Rumor has it that Palantir Technologies is poised for a stock split.
An analyst for RBC Capital Markets recently polled investors, who reportedly indicated a desire for the software company to make such a move.
“Retail investors are also largely focused on the potential for a stock split, and although this topic decreased quarter over quarter, it remains the most relevant topic,” analyst Rishi Jaluria stated, according to Investor’s Business Daily.
He continued: “With Palantir’s $6 billion cash balance, we think retail investors may be starting to become frustrated by the company’s lack of willingness to return capital to shareholders given no apparent interest in pursuing M&A opportunities.”
Splitting the stock would give current shareholders more shares, while allowing new investors in at a lower entry price.
While stock splits do not intrinsically change the company’s value, they sometimes generate excitement around a stock among investors who see the new price as being more accessible.
Last year saw stock splits from a number of high-profile companies, including Walmart, Chipotle, and Nvidia.
Is Palantir planning to split its stock?
Palantir has made no indication that it will pursue a stock split. If it did, the decision would be a first for the company, whose valuation and stock price have skyrocketed this year.
In 2025 alone, it’s grown over 150%, while the past 12 months have seen it rise more than 321%.
Fast Company has reached out to Palantir for comment and will update this post if we hear back.
Many people believe that Palantir’s stock is significantly overvalued. Investment firms and analysts have stated that, despite the company’s high earnings, it’s still inflated.
Take August’s second-quarter earnings report, which saw a 48% growth in revenue year-over-year to $1 billion. Immediately following it, Palantir’s stock was trading at 100 times its revenue, Morningstar reported at the time.
Palantir’s current price-to-earnings (P/E) ratio is around 630. By contrast, tech giants like Meta, Apple, and Amazon all have price-to-earnings ratios of under 40, according to Google Finance data.
Palantir will report its third-quarter earnings next Monday, November 3.
Disclosure: Joe Mansueto, Morningstar’s founder, owns Fast Company.