1. Palantir's strong financial performance and impressive growth are overshadowed by its high valuation, making it prudent to take profits or hold off on adding more. 2. Despite 30% YoY revenue growth and high margins, Palantir's P/E ratio over 300x and competition from giants like AWS and Google pose significant risks. 3. Palantir's valuation demands sustained high-growth rates for years, which is challenging given the law of large numbers and increasing competition.