Palantir Technologies Is Down 27% From Its All-Time High. Is It Still in a Bubble?

From Yahoo Finance: 2025-03-24 12:15:00

Palantir (NASDAQ: PLTR) stock has dropped 27% from its all-time high after a significant sell-off that affected AI stocks. The company’s Artificial Intelligence Platform (AIP) has been a key growth driver, attracting both commercial and government clients with its innovative features.

Palantir’s dual-market approach has led to substantial revenue growth, with government revenue up 40% and commercial revenue up 31% year over year. Despite this growth, the stock remains overvalued, trading at 78 times price-to-sales (P/S) multiple.

While some investors see the recent decline as an opportunity, the stock is still too expensive. Even under best-case scenarios, Palantir’s stock price reflects significant future growth that may not be sustainable. Investors should exercise caution and avoid investing in the stock while it remains in a bubble.



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