Caution on Palantirs Extreme Valuation

11 days ago

Joseph Carlson

"But Ive noticed that every time tech investors want to say that were not in a bubble, they use Nvidia as the go-to example. For whatever reason, they not using the example of Palenter. Isnt Palenter the Messi of AI, the leader of AI, the company thats emblematic of the AI tech sector? Palenter trades at valuations that would make bubble companies blush. It trades at a 540 trailing PE, a price to sales of above 100, now at 117. This is in a category that has never happened in history."

The speaker raises concerns over Palantir (referred to as Palenter) by contrasting its extreme valuation metrics against typical defensive tech valuations, such as Nvidias. Despite its leadership position in AI, the extraordinarily high trailing PE and price-to-sales ratios create a case for caution.

Related Stocks