Palantir Technologies (PLTR +1.57%) is one of the most closely watched names in artificial intelligence (AI). The company started in 2003 with a focus on secure, government-grade data analytics, and today it's evolved into a major player in enterprise AI thanks to its Palantir Artificial Intelligence Platform (AIP). As demand for data-driven intelligence accelerates, interest in Palantir’s stock has grown.
If you're considering buying shares, or want to understand how Palantir makes money and where it's headed, here's a clear, step-by-step breakdown.
How to buy Palantir Technologies stock
Buying Palantir stock is simple once you have a brokerage account. Here’s how to get started:
- Open your brokerage app: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
- Fund your account: Transfer money so you’re ready to invest.
- Search for Palantir Technologies: Enter the ticker symbol "PLTR" into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: That's it! Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Should you invest in Palantir Technologies?
Palantir is a polarizing stock: fast-growing and ambitious, but also high-valuation and heavily tied to government spending. Here’s a breakdown:
Reasons to consider it
- ou believe Palantir’s stock could outperform the S&P 500 over the next three to five years, based on its long-term growth outlook and Palantir stock forecast.
- You're a buy-and-hold investor who plans to own Palantir shares for several years.
- You believe Palantir's AI platform will continue to be a huge growth driver.
- You think Palantir's profitability will continue improving.
- You believe Palantir can grow into its rather lofty valuation.
- You prefer to invest in cash-rich, debt-free companies generating growing free cash flow.
- Investing in Palantir would help diversify your portfolio.
- You like to invest in founder-led companies.
- You don't need dividend income from your investment.
NASDAQ: PLTR
Key Data Points
Reasons to be cautious
- You're not exactly sure what Palantir does.
- You're not convinced Palantir can deliver market-beating returns in the coming years.
- You think AI is a fad.
- You're a more value-focused investor and think Palantir trades at a very high valuation.
- You already own several technology stocks.
- Given the country's deficits and debt, you're concerned about Palantir's exposure to the U.S. government (more than 40% of its total revenue in the first quarter of 2025).
- You're in or nearing retirement and need income-generating investments.
Is Palantir Technologies profitable?
Palantir Technologies' earnings are growing rapidly. The company's generally accepted accounting principles (GAAP) net income was $214 million ($0.08 per share) in the first quarter of 2025, more than double the $105 million from a year earlier.
Palantir is also generating growing free cash flow. It produced $370 million of adjusted free cash flow during the first quarter of 2025 (a robust 42% margin). That grew its cash balance to more than $5.4 billion at the end of the third quarter (including cash, equivalents, and short-term U.S. Treasury securities). The balance allowed the company to start returning cash to investors via a $1 billion share repurchase program in mid-2023.
The company believes its revenue, earnings, and cash flow will continue growing, driven by robust demand for its AIP. That growing profitability could help drive its share price higher in the future.
Does Palantir Technologies pay a dividend?
Palantir Technologies had not yet started paying a dividend as of late-2025. While the data analytics company hadn't started making dividend payments, it had begun returning cash to shareholders.
Given that it has only recently started earning a profit and launched a share repurchase program, the company likely won't initiate a dividend anytime soon.
How to invest in Palantir Technologies through ETFs
If you want exposure to Palantir without buying individual shares, you can invest through an exchange-traded fund (ETF).
Exchange-Traded Fund (ETF)
The bottom line
Palantir Technologies co-founder and CEO Alex Karp is extremely optimistic about the future. In the company's first-quarter 2025 earnings release, he stated: "We are in the middle of a tectonic shift in the adoption of our software.” Karp also noted that: "We are delivering the operating system for the modern enterprise in the era of AI."
There's a lot of competition in the AI space. However, Palantir has positioned itself as an early winner. That makes it a potentially compelling investment opportunity for those seeking exposure to the AI megatrend.
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