Do you think now is a good time to buy PLTR?

Long-term outlook

The extent to which Palantir's stock price will rise in the coming years will be greatly influenced by whether the company can accelerate revenue growth, rather than whether it will be included in the S&P 500 index. The main reason is the valuation, as the stock is trading at a forward price-to-earnings ratio that exceeds 23 times the analysts' estimates for 2025, which is incredibly high for a company that grew revenue by 27% in the second quarter.

Therefore, what is crucial for Palantir is to continue accelerating revenue growth from this point onwards. The company, driven by artificial intelligence (AI) solutions, has been steadily increasing commercial revenue in the USA. While revenue from the US government is also improving, faster growth is necessary to justify the company's current valuation. To aid in this, the company has partnered with Microsoft to leverage Microsoft's various government cloud services to offer its solutions.

However, while Palantir is a great company, the current stock price valuation may be a bit too frothy as a buying opportunity. Therefore, it would be advisable to consider purchasing after the exaggerated publicity of being included in the S&P has settled.