Investors are eyeing a stock split for Palantir amid its lofty valuation, said a Wall Street analyst in a third-quarter earnings preview. Palantir stock has gained about 163% in 2025 and hit a record high on Wednesday.
Speculation is building around a potential stock split for Palantir Technologies.
Analysts at RBC Capital Markets have surveyed investors, discovering a significant interest in such a move by the software company.
Rishi Jaluria, an analyst with RBC Capital, noted, as reported by Investor’s Business Daily, "Retail investors are particularly keen on the prospect of a stock split. Although this interest has waned slightly compared to previous quarters, it remains a significant point of discussion."
He further remarked, "Given Palantir's substantial $6 billion cash reserve, retail investors might be growing impatient with the company's reluctance to return capital to shareholders, especially with no clear interest in mergers or acquisitions."
A stock split would provide current shareholders with additional shares and offer a lower entry price for new investors.
While stock splits do not inherently alter a company’s value, they can generate positive sentiment among investors who perceive the adjusted price as more accessible.
Last year, companies like Walmart, Chipotle, and Nvidia executed stock splits, adding to the trend.
Is Palantir Planning a Stock Split?
The Denver-based Palantir has not hinted at pursuing a stock split. If it were to happen, it would mark a first for the company, whose valuation and stock price have seen significant gains this year.
Throughout 2025, Palantir's value has surged over 150%, and over the past year, it's increased by more than 321%.
There is a prevailing sentiment that Palantir’s stock might be considerably overvalued. Analysts and investment firms argue that despite its high earnings, the stock remains inflated.
In August, Palantir reported a 48% revenue increase year-over-year for its second quarter, reaching $1 billion. After this announcement, Morningstar noted that the stock was trading at 100 times its revenue.
Palantir currently holds a price-to-earnings (P/E) ratio around 630, while major tech companies like Meta, Apple, and Amazon exhibit P/E ratios below 40, based on data from Google Finance.
Palantir is set to announce its third-quarter earnings next Monday, November 3.
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