‘Don’t Chase It’: Top Investor Details the Risks With Palantir Stock

**Palantir Technologies (NASDAQ:PLTR) **continues on its downward journey, caught up in the web of the SaaS and AI-related selloff. The company’s share price has lost roughly a quarter of its value this year alone.

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That’s strange territory for the big data analytics company, which had been on a historic tear for well over a year. Palantir’s incredible spate of revenue growth has been powering the charge.

Indeed, the company’s successes have only been building, as evidenced by its most recent earnings report earlier this month. In Q4 2025, Palantir’s revenues jumped by 70% year-over-year to reach $1.407 billion, while its Total Contract Value grew by 138% year-over-year to hit $4.3 billion.

Could the recent losses make PLTR a more compelling investment? Top investor Geoffrey Seiler isn’t so sure, arguing that PLTR’s high valuation and concentration risk with the U.S. government make him uneasy.

For one thing, the 5-star investor points out that despite the recent pullback, PLTR’s forward price-to-earnings multiple of more than 100x remains quite elevated.

“Palantir’s stock is still not cheap,” states Seiler, who is among the top 3% of stock pros covered by TipRanks.

The investor is also concerned by PLTR’s reliance on the public sector, pointing out that over a third of its revenues come from the U.S. government. While the current administration’s military and intelligence modernization efforts are supporting Palantir’s revenues, it’s not a given that this trend would continue under future leadership.

“Being a government contractor can be a lumpy business,” he adds.

Of course, that doesn’t mean that the investor is blind to Palantir’s massive potential, and he even believes that the company could become one of the largest in the world.

Seiler just doesn’t think the path to getting there will be a smooth one, citing the fact that even industry-leading stalwarts such as Nvidia and Alphabet had “huge drawdowns” at one time or another.

“If I owned the stock, I’d continue to hold it for the long term, but given its valuation, I still wouldn’t chase it here,” concludes Seiler. (To watch Geoffrey Seiler’s track record, click here)

Wall Street, however, has come around on Palantir. With 12 Buys, 5 Holds, and 2 Sells, PLTR enjoys a Moderate Buy consensus rating. Its 12-month average price target of $191.25 points to gains approaching 50%. (See PLTR stock forecast)

Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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