After Soaring by 80% During the First Half of 2025, Could This Unstoppable Artificial Intelligence (AI) Stock Be Wall Street’s Next Stock-Split Candidate?
Palantir stock increased by 80% in the first six months of 2025 and is approaching the highest levels of all time.
Considering the increasing share price of the company, some investors may perceive the stock as expensive.
Although the stock has increased exponentially, there is only more factors than a company’s share price.
In the first half of 2025, S&P 500 And NASDAQ-100 Indexes achieved 6% and 8% total returns, respectively. Perhaps not surprisingly, the best performance in both knees was stock data mining expert Palantir Technologies(NASDAQ: PLTR)In the first six months of 2025, shares won 80%.
When Palantir’s shares go higher day by day, some investors may be wondering that artificial intelligence (AI) lover may be the next big stock divided Wall Street.
If the company chooses to make a division, let’s investigate how the stock divisions work and what can happen with Palantir stock.
The best way to understand how stock works is to look at an example.
Let’s say that a company is trading for $ 100 per share and resulted in a market value of $ 100 million with 1 million shares. If the company decides to make one -on -one division, the stock price decreases five factors ($ 20 per share), while stocks will increase five times (5 million shares). As can be seen by investors, the division of stocks does not actually change the company’s market value. On the contrary, stock division is a form of financial engineering.
Stock divisions usually occur after a significant increase in a company’s share price and the stock is perceived as expensive. This is an important idea to understand. The fact that a company has a stock price per share does not mean that the company’s valuation is unusual.
In order to determine the value of a company, smart investors will look at the rates (P/s) or earnings (P/E) from price from price and compare these floors against other comparable businesses.
Let’s take a look at Palantir’s valuation and then evaluate what might happen if it separates the company stock.
Image Source: Getty Images.
The following analysis measures the p/s floors in software (SAAS) companies as a variety of high -growing services. Palantir’s 110 p/s ratio increased by about three times compared to last year. Moreover, the company is about three times more expensive than the next nearest peer in the cohort below.
Considering the above trends, it is safe to say that the palantir stock increases exponentially. Furthermore, investors have a solid argument that the stock is expensive.
But even with these criteria, does it realize a logical movement for Palantir at the moment?
As I mentioned above, stock divisions do not only occur after a sharp or long -term increase in the stock price. Rather, usually idea that the stock is expensive. The irony here is that this perception goes in both directions.
After that, after a company separates the stock, the new (lower) stock price is often perceived as “cheaper”. However, as explained above in my example, stock divisions do not change the market value of a company.
Following a division, it is not rare that a new group of investors begin to accumulate – because the perception of lower share prices can convince people that they invest in a better price.
Still, this is far from this situation. As more investors fall into the stock, the stocks begin to rise again – as a result, feeds the company’s market value. This means that sometimes a company can be more “expensive” after a division.
For these reasons, I think it would be unreasonable for Palantir to perform a division.
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