Palantir Technologies (PLTR) is in a stratosphere all its own. The high-growth software company, long regarded as a cult favorite in tech investing circles, has seen its stock soar nearly 40% in just the past week. With shares hitting a record high of $115 following another impressive earnings report, its valuation has surged to $260 billion, leaving skeptics scrambling to make sense of the rally.
AI Frenzy and Musk Connection Fuel the Surge
CEO Alex Karp isn’t mincing words when it comes to Palantir’s place in the artificial intelligence boom. He insists the company is solidifying its role “at the center of the AI revolution,” and bullish investors are eating it up.
There’s also growing speculation that Palantir could benefit from Elon Musk’s Dogecoin (DOGE) initiatives, though concrete details remain scarce. The mere hint of a potential connection to Musk, however, has been enough to inject even more momentum into the stock’s upward trajectory.
One thing is clear: Palantir has become one of the biggest beneficiaries of Wall Street’s AI obsession.
The Valuation Is Hard to Ignore—Or Justify
Palantir now trades at 70 times its projected 2025 sales of $3.75 billion. When looking at estimated 2025 earnings of 55 cents per share, the multiple swells to an eye-popping 200 times. And if you factor in roughly $600 million in stock-based compensation, adjusted earnings could be closer to 30 cents a share, making the valuation look even steeper.
For comparison, here’s how Palantir stacks up against some of the biggest tech names:
| Company | 2025 Sales Multiple | 2025 Earnings Multiple |
|---|---|---|
| Palantir | 70x | 200x |
| Nvidia | 15x | N/A |
| Microsoft | 10x | N/A |
| Apple | 10x | N/A |
Despite these aggressive numbers, Palantir expects revenue to climb about 30% this year, thanks to its AI-powered software platform. Companies like Rio Tinto (RIO), a mining giant, have already seen tangible benefits from using its technology.
Wall Street Analysts Remain Skeptical
Even with its stock up fivefold over the past year, Palantir has yet to win over Wall Street analysts. According to Bloomberg, only five out of 24 analysts covering the stock rate it as a Buy. The rest remain cautious, citing valuation concerns.
Brent Thill, an analyst at Jefferies, isn’t convinced Palantir can maintain its blistering pace. He maintains an Underperform rating and a $60 price target, arguing that the company would need to grow revenue by 50% annually for four straight years just to justify its current valuation.
That’s a tall order.
MicroStrategy’s Risky Bitcoin Bet Looks Tempting
While Palantir dominates AI discussions, MicroStrategy (MSTR) is making waves of its own with a new Bitcoin-backed preferred stock offering. The deal is structured to give investors exposure to Bitcoin while providing a hefty 9.2% yield—far above the 6% seen in typical bank preferred shares and even higher than junk bonds yielding around 7.5%.
Here’s why investors are paying attention:
- The preferred stock (trading under STRK) is effectively secured by MicroStrategy’s massive Bitcoin holdings, currently valued at around $46 billion.
- MicroStrategy sold 7.3 million shares, raising $563 million in capital to continue expanding its Bitcoin hoard.
- Unlike traditional corporate bonds, this security offers a potential upside through a conversion feature that allows investors to swap shares for common stock in the future.
The risk? MicroStrategy has little conventional revenue outside its software business, meaning the stock’s performance hinges almost entirely on Bitcoin’s price.
Sports Teams Are Hot, But Public Plays Offer Better Value
Sports franchises are selling for record prices, and public markets may offer a cheaper way to invest. Two stocks stand out: Madison Square Garden Sports (MSGS) and Atlanta Braves Holdings (BATRA).
MSG Sports owns the New York Knicks and Rangers, two of the most valuable teams in pro sports. Yet its stock trades at just over $5 billion, while Forbes values the two teams at around $11 billion. The discrepancy is frustrating for investors, who argue that CEO James Dolan should cash in on rising sports team valuations by selling a stake or returning cash to shareholders.
Jon Boyar, president of Boyar Research, sees potential, saying, “It’s an unbelievably frustrating stock. There has been no payoff, but the teams are scarce assets, and their value has only gone up.”
Meanwhile, Atlanta Braves Holdings offers another intriguing play. Its shares value the franchise at $2.5 billion, while Forbes estimates its worth at closer to $3 billion. Add in the $500 million value of the real estate development around Truist Park, and the stock looks even more undervalued.
Ownership is key. Billionaire John Malone controls the Braves and has been simplifying his media empire through major deals. Investors are watching closely to see if the Braves could be next.
What’s Next for These Stocks?
For Palantir, the road ahead is clear: keep up the growth, or risk a major correction. While the company is a frontrunner in AI software, its valuation leaves zero room for error.
MicroStrategy’s Bitcoin bet remains risky, but with yields above 9%, investors looking for alternative exposure to crypto may find it appealing.
As for sports stocks, MSG Sports and Atlanta Braves Holdings offer unique opportunities for those willing to wait for a potential deal or restructuring. The Knicks, Rangers, and Braves are some of the most valuable teams in their respective leagues, and at current stock prices, investors may be getting a discount.
But in a market where AI, Bitcoin, and sports franchises are all commanding sky-high prices, the biggest question remains: how long can these valuations hold?
