Palantir (PLTR) stock closed about flat on Thursday after Lumen (LUMN) announced plans of deploying its “Foundry” and “Artificial Intelligence Platform.”
Tapping PLTR solutions will enable Lumen to make “our operations intelligent and efficient,” the company’s chief of technology, Dave Ward, said in a press release today.
Palantir shares have slipped rather significantly from its all-time high on August 12. At the time of writing, it’s down nearly 18% versus that record high.
The Lumen partnership aligns with PLTR’s broader strategy of expanding its commercial presence beyond government contracts.
It will be showcased at Palantir’s upcoming AIPCon 8 event, featuring presentations from over 70 U.S. commercial customers. This visibility could attract more enterprise clients to the data analytics firm, potentially strengthening its position in the commercial sector.
The successful implementation of this partnership could open doors for PLTR to secure additional contracts with other tech firms seeking digital transformation, driving further upside in Palantir shares.
Note that Palantir’s commercial revenue grew an exciting 93% year-over-year in its fiscal Q2.
While the Lumen deal represents another major catalyst in the company’s commercial growth story, investors should note that Palantir shares’ valuation remains significantly stretched.
The data analytics firm is currently trading at a forward price-earnings (P/E) ratio of over 360x, which makes it one of the most expensive S&P 500 Index ($SPX) stocks to own in the second half of 2025.
Palantir requires near flawless execution and exceptional revenue growth to justify its multiple.
This indicates even minor setbacks – be it in contract delivery, margin sustainability, or macro-driven demand shifts – could spark outsized downside risk in PLTR stock.
Valuation concerns are keeping Wall Street analysts from recommending buying PLTR shares at current levels.
According to Barchart, the consensus rating on Palantir stock currently sits at “Hold” only with the mean target of roughly $156 no longer indicating meaningful further upside from here.
