Palantir stock surged 37% in past month, driven by optimism over federal spending

From Nasdaq: 2024-12-06 21:35:06

Palantir Technologies stock (NASDAQ: PLTR) has surged 37% in the past month and is up 4x since the start of the year, trading at $69. Investors are optimistic about increased federal spending on national security and immigration. Palantir also received FedRAMP High baseline Authorization and may join the Nasdaq 100.

Despite volatile returns, Palantir stock outperformed the S&P 500 in the last 4 years. The Trefis High Quality Portfolio offers less volatility and higher returns. Palantir’s Q3 revenue increased by 30% year-over-year to $726 million, with strong margins. However, the stock’s valuation is a concern trading at high multiples.

At current levels, Palantir stock trades at 140x consensus earnings for 2025 and over 44x forward revenue. Analysts project revenue growth of 25% for 2024 and 2025. Insider selling is increasing, suggesting the stock may be fully valued. Comparatively, Snowflake and Nvidia trade at lower multiples with similar growth rates.



Read more at Nasdaq: Why Palantir Stock Jumped 37% Over Last Month