Palantir, a software company founded in 2003, focuses on big data analytics and integration platforms. With a share price of $139.71 on July 9th, the company’s trailing and forward P/E ratios are 635.05 and 297.26 respectively, according to Yahoo Finance.

Palantir’s competitive edge lies in its high switching costs and over 3,400 patents. Its Total Addressable Market is estimated at over $200 billion, with expected revenue growth of 39.3% YoY and a projected CAGR of 18%-25% through 2030.

Despite strong performance, Palantir’s valuation remains high, reflecting expectations of continued revenue growth. Shareholder dilution is a concern, and the author remains cautious on PLTR due to its elevated expectations being factored into the stock price.

A previous bullish thesis on Palantir highlighted its potential in the AI energy boom. However, a more recent perspective raises concerns about the company’s valuation, stock-based compensation expenses, and shareholder dilution, weakening conviction in the bullish thesis.

Read more at Yahoo Finance: Palantir (PLTR): A Bull Case Theory