Palantir’s $440B surge masks legal battles and valuation risks
Palantir Technologies has witnessed remarkable growth, with its market capitalization now surpassing $440 billion. The company's stock, PLTR, has ascended to $187.91, consolidating just below the $190 resistance level. However, alongside its financial success, legal challenges and a sky-high valuation are sparking concerns among investors.
In late June 2024, Palantir escalated its legal dispute with Percepta AI. The company filed an expanded complaint in Delaware's U.S. District Court, accusing the startup of stealing trade secrets. Palantir alleges that former employees were poached by Percepta AI to replicate its proprietary technology.
The legal battle unfolds as Palantir continues its commercial expansion. In the third quarter of 2025, revenue surged 63% to $1.18 billion, with U.S. commercial business leaping 121%. The company also secured new defense contracts with the U.S. Army and Navy, further bolstering its government ties.
Beyond legal and financial maneuvers, Palantir has partnered with Nvidia and CenterPoint Energy to develop the Chain Reaction platform. This collaboration aims to fortify energy infrastructure using AI-driven solutions. Despite these strides, the stock's price-to-earnings ratio now exceeds 400, indicating aggressive growth expectations.
Trading around 24% above its 200-day moving average, the PLTR stock exhibits strong momentum but also hints at potential overheating. The ongoing lawsuit and lofty valuation amplify the risks confronting Palantir's future performance.
Palantir's stock remains near record highs, buoyed by surging revenue and new defense contracts. However, the legal tussle with Percepta AI and an elevated valuation could dent investor confidence. The company's next strategic moves will dictate whether its growth trajectory remains intact or encounters obstacles.
