From Nasdaq.: 2025-01-04 16:00:00

Palantir (NASDAQ: PLTR) saw impressive growth in 2024, with its stock soaring 340% and reaching a market cap of $167 billion. The company’s revenue growth has been accelerating, particularly in the U.S., where commercial revenue was up 54% year over year. Despite challenges in international markets, Palantir’s overall revenue growth is strong. However, the stock’s valuation is high, with a P/E ratio over 60 and a P/S ratio of 68, signaling inflated expectations. Investors should approach buying Palantir stock in 2025 cautiously due to these valuation concerns.

While Palantir’s future is uncertain, its 2024 momentum could continue if revenue growth accelerates. The company’s potential to generate $10 billion in annual revenue by 2029 is promising, but the stock’s market cap already reflects high investor expectations. For long-term investors, it’s crucial to consider the price paid for a stock and its future earnings potential. The current valuation of Palantir may not align with its realistic earnings outlook, making it a risky investment in 2025. Investors should be wary of buying shares at such elevated prices.



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