Palantir stock has gained 370% in 2024, but Wall Street views it as overvalued

From Nasdaq: 2024-12-23 04:12:00

Shares of Palantir Technologies (NASDAQ: PLTR) have surged 370% this year, fueled by strong financial results and inclusion in major indices. However, Wall Street considers it overvalued, with a median 12-month target of $41 per share, implying a 49% downside from the current price of $80.50.

Despite bearish sentiments, some analysts like Dan Ives believe Palantir could be the next Oracle, reaching a $500 billion valuation in the future. The company’s AI platforms, Gotham and Foundry, have been well-received, with AIP garnering praise and leading to significant growth potential.

Palantir’s revenue growth is accelerating, with a 30% increase in revenue in the third quarter driven by strong demand for its AI platform. However, the stock’s valuation remains a concern, trading at 230 times adjusted earnings, making it one of the most overvalued stocks in the market.

Investors should carefully consider the risks of investing in Palantir, as its high valuation and potential downside present challenges. While the company’s AI platforms show promise, the stock’s current price may not be justified by its financial performance.



Read more at Nasdaq: Should You Buy Palantir Stock After Its 370% Gain in 2024? Wall Street Has a Clear Answer for Investors