Should You Buy Palantir Stock Hand Over Fist After Its Sell-Off?

Charles Dickens opened his caller A Tale of Two Cities with a classical line, "It was the champion of times; it was the worst of times." Last week was downright Dickensian for Palantir Technologies (NASDAQ: PLTR).

The artificial quality (AI) bundle institution reported mind-boggling four-quarter results pursuing the marketplace adjacent connected Monday, Feb. 2, 2026. By the extremity of the week, though, Palantir's banal was down astir 8%. A whopping $28 cardinal successful marketplace headdress evaporated.

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Investors present person a cardinal question to answer: Should you bargain Palantir banal manus implicit fist aft its steep sell-off?

I deliberation the bull lawsuit for Palantir is obvious. The institution continues to occurrence connected each cylinders. Its Q4 update seemed to indisputably corroborate this premise.

Palantir reported full year-over-year gross maturation of 70% successful Q4. Revenue jumped 19% sequentially. While maturation was crossed the board, the U.S. commercialized conception stood out, with gross soaring 137% twelvemonth implicit year.

The institution closed 61 deals of astatine slightest $10 cardinal successful its caller quarter. It closed 180 deals of astatine slightest $1 million. Palantir's lawsuit number accrued 34% twelvemonth implicit year.

What astir the bottommost line? Palantir's net skyrocketed 7.7x twelvemonth implicit twelvemonth to $608.7 million. The AI bundle leader's Q4 adjusted net per stock (EPS) of $0.25 easy bushed the Wall Street statement EPS estimation of $0.23.

Palantir's aboriginal besides looks bright. The company's guidance for 2026 projects year-over-year gross maturation of 61%. Chief Revenue Officer Ryan Taylor said successful the Q4 net call, "We're entering 2026 with an highly beardown footing. Everything we've built implicit 2 decades is converging into this moment, and we're charging into the twelvemonth with unmatched condemnation arsenic the defining endeavor bundle institution of this generation."

On the different hand, I deliberation there's an evident carnivore lawsuit for Palantir arsenic well. Even aft the caller decline, the AI banal is inactive priced for perfection.

The company's shares commercialized astatine 125 times guardant earnings. Some mightiness reason that Palantir's tremendous maturation justifies this valuation. However, the stock's price-to-earnings-to-growth (PEG) ratio, which incorporates analysts' five-year net maturation projections, is simply a lofty 3.6.