Palantir: This Is Even Worse Than The 2021 Bubble

Summary:

• Palantir Technologies Inc. trades at 65x sales, making it the most egregiously valued stock among growth peers.
• Despite strong revenue growth and GAAP profitability, the Palantir stock valuation is unsustainable even under the most optimistic growth scenarios.
• The stock’s current valuation offers a nearly asymmetric return profile to the downside, warranting a “strong sell” rating.
• Rich valuations can impair stock attractiveness, and PLTR’s valuation looks excessive even based on decade-out estimates.

Tech investors who have been investing long enough remember when tech stocks last crashed brutally to the tune of 90% for many names. I say that tongue-in-cheek, as that “last” crash occurred just a little over two years ago. If you were wondering

Analyst’s Disclosure: I/we have a beneficial short 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.

I am long all positions in the Best of Breed Growth Stocks Portfolio.

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