprise and government technology.

For investors searching for exposure to the next wave of disruptive software and AI innovation, Palantir’s combination of momentum, liquidity, and world-class technology makes it a name worth serious consideration. Amid a supportive macro context and with multiple catalysts on the horizon, the stock may well be entering a new bullish phase, offering the prospect of outperformance in both the short and long term.

In today’s technology landscape—where data, intelligence, and security are paramount—Palantir seems set to play a defining role. For those assessing leading-edge tech allocation, PLTR’s fundamentals and positioning more than justify renewed interest at current levels. As always, disciplined risk management is advised, but few names offer a comparable blend of growth, innovation, and market confidence as Palantir does right now.

As the AI revolution gathers further pace, Palantir may represent one of the most compelling opportunities for investors seeking to participate in the future of data-driven value creation.

How to buy Palantir stock in South Africa?

Buying Palantir Technologies (PLTR) shares online is now quick and secure for South African investors, thanks to reputable, regulated brokerage platforms. You have two main ways to gain exposure: purchasing real shares (“spot” buying), which makes you a direct shareholder, or trading Contracts for Difference (CFD), allowing flexible, leveraged trading without holding the actual stock. Both approaches can be accessed fully online, often with a few clicks. To help you choose the right solution and platform, we present a clear comparison of brokers further down the page.

Spot Buying

With spot buying, you purchase actual Palantir shares listed on the US NASDAQ exchange. This method gives you direct ownership: you hold real equity in the company and participate fully in price movements (though note, Palantir does not currently pay dividends). South African brokers typically charge a fixed commission per order, generally from R100 to R250, or around $5–$15, depending on volume and platform.

Example

If Palantir shares trade at $122.32 and you invest $1,000, you can buy around 8 shares (after accounting for a $5 brokerage fee).

✔️ Gain scenario:

If the share price rises by 10% (to $134.55), your shares are now worth around $1,100.

Result: That’s a +$100 gross gain, an increase of 10% on your investment.

Trading via CFD

CFD (Contract for Difference) trading allows you to speculate on Palantir’s price movements without owning the shares. CFDs offer leverage—meaning you can gain larger market exposure with a smaller capital outlay. Costs typically include the bid/ask spread and overnight financing fees if you hold positions beyond a single trading day.

Example

With $1,000 and 5× leverage, you open a CFD position linked to Palantir shares, giving you $5,000 in exposure.

✔️ Gain scenario:

If the share price rises by 8%, your position delivers a profit of 8% × 5 = 40%.

Result: That’s +$400 gain on your $1,000 margin (excluding fees—always check these on your broker’s site).

Final Advice

Before investing, it’s essential to compare brokers’ fees, trading conditions, and currency conversion charges, as these can affect your overall return. Whether you choose to buy shares outright or trade via CFDs depends on your investment profile, risk tolerance, and objectives. To make an informed choice, refer to our detailed broker comparison lower down the page—which will help you find the platform best aligned with your needs as a South African investor.

Our 7 tips for buying Palantir stock

The latest news about Palantir

Palantir reported another robust earnings season for Q1 2025, exceeding revenue expectations and raising guidance. For the quarter ending March 2025, Palantir delivered revenues of $884 million, up 39% year-on-year and surpassing analyst consensus of $862.8 million. Net income rose 24% to $214 million, and earnings per share of $0.13 matched consensus estimates. Notably, the company revised its full-year guidance upward, now targeting 36% revenue growth for 2025, up from the previously communicated 30%, underlining sustained business momentum and improving visibility. This strong financial trajectory is seen as constructive for investor confidence, particularly attractive for South African investors seeking global technology growth stories diversified outside their local markets.

Technical indicators as of late May 2025 overwhelmingly signal continued bullish momentum for Palantir’s stock. All major moving averages—20, 50, 100, and 200 days—are flashing buy signals, and the MACD is also positive. The overall technical consensus is "Strong Buy," supported by 16 bullish indicators and minimal bearish signals. The stock is trading above key support at $113 and approaching a critical resistance zone between $125 and $128. While a negative RSI divergence is noted, the strong technical structure and significant year-to-date gains (+61.7%) have encouraged positive sentiment, further supported by the widespread adoption of Palantir's Artificial Intelligence Platform. This strength is relevant to ZA-based investors looking to track high-performing US-listed technology equities with global enterprise exposure.

Palantir has started to accelerate its footprint in international and commercial markets, creating indirect opportunities in regions like South Africa. Recent results highlight a 71% surge in US commercial revenues as enterprises adopt Palantir’s AI-driven data analytics platforms at scale. Although Palantir does not report significant direct operations or clients in South Africa, its offering is relevant to sectors such as banking, mining, and government, which are increasingly emphasizing data-driven decision-making—areas of high priority for South Africa's digital transformation agenda. The strong commercial thesis and ongoing expansion signal future partnership or deployment possibilities in emerging markets, which ZA analysts should monitor for downstream effects.

Strategic partnerships, such as the launch of an AI-powered mortgage fraud detection solution with Fannie Mae, are broadening application avenues for Palantir’s platforms. This development, announced in May, demonstrates the company’s drive to deepen its integration in heavily regulated, risk-sensitive industries and could be replicable in other geographies. As South African financial institutions grapple with fraud and compliance challenges, Palantir’s solutions may become increasingly attractive either through direct entry, vendor partnerships, or collaborations with global financial counterparts. Such moves enhance Palantir’s credibility and potential addressable market, supporting the case for ongoing growth and innovation-led stock appreciation.

Palantir remains fundamentally strong with high gross margins, exclusive government contracts, and a proven capacity to transition from public sector to commercial markets. With a gross margin over 80% and net margin near 19%, combined with privileged access to long-term government contracts, Palantir is positioned defensively against competitive threats. Consistent innovation, especially in the fields of artificial intelligence and analytics, reinforces its value proposition. The stock’s current high valuation (P/E >500x) does reflect elevated market expectations and introduces volatility risks, but for South African institutional investors with a long-term horizon, Palantir represents a strategic portfolio diversifier aligned with structural global technology trends.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.