Palantir Earnings Preview: Will AI Stock Soar as Figma Investors Rotate Gains?

The dizzying 250% IPO pop for design platform Figma (NASDAQ: FIG) last week captivated Wall Street, but today’s spotlight shifts decisively to artificial intelligence powerhouse Palantir (NYSE: PLTR). As Figma shares correct 20% in early trading, Palantir climbs 3% ahead of its highly anticipated Q2 2025 earnings release after today’s closing bell—prompting market watchers to ask: Are investors rotating gains from Figma’s explosive debut into Palantir’s AI bet?

Why Are Investors Rotating from Figma to Palantir Ahead of Earnings?

Jim Cramer’s tweet—“Gotta sell your Figma to prop up your Palantir, right??”—captures a growing market narrative. While Figma’s SaaS design tools and Palantir’s defense/AI analytics platforms serve different markets, both attract investors seeking high-growth tech exposure. Figma’s valuation—now at a 56.7x price-to-sales ratio after its $70 billion market cap surge—faces natural profit-taking. Simultaneously, Palantir bulls anticipate another earnings beat fueled by its Artificial Intelligence Platform (AIP), which integrates large language models into enterprise workflows.

Bloomberg Intelligence notes overlapping institutional ownership in these SaaS leaders creates fertile ground for tactical repositioning. “When a hot IPO cools, capital often flows toward the next catalyst—and Palantir’s earnings are today’s headline event,” observes tech analyst Rachel Wu of Bernstein.

What Palantir Must Deliver to Justify Its Valuation

All eyes will focus on three critical metrics in today’s Palantir earnings report:

1. Commercial Growth: Foundry platform adoption beyond government contracts. Q1 2025 saw U.S. commercial revenue jump 40% YoY.
2. AIP Monetization: Deployment milestones for its AI agents, now used by over 500 organizations, including Cleveland Clinic and Panasonic.
3. Government Pipeline: Updates on the consolidated U.S. Army contract worth up to $10 billion over 10 years.

However, Palantir’s sky-high 87.1x P/S ratio (per Bloomberg) demands flawless execution. “Investors priced in near-perfect commercial traction,” warns Morgan Stanley’s Keith Weiss. “Any hint of slowdown in AIP adoption could trigger volatility.”

The AI Arms Race Advantage

Unlike Figma’s pure-play design focus, Palantir leverages global demand for military and enterprise AI. Gotham—its government software—powers Ukraine’s defense logistics, while AIP drives Fortune 500 efficiency. CEO Alex Karp recently emphasized “unprecedented demand” for real-time AI decision tools in geopolitical conflicts. With NATO allies accelerating AI spending, Palantir’s dual-sector dominance offers a strategic moat.

The stakes tonight? Sustain its 22% year-to-date rally, Palantir must prove its $55 billion valuation reflects durable AI leadership—not just hype.

Must Know
Q: When does Palantir report Q2 2025 earnings?
A: After market close on August 7, 2025. The investor call typically begins at 5:00 PM ET.

Q: What’s Palantir’s revenue forecast for Q2?
A: Analysts expect $698 million (LSEG consensus), up 27% YoY, with commercial growth critical.

Q: How does Palantir’s valuation compare to Figma’s?
A: Palantir trades at 87x sales versus Figma’s 56x. Both exceed SaaS industry averages, demanding exceptional growth.

Q: What’s the significance of Palantir’s U.S. Army contract?
A: The 10-year, $10 billion ceiling deal (May 2025) stabilizes government revenue and showcases scalable AI deployment.

For investors, tonight’s Palantir earnings transcend quarterly numbers—it’s a stress test for AI valuations in a jittery market. With Figma’s pullback freeing capital and Palantir’s AIP at an inflection point, anything less than stellar guidance could deflate the AI bubble. Watch commercial growth metrics and AIP deal velocity: they’ll decide whether this rotation becomes a lasting flight to quality.