Data and artificial intellect company Palatir ,Malevolent -0.34%, In 2024, it seemed to convince gravity. More than quadruple shares, a shocking 340%increased. With such an incredible increase, you will be forgiven to guess that the stock will cool down in 2025. But, so far, the opposite is true. Shares are growing by more than 105% years till date as this writing. It has given the benefit of about 800% since the beginning of 2024.

With the business of shares on record high. What should investors do? Does it make sense to buy more shares and hope that the pace continues? Or investors should take a more vigilant approach and hold stock or even sell?

Growing sales

One thing is really going for this, its top has increased. Tech company $ 884 million first-spectacle revenue, year-on-year up to 39%. Exposing the speed of the company, it was an acceleration from 36% year-to-year increase in the last quarter.

In the first quarter of fuel Palantir, US revenue increased by 55% year-on-year. Accounting for $ 628 million of total revenue of the quarter, is important for the American market Palantir. Supporting this market was 71% year-on-year increase in commercial revenue and 45% jump in government revenue.

Zoom for all the markets of the company, Palauntir said in its first quarter update that it shut down 139 deals of $ 1 million or more, 51 deals at least $ $ $ $ $ $ $ $ at $ $ $ at $ $ 5 million, and 31 deals 10 million or more.

With these strong results behind this, management believed to increase the revenue guidance of the whole year. The company said it now expects to be between $ 3.890 billion of 2025 and $ 3.902 billion. It compared revenue of about $ 2.9 billion in 2024. The middle point of the 2025 revenue guidance range of management, therefore, considers an increase of about 36%.

This impressive top-line growth is increasing profits. Palauntir’s first quarter net income was around $ 214 million, which was more than doubled in the quarter of about $ 106 million in the year ago.

Palantir’s co-founder and CEO Alexander Carp’s company’s first quarter’s comments show comments that they believe the company is still in its early innings.

“We are in the middle of a tectonic shift in adopting our software, especially in America ..” Carp said. “We are distributing operating systems for modern enterprises in the AI era.”

An assessment problem

While Palantir’s top-ride speed is certainly impressive, there is a major problem for investors: it seems that the market is already priced at a greater rapid growth for years to come.

Today, the market capitalization of Palaantir is around $ 365 billion-more than 93 times from the high end of the management guidance range for revenue of the year 2025. Palauntir’s current price-to-sell ratio is 123, using the company’s follower-12 months sales. This will be a higher figure, even value-to-Income Ratio.

And what is the value of Palantir-to-Kamai Ratio? This is 672. Yes, you heard this right.

It is safe to say that investors have already bid the stock up to the level that the most optimistic beliefs for this company are prices.

So, what should investors do? The decision is one individual – one that you have to make on your own. However, if I own the stock, I will sell. And for those who do not have their own shares, I save them like a plague at this price. Of course, I could be wrong. It is always possible that Palantir is my fastest more. Nevertheless, I believe that there are better places with low risk and excess of allocating their capital for investors.

Palantir is a great company. But expectations are very high. Investors will have to wait to see if they can buy shares at a better entry price.