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Photo illustration by Cheng Xin/Getty Images Getty Images Palantir Technologies has seen several explosive rallies, achieving gains exceeding 50% in under two months during significant years such as 2020 and 2024. Moreover, the stock rose by more than 30% multiple times during prior uptrends, particularly in 2023 and 2024, providing shareholders with significant returns. If historical trends persist, future drivers could propel Palantir’s shares to impressive new heights once more. Factors That Could Enhance The Stock AI Commercial Surge: U.S. commercial revenue increased by 93% to $306 million in Q2 2025, spurred by AI platform adoption Major Government Contracts: Secured a $10 billion contract with the U.S. Army in July 2025, elevating government revenue by 49% in Q2 2025 Steady Profitability: Recorded GAAP operating income for several quarters, reaching $269 million in Q2 2025, which supports potential index inclusion Is investing in PLTR stock risky? Absolutely. High Quality Portfolio helps mitigate that risk. Current Financial Health Overview It’s certainly advantageous if the fundamentals are solid. For insights on PLTR, refer to Buy or Sell PLTR Stock. Here are some key figures worth noting. Revenue Growth: 38.8% LTM and a 25.7% average over the last three years. Cash Generation: Almost 49.7% free cash flow margin and a 16.6% operating margin LTM. Valuation: Palantir Technologies shares trade with a P/E ratio of 586.2. Opportunity vs S&P: Relative to the S&P, you receive a higher valuation, elevated revenue growth, and lower margins. Comparison with S&P500 Median *LTM: Last Twelve Months But How Does The Stock Perform During Downturns? MORE FOR YOU When assessing risk, it’s useful to examine how PLTR has performed in challenging markets. Throughout the Covid pandemic, it declined approximately 22.5% from peak to trough. The inflation crisis struck harder, causing a drop of around 85%. Even stocks that appear robust can suffer significant losses when volatility increases. Hence, despite the positive influences, PLTR’s track record indicates it can still encounter severe declines during a crisis. However, the risk is not confined to extensive market crashes. Stocks can decline even when markets are favorable – consider events like earnings reports, business changes, and outlook revisions. Review PLTR Dip Buyer Analysis to understand how the stock has bounced back from sharp declines in the past. The Trefis High Quality (HQ) Portfolio, consisting of 30 stocks, has consistently shown a track record of comfortably surpassing its benchmark, which includes all three – the S&P 500, S&P mid-cap, and Russell 2000 indices. What accounts for this? As a cohort, HQ Portfolio stocks deliver superior returns with reduced risk compared to the benchmark index; they provide a more stable ride, as demonstrated in HQ Portfolio performance metrics. Editorial StandardsReprints & Permissions
