From Yahoo Finance: 2025-04-01 11:55:00

Investment experts Doug Clinton and Tom Essaye agree that Palantir (PLTR) is too pricey to buy now, trading at 50 times its revenue. The stock needs to drop significantly to be attractive, they believe, due to fears over AI sector pressures and reduced Washington contract spending.

Both Clinton and Essaye think PLTR needs to decrease substantially to be a worthwhile investment, trading at valuations similar to other successful AI software companies. Essaye warns that the stock could continue to decline further before value buyers step in, emphasizing the need for a significant drop in price before he would consider buying.

While acknowledging PLTR’s potential, Clinton and Essaye believe other AI stocks offer greater promise for higher returns in a shorter time frame. They suggest exploring alternatives that trade at less than 5 times earnings for a potentially more lucrative investment opportunity.

Read more: Palantir (PLTR) Is Called Too Expensive by Schwab Guests