2 High-Flying AI Stocks I'd Sell Before 2026 Arrives

A Motley Fool analyst recommends selling Palantir (PLTR) and BigBear.ai (BBAI) ahead of 2026: Palantir delivered strong Q3 results (revenue +63% YoY, 40% profit margin) but is trading at an extreme premium—about 259x forward earnings and 123x sales versus Nvidia at ~39x/24x—and faces analyst forecasts for revenue growth to slow to ~41% in 2026 from 54% in 2025, leaving it ‘‘priced for perfection’’ and vulnerable to a pullback. BigBear.ai’s fundamentals are weaker—Q3 revenue fell 20% YoY for a second consecutive quarter, it hasn’t grown since 2023, and although it acquired Ask Sage it lost a DoD GenAI.mil opportunity to Alphabet—supporting the view that investors should reallocate from these names into higher‑momentum AI winners. The near‑term implication is locking gains in Palantir and exiting BigBear.ai to avoid downside if growth falters and to redeploy capital to more promising AI stocks.

Analysis

A Motley Fool analyst recommends selling Palantir (PLTR) and BigBear.ai (BBAI) ahead of 2026, citing valuation and growth concerns. Palantir reported Q3 revenue up 63% year‑over‑year and a 40% profit margin, but the stock trades at roughly 259x forward earnings and 123x sales, indicating an extreme premium relative to fundamentals.

The note contrasts Palantir with Nvidia, which posted ~62% revenue growth in Q3 and a 56% margin while trading around 39x forward earnings and 24x sales, underscoring that Palantir’s multiple is more than five times higher despite similar recent growth. Wall Street forecasted Palantir revenue growth slowing to ~41% in 2026 from 54% in 2025, leaving the stock “priced for perfection” and vulnerable if growth decelerates.

BigBear.ai’s fundamentals are weak: Q3 revenue declined 20% YoY for a second consecutive quarter, the company hasn’t grown since 2023, and although it acquired Ask Sage it lost the DoD’s GenAI.mil selection to Alphabet. Overall sentiment is moderately negative and the estimated market impact is modest, supporting a case to lock gains in overvalued names and reallocate to better‑positioned AI winners or wait for clearer catalysts.

Key Decisions for Investors

• Trim or sell Palantir positions to lock gains given its 259x forward earnings and 123x sales multiple versus consensus growth expected to slow to ~41% in 2026
• Exit or materially reduce exposure to BigBear.ai after two quarters of revenue decline (Q3 revenue -20% YoY) and loss of the DoD GenAI.mil opportunity to Alphabet
• Redeploy proceeds toward higher‑quality AI players referenced in the article (for example Nvidia and Alphabet) that show similar or better growth/margins at substantially lower multiples
• If retaining exposure, hedge Palantir risk and monitor 2026 revenue trajectory and material contract wins for both names as primary triggers to reassess positions