Palantir Technologies: Will a Stock Split Occur in 2025?

In early 2025, many companies experienced a severe drop in share prices, but Palantir Technologies (NASDAQ: PLTR) bucked this trend. The firm’s stock has surged nearly 30% this year, drawing positive attention from analysts regarding its outlook for 2025 and 2026.

Currently, Palantir’s stock price is hovering around the $100 mark for the second time in its history. This begs the question: could a stock split be in the company’s future this year?

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Assessing the Possibility of a Stock Split

Since its IPO in 2020, Palantir has not conducted a stock split. Over this period, its stock price has soared from fewer than $10 to approximately $100 today.

However, the price of a single share does not necessarily reflect a company’s future potential. Share splits can create a misleading perception of affordability. For instance, if Palantir were to undertake a 10-for-1 stock split tomorrow, the share price would decrease to around $10—similar to its trading price in 2020. Despite this apparent drop, the company’s market capitalization would remain unchanged, as the increased share count would offset the reduced price.

Moreover, while a stock split might make the shares seem more accessible to casual investors, examining companies like IBM and Snowflake reveals that such a move may be unnecessary. Both companies have higher share prices than Palantir despite having lower market capitalizations. In recent years, the trend has seen a considerable decline in stock splits across various sectors.

Given these factors, a stock split from Palantir in 2025 seems unlikely. It wouldn’t materially affect the company’s stock price compared to competitors, and many firms have opted against splits despite rising stock prices in this decade. Even if management chose to proceed with a stock split, its impact on Palantir’s long-term intrinsic value would be minimal.

Is Now the Time to Invest $1,000 in Palantir Technologies?

Before making a decision to invest in Palantir Technologies, consider the following:

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Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool owns shares in and recommends International Business Machines, Palantir Technologies, and Snowflake. Please refer to The Motley Fool’s disclosure policy for more information.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.