Palantir's AI opportunity could be enormous. But existing shareholders must decide whether the potential rewards still justify the risks.
Palantir's AI opportunity could be enormous.
But existing shareholders must decide whether the potential rewards still justify the risks.
For Palantir Technologies (PLTR +4.55%) shareholders, the hardest part of investing may not be buying the stock. It may be deciding when to sell.
After a tremendous run, Palantir is trading near its all-time high. Investors who bought early may be sitting on substantial gains, while newer shareholders may wonder whether the best returns are already behind them.
My view: Don't sell Palantir simply because its stock has soared. But don't hold it blindly, either. Existing shareholders should reassess three things: the company's growth prospects, the return its current valuation can deliver, and the amount of their portfolio tied up in the stock.
A great business can remain a great investment for years. But the price you pay, or continue holding at, still matters.
Palantir's business gives shareholders a reason to stay
Palantir's recent results show why investors are optimistic. In the second quarter of 2026, revenue jumped 93% year over year to $1.94 billion. U.S. commercial revenue surged 149% to $764 million, while U.S. government revenue grew 90% to $809 million. Adjusted operating margin reached 62%, and management raised its full-year revenue growth guidance to 82%.
These aren't just impressive growth rates; they instead suggest Palantir is turning demand for artificial intelligence (AI) into substantial revenue while maintaining strong profitability. But strong operating performance doesn't guarantee strong stock returns, which brings us to the more difficult question.
PLTR Palantir Technologies
Averytin News Financial update.