Palantir's stock surged 360% in 2024 due to AI growth, but may face a bust in 2025

From Nasdaq: 2024-12-28 05:50:00

Palantir Technologies (NASDAQ: PLTR) has had an incredible year, with its stock up 360% in 2024, driven by growth in artificial intelligence. However, caution is advised as the fundamentals may not support the stock’s price.

Comparisons are being drawn between Palantir’s current situation and Microsoft’s rise in the 1990s, where the stock’s valuation soared to unsustainable levels before crashing, taking nearly two decades to recover.

Palantir’s price-to-sales ratio has exceeded even Microsoft’s peak, raising concerns about a potential bubble as the stock’s valuation becomes increasingly unrealistic.

Investors are warned that while the market can behave irrationally for extended periods, eventually the music will stop, leading to significant losses for those caught up in the hype.

Given its meteoric rise in 2024, Palantir is seen as a prime candidate for being the biggest bust of 2025, with its valuation far outpacing its revenue and market cap.

For those seeking investment opportunities, experts are issuing “Double Down” alerts for three promising companies, offering a chance to potentially capitalize on future growth similar to Nvidia, Apple, and Netflix in the past.



Read more at Nasdaq: This AI Stock Is Up 360% So Far in 2024. Here Is Why It Could Be a Bust in 2025.