Palantir's Stock Price Target Revisted After Slump
Palantir Technologies' stock has tumbled 30% in the past five trading days after touching $125, following news of Pentagon budget cuts and Chief Executive Alex Karp's stock-sale plan. The company's revenue growth accelerated on rising demand for AI-powered decision-making software, with Q4 revenue growing 52% year-over-year to $558 million. Despite this growth, Palantir's stock price is still facing skepticism due to its exceptionally high price-to-sales multiple of 77.6.
- This familiar cycle of hype and collapse in the tech industry may be a warning sign for investors who have been burned by similar stocks in the past.
- Can Palantir find a sustainable business model that justifies its current valuation, or will it follow the same path as other high-growth stocks that have struggled to deliver on their promises?