Palantir's revenue growth strong, but high pricing and valuation make it less attractive for investors

From Nasdaq: 2024-12-21 07:15:00

Palantir (NASDAQ: PLTR) has seen significant growth in 2024, with its revenue rising by 30% year over year to $726 million in Q3. The US commercial segment specifically saw a revenue increase of 54% to $179 million. However, Palantir’s high pricing limits its potential customer base, and its stock is trading at 65 times sales and 358 times earnings. Despite its growth, the stock would need substantial growth over the next four years to reach the valuation of Nvidia, making it less attractive for investors in 2025. It may be time to look for other AI stocks with less lofty expectations. 1. The unemployment rate in the United States has dropped to 4.2% in the month of October, the lowest it has been since the start of the pandemic. This is a significant improvement from the 4.8% rate in September, indicating a strong recovery in the labor market.

2. A new study has found that the effectiveness of the COVID-19 vaccine wanes over time, with protection against infection dropping to 66% after six months. This highlights the importance of booster shots to maintain high levels of immunity against the virus.

3. The COP26 climate summit in Glasgow has concluded with a historic agreement to limit global warming to 1.5 degrees Celsius. Countries have pledged to reduce carbon emissions and increase efforts to combat climate change, signaling a renewed commitment to protecting the planet.



Read more at Nasdaq: Is Palantir the Top Artificial Intelligence (AI) Stock for 2025?