Keith Noonan, The Motley Fool

Fri, Jun 6, 2025, 3:34 PM3 min read

• Palantir Technologies stock is surging after the latest jobs report from the Bureau of Labor Statistics.

• Investors think that the latest jobs report supports the path to an interest rate cut this year.

• Palantir is a very strong business with huge long-term growth potential, but its valuation profile comes with substantial risk.

• 10 stocks we like better than Palantir Technologies ›

Palantir Technologies  (NASDAQ: PLTR) stock is surging Friday. The software specialist's share price was up 6.3% as of 3:20 p.m. ET. At the same point in the day's trading, the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) were up 1.1% and 1.3%, respectively.

After sell-offs in Thursday's trading, growth stocks are rebounding today -- and Palantir is benefiting from the momentum. The latest U.S. jobs report from the Bureau of Labor Statistics (BLS) has investors feeling bullish and is helping to power a rebound for growth stocks after sell-offs yesterday.

Growth stocks are seeing strong bullish momentum on the heels of the jobs report the BLS published this morning. The report showed that the U.S. economy added 139,000 jobs in May -- ahead of the 125,000 job additions that had been forecast by Dow Jones. While higher-than-expected hiring data could have been taken as an indication that the U.S. economy is still running hot, the report also cut April's added jobs tally by 30,000 and March's job growth count by 65,000.

All in, the May jobs report has helped support the position that the Federal Reserve has a workable path to an interest rate cut this year. The prospect has growth investors excited, and it's likely that a rate cut would be a substantial bullish catalyst for Palantir stock.

Palantir has one of the strongest positions in artificial intelligence (AI) software, and there's a high likelihood the business will continue to see very strong growth tailwinds in conjunction with rising demand for its Artificial Intelligence Platform (AIP) service and other offerings. But with the company valued at roughly 77 times expected sales and approximately 219 times expected earnings, shares undoubtedly come with a high level of risk. Palantir appears to be a great company and will likely deliver impressive returns for patient investors, but its valuation profile also opens the door for significant volatility.

Before you buy stock in Palantir Technologies, consider this: