Palantir Technologies (NASDAQ: PLTR) experienced a significant surge of 340% in its stock price last year and rose by over 80% in the first half of this year. With this rapid growth, discussions have emerged about the possibility of a stock split, similar to those recently executed by Nvidia and Broadcom.
While Palantir has not previously enacted a stock split, its current stock price is approximately $140. Although a split could technically reduce the price per share, it would not change the company’s valuation metrics. The company has seen an uptick in commercial customers from 14 to hundreds due to its AI-driven software platform, which has spurred considerable demand.
Despite its impressive growth, experts indicate that Palantir’s valuation, currently trading at 235 times forward earnings estimates, remains a concern. Therefore, it may not be positioned for a stock split in the immediate future.
