Palantir: Rule Of 40 Points To Sell

Summary:

• Palantir’s recent results showcased its superbly scalable and profitable business model.
• However, when examined by the Rule of 40, Palantir’s scorecard may dip below the passing grade soon.
• Yet, its EV/sales ratio is about 300% higher than the historical average of companies who scored in the top quartile.
• This discrepancy indicates the market is overly optimistic and ill-prepared for the downsides.

PLTR Stock: Previous Thesis and Rule of 40

My last analysis on Palantir Technologies stock (NASDAQ:PLTR) was published a month ago. That article was titled “Palantir: Lessons I’ve Learned From Stocks With 100+ P/E”. As hinted by the title, the purpose

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