Should You Buy Palantir Stock Before August 3? | PLTR Stock Analysis

Parkev provides an analysis of Palantir Technologies (PLTR) leading up to its August 3rd earnings report, suggesting that the current stock price of $134 represents a buying opportunity. Parkev highlights that the business is fundamentally stronger than it was two years ago, citing a recent revenue growth acceleration to 85% and an upward revision of full-year revenue guidance to 71%. Parkev is particularly impressed by the US commercial segment, which saw 133% year-over-year growth, indicating that the company is successfully proving its value to enterprise customers through its forward-deployed engineers.

From a financial perspective, Parkev notes that Palantir maintains a pristine balance sheet with $8 billion in cash and zero debt. While the company is not yet allowed to buy back stock due to its status as a government contractor, Parkev suggests that management should seek profitable uses for this capital, such as strategic acquisitions or customer incentives. Parkev also addresses the competitive threat of proprietary AI, arguing that Palantir offers concrete, ready-to-use solutions that differentiate it from the experimental research and development phases many other companies are currently stuck in.

Regarding valuation and strategy, Parkev calculates an intrinsic value of $152 using a discounted cash flow model, which is higher than the market price of $134. Parkev also points out that the forward price-to-earnings ratio of 64 is at the lower end of its historical range since 2024. For investors looking to enter or expand a position, Parkev suggests a split-entry strategy: buying half of the intended allocation before the earnings announcement and the remaining half afterward to mitigate potential volatility from the release.