Palantir<\/strong> (NASDAQ: PLTR)<\/span> has been one of the hottest AI stocks since 2023. However, 2026 hasn’t been so kind to it. Even after a sharp spike last week that was apparently connected to an improving outlook for other defense contractors, it’s down 12% so far this year. That begs the question: Is this a buying opportunity or the start of a major sell-off?<\/p>\n I think it’s helpful to project Palantir’s stock price by the end of next year to determine whether it is a buy right now.<\/p>\n Will AI create the world’s first trillionaire?<\/strong>\u00a0Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need.\u00a0Continue \u00bb<\/strong><\/span><\/a><\/em><\/p>\n Palantir has long used AI to support its data analytics services, but it’s now fully integrating AI across workflows and across various parts of its clients’ businesses to foster an AI-first mindset. This has led to unreal growth: Palantir’s latest quarterly results featured 85% revenue growth. That’s impressive, but the big question is how long that can last?<\/p>\n Palantir’s revenue growth has consistently accelerated over the last few years,<\/p>\n For investors, looking at Palantir’s guidance isn’t always helpful, as management is consistently too conservative in its predictions, which isn’t a bad thing. Wall Street analysts estimate that Palantir’s growth rate will moderate slightly in Q2 to 80%. In Q3, they foresee further deceleration to 69% growth. Those are still solid figures, but are they enough to justify the stock’s current price tag?<\/p>\n For 2026 and 2027, analysts project 73% and 45% growth, respectively. In 2027, they estimate its earnings per share will be $2.07. That means at today’s current stock price, it trades for about 76 times 2027 earnings.<\/p>\n That’s a very expensive price tag for a company that’s growing at about a 45% pace. There are several companies\u00a0<\/a>growing as fast as Palantir<\/a> that trade at far lower earnings multiples, so I’m a bit wary of investing<\/span>\u00a0in Palantir.<\/p>\n A more reasonable price-to-earnings ratio would be about 50 times trailing earnings once 2027 is over. Should Palantir achieve the $2.07 in earnings per share that Wall Street predicts, the stock would trade at $103.50. That would be about a 51% decline from today’s levels, so I don’t think this is a buying opportunity. In fact, Palantir has\u00a0more room to decline before it’s properly priced for its growth rates and earnings.<\/p>\n<\/p><\/div>\n Before you buy stock in\u00a0<\/span>Palantir Technologies<\/span>, consider this:<\/p>\n The Motley Fool\u00a0<\/span>Stock Advisor<\/em>\u00a0<\/span>analyst team just identified what they believe are the\u00a010 best stocks<\/a><\/strong><\/span>\u00a0<\/span>for investors to buy now\u2026 and\u00a0<\/span>Palantir Technologies<\/span>\u00a0<\/span>wasn\u2019t one of them.\u00a0The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.<\/p>\n Consider when\u00a0<\/span>Netflix<\/strong>\u00a0<\/span>made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0<\/span>you\u2019d have $463,900<\/strong>!*\u00a0<\/span><\/strong>Or\u00a0when\u00a0Nvidia<\/strong>\u00a0<\/span>made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation,\u00a0<\/span>you\u2019d have $1,294,401<\/strong>!*<\/span><\/span><\/strong><\/p>\n That performance is why people listen. With a track record of\u00a0<\/span>beating the S&P 500 by nearly 5x<\/strong>,\u00a0<\/span>Stock Advisor<\/em>\u00a0<\/span>offers a distinct advantage. Don’t miss the latest top 10 list, available with\u00a0<\/span>Stock Advisor<\/em>, and join an investing community built for the long haul.<\/p>\n See the 10 stocks \u00bb<\/strong><\/a><\/p>\n *Stock Advisor returns as of June 1, 2026. <\/em><\/p>\n Keithen Drury<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy<\/a>.<\/em><\/p>\n<\/div>\n<\/div>
Palantir is a direct application of AI <\/h2>\n
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Should you buy stock in Palantir Technologies right now? <\/h2>\n