Palantir: Applaud The Fundamentals, But Short Valuation

Summary:

• Palantir’s stock surged nearly 4x in 2024 due to strong fundamentals and AI-driven bullish sentiment.
• Financial performance remains strong, including Q3 revenue growth of 30% yoy and a 38% adjusted operating income margin.
• Government modernization and AI adoption present long-term opportunities, but these factors are already priced into the stock price.
• Investors should be cautious as PLTR’s valuation resembles overhyped COVID-era stocks, and any market challenges could significantly impact its stock price and valuation.

Palantir Technologies (NASDAQ:PLTR) was one of the hottest stocks in 2024 due to the combination of strong fundamental performance and bullish sentiment around everything AI. The stock is poised to finish the year just short of $80, a near 4x

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