Home / Business and Economy / Palantir Rallies Amid Market Surge, but Analysts Warn of Overvaluation
Palantir Rallies Amid Market Surge, but Analysts Warn of Overvaluation
24 Aug
Summary
- Palantir stock up nearly 2.3% despite recent losing streak
- Broader market rally driven by Fed's potential rate cut
- Analysts believe Palantir is overvalued, with stock trading at 245 times forward earnings
On August 24, 2025, shares of the artificial intelligence decision-making company Palantir (NASDAQ: PLTR) traded nearly 2.3% higher, after being up as much as 4.5% earlier in the day. This rally comes after a recent losing streak for the stock, which had been on a six-day decline until yesterday.
The surge in Palantir's stock price appears to be driven by the broader market rally, which was ignited by Federal Reserve Chair Jerome Powell's hint at the possibility of the Fed lowering interest rates at its upcoming September meeting. As of the time of writing, the Dow Jones Industrial Average had rocketed 850 points higher, while the S&P 500 was up over 1.5%.
While Palantir's artificial intelligence data capabilities have gained traction among many government departments and commercial businesses, some analysts believe the stock has become overvalued. Citron Research's Andrew Left, a famous short-seller, recently stated that even if Palantir is the "greatest company that was ever created," the stock could still be cut by two-thirds, as it is currently trading at 245 times forward earnings.
Despite Palantir's impressive growth, investors may want to wait for better entry points before investing in the company, as the stock's valuation appears to have outpaced its fundamentals.
