Palantir: Take Profits Before It’s Too Late

Summary:

  • Palantir’s current valuation is unsustainable, with a forward P/E of 158x and EV/Sales multiple of 46x, well above sector averages, driven largely by AI hype.
  • While Q3 results showed strong growth and improved profitability, the stock’s current price assumes flawless future execution, creating an unfavorable risk-reward scenario.
  • Recent insider sales, including $1.2 billion by the CEO, and a retail-heavy shareholder base increase vulnerability to market shifts and volatility.
  • Given the stretched valuation and risks, investors with gains should consider trimming positions, as current levels may not justify the stock’s elevated price.

Stock market

D-Keine

After Q3 2024 Earnings of Palantir Technologies’ (NYSE:PLTR) I am taking a contrarian stance and initiating a Sell rating with a fair value estimate of $38.50. Because of overvaluation at its current market valuation of $60 per share, even when factoring


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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