Stock-Split Watch: Is Palantir Next? Here's What Investors Need to Know Heading into 2026.

2 hours ago 2

Johnny Rice, The Motley Fool

Sat, December 20, 2025 astatine 9:41 AM CST 3 min read

Investors are watching Palantir for a imaginable banal split, but the much important constituent is what splits bash (and don’t) alteration for shareholders.
Split “rallies” often coincide with beardown pre-existing momentum, which tin marque it harder to archer whether the divided is simply a catalyst for a stock terms popular oregon conscionable a headline.
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In caller months, rumors person circulated that artificial quality (AI) powerhouse Palantir (NASDAQ: PLTR) mightiness beryllium preparing to denote a banal split. Why should investors care? While banal splits technically bash not straight impact returns successful and of themselves, clip and again, divided announcements are followed by rallies.

But bash splits really origin rallies? It's unclear. It whitethorn conscionable beryllium that splits are mostly announced by companies erstwhile they already person beardown momentum down their stocks, and immoderate nexus betwixt the 2 things is correlative. It's besides imaginable that the reduced stock prices pull caller investors who would not different person invested successful those stock-splitting companies.

The astir caller buzz astir a Palantir banal divided tin beryllium traced backmost to an RBC Capital expert who said that retail traders were "focused connected the imaginable for a banal split," hoping it would beryllium announced on with the company's Q3 net successful November. While nary divided was announced astatine that time, aft the stock's meteoric 585% emergence implicit the past 5 years -- and fixed the stock's popularity with the benignant of retail traders who thin to respond peculiarly favorably to splits -- I wouldn't beryllium amazed if 1 occurs successful the adjacent year.

Employees reappraisal information wrong a bid center.

Whether a divided happens oregon not is beside the point, really. While rallies often travel splits, they tin beryllium short-lived if the underlying concern fails to warrant the higher terms with its performance. While I deliberation Palantir volition proceed to rapidly turn its apical and bottommost lines for immoderate time, I inactive wouldn't bargain the stock. Not astatine this price. As of Thursday, it was trading astatine a price-to-earnings ratio of astir 435, and adjacent its 1-year guardant P/E ratio was 184. Those are highly lofty premiums. As such, the institution is priced for perfection, and immoderate wavering would apt pb to a large correction.

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