Palantir: Do Not Rush In

Summary:

  • Palantir has reported very good 40% YoY US commercial revenue growth in the recent quarter, but other key metrics do not support a strong bullish sentiment in the stock.
  • The YoY US government revenue growth was only 12% and this segment contributes over 40% of the total revenue base.
  • Palantir’s adjusted operating margin has also expanded to 36% from 24% a year ago, and it is unlikely that there can be significant improvement from an already high margin level.
  • Palantir’s AI growth potential is strong, but investors should wait for a pull back to add this stock, which makes the stock a Sell at the current price.

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

Michael Vi/iStock Editorial via Getty Images

Palantir (NYSE:PLTR) stock has been range-bound between $20 and $25 for the past few months. Some of the strong positives for the company are more than matched by the negatives. The most positive factor working in


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