Should You Buy Palantir Stock Ahead of Q2 Earnings on August 4?

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Ahead of its earnings, the AI-powered software company reached an all-time high price of $160.39 on July 25, reflecting widespread investor optimism as it headed into Q2 results. PLTR is up 106.5% year-to-date, significantly outpacing the broader S&P 500 Index ($SPX).This explosive rally has pushed Palantir’s 14-day Relative Strength Index (RSI) to 65.30, just below the 70 threshold that typically signals overbought conditions. While some investors might see this as a warning sign, the market seems undeterred. The momentum behind Palantir remains strong, with buyers continuing to push the stock higher even as valuation metrics soar to dizzying heights.Tesla Just Signed a Chip Supply Deal with Samsung. What Does That Mean for TSLA Stock?Here’s What Happened the Last Time Novo Nordisk Stock Was This OversoldDear Microsoft Stock Fans, Mark Your Calendars for Aug. 1Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now!www.barchart.comPalantir is currently trading at eye-popping valuation levels, with a forward earnings multiple of 433.88x and a price-sales ratio of 130.8x. These numbers are significantly higher than those of major tech giants, including Nvidia (NVDA). Such a rich premium indicates that the market isn’t just expecting strong results, it’s effectively pricing in continued acceleration in growth.However, any earnings miss or signs of a moderation in growth could challenge this narrative and trigger volatility.The options market is already reflecting some of this volatility. Traders are pricing in a potential move of about 10.48% in either direction following the earnings release. While that’s below Palantir’s average earnings move of 17.47% over the past four quarters, it still indicates potential for significant post-earnings volatility.www.barchart.comPalantir is heading into its second-quarter earnings with strong momentum. The company’s management has guided Q2 revenue between $934 million and $938 million, representing roughly 38% year-over-year growth at the midpoint. However, based on its recent performance trends and growing demand for its Artificial Intelligence Platform (AIP), there’s reason to believe Palantir might once again exceed its projections.Over the past year, Palantir has shown consistent acceleration in its revenue growth. In Q1 2024, year-over-year growth stood at 21%, but by Q1 2025, it had climbed to an impressive 39%. Much of this momentum is being driven by surging demand for its AI-powered solutions, particularly in the U.S. market.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,457.50 +61.25 (+0.96%)Dow Futures44,769.00 +136.00 (+0.30%)Nasdaq Futures23,804.25 +323.75 (+1.38%)Russell 2000 Futures2,235.30 -6.20 (-0.28%)VIX15.48 -0.50 (-3.13%)Gold3,347.90 -4.90 (-0.15%)PortfolioSign in to access your portfolioSign inTop gainersWING Wingstop Inc. 368.26 +77.96 (+26.86%)FTAI FTAI Aviation Ltd. 144.46 +30.32 (+26.56%)PIII P3 Health Partners Inc. 7.30 +1.50 (+25.86%)GNRC Generac Holdings Inc. 181.00 +29.68 (+19.61%)TER Teradyne, Inc. 107.65 +17.10 (+18.88%)Top losersNEGG Newegg Commerce, Inc. 44.97 -11.22 (-19.97%)CAR Avis Budget Group, Inc. 172.46 -31.42 (-15.41%)SLGN Silgan Holdings Inc. 47.30 -8.50 (-15.23%)CHKP Check Point Software Technologies Ltd. 186.67 -31.66 (-14.50%)ENTG Entegris, Inc. 79.34 -13.41 (-14.46%)Most activeSOFI SoFi Technologies, Inc. 21.87 -0.53 (-2.37%)NVDA NVIDIA Corporation 179.27 +3.76 (+2.14%)LCID Lucid Group, Inc. 2.5000 -0.0600 (-2.34%)TSLA Tesla, Inc. 319.04 -2.16 (-0.67%)F Ford Motor Company 10.87 -0.21 (-1.90%)Earnings eventsTrending tickersMSFT Microsoft Corporation 513.24 +0.67 (+0.13%)META Meta Platforms, Inc. 695.21 -4.79 (-0.68%)NVDA NVIDIA Corporation 179.27 +3.76 (+2.14%)AMZN Amazon.com, Inc. 230.19 -0.82 (-0.35%)HOOD Robinhood Markets, Inc. 106.10 +2.78 (+2.69%)Top economic events