Palantir Stock Slips 8% As The Bleeding Gets Worse
Palantir's stock has extended its decline on Monday morning following last week's plunge, driven by a new share sales initiative by the CEO and a media report of potential U.S. defense budget cuts. The company reported a 45% increase in revenue from the U.S. government in the fourth quarter, with overall revenue reaching $828 million. Despite this growth, Palantir's stock is still up almost 300% over 12 months and trading at about 490 for its historic earnings.
- The current slump highlights the tension between Palantir's impressive growth numbers and its underwhelming valuation multiples compared to peers in the Nasdaq Composite Index.
- How will Palantir address the concerns of investors who are increasingly questioning whether the company's stock is overvalued, given the recent decline?