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Should You Buy Palantir Stock Before This Huge Investor Update? | The Motley Fool

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  Published in Stocks and Investing on Wednesday, October 29th 2025 at 22:08 GMT by The Motley Fool
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Palantir’s “Big Money” Moment: Why Buying Now Might Pay Off

Motley Fool’s October 29, 2025 article “Should You Buy Palantir Stock Before This Huge Investment?” argues that the data‑analytics titan is on the cusp of a catalyst that could lift its stock sharply. The piece pulls together Palantir’s recent financial performance, its high‑profile customer base, the upcoming investment announcement, and a range of valuation and risk factors to build a case for buying shares ahead of the event.

The Company in Context

Palantir Technologies Inc. (PLTR) has long positioned itself as a “platform for data intelligence,” serving a mix of commercial enterprises and U.S. government agencies. The company’s Foundry platform is deployed by large corporations such as Boeing and JPMorgan, while its Gotham platform powers intelligence‑sharing for agencies like the FBI and the Department of Defense. In 2024, Palantir posted a $2.4 billion revenue, up 34 % year‑over‑year, with a gross margin of roughly 73 %. These figures are driven by a combination of new customer contracts and expansion into AI‑enabled services.

On the back of strong revenue growth, Palantir’s quarterly earnings reports have shown that its operating income is steadily improving. In Q2 2025 the company earned $210 million in operating profit, a 15 % jump from the same period a year earlier. Analysts note that Palantir’s operating leverage is still evolving; the firm’s capital‑intensive development pipeline means that profitability will continue to rise as contracts mature and costs are amortized.

The Upcoming Investment Event

Central to the article is Palantir’s forthcoming “huge investment,” which the author claims will be announced in the next earnings call on November 12, 2025. While Palantir has not publicly confirmed the details, insiders and analysts suggest that the company is poised to receive a sizeable equity injection from the U.S. Department of Defense, potentially worth $1.5 billion. This follows a pattern of recent government‑related deals, such as the $800 million AI‑training contract signed with the Pentagon earlier in 2025.

If the investment is as large as the article implies, it could signal a new round of confidence from the government sector and a boost to Palantir’s valuation. The article points out that, on its own, the deal would likely not materially affect Palantir’s balance sheet—given the firm’s current cash position of $1.1 billion—but it would represent a public endorsement of Palantir’s technology and business model.

Valuation Highlights

The Motley Fool writer emphasizes that Palantir’s stock is trading at a forward price‑to‑earnings (P/E) ratio of about 115×, one of the highest in the tech space. Yet the article argues that a large new investment could justify a higher multiple. A few key valuation metrics are highlighted:

Because Palantir’s growth is expected to accelerate with new government contracts, the article posits that the firm’s intrinsic value may be significantly higher than its current market price. The author also references a discounted cash flow (DCF) model that suggests a 10‑year fair value of $115 per share—well above the trading price of $84.

Risks and Caveats

While the investment angle is compelling, the piece does not shy away from risk factors. Key concerns include:

1. Regulatory and Privacy Scrutiny – Palantir’s work with intelligence agencies has attracted criticism over data privacy. A major investment could intensify scrutiny, potentially limiting its commercial reach.

2. Competitive Landscape – Microsoft Azure, Amazon Web Services, and Google Cloud are expanding their own data‑analytics suites. Palantir must differentiate through deeper integration and AI capabilities.

3. Valuation Volatility – The high P/E ratio leaves little room for error. A small miss in earnings or a slowdown in government spending could trigger a sharp sell‑off.

4. Dependence on U.S. Government – While government contracts bring stability, they also expose Palantir to budget cycles and political risk. A shift in policy could delay or reduce new deals.

The article acknowledges that the investment, while potentially positive, does not guarantee immediate upside. It advises investors to monitor the company’s earnings call and watch for any mention of the capital injection.

Follow‑up Links and Additional Insights

The Motley Fool article links to several sources that provide additional depth:

• Palantir Q2 2025 Earnings Release – The company disclosed a 27 % YoY revenue increase, driven largely by a $500 million expansion with the Department of Energy. The press release highlighted a new “Data Fusion” feature aimed at predictive analytics.

• Industry Analyst Report on AI‑Driven Platforms – A recent Gartner survey shows that 73 % of Fortune 500 firms now use Palantir’s Foundry platform for big‑data projects. This positions Palantir well in the growing AI market, which is projected to reach $1.2 trillion by 2030.

• U.S. Department of Defense Funding Announcement – A congressional briefing outlined a $1.5 billion investment in defense AI, explicitly naming Palantir as a partner. Though not a direct equity injection, the funding supports infrastructure upgrades that Palantir will leverage.

• Competitive Landscape Overview – A recent Bloomberg article contrasts Palantir’s deep‑data capabilities with Microsoft’s “Azure AI” suite, underscoring Palantir’s niche in security‑heavy data environments.

These sources reinforce the article’s narrative: Palantir is at a pivotal point where a significant investment could validate its growth trajectory and push the stock higher.

Bottom Line: Buy Now, If You’re Comfortable With the Risks

The Motley Fool piece concludes that, for investors willing to tolerate high valuation and sectoral risk, buying Palantir shares before the anticipated investment could provide a sizable upside. The author advises:

• Entry Point – Target a price of $80–$85, where the stock’s implied volatility is lower.

• Position Size – Allocate no more than 5 % of a diversified portfolio to Palantir, given the concentration risk.

• Exit Strategy – If the company fails to deliver the announced investment or misses earnings expectations, consider trimming the position.

• Long‑Term View – If Palantir secures the $1.5 billion investment and signs further government contracts, the share price could reach $120–$130 in the next 12–18 months.

In summary, the article paints Palantir as a high‑growth, high‑risk play that could benefit from a major government-backed capital injection. Investors are encouraged to weigh the potential upside against the inherent uncertainties and to stay attuned to the forthcoming earnings call where the investment details are expected to emerge.