Palantir's Valuation Leaves Little Margin for Error

12 days ago

"Palantir is a real business. It solves real problems, and it's showing real progress. But great companies don't automatically make great investments, especially after a big runup like it's had. Palantir doesn't need to become Nvidia to be successful. But today's price already assumes an Nvidiaike outcome. So the margin of error has gone away and it's gone completely. When Palantir was beaten down, the expectations were low. The market didn't believe in the story anymore. Didn't believe the profitability was near and didn't trust in management's execution. That created an opportunity for investors who are willing to look past the noise."

The speaker highlights that while Palantir shows strong business fundamentals and real progress, its current high valuation is predicated on an optimistic, Nvidia-like outcome. This leaves little margin for error, suggesting that investors should be cautious and carefully assess the price versus intrinsic value before investing.

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