Bulls vs. Bears: Is Palantir ahead of a long-term downtrend?

[Palantir Technologies office in Palo Alto, California, USA]
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Shares of Palantir (NASDAQ:PLTR [https://seekingalpha.com/symbol/PLTR]) fell ~10% this week as the enterprise software firm marked its longest losing streak in more than a year, generating sizable gains for investors betting against the company and drawing a range of views from Seeking Alpha analysts.

According to financial data provider S3 Partners, Palantir (NASDAQ:PLTR [https://seekingalpha.com/symbol/PLTR]) shorts generated more than $1.6B in paper profits as the stock shed more than $73B in market capitalization during the slide, falling ~17% from its recent peak on Aug. 12. [https://seekingalpha.com/news/4487732-palantir-shorts-reap-billions-amid-selloff---report]

With the Denver, Colorado-based firm continuing to trade nearly 400% higher than its year-ago levels, Seeking Alpha analysts debate the prospects of Palantir (NASDAQ:PLTR [https://seekingalpha.com/symbol/PLTR]).

THE BULLS

“With PLTR stock down about 13% in the last five trading sessions, investors are undoubtedly nervous,” acknowledged Seeking Alpha analyst Rick Orford [https://seekingalpha.com/author/rick-orford] in _Palantir: Why You'll Regret Selling Now (It's Not What You Think). [https://seekingalpha.com/article/4815709-palantir-why-youll-regret-selling-now-its-not-what-you-think]_ “Despite a recent dip on a short-seller report, Palantir’s fundamentals remain strong, with Q2 ‘25 revenue up 48% year-over-year and robust deal pipelines.”

“With a stock price of $177 per share, PLTR trades at a forward EV/Sales of nearly 100x and forward EV/EBITDA of 216x, far above the sector medians,” added Pythia Research [https://seekingalpha.com/author/pythia-research] in _Palantir's Dual Engines Are Taking Off. [https://seekingalpha.com/article/4815129-palantir-stock-dual-engines-commercial-government-taking-off] _“Despite trading near 250x forward P/FCF, investors pay a premium for PLTR's durability as dual-engine AI infrastructure.”

“PLTR's massive government and commercial contracts, expanding AI platforms, and strong execution justify its premium valuation and multi-year growth runway,” noted analyst Nauman Khan [https://seekingalpha.com/author/nauman-khan] in _Palantir: Buy The AI Goldmine (Upgrade). [https://seekingalpha.com/article/4813447-palantir-stock-q2-buy-the-ai-goldmine-upgrade-strong-buy] _“Valuation is high, but with accelerating growth, cash generation, and product innovation, I see Palantir as a top AI play despite execution risks.”

“Q2 2025 was a big milestone for Palantir after finally surpassing for the first time the $1 billion mark in quarterly revenue,” opined SA analyst Deep Value Investing [https://seekingalpha.com/author/deep-value-investing] in _Palantir: Rule Of 40 Breakout - A Double Edged Sword. [https://seekingalpha.com/article/4811913-palantir-rule-of-40-breakout-a-double-edged-sword] _“Near term, I'm watching Q3 (largest sequential revenue guide), the CFO's 91 full year Rule of 40 target, and the timing of Army EA bookings under the $10B agreement.”

THE BEARS

“Palantir's valuation is extremely stretched, driven by speculative trading,” noted analyst Bashar Issa [https://seekingalpha.com/author/bashar-issa] in _Palantir: A Bubble-Burst Is Coming (Rating Downgrade) [https://seekingalpha.com/article/4815997-palantir-a-bubble-burst-is-coming-rating-downgrade]. _“I see PLTR stock as significantly overvalued and vulnerable to a correction.”

“Despite robust operational performance, Palantir's valuation is extremely stretched, making the stock unattractive even under aggressive future growth scenarios,” added Daniel Jones, Investing Group Leader of Crude Value Insights [https://seekingalpha.com/author/daniel-jones] in _Palantir Technologies: This Drop Is Only The Start Of What Is Deserved. [https://seekingalpha.com/article/4815234-palantir-technologies-drop-start-of-what-is-deserved] _“Even with optimistic growth and margin assumptions, Palantir would only approach fair value by 2028, highlighting significant downside risk at current prices.”

“The business itself is firing on all cylinders, posting a spectacular Q2 with record contract value, a massive guidance raise, and a stunning 94% score,” noted Oakoff Investments, Investing Group Leader of Beyond the Wall Investing [https://seekingalpha.com/author/oakoff-investments] in _Palantir: It's Unlikely To End Well (Rating Downgrade). [https://seekingalpha.com/article/4815100-palantir-its-unlikely-to-end-well-rating-downgrade]_ “I think the risk/reward for new buyers is terrible.”

“Palantir’s shares might be in a bubble territory, and the margin of safety for holding them is practically non-existent at this stage,” argued analyst Bears of Wall Street [https://seekingalpha.com/author/bears-of-wall-street] _in Palantir: The Hype Has Reached Delusional Levels. [https://seekingalpha.com/article/4814567-palantir-stock-hype-reached-delusional-levels]_ “Considering this, there's a risk that if the macro environment once again worsens, the share price will once again collapse since trading at the current multiples is unsustainable in the long run.”