Is Palantir Stock Overvalued?

The Motley Fool

by newsfeedback@fool.com (Keithen Drury)

February 14, 2026

AI-Generated Deep Dive Summary

Palantir Technologies (NASDAQ: PLTR) has experienced an extraordinary three-year run, with its stock skyrocketing by 2,100% since the start of 2023—a figure that peaked at 3,100% before a significant sell-off. Despite this decline, which has pushed the stock down 30% from its all-time high, questions remain about whether the company is still overvalued or if it now presents an attractive buying opportunity for investors. Palantir, a leader in data analytics and government contracting, has long been seen as a growth darling. Its ability to leverage big data and AI has driven significant revenue growth, particularly in its core defense and intelligence markets. However, concerns about competition in the enterprise software space, coupled with high valuations relative to peers, have raised doubts among some investors. Recent market movements suggest that Palantir’s stock may have cooled off enough to warrant a closer look. While the company continues to demonstrate strong fundamentals, including consistent revenue growth and expanding margins, its ability to maintain this trajectory in a more competitive environment remains uncertain. Investors will need to carefully evaluate whether the current price reflects the company’s long-term potential or if it still carries the risks of overvaluation. For those following the tech and finance landscape, Palantir’s stock performance matters due to its role as a key player in both enterprise software and government contracting. Its journey serves as a cautionary tale about the dangers of speculative growth and highlights the importance of balancing short-term momentum with long-term fundamentals when making investment decisions. Whether Palantir’s stock has found its footing or is set for further decline will likely depend on how well it can sustain its growth in a more challenging market environment.

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Originally published on The Motley Fool on 2/14/2026