Summary:
- Palantir’s strong financial performance and impressive growth are overshadowed by its lofty valuation, making it prudent to take profits or hold off on adding more.
- 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.
- Palantir’s valuation demands sustained high-growth rates for years, which is challenging given the law of large numbers and increasing competition.
- While Palantir is a fantastic company with a strong moat, its current valuation suggests waiting before accumulating more shares.
Michael Vi
Palantir (NASDAQ:PLTR) at an almost $200 billion market capitalization is on a roll. The company was made our top tech pick of the 2020s several years ago, and since then, it’s almost quadrupled an already strong performance
Analyst’s Disclosure: I/we have a beneficial long position in the shares of PLTR either through stock ownership, options, or other derivatives. 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.
Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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