Palantir Valuation Concerns Amidst Strong Earnings

3 months ago

Normal Linda

"Well, let's take a look at shares of Palunteer. This has been a company that's been in focus today. People have been really heavily scrutinizing this company. This is ticker PLTR. Here's falling as much as 10% since the worst day since May. And this is not because the company reported poor results or, you know, missed expectations. This is actually a stock, a company that has not missed expectations. For 21 consecutive quarters, we've seen beats backtoback for this company. But people are starting to wonder about whether or not valuations could be too stretch for this company. Especially as we think about the AI landscape and especially if you dig deeper into some of the numbers. If you look at price to sales ratio on a trailing basis, it's sitting at 85, which is the highest in the S&P 500. So, you are starting to see widespread concern here about the fact that maybe valuations are too stretched for Palanteer."

The speaker highlights that despite strong earnings over 21 consecutive quarters, Palantir (PLTR) is experiencing a notable price decline potentially due to overextended valuations, underscored by a trailing price-to-sales ratio of 85 — the highest in the S&P 500.

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