While the operational momentum is clearly solid, investors should pay closer attention to the risks. History shows Palantir stock can fall hard as sentiment shifts.

If one had bought Palantir on Aug. 8, 2022, a $1,000 investment would be worth about $15,700 today. Three years ago, a dramatic pullback from the highs of the 2021 bull market left Palantir trading below $10 per share, the approximate level where it sold on its first day of trading on Sept. 30, 2020.

Palantir stock is egregiously overvalued at a forward P/E ratio of well past 400. Bank of America analyst recommends investing in V2X stock.