Predicting Palantir's Value Surpasses Adobe's by 2025
Palantir (NASDAQ: PLTR) has been one of the hottest stocks on Wall Street, rising nearly 600% since the start of 2024, with its revenue growth rate being a significant factor in this surge. However, despite this rapid expansion, Palantir's business growth hasn't quite kept up with its stock returns, as its revenue is only up 29% in that same period, whereas Adobe (NASDAQ: ADBE) has maintained a more stable growth trajectory. This discrepancy raises questions about the valuation of these two companies.
- The disconnect between Palantir and Adobe's valuations highlights a critical difference in their business models and growth expectations, with Palantir relying heavily on revenue growth to justify its stock price.
- What role do investors' expectations around Palantir's future growth, particularly in terms of AI adoption and expansion into new markets, play in driving the valuation gap between these two companies?