Palantir Facing Valuation Concerns

3 months ago

Emily Grafo

"Of course, we know that we've been really looking at Palantir shares, ticker PLTR, because they've really been declining. A lot of people worrying about fears about potential stretch valuations here for this company. I mean, if you look at the price to sales ratio on a trailing basis, we see that sitting at about 85 for Palantir. This is the highest that we're seeing for any stock in the S&P 500. So while they did report stellar results and of course if you think about their earnings more broadly with 21 consecutive quarters of beats, we are seeing people starting to scrutinize and wondering if there's broader fears of a potential AI bubble."

The speaker emphasizes mounting concerns for Palantir (PLTR) due to its significantly high trailing price-to-sales ratio of 85 and recent declines despite strong earnings history, suggesting investors may be wary of an overvalued situation potentially linked to an AI bubble.

Related Stocks