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Palantir Stock: Political Debate Fuels Market Surge

Felix Baarz by Felix Baarz
August 4, 2025
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Palantir’s stock is climbing amid a heated political debate in Germany over the use of its controversial analytics software. A senior digital minister endorsed the technology for national security agencies, arguing it would help counter foreign threats. Several German states already deploy the software, with others considering adoption, and a nationwide rollout is under evaluation. However, the justice minister urged caution, emphasizing compliance with legal standards. This controversy has kept Palantir in the spotlight, reinforcing investor interest. The stock rebounded premarket after a slight dip, nearing its record high of over $160, with a market cap exceeding $364 billion.

Valuation Concerns Persist Despite AI Hype

Analysts remain skeptical, with the average price target ($111.14) suggesting a 28% downside. Only 4 of 17 analysts recommend buying, citing stretched valuations despite Palantir’s AI-driven growth. Its AIP platform, popular in defense contracts, is expected to deliver Q2 revenues of $934–938 million. Yet, questions linger about sustainability and margin performance. The stock’s 104% year-to-date surge hinges on upcoming earnings, which must justify its premium. While political tensions may drive demand, the current valuation leaves little room for error.

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Felix Baarz

Felix Baarz

My name is Felix Baarz, and I look back on over fifteen years of experience as a business journalist. I have always been fascinated by the mechanisms and dynamics of global financial markets as well as the complex economic and political interconnections that shape our world. With this passion, I have made a name for myself as an expert on international financial markets and dedicate myself with great commitment to making even the most complex topics understandable and accessible to my readers. My roots lie in Cologne, where I was born and raised. Early on, my curiosity about economic topics and international developments sparked my interest in journalism. After completing my studies, I began my career as a business editor at a respected German trade publication. Here I laid the foundation for my professional career, but my curiosity soon drew me out into the wider world. A turning point in my life was moving to New York, where I lived for six years and gained insight into leading media houses. In this vibrant metropolis, I was able to report firsthand from the heart of the global financial world. From daily developments on Wall Street to major economic policy decisions that make waves worldwide, I had the opportunity to write about central topics that move people and markets alike. This time shaped my perspective and sharpened my view of global interconnections.

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