Palantir: Too Good To Sell, Too Pricey To Buy

Summary:

• Palantir’s aggressive revenue growth, solid operating leverage, and strong AI market tailwinds make it fundamentally robust and promising for long-term investors.
• However, the stock might face a bumpy road in early 2025 due to historically weak seasonal patterns in the first few months.
• I believe a 4% upside potential is not particularly attractive, especially given the recent aggressive insider selling.

Introduction

My August 24 rating downgrade to ‘Hold’ for Palantir (NASDAQ:PLTR) gives me mixed feelings. On the one hand, the stock price spiked from $31 to $80 since my previous call. On the other hand, a ‘Hold’ is not a ‘Sell’ and I only regret that I

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.

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