Palantir stock has doubled in price, with bullish case of revenue growth, but caution warranted.

From Nasdaq: 2024-09-29 07:05:00

Palantir Technologies (NYSE: PLTR) has seen its stock price double this year, becoming a divisive name in the market due to its valuation. The bull case: Palantir’s data gathering and analytics services are highly sought after, with commercial segment revenue growing 33% year over year. Its artificial intelligence platform, AIP, is attracting new customers and expanding use cases. U.S. government revenue is also on the rise, showing potential for growth.

On the other hand, the bear case for Palantir focuses on its high valuation, trading at a forward price-to-sales multiple of 30. Analysts question whether the stock’s current growth rate justifies such a high valuation. Insiders, including the company’s chairman and CEO, have been selling shares, raising concerns among investors. With price still a significant factor, caution is warranted in investing in Palantir at its current levels.



Read more at Nasdaq: Is Palantir Stock a Buy?