How To Trade Palantir Stock - A Full Trading Guide

Palantir Technologies Inc. (ticker: PLTR) has become one of the hottest names in the artificial‑intelligence boom. Once a secretive contractor for U.S. intelligence agencies, the company now sells its Gotham, Foundry, Apollo, and Artificial Intelligence Platform (AIP) software to corporations, hospitals, and governments worldwide. 

Palantir’s stock has exploded since its 2020 direct listing on the New York Stock Exchange (NYSE), delivering triple‑digit returns and turning early investors into multimillionaires. In 2025, the shares were trading around $179 apiece, giving the company a market value of over $426 billion.

This comprehensive guide explains how Palantir works as a business, what drives its stock price, how it has performed historically, and the main ways traders can gain exposure. If you’re planning to trade the stock at all, this is a guide you don’t want to miss. So, let’s get to it.

What is Palantir Technologies Inc. (PLTR)?

Palantir Technologies Inc. is an American public company that develops software platforms for integrating, managing, and analyzing large datasets. Headquartered in Denver, Colorado, it operates within the application software industry. 

Palantir’s mission is to build central operating systems for institutions, enabling organisations to harness data and solve complex problems.

Core Platforms

Palantir offers four primary software platforms that underpin its business and serve different types of clients across government, commercial, and non‑profit sectors. 

Gotham is an AI‑ready operating system originally built for U.S. intelligence and defence agencies. It helps analysts uncover patterns in massive data sets, supporting missions ranging from counter‑terrorism to disaster response.

Foundry focuses on data integration and analytics for commercial enterprises; companies such as Morgan Stanley, Merck, Airbus, and Fiat Chrysler use it to combine data, build models, and make informed decisions. 

Apollo is Palantir’s continuous‑delivery system that powers software deployments. It ensures updates can be delivered across multiple environments - cloud, on‑premises, or classified networks - without downtime. 

Finally, the Artificial Intelligence Platform (AIP) enables customers to build, deploy, and operate generative‑AI and large‑language‑model applications with stringent security controls.

These platforms create long‑term, sticky relationships with clients because they become the backbone of their data operations. Palantir’s software is highly configurable and often mission‑critical, supporting decisions in national security, manufacturing, healthcare, automotive, and financial services.

Brief History and Milestones

Palantir’s journey from secretive intelligence contractor to high‑profile AI darling is marked by pivotal milestones:

How Does Palantir Stock Work?

Palantir’s Class A common shares trade under the ticker PLTR on the New York Stock Exchange. Trading hours follow the NYSE schedule (9:30 AM – 4:00 PM Eastern Time), and pre‑market and after‑hours sessions are available via some brokers. PLTR is also included in major U.S. indices such as the S&P 500, S&P 100, and Nasdaq‑100, meaning it is held by countless index funds and ETFs.

International investors can access PLTR through broker platforms like Switch Markets that provide U.S. stock trading or via certain ETFs listed on European and Asian exchanges. Because the stock is denominated in U.S. dollars, foreign investors should consider currency fluctuations.

Ownership and Voting Rights

Palantir’s capital structure is complex. The publicly traded Class A shares carry one vote per share; Class B shares carry ten votes and are primarily held by founders and early investors; Class F shares grant a variable number of votes and allow Palantir’s top executives to retain control even if their economic stake declines. According to Fintel, institutional investors hold roughly 60% of Palantir’s shares. Major holders include Vanguard Group, BlackRock, and State Street.

While the public can buy Class A shares, voting power remains concentrated with insiders. As a result, management can pursue long‑term strategies without fear of hostile takeovers or activist campaigns. This alignment may benefit innovation but limits shareholder influence.

Business Model and Revenue Drivers

Palantir operates as a software‑as‑a‑service (SaaS) provider rather than a typical consulting firm. Customers subscribe to its platforms and often pay for professional services to tailor deployments. Revenue is highly recurring: more than 80% of sales come from multi‑year contracts.

The government segment remains Palantir’s largest, delivering US$1.90 billion in trailing‑12‑month revenue. Contracts range from military logistics and border protection to public‑health analytics. Because government agencies have long procurement cycles, revenue is relatively stable but subject to budget pressures and political risk.

The commercial segment is growing faster, generating US$1.54 billion in trailing‑12‑month revenue and expanding 35% year over year. Customers include global corporations in aviation, energy, automotive, pharmaceuticals, and finance. Palantir’s Foundry platform helps these clients integrate data silos, run predictive models, and improve operational efficiency. The emerging AIP offering could further accelerate growth by monetizing generative‑AI applications.

Because Palantir’s software becomes a core operating system, switching costs are high. However, selling large enterprise contracts is resource‑intensive: Palantir invests heavily in engineering and sales to customize solutions, which compresses margins. Its gross margin sits around 80%, but operating margins have historically been negative due to stock‑based compensation. This improved to a positive 16.53% operating margin in mid‑2025.

Dividend Policy and Earnings Reinvestment

Palantir has never paid a dividend. Investment research sites emphasise that PLTR is not for income‑focused investors because it does not pay dividends. Instead, management reinvests cash into research, product development, and strategic acquisitions. Its credit agreements also restrict the ability to pay dividends. Should Palantir generate sustained free cash flow, it may consider share repurchases, but a regular dividend is unlikely in the foreseeable future. If it does, however, Switch Markets' clients are entitled to receive dividends on CFD positions. 

Earnings Dates and Analyst Coverage

Palantir reports earnings four times a year, typically in early February, May, August, and November. Analysts follow the company closely because of its high growth and unique business model. The next scheduled earnings date (at the time of writing) is 3 November 2025. Traders should mark earnings announcements in their calendars as PLTR is prone to large price swings on results.

What Drives Palantir’s Share Value?

Understanding the factors that move PLTR’s share price can help traders anticipate volatility and evaluate trades.

Innovation and Product Expansion

Palantir’s value is closely tied to the adoption of its platforms. Key drivers include:

• New product launches: The introduction of AIP and the expansion of Apollo into continuous delivery for AI workloads open new markets. Successful launches that generate incremental revenue can trigger rallies, while delays or adoption setbacks may spark sell‑offs.
• Customer wins: High‑profile contracts – such as deals with the U.K.’s National Health Service or U.S. military branches – showcase Palantir’s capabilities and broaden its reach. Conversely, the loss of large contracts or negative publicity around deployments can hurt sentiment.
• Research and development: Palantir invests heavily in R&D. Analysts track pipeline announcements, such as new modules for supply‑chain optimization or anti‑fraud detection. Robust innovation supports long‑term growth and justifies premium valuations.

Earnings and Guidance

Quarterly results are the most concrete catalysts for PLTR. Traders watch revenue growth, operating margins, and cash flow. Recently, Palantir’s revenue rose 48% year over year to US$1.004 billion in the second quarter of 2025, while net income surged 143% to US$0.327 billion. Management’s guidance for future quarters – particularly regarding commercial bookings and profit margins – often drives post‑earnings volatility.

Gross margins around 80% indicate strong pricing power, but investors scrutinize operating margins and stock‑based compensation. Positive surprises (e.g., faster commercial growth or rising margins) can ignite rallies; disappointments (e.g., slowing government contract awards or higher expenses) can trigger sell‑offs.

Macroeconomic Factors and Valuation

Palantir trades at a lofty valuation. Even after its 2024–2025 rally, its market cap exceeds $420 billion. Valuation multiples such as price‑to‑sales and price‑to‑earnings are well above most software peers. This leaves PLTR sensitive to macro‑economic factors:

• Interest rates: Rising rates can compress valuations for growth stocks by increasing the discount rate applied to future earnings. A rapid jump in yields could pressure PLTR’s price.
• Market sentiment toward AI: In 2023–2025, enthusiasm for generative‑AI companies propelled high‑growth software stocks. Should sentiment turn – due to regulatory crackdowns, slower adoption, or competition – PLTR could experience sharp corrections.
• Economic cycles: Government spending on defence and intelligence can fluctuate with fiscal priorities, while corporate budgets shrink during recessions. A broad economic slowdown could dampen revenue growth.

Competition and Risk Factors

Palantir operates in a crowded field of data analytics providers. Competitors include Snowflake, Databricks, IBM, Microsoft Azure, Amazon Web Services, and numerous start‑ups. These rivals offer cloud data warehouses, machine‑learning platforms, and AI services that overlap with Palantir’s capabilities. Intense competition may lead to pricing pressure, talent poaching, and slower customer growth.

The company also faces regulatory and ethical risks. Palantir has been criticised for its role in government surveillance and predictive policing. Critics argue that its contracts under the U.S. government enable aggregation of sensitive data across administrative agencies. While Palantir maintains that clients retain data ownership and use its software responsibly, abuses by governments or data‑management failures could lead to reputational damage, lawsuits, or tighter regulations. 

Finally, Palantir’s dual‑class share structure concentrates control among founders and executives. This governance model allows management to pursue long‑term goals but limits shareholder influence. Changes in leadership, unexpected insider selling, or governance disputes could impact the stock.

Palantir Stock Price Performance

Since its September 2020 direct listing on the NYSE, Palantir (PLTR) has been one of the most volatile large‑cap stocks. Initially, shares debuted at around $10, reflecting a limited public trading history. A few months later, during the retail “meme‑stock” rally of January 2021, retail enthusiasm and speculative trading pushed PLTR above $39, though the surge proved temporary and the stock quickly retreated. By 2022, rising interest rates and a broader tech sell‑off sent the stock below $7.

In 2023 and 2024, excitement about generative AI applications helped PLTR recover into the $25–$80 range, surpassing previous highs. Momentum accelerated in 2025: between October 2024 and October 2025, Palantir’s share price climbed from roughly $42 to an all‑time high of about $187.05, a jump of more than 324%. After peaking in early October 2025, the stock cooled modestly but still closed at $178.12 on 16 October 2025.

Over five years, PLTR delivered a cumulative return of above 1,734%. However, investors have also endured multiple drawdowns exceeding 50 %, underscoring the stock’s pronounced volatility.

The rise in share price has driven the market cap from $13.35 billion in 2022 to $422.56 billion in 2025. Palantir is now one of the world’s most valuable software companies, sitting in the same league as established giants despite generating only a fraction of their revenue. This lofty valuation assumes many years of rapid growth, leaving little room for disappointment.

How to Trade Palantir Stock

There are several ways to gain exposure to Palantir’s share price. Your choice depends on your goals, time horizon, and risk tolerance.

1. Spot Trading (Buy and Hold)

Spot trading simply means purchasing Palantir’s Class A shares on the New York Stock Exchange and holding them in your brokerage account. When you buy PLTR outright, you become a shareholder, gaining a stake in the company’s fortunes and voting rights tied to your shares. 

This approach is straightforward. You open a trading account that offers access to U.S. equities, fund it with the amount you’re comfortable investing, and place either a market order at the prevailing price or a limit order at a price you’re willing to pay. 

Once the shares are in your account, your returns come from any increase in the share price over time. Because Palantir does not pay dividends, the appeal of a buy‑and‑hold strategy rests on your conviction that the company’s revenue and earnings will continue to grow, boosting the stock. However, it must be noted that trading Palantir stocks through the exchange does not allow you to get leverage, and the trading fees are fairly high compared to other methods. 

Holding PLTR through market cycles can be rewarding but requires patience and a tolerance for volatility since the stock has a history of large swings on earnings announcements or broader market news. International investors should also consider currency risk because the shares are denominated in U.S. dollars.

2. CFD Trading

For traders who prefer shorter‑term opportunities, CFDs offer a way to speculate on Palantir’s price movements without owning the shares. A CFD is an agreement with a broker to exchange the difference between the opening and closing price of PLTR; if the price moves in your favour, you profit, and if it moves against you, you take a loss. They also allow you to go long if you expect the stock to rise, or short if you think it will fall. Best of all, CFDs enable you to trade with leverage, which means you only need a portion of the position size in order to trade the stock. For instance, Switch Markets clients get the ability to trade shares with a leverage ratio of 1:10. 

To trade Palantir CFDs, you’ll need to open an account with a provider that offers CFD instruments on U.S. stocks like Switch Markets. Once approved, you can search for “PLTR” in the platform, choose the size of your position, and select the level of leverage offered. 

Because of the high risk associated with margin trading, it’s essential to use risk‑management tools and techniques such as stop‑loss and take‑profit orders. If you are an active trader who can closely monitor markets and is comfortable with rapid price moves, CFD trading is the way to go.

3. Options 

More experienced traders sometimes use options or futures to trade Palantir. A call option allows you to benefit from an expected rise in the stock at a fraction of the cost of buying shares outright, while a put option lets you profit from a decline or hedge an existing position. While options are considered to be an excellent way to get a high return, they're extremely risky and require a large amount of capital and knowledge to get started. 

With Switch Markets, traders can trade Palantir shares with a leverage ratio of 1:10, including dynamic leverage, the ability to easily short-sell the stock, and a variety of trading platforms and tools. 

Wrapping Up

Palantir’s evolution from a low‑profile intelligence contractor to a headline‑grabbing AI company has been remarkable. Its suite of platforms now underpins data‑driven decision making across governments and some of the world’s largest enterprises, and its revenue and margins continue to expand at a rapid pace. 

Investors who bought PLTR shares a year ago have seen extraordinary gains as the share price rose from around $42 in October 2024 to $178.12 by mid‑October 2025 and even touched an all‑time high of $187.05.

If you’re intrigued by the opportunities but wary of committing large capital to a single stock, trading Palantir through contracts for difference could offer a flexible alternative. Switch Markets provides access to PLTR CFDs with competitive spreads, the ability to go long or short, and built‑in risk‑management tools to help you set stop‑loss and take‑profit levels.

Palantir’s story is still being written, and its role in shaping the future of data and AI makes it a compelling candidate for traders who are prepared to navigate its ups and downs. If you’re ready to explore CFD trading on PLTR, Switch Markets offers a user‑friendly platform and support to help you get started.

Trade Palantir Stock Now

FAQs

Here are answers to some of the most common questions traders and investors have about Palantir and its stock.

Does Palantir stock pay dividends?

No. Palantir has never paid a dividend, and management does not expect to pay dividends in the foreseeable future. Earnings are reinvested to fuel growth, and the company’s credit agreements limit dividend payments.

Is Palantir a good stock to buy or trade?

PLTR can offer significant upside thanks to rapid revenue growth, high margins, and the rising adoption of AI. However, it is also volatile, richly valued, and exposed to regulatory and competitive risks. Whether it suits your portfolio depends on your risk tolerance and investment horizon. Never invest money you cannot afford to lose.

What are Palantir’s main revenue segments?

Palantir operates two segments: Government and Commercial. Government clients (military, intelligence, and civil agencies) generated US$1.90 billion in revenue in the twelve months ending 30 June 2025, while commercial customers contributed US$1.54 billion.