Palantir: Booming Business, But High Valuation – Stay Cautious


  • Palantir’s Q1 FY2024 financials show sales growth, improved gross margin, and excellent cost management. But you should stay cautious.
  • Expanded partnerships with tech giants such as Oracle should enable Palantir to maintain its growth rates in commercial segments.
  • Despite potential growth drivers, even on bullish assumptions, PLTR appears to be a highly overvalued stock, although there are tailwinds from all sides.
  • Based on my valuation calculations, the fair price by the end of FY2027 should be $17.62 – that’s around 17.35% below PLTR’s current stock price.
  • I believe any earnings miss in the foreseeable future or slightly negative news can lead to potential losses for current buyers. Be vigilant.

Palantir Technologies headquarters campus exterior view in Silicon Valley. - Palo Alto, California, USA - 2019

Michael Vi

Intro & My Coverage History

I have been covering Palantir Technologies Inc. (NYSE:PLTR) here on Seeking Alpha since October 2021: I initially rated the stock as a “Sell” due to its overvaluation and seemingly limited growth

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.

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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