Trump’s Palantir Stock Moves Spark Ethics Questions as Blowout Growth Meets Daunting Valuation

President Trump acquired up to $630K in Palantir shares before touting PLTR on Truth Social. Despite 85% revenue growth, the stock fell on valuation concerns.

Freshly published ethics filings from the US Office of Government Ethics reveal that President Donald Trump bought Palantir Technologies shares in the first quarter of 2026 — before he publicly touted the stock on his Truth Social platform. The disclosures show Trump acquired Palantir equity worth up to $630,000 during the period, with at least seven separate purchases in March alone. Earlier, in February, he had sold Palantir holdings valued at as much as $5 million, followed by additional disposals over roughly two weeks.

Trump’s April social media post — “Palantir Technologies (PLTR) has proven to have great war fighting capabilities and equipment. Just ask our enemies!!!” — was the first instance of a sitting US president explicitly recommending a single stock by name and ticker, according to financial media reports. The endorsement came on a day when Palantir shares had already tumbled around 16% intraday, partly driven by bearish remarks from noted short-seller Michael Burry. The stock reversed course after the post appeared. A spokesperson for the Trump Organization said the holdings are “managed exclusively through fully discretionary accounts run by third-party institutions with sole decision-making authority.”

The political intrigue surrounds a company that continues to deliver extraordinary operational momentum. Palantir reported first-quarter 2026 revenue of $1.63 billion, an 85% surge year-over-year. Its US commercial business accelerated even faster, jumping 133%. The remaining deal value — a key metric for future revenue visibility — soared 98% to $11.8 billion. Management guided for second-quarter revenue of approximately $1.8 billion and full-year 2026 revenue between $7.65 billion and $7.66 billion, both ahead of consensus estimates. If achieved, it would mark the eleventh consecutive quarter of accelerating top-line growth.

Yet the stock sank after the earnings release. The culprit is valuation: Palantir trades at roughly 97 times forward earnings, a multiple that leaves no room for disappointment. Rising bond yields, stoked by stubborn inflation data, have recently piled additional pressure on richly priced growth names. Analysts are deeply divided on the path ahead. Rosenblatt’s John McPeake lifted his price target to $225, arguing Palantir’s software architecture is a linchpin for enterprise artificial intelligence. HSBC, by contrast, trimmed its forecast to $151, reflecting caution on the stretched multiple.

Geopolitics adds another layer to the story. Ukraine has become a real-world proving ground for Palantir’s technology, with President Volodymyr Zelenskyy meeting CEO Alex Karp to collaborate on a project analyzing combat data, including counter-drone operations. Western defense ministries weigh Palantir against offerings from Microsoft and IBM. But the defense business is no sure bet: the Swiss army ended its use of Palantir’s software late last year after an audit raised concerns about potential data flows to US agencies — a recurring reputational risk for the firm.

On the Frankfurt exchange, Palantir shares closed Friday at €115.38, roughly 36% below the 52-week high of €179.86. The stock has shed nearly 20% since the start of the year. Management’s target for the current quarter implies strong sequential growth, and an operating margin of 53% remains impressive. However, sustaining that margin is critical to justifying the premium placed on the equity.

Investors will get a fresh catalyst on Monday when Palantir’s management sits down with Rosenblatt analysts in New York. Any commentary on second-quarter sales momentum or the trajectory of government contracts could move the shares — and potentially shift the conversation away from the White House trades that have captured so much attention.