Should I buy Palantir stock in 2025?

What is Palantir?

How much is the Palantir stock?

The price of Palantir stock is falling this week. As of now, Palantir trades at $122.32 USD, marking a 1.16% drop in the last 24 hours but still up 5.38% over the past week.

The company’s market capitalisation stands at $292.06 billion, with an average daily trading volume (3 months) of about 103.96 million shares.

Palantir's price-to-earnings (P/E) ratio is a high 531.83, it does not pay a dividend, and the stock’s beta sits at 2.68, reflecting significant volatility.

Investors in New Zealand should be aware that Palantir’s recent gains come alongside increased price swings, making it a dynamic but high-risk opportunity in the tech sector.

Our full analysis on Palantir stock

After a thorough evaluation of Palantir Technologies’ most recent financial disclosures and a rigorous review of its equity performance over the past three years, we have synthesized market intelligence, advanced financial metrics, technical signals, and competitive benchmarking via our proprietary analysis models. This multi-dimensional perspective highlights remarkable shifts in Palantir’s growth dynamics and reaffirms its distinctive position within the global AI-driven software sector. So, why might Palantir once again represent a strategic entry point for investors seeking exposure to the technology sector’s next major inflection in 2025?

Recent Performance and Market Context

Palantir’s share price has staged a meteoric rise, with the stock currently trading at $122.32 on NASDAQ (as of 29 May 2025), reflecting an extraordinary +484.2% increase over the past year and +82.4% over the last six months. This robust uptrend has propelled Palantir’s market capitalization to $292.1 billion, underlining its growing stature as a global technology leader.

Recent performance has been punctuated by exceptional quarterly results, demonstrating sustained business momentum. Notably, Q1 2025 revenue surged 39% year-on-year to $884 million, far surpassing consensus expectations. The company’s US commercial segment saw a spectacular 71% jump, and Palantir raised its full-year guidance, now projecting 2025 revenues of nearly $3.9 billion—signalling strong confidence in its execution. These factors, in combination with major strategic partnerships such as its Fannie Mae AI fraud detection program and contracts enhancing US defense systems (Golden Dome), have driven increased visibility and positive sentiment.

The broader technology landscape continues to benefit from an epochal surge in AI-related demand and digital transformation initiatives. With governments and enterprises globally accelerating their data infrastructure investments, Palantir is superbly positioned to capture share in an expanding total addressable market. For NZ-based investors, the stock provides a high-quality gateway into the heart of AI and data analytics innovation—a sector set to remain structurally in favour over the next decade.

Technical Analysis

From a technical standpoint, Palantir’s setup remains compelling for bullish exposure. Key momentum indicators are supportive of further price appreciation:

• Relative Strength Index (RSI 14D): Currently 58.81, in the neutral-to-bullish band—suggesting the stock is not overbought and retaining upside potential.
• MACD: The positive value (+5.62) indicates continued bullish momentum and signals acceleration in upward price structure.
• Moving Averages: Palantir’s share price comfortably trades above its key short- and long-term moving averages, reinforcing the existence of a sustained uptrend.
• Support and Resistance: Strong technical support is established around $121.50, acting as a backstop for consolidations; immediate resistance resides at $125–$128, a zone likely to trigger further upside upon breakout.

Short- to medium-term price momentum remains constructive, with the uptrend channel well-defined and volatility providing attractive opportunities for tactical accumulation, especially around support retests. The technical configuration, combined with positive flow, seems to justify renewed investor interest at current levels.

Fundamental Analysis

Palantir’s fundamentals shine through a blend of hyper-growth, operating leverage, and strategic agility:

• Revenue Growth: Q1 2025 revenue growth of +39% YoY (driven by US commercial +71%) reflects accelerating customer adoption and deepening demand for proprietary AI platforms.
• Profitability: Net profit of $214 million for the quarter and operating cash flow of $310 million (+139% YoY) highlight improved margin structure and capital discipline.
• Guidance: The company’s upgraded 2025 revenue outlook to $3.89–$3.90 billion (+36% annual growth) was well ahead of analyst consensus, reiterating management’s confidence.
• Capital Strength: With $5.43 billion in cash and a negligible leverage ratio (debt/equity at 4.43%), Palantir is solidly capitalized to finance major R&D and strategic expansion.
• Valuation Considerations: While the trailing P/E of 531.8 and forward P/E of 222.2 are markedly higher than sectoral averages, these premiums reflect Palantir’s unique position at the core of the AI revolution, its structural topline growth, and scarce “pure-play” exposure. The PEG and P/S ratios remain consistent with high-growth tech peers that have commanded valuation multiples during inflection periods.

Structurally, Palantir is underpinned by:

• Best-in-class AI and big data platforms (Gotham, Foundry, Apollo, AIP)
• Deep government and commercial integration, underpinning long-term contract visibility
• A reputation for security, innovation, and irreplicable domain expertise
• Proven management capacity to capitalize on fast-evolving opportunities

The company’s scalable business model and high switching costs generate a powerful moat. Furthermore, recurrent sales driven by multi-year contracts reinforce revenue visibility and dampen cyclicality—a valuable quality in global uncertainty.

Volume and Liquidity

Strong, sustained trading volume further highlights market conviction in Palantir’s growth story:

• Average 3-month volume: 104 million shares, with recent daily figures also deep and liquid.
• Float: With 2.14 billion shares available for trading (from a total of 2.36 billion outstanding), market depth supports both institutional accumulation and retail participation.

Such liquidity is not only indicative of institutional confidence but also enables rapid price discovery and efficient capital allocation. This robust liquidity profile facilitates dynamic valuation adjustment, reinforcing the case for flexibility in portfolio positioning.

Catalysts and Positive Outlook

Palantir is riding a wave of secular catalysts that should underpin both investor attention and sustained premium valuation:

• AI Platform Expansion: The AIP suite is quickly gaining traction across sectors—most notably in financial services (e.g., Fannie Mae), defense, and manufacturing—allowing Palantir early-mover advantage as next-generation AI use cases proliferate.
• US Government Contracts: Intensifying partnerships with public sector entities create recurring, stable growth, insulating revenues from economic fluctuations.
• Commercial Penetration: The ongoing pivot towards commercial clients is unlocking new, high-margin addressable markets and diversifying revenue streams beyond government legacy.
• Strategic Alliances: Recent ventures with companies like Divergent Systems for real-time advanced manufacturing offer step-change upside and robust validation of Palantir’s technology.
• ESG and Regulatory Alignment: Palantir’s focus on responsible AI and transparency resonates with global best practices, positioning the company advantageously amid tightening data and AI regulations.
• AI “Supercycle”: With AI and data analytics ascendant on C-suites’ strategic agenda worldwide, Palantir is levered to what may prove the most transformative enterprise technology adoption curve of our generation.

The company’s pipeline, innovation cadence, and rapid execution indicate that these trends are set to accelerate through 2025, potentially reshaping the balance of power within the software infrastructure sector.

Investment Strategies

Palantir’s volatile but structurally bullish price path lends itself to several attractive entry strategies:

• Short-term (traders): Capitalizing on technical pivots near support levels ($121.50) or anticipating breakouts above resistance ($125–$128), as the chart structure remains constructive.
• Medium-term (3–12 months): Positioning ahead of expected catalysts—such as quarterly earnings beats, product launches or major partnership announcements—can allow tactical investors to benefit from bursts of momentum and upward revisions of guidance.
• Long-term (multi-year, growth portfolios): For NZ investors seeking exposure to the core of the AI technology supercycle, staged entry near support zones or following brief consolidations enables risk-managed accumulation into a prospectively compounding story.
• Portfolio Diversification: As a non-dividend paying tech pure-play, Palantir complements NZ and APAC portfolios, offering a differentiated hedge against slower-growth sectors and anchoring thematic AI allocations.

The current zone, modestly off recent highs, seems to provide an optimal balance between momentum and risk control, especially for those who adopt disciplined sizing and trailing stop strategies.

Is It the Right Time to Buy Palantir?

Palantir stands out as an exceptional case study in technology-market transformation: revenue is surging at a pace few peers can rival, profitability is expanding, and management’s strategic vision continues to bear fruit through rapid innovation and bold commercial expansion. Despite traditionally high valuation multiples, market context and company fundamentals seem to justify a renewed wave of investor interest, especially given Palantir’s leading-edge positioning in AI, formidable competitive moat, and proven ability to win and scale mission-critical contracts.

The convergence of technical momentum, business outperformance, and sector tailwinds positions Palantir squarely in the vanguard of the next AI investment cycle. While past CEO share sales and analyst “Hold” consensus invite measured discussion, such factors are far outweighed by the structural, long-term growth levers at play. With a constructive backdrop, robust liquidity, and unmatched thematic relevance for NZ investors seeking global technology exposure, Palantir indeed seems to represent an excellent opportunity worthy of serious consideration in 2025.

Ultimately, for those with an appetite for growth, a tolerance for volatility, and a long-term perspective, Palantir may well be entering a new bullish phase within the AI sector’s global expansion. The magnitude of recent gains, the pace of innovation, and the scale of opportunity at hand underscore why Palantir could become a defining investment story of the AI era.

With major catalysts ahead and supportive market dynamics, Palantir offers a unique window into the next wave of technology-led growth—a compelling prospect for any investor seeking to capture the momentum and potential of a sector on the cusp of transformation.

How to buy Palantir stock in New Zealand?

Buying Palantir (PLTR) stock as a retail investor in New Zealand is both straightforward and safe when using a regulated online broker. Whether you’re interested in buying real shares (spot purchase) or trading via Contracts for Difference (CFDs), regulated platforms make the process accessible with NZD payment options and strong investor protections. Spot buying gives you direct ownership of shares, while CFDs let you speculate on price movements with leverage. Below, we break down both options for investing in Palantir, and further down the page, you’ll find a comparison tool to help you select the right broker for your needs.

Cash buying

A cash purchase means you’re buying real Palantir shares, becoming a direct shareholder with voting rights and access to potential gains. Most New Zealand-friendly brokers charge a fixed commission per trade—typically around NZD 5–10 per order—and some may also levy a small currency conversion fee when trading US-listed stocks.

Example

Suppose the current Palantir share price is US$122.32. Accounting for currency conversion (approx. NZD 1 = USD 0.62), that’s about NZ$197 per share. With a NZ$1,000 investment and a NZ$5 brokerage fee, you could buy roughly 5 shares (NZ$985 / NZ$197 ≈ 5 shares).

• Gain scenario: If Palantir’s share price rises by 10%, your holding would be worth about NZ$1,100.
• Result: That’s a NZ$100 gross gain (+10% on your initial investment, before any currency impact).

CFD trading

CFD (Contract for Difference) trading lets you speculate on Palantir’s share price without actually owning the shares. You can trade up or down, often with leverage (multiplying both gains and losses). Main costs include the spread (the difference between buy/sell prices) and overnight financing charges if you hold positions longer than a day.

Example

You allocate NZ$1,000 to a CFD trade on Palantir, using 5x leverage. Your position is now NZ$5,000 in market value.

• Gain scenario: If Palantir’s price increases by 8%, your gross gain is 8% × 5 = 40%.
• Result: That’s a NZ$400 profit on your NZ$1,000 margin (excluding fees or currency movements)—but remember, losses can be magnified too.

Final advice

Before investing in Palantir, it’s essential to compare brokers’ fees, platforms, and account conditions. Some specialise in cash share purchases, others in leveraged CFD trading, and each has its own cost structure. Ultimately, the best option comes down to your objectives, risk appetite, and investment timeline. For a detailed broker comparison, see the tool available further down this page.

Our 7 tips for buying Palantir stock

The latest news about Palantir

Palantir shares surge over 5% in the last week, continuing a year-long run of exceptional growth. The stock closed at $122.32 on May 29, 2025, up 5.38% over the past week and a staggering 484% over the past year, indicating considerable momentum. Driven by robust quarterly results and AI sector enthusiasm, Palantir maintained its position well above major moving averages, signaling sustained bullish sentiment. This performance outpaces both the broader technology sector and key indices, offering New Zealand investors global growth exposure, particularly via NZX-listed funds that track the NASDAQ or global tech benchmarks, in which Palantir is now a major constituent.

Strong Q1 2025 earnings reveal a 39% jump in revenue and significantly increased operational cash flow. For the first quarter of 2025, Palantir reported $884 million in revenue (up 39% year-on-year) and $214 million in net profit, with operational cash flow leaping 139% to $310 million. The majority of growth stemmed from the US market and broadening enterprise adoption of its AIP (Artificial Intelligence Platform). The company raised its revenue guidance for full-year 2025 to $3.89–$3.90 billion—well above analyst consensus—bolstering its long-term investment narrative and reinforcing confidence for funds and direct investors in New Zealand seeking sustainable technology growth exposure.

Recent strategic partnerships reinforce Palantir's reputation and addressable market in AI and security. In the past week, Palantir announced or advanced several key projects, including an AI-powered fraud detection system for Fannie Mae, further defense system involvement under the US “Golden Dome” program, and an advanced manufacturing initiative with Divergent. These developments highlight the company’s growing penetration into defense, manufacturing, and financial services, all relevant sectors for New Zealand’s institutional portfolio managers tracking global innovation leaders, and signal potential indirect benefits for local technology ecosystems.

Technical indicators remain supportive as the stock maintains position above key support and trend lines. Technical readings show the RSI at 58.8 and MACD at 5.62, suggesting neutral to bullish momentum without signs of severe overbought conditions. The stock holds above its major moving averages and near critical support at USD 121.50, with resistance in the USD 125–128 range. This stability and strong relative performance are particularly relevant for active traders and market participants in New Zealand monitoring global liquidity and volatility signals when allocating capital across high-growth international equities.

Palantir's inclusion in global tech funds and sustained AI leadership offer NZ investors diversified exposure to frontier innovation. With a market capitalization nearing $300 billion and no reported dividend, Palantir is widely represented in global technology and AI-focused ETFs, many of which are available on New Zealand’s local exchanges or through leading KiwiSaver and investment platforms. The company’s leadership in big data, intelligence, and artificial intelligence, combined with high customer retention and a resilient contract base, makes it a constructive component of technology-oriented growth strategies for New Zealand institutional and retail investors seeking exposure to the ongoing global AI boom.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.