Why Palantir Stock Soared 4.7% Today

By Johnny Rice – Dec 18, 2025 at 7:14PM ESTKey PointsNovember's inflation reading came in well below expectations, boosting hopes for another Federal Reserve rate cut.The data may be skewed, however, given the difficulty in collecting data during the recent government shutdown.The stock's valuation remains extraordinarily stretched, even as the company continues to grow rapidly.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: PLTRPalantir TechnologiesMarket Cap$423BToday's Changeangle-down(4.74%) $8.40Current Price$185.69Price as of December 18, 2025 at 4:00 PM ETPalantir bounced back Thursday on inflation news.Shares of Palantir Technologies (PLTR +4.74%) rose on Thursday, finishing the day up 4.7%. The jump came as the S&P 500 and the Nasdaq Composite finished up 0.7% and 1.3%, respectively. The artificial intelligence (AI) company's stock recovered most of Wednesday's decline after a softer-than-expected inflation report raised market hopes of more rate cutting by the Federal Reserve. ExpandNASDAQ: PLTRPalantir TechnologiesToday's Change(4.74%) $8.40Current Price$185.69Key Data PointsMarket Cap$423BDay's Range$181.51 - $187.3352wk Range$63.40 - $207.52Volume40MAvg Vol51MGross Margin80.81% Cooling inflation lifts Palantir and other growth stocks The Bureau of Labor Statistics (BLS) released its November report showing annual inflation now clocking in at 2.7%, well below the expected 3.1%. The news boosted stocks across the market, but had a particularly significant impact on more speculative stocks, like Palantir's, as it increases the likelihood that the Federal Reserve will cut rates at its next meeting. Lower rates tend to lead to investors taking on more risk. The stock may soon give back what it gained today; later in the day, several high-quality news outlets like the Wall Street Journal began covering the irregularities in the latest report stemming from the recent government shutdown. Many economists believe that inflation is higher than what the report states. Image source: Getty Images. Palantir's valuation remains a serious concern And investing in Palantir is a risk. While its business has been highly successful so far, and is continuing to grow rapidly. The fact is that Palantir's stock is wildly expensive. The company's price-to-earnings ratio (P/E) currently sits above 400. Its price-to-sales ratio (P/S) is over 115. These are astronomical.Advertisement I do not believe Palantir can justify its valuation, even with continued success.Read NextDec 18, 2025 •By Rick OrfordIs It Too Late to Buy Palantir After Its 2025 Run?Dec 18, 2025 •By David Jagielski, CPAThese 3 Stocks Have Been the Nasdaq-100's Top Performers of 2025.

Are They Still Good Buys for 2026?Dec 18, 2025 •By Keithen DruryIs Palantir the Next Tesla?Dec 17, 2025 •By Keith NoonanShould You Buy Palantir Before a Potential Stock Split?Dec 17, 2025 •By Lawrence Nga2025 Was a Defining Year for Palantir. Here Are 3 Takeaways Investors Must Know Before Entering 2026.Dec 17, 2025 •By John Ballard1 Reason I'm Never Selling Palantir StockAbout the AuthorJohnny Rice is a contributing writer for The Motley Fool covering tech stocks. He previously contributed to various financial publications.TMFJohnnyRiceStocks MentionedPalantir TechnologiesNASDAQ: PLTR$185.69 (+0.05%) $+8.40*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.Advertisement