Palantir Stock Is Near Its Record. Here's the Price at Which I'd Buy It.
2026-10-16 14:37
•Daniel Sparks •The Motley Fool
••••• • Axe Cap view
Palantir’s Run Looks Topping Out—Wait for a Better Entry
Palantir’s rapid growth impresses, but its share price feels too frothy at nearly 170 times earnings.
Palantir Technologies is firing on all cylinders, with revenue jumping 93% and earnings nearly quadrupling. Yet investors are paying a big premium—around 170 times this year’s profits. That multiples implies the company must sustain blistering growth well into the future. For South African investors watching from here, the direct exposure is limited. But the lesson is clear: high-flying tech valuations can stay stretched if the story remains intact, but they rarely offer good risk/reward at the peak. Consider how Naspers and Prosus, despite their strong positions in global tech, got whipsawed when growth didn’t meet sky-high expectations. If you want in, better to wait for a pullback near $140, which is still pricey but more reasonable. Otherwise, keep an eye on the rand’s moves—USD/ZAR volatility often shifts appetite for growth stocks linked to offshore earnings. this is just our opinion and not financial advice
Avoid buying Palantir at current prices. Wait for a correction closer to $140 before considering a position, keeping an eye on USD/ZAR for timing cues.
- PLTR
- USD/ZAR
- Earnings growth accelerates beyond expectations, justifying the high multiple
- Rand weakens sharply, increasing appeal of offshore growth stocks
6/10
Palantir Technologies trades near record highs at ~$198, commanding a 170x earnings multiple. While the company demonstrates exceptional growth with 93% revenue increases and rapidly rising profits, analyst Daniel Sparks considers the current valuation excessive. He would buy the stock at ~$140 per share (120x earnings), a level the market accepted just months ago. However, if earnings continue growing as expected, the stock could reach that valuation without falling.
Our take is based on reporting first published by The Motley Fool.