Palantir's stock price surges, but high valuation poses a risk

From Nasdaq: 2024-12-08 04:25:00

Palantir Technologies (NASDAQ: PLTR) has seen a remarkable 340% increase in its stock price this year, making it one of the best-performing stocks. However, its valuation is sky-high, trading at a forward P/S ratio of 49.5. Meanwhile, Nvidia (NASDAQ: NVDA) has also had a strong year, with a 190% increase in stock price and a lower valuation compared to Palantir.

Nvidia’s forward P/E ratio is 32.6, significantly lower than Palantir’s forward P/S ratio. The company’s growth is driven by the ongoing AI infrastructure build-out, where Nvidia’s GPUs play a crucial role. With a wide moat in the GPU space, Nvidia remains a solid stock option. GitLab (NASDAQ: GTLB) offers a DevSecOps platform with strong revenue growth and a forward P/S ratio of 11.5, making it an attractive cheaper alternative to Palantir.

GitLab’s revenue growth outpaces Palantir, with 31% growth last quarter and an impressive 89% gross margin. Its AI-powered tools and partnerships with companies like Amazon contribute to its success. With a focus on efficiency and cost-saving in software development, GitLab continues to drive strong revenue growth. Don’t miss out on potentially lucrative opportunities with “Double Down” stock recommendations from experts.



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