Investors Should Own Palantir in Anticipation of Its Market Cap Reaching a Trillion Dollars

Despite the recent turbulence in the stock market, investor Will McGough, director of investments at Prime Capital Financial, argues that Palantir is a long-term hold with tremendous upside potential. He believes the artificial intelligence software company could one day reach a market valuation of $1 trillion — a staggering leap from its current levels.

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McGough maintains that Palantir remains a buy, even after the stock has surged 55% so far this year. That rally has pushed the company’s market capitalization to $281 billion, surpassing tech giant Salesforce, despite Salesforce generating roughly 10 times more revenue than Palantir.

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During an appearance on CNBC’s “Power Lunch,” McGough named Palantir as one of three standout stocks investors should focus on right now.

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Palantir has been riding high after last year’s astonishing 340% stock price gain, further solidifying its place among the top 10 largest U.S. technology companies by market cap. McGough acknowledged that from a technical analysis perspective — looking at the price charts — he isn’t particularly drawn to the setup following such a dramatic rise. However, he emphasized that the long-term growth story remains intact.

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“I think you own it for the ride to a trillion-dollar market cap, knowing it’s going to be extremely volatile,” McGough said.

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Still, investors should be aware that Palantir’s valuation multiples are sky-high compared to other large-cap tech companies. The stock is currently trading at 520 times trailing earnings, nearly 200 times forward earnings, and an eye-popping 90 times revenue. Such lofty valuations can make the stock vulnerable to sharp pullbacks, especially if growth expectations stumble or market sentiment shifts.

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Aside from Palantir, McGough also discussed his views on Lyft.

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Lyft, which just delivered its quarterly earnings, has had a strong year so far, gaining about 28%. McGough suggested that investors who already hold Lyft shares should keep holding for now. A big part of his reasoning stems from the possibility that Lyft could become an acquisition target — a factor that introduces an interesting wildcard element to the stock’s potential.

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Lyft’s recent performance got an extra boost this week when the ride-hailing company announced it was expanding its share buyback authorization to $750 million following its first-quarter earnings report. This move signals confidence from management and is often seen as a shareholder-friendly action, which can provide further price support in the short term.

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On the other hand, McGough expressed a much more cautious stance when it comes to Expedia.

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He believes the online travel agency is a sell, pointing to a difficult fundamental backdrop. McGough noted that global trade tensions and a rise in protectionist policies could weigh on consumer spending, hurting demand for travel services. Additionally, as an “old tech” company, Expedia now faces significant competitive pressure from newer, AI-driven innovations, which could challenge its position in the travel booking industry.

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Expedia’s most recent quarterly results were mixed. The company reported earnings that beat analyst expectations, but its revenue slightly missed Wall Street estimates, according to FactSet. Even more concerning, Expedia lowered its gross booking guidance for 2025, signaling that management anticipates weaker-than-expected demand ahead.

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McGough’s analysis reflects the mixed landscape facing today’s investors. While some companies like Palantir are riding powerful technological and market momentum, others like Expedia are grappling with evolving headwinds. Meanwhile, Lyft sits in a gray zone, offering potential upside if a buyer emerges but facing its own set of operational and market challenges.

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Overall, McGough’s message to investors is clear: focus on long-term potential, but be mindful of volatility and valuation risks. Palantir, in his view, offers a high-reward opportunity for those willing to stomach big price swings and look past short-term noise. Lyft presents a “hold” scenario where patience could pay off, especially if M&A activity heats up. Expedia, however, appears to face structural issues that make it less attractive, particularly in an environment shaped by macroeconomic pressures and disruptive technology shifts.

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As always, McGough’s picks remind investors that navigating the stock market is about more than just chasing recent winners — it’s about assessing where future growth lies, understanding the broader forces at play, and carefully balancing risk and reward over time.

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