Palantir Technologies Stock Testing Price Floor – Buy Now?
Palantir Technologies (PLTR) stock should be on your watchlist. Here is why – it is currently trading in the support zone ($159.10 – $175.84), levels from which it has bounced meaningfully before. In the last 10 years, Palantir Technologies stock received buying interest at this level 3 times and subsequently went on to generate 18.4% in average peak returns.
| Peak Return | Days to Peak Return | |
|---|---|---|
| 8/5/2025 | 7.9% | 7 |
| 9/9/2025 | 27.6% | 55 |
| 11/24/2025 | 19.7% | 30 |
Yet, a support zone alone isn’t enough; rebounds are more likely when fundamentals, sentiment, and market conditions line up. How does that look for PLTR?
PLTR: Rebound likely on strong AI adoption, growth.
Palantir’s Q3 2025 results showed 63% revenue growth, 121% U.S. commercial expansion, and a 114% Rule of 40 score. This operational strength, fueled by robust AI platform adoption and major government/commercial contract wins (e.g., HD Hyundai, UK defense), positions PLTR favorably within the expanding AI/data market. While its P/E ratio remains high, recent market-driven price weakness places it near analyst average targets of $184-$193, suggesting a technical bounce is plausible from current levels. Upcoming Q4 earnings are a near-term catalyst.
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How Do PLTR Financials Look Right Now?
- Revenue Growth: 47.2% LTM and 29.3% last 3-year average.
- Cash Generation: Nearly 46.0% free cash flow margin and 21.8% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in the last 3 years for PLTR was 16.1%.
- Valuation: PLTR stock trades at a PE multiple of 363.4
| PLTR | S&P Median | |
|---|---|---|
| Sector | Information Technology | – |
| Industry | Application Software | – |
| PE Ratio | 363.4 | 24.5 |
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| LTM* Revenue Growth | 47.2% | 6.4% |
| 3Y Average Annual Revenue Growth | 29.3% | 5.6% |
| Min Annual Revenue Growth Last 3Y | 16.1% | 0.2% |
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| LTM* Operating Margin | 21.8% | 18.8% |
| 3Y Average Operating Margin | 12.4% | 18.4% |
| LTM* Free Cash Flow Margin | 46.0% | 13.5% |
*LTM: Last Twelve Months | For more details on PLTR fundamentals, read Buy or Sell PLTR Stock.
And What If The Support Breaks?
Palantir shows it’s not immune to big hits. The Covid dip cost it about 22.5% from peak to bottom, which is noticeable but not extreme. The inflation shock was a different story, with a steep 85% drop. Even with solid tech appeal and growth potential, PLTR can suffer major drawdowns when markets turn volatile. It’s a reminder that good fundamentals don’t always shield a stock during deep selloffs.
But the risk is not limited to major market crashes. Stocks fall even when markets are in good shape – think events like earnings, business updates, outlook changes. Read PLTR Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
Still not sure about PLTR stock? Consider the portfolio approach.
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