Palantir (NASDAQ: PLTR) stock rose nearly 7% in Wednesday’s trading.
The artificial intelligence (AI) software leader’s share price was climbing following news that new 25% tariffs on automobiles imported from Mexico and Canada will be delayed a month. The tariffs could cause major pricing increases on vehicles in the U.S., and were viewed by some economists and industry experts as potentially having a destabilizing impact on the auto market.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
While the auto news doesn’t impact Palantir directly, it was having an impact on valuations across the broader market as investors are showing signs of relief that one of the most potentially impactful developments from new tariff policies is being pushed further out and may get resolved before going into effect.
In addition to developments on the tariff front, Palantir stock also seems to have gotten a lift from analyst coverage. William Blair published coverage on the company and upgraded its rating on the stock from underperform to market perform. The firm’s analysts said they still think Palantir’s heavily forward-looking valuation creates big downside risk, but they believe that shares are more reasonably valued on the heels of sell-offs that have taken place over the last month.
Is Palantir stock a buy right now?
Following an impressive rally last year, Palantir stock has been highly volatile in 2025. While the company’s share price is still up 18% across this year’s trading, it’s also down 28.5% from its high mark even after today’s gains.
In addition to macroeconomic and geopolitical volatility, Palantir stock has seen some downward pressures as investors struggle with how to value the business and assess its long-term opportunity. Despite some big sell-offs over the last month, Palantir is still valued at approximately 160 times this year’s expected earnings and 55 times expected sales.
Palantir has an extremely growth-dependent valuation — and one that sets the stage for significant downside risk if business performance comes in below expectations or macro conditions worsen significantly. On the other hand, the company has a clear leadership position in areas of the AI software market that are poised for massive long-term growth. For long-term investors, I think that taking a buy-and-hold approach to Palantir stock at today’s prices will be a winning move despite volatility.
Should you invest $1,000 in Palantir Technologies right now?
Before you buy stock in Palantir Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palantir Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $690,624!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of March 10, 2025
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
link