Palantir Stock’s Valuation Concerns Are Overblown: Get Ready for Liftoff

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Palantir Stock’s Valuation Concerns Are Overblown: Get Ready for Liftoff

InvestorPlace04-06

Concerns about valuation and future growth are again weighing on Palantir Technologies (PLTR).This could continue to persist in the immediate term, resulting in further sideways price performance....

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AcidIce
·04-06
This is another bullshit crap counter that need to be much reduced to dust! Just another "ST Engineering" company earning govt projects can do what wonders? Not unless they can integrate AI & make flying cars I think it's going to crash!
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After surging post-earnings in February, Palantir stock has been rangebound, trading just above and just below $25 per share during this time frame. Concerns about valuation and future growth are again top of mind. This has affected top AI stocks across the board, and PLTR is no exception.Palantir Stock, an Analyst Downgrade, and Rising Valuation Concerns. As it pertains specifically to Palantir, not only is it benefiting from favorable industry demand trends. 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After surging post-earnings in February, Palantir stock has been rangebound, trading just above and just below $25 per share during this time frame. Concerns about valuation and future growth are again top of mind. This has affected top AI stocks across the board, and PLTR is no exception.If that doesn’t sound disheartening enough, this sentiment may linger in the immediate term. This is especially the case, following a recent development that is potentially further raising concerns about valuation and future growth. But while PLTR is stuck in the mud for now, don’t expect it to last for long.Palantir Stock, an Analyst Downgrade, and Rising Valuation ConcernsOutside of announcements about the latest governmental contract wins, there has been little in the way of news out of Palantir Technologies. However, PLTR has been the subject of headlines, but not in a good way. We’re talking, of course, about a recent, widely reported analyst downgrade of this stock.On March 28, analyst Brian White from Monness, Crespi, Hardt & Co downgraded Palantir stock from neutral to hold. In the downgrade, the sell-sider focused in particular on PLTR’s rich valuation on a price-to-sales basis.Contrasting PLTR’s sales multiple of 18 against both the industry average of 6.3, and other pricey software stocks, White deemed its valuation “egregiously rich” and “excessive.”With the analyst bearish on the direction of the economy, he believes that shares will fall back to earth on disappointment. White’s price target for Palantir is $20 per share, yet his sharp criticism may have valuation-conscious investors worried that a much larger drop is in store.While it’s fact, not opinion, that Palantir is richly-priced, we believe that White’s take on this AI enterprise software company’s future prospects to be erroneous. Much still suggests that a growth resurgence will carry on in the quarters ahead.Demolishing the Bear CaseFirst things first: the aforementioned bear case for Palantir stock assumes downbeat prospects for the economy from now on. The U.S. economy has, and remains poised to stay, resilient in light of challenges like high inflation.Not only that, the rapid adoption of AI technology is a secular growth trend. This means high growth for the sector is likely to continue, irrespective of the overall economy’s direction.As it pertains specifically to Palantir, not only is it benefiting from favorable industry demand trends. As we’ve pointed out previously, Palantir has been crushing it, with the rapid rollout of its Artificial Intelligence Platform.Commercial revenue growth has accelerated. Based on commercial customer count, which is a leading indicator, this reacceleration stands to continue going forward.With this, it’s very possible Palantir’s top line continues to grow in line, or even above, last quarter’s reported 20% revenue growth, for much longer than even some of this stock’s biggest fans anticipate.Again, this may not translate into instantaneous outsized earnings growth, but as Palantir reaches scale, and the company reduces growth-related investments, its bottom line could skyrocket. Hence, why we are still of the view that loftier price levels lie ahead.Patience is Key, but it May Prove Very ProfitableTo reiterate, don’t assume that another rapid rally is just around the corner for PLTR. However, when we say that shares could stay in their current slump in the immediate term, we may be talking weeks, not months.Palantir will release its next earnings report on May 8. These results, plus updates to guidance, could quickly shift investor perceptions, resulting in another strong post-earnings rally.Even if this does not take shape, subsequent news/developments later this year could re-bolster confidence in the PLTR growth story.With this in mind, don’t give in to the fear, uncertainty, and doubt being created by valuation-focused downgrades. Feel free to maintain an existing position, and if shares encounter any short-term volatility, consider seizing the opportunity.Palantir stock earns a B rating in Portfolio Grader.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":0},"commentList":[{"id":292326179029176,"gmtCreate":1712394742549,"gmtModify":1712396419156,"author":{"id":"3569382039983887","authorId":"3569382039983887","name":"AcidIce","avatar":"https://static.tigerbbs.com/25a5edd325094826cf6e8822874786ab","vip":1,"crmLevel":5,"crmLevelSwitch":1},"htmlText":"This is another bullshit crap counter that need to be much reduced to dust! Just another \"ST Engineering\" company&nbsp;earning govt projects can do what wonders? Not unless they can integrate AI &amp; make flying cars I think it's going to crash!","listText":"This is another bullshit crap counter that need to be much reduced to dust! Just another \"ST Engineering\" company&nbsp;earning govt projects can do what wonders? Not unless they can integrate AI &amp; make flying cars I think it's going to crash!","text":"This is another bullshit crap counter that need to be much reduced to dust! Just another \"ST Engineering\" company earning govt projects can do what wonders? Not unless they can integrate AI & make flying cars I think it's going to crash!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":7,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/292326179029176","repostId":2425255333,"repostType":2,"repost":{"id":"2425255333","pubTimestamp":1712376000,"share":"https://www.laohu8.com/m/news/2425255333?lang=&edition=full","pubTime":"2024-04-06 12:00","market":"us","language":"en","title":"Palantir Stock’s Valuation Concerns Are Overblown: Get Ready for Liftoff","url":"https://stock-news.laohu8.com/highlight/detail?id=2425255333","media":"InvestorPlace","summary":"Concerns about valuation and future growth are again weighing on Palantir Technologies .This could continue to persist in the immediate term, resulting in further sideways price performance.However, don’t let this scare you out of an existing position, as subsequent news will likely help to assuage present concerns.Palantir Technologies  is in the doldrums. After surging post-earnings in February, Palantir stock has been rangebound, trading just above and just below $25 per share during this time frame. Concerns about valuation and future growth are again top of mind. This has affected top AI stocks across the board, and PLTR is no exception.Palantir Stock, an Analyst Downgrade, and Rising Valuation Concerns. As it pertains specifically to Palantir, not only is it benefiting from favorable industry demand trends. As we’ve pointed out previously, Palantir has been crushing it, with the rapid rollou","content":"<html><head></head><body><ul style=\"\"><li><p>Concerns about valuation and future growth are again weighing on <strong>Palantir Technologies</strong> (<strong>PLTR</strong>).</p></li></ul><ul style=\"\"><li><p>This could continue to persist in the immediate term, resulting in further sideways price performance.</p></li><li><p>However, don’t let this scare you out of an existing position, as subsequent news will likely help to assuage present concerns.</p></li></ul><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/40c0ec6c61c45cdaab830ce929ee1782\" alt=\"Source: Poetra.RH / Shutterstock.com\" title=\"Source: Poetra.RH / Shutterstock.com\" tg-width=\"768\" tg-height=\"432\"/><span>Source: Poetra.RH / Shutterstock.com</span></p><p><strong>Palantir Technologies</strong> (NYSE:<strong>PLTR</strong>) is in the doldrums. After surging post-earnings in February, Palantir stock has been rangebound, trading just above and just below $25 per share during this time frame. Concerns about valuation and future growth are again top of mind. This has affected top AI stocks across the board, and PLTR is no exception.</p><p>If that doesn’t sound disheartening enough, this sentiment may linger in the immediate term. This is especially the case, following a recent development that is potentially further raising concerns about valuation and future growth. But while PLTR is stuck in the mud for now, don’t expect it to last for long.</p><h2 id=\"id_927875233\">Palantir Stock, an Analyst Downgrade, and Rising Valuation Concerns</h2><p>Outside of announcements about the latest governmental contract wins, there has been little in the way of news out of Palantir Technologies. However, PLTR has been the subject of headlines, but not in a good way. We’re talking, of course, about a recent, widely reported analyst downgrade of this stock.</p><p>On March 28, analyst Brian White from Monness, Crespi, Hardt &amp; Co downgraded Palantir stock from neutral to hold. In the downgrade, the sell-sider focused in particular on PLTR’s rich valuation on a price-to-sales basis.</p><p>Contrasting PLTR’s sales multiple of 18 against both the industry average of 6.3, and other pricey software stocks, White deemed its valuation “egregiously rich” and “excessive.”</p><p>With the analyst bearish on the direction of the economy, he believes that shares will fall back to earth on disappointment. White’s price target for Palantir is $20 per share, yet his sharp criticism may have valuation-conscious investors worried that a much larger drop is in store.</p><p>While it’s fact, not opinion, that Palantir is richly-priced, we believe that White’s take on this AI enterprise software company’s future prospects to be erroneous. Much still suggests that a growth resurgence will carry on in the quarters ahead.</p><h2 id=\"id_3726956872\">Demolishing the Bear Case</h2><p>First things first: the aforementioned bear case for Palantir stock assumes downbeat prospects for the economy from now on. The U.S. economy has, and remains poised to stay, resilient in light of challenges like high inflation.</p><p>Not only that, the rapid adoption of AI technology is a secular growth trend. This means high growth for the sector is likely to continue, irrespective of the overall economy’s direction.</p><p>As it pertains specifically to Palantir, not only is it benefiting from favorable industry demand trends. As we’ve pointed out previously, Palantir has been crushing it, with the rapid rollout of its Artificial Intelligence Platform.</p><p>Commercial revenue growth has accelerated. Based on commercial customer count, which is a leading indicator, this reacceleration stands to continue going forward.</p><p>With this, it’s very possible Palantir’s top line continues to grow in line, or even above, last quarter’s reported 20% revenue growth, for much longer than even some of this stock’s biggest fans anticipate.</p><p>Again, this may not translate into instantaneous outsized earnings growth, but as Palantir reaches scale, and the company reduces growth-related investments, its bottom line could skyrocket. Hence, why we are still of the view that loftier price levels lie ahead.</p><h2 id=\"id_3517382256\">Patience is Key, but it May Prove Very Profitable</h2><p>To reiterate, don’t assume that another rapid rally is just around the corner for PLTR. However, when we say that shares could stay in their current slump in the immediate term, we may be talking weeks, not months.</p><p>Palantir will release its next earnings report on May 8. These results, plus updates to guidance, could quickly shift investor perceptions, resulting in another strong post-earnings rally.</p><p>Even if this does not take shape, subsequent news/developments later this year could re-bolster confidence in the PLTR growth story.</p><p>With this in mind, don’t give in to the fear, uncertainty, and doubt being created by valuation-focused downgrades. Feel free to maintain an existing position, and if shares encounter any short-term volatility, consider seizing the opportunity.</p><p>Palantir stock earns a B rating in Portfolio Grader.</p></body></html>","source":"investorplace_stock_picks","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Palantir Stock’s Valuation Concerns Are Overblown: Get Ready for Liftoff</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPalantir Stock’s Valuation Concerns Are Overblown: Get Ready for Liftoff\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-04-06 12:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/market360/2024/04/palantir-stocks-valuation-concerns-are-overblown-get-ready-for-liftoff/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Concerns about valuation and future growth are again weighing on Palantir Technologies (PLTR).This could continue to persist in the immediate term, resulting in further sideways price performance....</p>\n\n<a href=\"https://investorplace.com/market360/2024/04/palantir-stocks-valuation-concerns-are-overblown-get-ready-for-liftoff/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU1861559042.SGD":"日兴方舟颠覆性创新基金B SGD","BK4588":"碎股","BK4023":"应用软件","PLTR":"Palantir Technologies Inc.","LU1861558580.USD":"日兴方舟颠覆性创新基金B","BK4543":"AI","BK4547":"WSB热门概念","BK4585":"ETF&股票定投概念"},"source_url":"https://investorplace.com/market360/2024/04/palantir-stocks-valuation-concerns-are-overblown-get-ready-for-liftoff/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2425255333","content_text":"Concerns about valuation and future growth are again weighing on Palantir Technologies (PLTR).This could continue to persist in the immediate term, resulting in further sideways price performance.However, don’t let this scare you out of an existing position, as subsequent news will likely help to assuage present concerns.Source: Poetra.RH / Shutterstock.comPalantir Technologies (NYSE:PLTR) is in the doldrums. After surging post-earnings in February, Palantir stock has been rangebound, trading just above and just below $25 per share during this time frame. Concerns about valuation and future growth are again top of mind. This has affected top AI stocks across the board, and PLTR is no exception.If that doesn’t sound disheartening enough, this sentiment may linger in the immediate term. This is especially the case, following a recent development that is potentially further raising concerns about valuation and future growth. But while PLTR is stuck in the mud for now, don’t expect it to last for long.Palantir Stock, an Analyst Downgrade, and Rising Valuation ConcernsOutside of announcements about the latest governmental contract wins, there has been little in the way of news out of Palantir Technologies. However, PLTR has been the subject of headlines, but not in a good way. We’re talking, of course, about a recent, widely reported analyst downgrade of this stock.On March 28, analyst Brian White from Monness, Crespi, Hardt & Co downgraded Palantir stock from neutral to hold. In the downgrade, the sell-sider focused in particular on PLTR’s rich valuation on a price-to-sales basis.Contrasting PLTR’s sales multiple of 18 against both the industry average of 6.3, and other pricey software stocks, White deemed its valuation “egregiously rich” and “excessive.”With the analyst bearish on the direction of the economy, he believes that shares will fall back to earth on disappointment. White’s price target for Palantir is $20 per share, yet his sharp criticism may have valuation-conscious investors worried that a much larger drop is in store.While it’s fact, not opinion, that Palantir is richly-priced, we believe that White’s take on this AI enterprise software company’s future prospects to be erroneous. Much still suggests that a growth resurgence will carry on in the quarters ahead.Demolishing the Bear CaseFirst things first: the aforementioned bear case for Palantir stock assumes downbeat prospects for the economy from now on. The U.S. economy has, and remains poised to stay, resilient in light of challenges like high inflation.Not only that, the rapid adoption of AI technology is a secular growth trend. This means high growth for the sector is likely to continue, irrespective of the overall economy’s direction.As it pertains specifically to Palantir, not only is it benefiting from favorable industry demand trends. As we’ve pointed out previously, Palantir has been crushing it, with the rapid rollout of its Artificial Intelligence Platform.Commercial revenue growth has accelerated. Based on commercial customer count, which is a leading indicator, this reacceleration stands to continue going forward.With this, it’s very possible Palantir’s top line continues to grow in line, or even above, last quarter’s reported 20% revenue growth, for much longer than even some of this stock’s biggest fans anticipate.Again, this may not translate into instantaneous outsized earnings growth, but as Palantir reaches scale, and the company reduces growth-related investments, its bottom line could skyrocket. Hence, why we are still of the view that loftier price levels lie ahead.Patience is Key, but it May Prove Very ProfitableTo reiterate, don’t assume that another rapid rally is just around the corner for PLTR. However, when we say that shares could stay in their current slump in the immediate term, we may be talking weeks, not months.Palantir will release its next earnings report on May 8. These results, plus updates to guidance, could quickly shift investor perceptions, resulting in another strong post-earnings rally.Even if this does not take shape, subsequent news/developments later this year could re-bolster confidence in the PLTR growth story.With this in mind, don’t give in to the fear, uncertainty, and doubt being created by valuation-focused downgrades. Feel free to maintain an existing position, and if shares encounter any short-term volatility, consider seizing the opportunity.Palantir stock earns a B rating in Portfolio Grader.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":19,"commentSize":0,"repostSize":1,"favoriteSize":2,"likeStatus":false,"favoriteStatus":false}}