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Already overextended. Believe there is some more upside but nobody knows. So, risk is getting higher.

Palantir Might Be a Great Stock, But I'm Not Buying It Now. Here's Why

Palantir's stock is not for the faint hearted.

Palantir Might Be a Great Stock, But I'm Not Buying It Now. Here's Why

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{"i18n":{"language":"en_US"},"data":{"magic":2,"id":326173170815288,"tweetId":"326173170815288","gmtCreate":1720656204742,"gmtModify":1720656209481,"author":{"id":3581549237814895,"idStr":"3581549237814895","authorId":3581549237814895,"authorIdStr":"3581549237814895","name":"Theme","avatar":"https://static.tigerbbs.com/8d589f20e0a3a44c380a2aacfda4272b","vip":1,"userType":1,"introduction":"","boolIsFan":false,"boolIsHead":false,"crmLevel":4,"crmLevelSwitch":1,"currentWearingBadge":{"badgeId":"972123088c9646f7b6091ae0662215be-1","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Elite Trader","description":"Total number of securities or futures transactions reached 30","bigImgUrl":"https://static.tigerbbs.com/ab0f87127c854ce3191a752d57b46edc","smallImgUrl":"https://static.tigerbbs.com/c9835ce48b8c8743566d344ac7a7ba8c","grayImgUrl":"https://static.tigerbbs.com/76754b53ce7a90019f132c1d2fbc698f","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.07.14","exceedPercentage":"60.14%","individualDisplayEnabled":0},"individualDisplayBadges":[],"fanSize":27,"starInvestorFlag":false},"themes":[],"images":[],"coverImages":[],"html":"<html><head></head><body><p>Already overextended. Believe there is some more upside but nobody knows. So, risk is getting higher.&nbsp;</p></body></html>","htmlText":"<html><head></head><body><p>Already overextended. Believe there is some more upside but nobody knows. So, risk is getting higher.&nbsp;</p></body></html>","text":"Already overextended. Believe there is some more upside but nobody knows. So, risk is getting higher.","highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://ttm.financial/post/326173170815288","repostId":2450618278,"repostType":4,"repost":{"id":"2450618278","pubTimestamp":1720625340,"share":"https://www.laohu8.com/m/news/2450618278?lang=&edition=full","pubTime":"2024-07-10 23:29","market":"us","language":"en","title":"Palantir Might Be a Great Stock, But I'm Not Buying It Now. Here's Why","url":"https://stock-news.laohu8.com/highlight/detail?id=2450618278","media":"Motley Fool","summary":"Palantir's stock is not for the faint hearted.","content":"<html><head></head><body><ul style=\"\"><li><p>Palantir&#39;s early experience in serving the government is valuable in the AI race.</p></li><li><p>But there is a risk that the AI excitement could be just a fad.</p></li><li><p>Palantir&#39;s stock trades at rich multiples.</p></li></ul><p>The artificial intelligence (AI) industry is on fire in 2024, sending AI-related tech companies to the stratosphere. <strong>Nvidia, Microsoft, </strong>and <strong>Alphabet</strong> are some of the apparent winners.</p><p>Similarly, <strong>Palantir</strong> (PLTR -1.12%), a leading AI software company, has seen massive interest from customers and investors alike. The revenue growth rate improved in recent quarters, while the stock price increased by more than 56% in the first half of 2024.</p><p>While Palantir&#39;s prospects look bright, I can&#39;t convince myself to buy the stock -- at least, not until I become more comfortable with some of its major risks.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/403690c046f7c1c1048ff167fa87869b\" tg-width=\"700\" tg-height=\"466\"/></p><p>Image source: Getty Images.</p><h2 id=\"id_327050339\">Palantir is well positioned in the AI race</h2><p>Palantir might not be a well-known customer tech name like <strong>Amazon</strong> and Alphabet. Still, it has been a critical player in the enterprise-software sector, especially in serving the government sector.</p><p>Founded in 2003 to help the U.S. government in counterterrorism operations, Palantir has, over the years, expanded to serve public sectors in the U.S. and abroad. With the help of Palantir&#39;s Gotham platform, government agencies gain insights from unstructured data sources (internal and external). These insights guide them in making critical decisions, many of which are matters of life and death.</p><p>With the experience gained from serving the public sector, Palantir entered the commercial sector with its Foundry platform, helping massive corporations analyze complex datasets to enhance decision making and business operations. So, while AI technology might have gained the limelight lately, Palantir has been utilizing it over the years to help its clients make sense of their vast data sources.</p><p>Since last year, unsurprisingly, Palantir has been favorably positioned to leverage the heightened interest in AI to offer AI solutions. For instance, the tech company launched the Artificial Intelligence Platform (AIP) in April last year, enabling existing clients to leverage the latest AI technologies (such as large language models) on their existing data and infrastructure. The company also introduced the AIP boot camp, allowing potential clients to experience the impact of AI on their existing business operations.</p><p>Statista estimated the AI market will reach $184 billion in 2024 and could grow to $827 billion in 2030. With revenue of $2.2 billion in 2023, Palantir&#39;s prospects look almost infinite relative to the opportunity ahead.</p><h2 id=\"id_2826179181\">But there are significant risks to consider</h2><p>While the opportunity seems almost unlimited for Palantir, there are still hard questions investors must ask before jumping on the bandwagon.</p><p>Topping the list is whether the recent interest in AI will be sustainable or fizzle out, just like the metaverse did in the last few years. For instance, <strong>JP Morgan</strong> estimated the metaverse would generate an annual revenue of $1 trillion in its 2022 report. But two years later, everyone seems to have lost interest in this area. In fact, Statista estimates the industry will reach $74 billion in 2024.</p><p>If the AI trend proves to be just a fad, or if the AI industry develops much slower than anticipated, AI software companies like Palantir will face a similar fate. Thus, while Palantir&#39;s 2024 first-quarter growth rate improved to 21% (up from 18% in the same period last year), there needs to be more evidence of the sustainability of the recent trend -- at least a few more quarters of improving growth rates to confirm the sustainability of the tailwind.</p><p>Besides, I&#39;m also wary about Palantir&#39;s sky-high valuation. For perspective, the stock trades at a price-to-earnings (PE) ratio of 215. Comparatively, Alphabet trades at a PE ratio of 29 times.</p><p>If Palantir fails to meet investors&#39; expectations, or if the AI trend proves to be weaker than expected, the stock price could plunge to reflect the new reality. The risk is enormous. Palantir&#39;s stock must fall by more than 85% to reach Alphabet&#39;s valuation.</p><h2 id=\"id_974452994\">What it means for investors</h2><p>Many argue that the AI tailwind is one of the biggest trends in a generation, one that will revolutionize work and personal lives. </p><p>Palantir could be one of those huge winners -- at least, that&#39;s what its ardent supporters think. The company has proven tools to help customers reap the value from AI on day one, a massive advantage compared to many young start-ups still changing their offerings.</p><p>Still, I&#39;m not convinced that Palantir&#39;s stock is a good value. It&#39;s too expensive, and I&#39;m unsure if the interest in AI among corporations is sustainable over the longer term. I will remain on the sideline until I become more comfortable with these two issues.</p></body></html>","source":"fool_stock","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 Might Be a Great Stock, But I'm Not Buying It Now. 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Here's Why\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-10 23:29 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2024/07/10/palantir-might-be-a-great-stock-but-im-not-buying/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Palantir's early experience in serving the government is valuable in the AI race.But there is a risk that the AI excitement could be just a fad.Palantir's stock trades at rich multiples.The artificial...</p>\n\n<a href=\"https://www.fool.com/investing/2024/07/10/palantir-might-be-a-great-stock-but-im-not-buying/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4566":"资本集团","BK4587":"ChatGPT概念","IE00BYQQ9H92.USD":"BNY MELLON GLOBAL LEADERS \"A\" (USD) ACC","IE00B775H168.HKD":"JANUS HENDERSON BALANCED \"A5M\" (HKD) INC","LU0109392836.USD":"富兰克林科技股A","LU0096362180.USD":"CT (LUX) I GLOBAL FOCUS \"DU\" (USD)","IE0005OL40V9.USD":"JANUS HENDERSON BALANCED \"A6M\" (USD) INC","BK4507":"流媒体概念","LU0251142724.SGD":"Fidelity America A-SGD","PLTR":"Palantir Technologies Inc.","IE0009356076.USD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A2\" (USD) ACC","BK4576":"AR","LU0096364046.USD":"CT (LUX) I AMERICAN \"DU\" (USD) ACC","LU0158827948.USD":"ALLIANZ GLOBAL SUSTAINABILITY \"A\" (USD) INC","LU0061475181.USD":"THREADNEEDLE (LUX) AMERICAN \"AU\" (USD) ACC","IE00BZ1G4Q59.USD":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","BK4561":"索罗斯持仓","IE0034235303.USD":"PINEBRIDGE US RESEARCH ENHANCED CORE EQUITY \"A\" (USD) ACC","LU0149725797.USD":"汇丰美国股市经济规模基金","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","LU0878866978.SGD":"First Eagle Amundi International AHS-QD SGD-H","LU0154236417.USD":"BGF US FLEXIBLE EQUITY \"A2\" ACC","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","IE00BJTD4V19.USD":"NEUBERGER BERMAN US LONG SHORT EQUITY \"A1\" (USD) ACC","LU0289941410.SGD":"AB FCP I Dynamic Diversified AX SGD","LU0128525689.USD":"TEMPLETON GLOBAL BALANCED \"A\"(USD) ACC","IE00B5TLWC47.USD":"BNY MELLON LONG-TERM GLOBAL EQUITY \"B\" (USD) ACC","LU0433182093.SGD":"First Eagle Amundi International AS-C SGD","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","LU0128525929.USD":"TEMPLETON GLOBAL \"A\" (USD) ACC","LU0187121727.USD":"FIDELITY SUSTAINABLE US EQUITY \"A\" (USD) INC","LU0238689110.USD":"贝莱德环球动力股票基金","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","LU0456855351.SGD":"JPMorgan Funds - Global Equity A (acc) SGD","LU0068578508.USD":"First Eagle Amundi International Cl AU-C USD","IE00BJLML261.HKD":"HSBC GLOBAL EQUITY INDEX \"HCH\" (HKD) ACC","LU0642271901.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD-H","LU0072462426.USD":"贝莱德全球配置 A2","LU0048573561.USD":"FIDELITY AMERICA \"A\" (USD) INC","IE00BKDWB100.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5H\" (SGDHDG) ACC","IE00B5949003.HKD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A\" (HKD) ACC","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","BK4585":"ETF&股票定投概念","LU0048584097.USD":"FIDELITY FUNDS  GLOBAL THEMATIC OPPORTUNITIES \"A\" (USD) INC","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","LU0308772762.SGD":"Blackrock Global Allocation A2 SGD-H","LU0158827781.USD":" ALLIANZ GLOBAL SUSTAINABILITY \"AT\" (USD) ACC"},"source_url":"https://www.fool.com/investing/2024/07/10/palantir-might-be-a-great-stock-but-im-not-buying/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2450618278","content_text":"Palantir's early experience in serving the government is valuable in the AI race.But there is a risk that the AI excitement could be just a fad.Palantir's stock trades at rich multiples.The artificial intelligence (AI) industry is on fire in 2024, sending AI-related tech companies to the stratosphere. Nvidia, Microsoft, and Alphabet are some of the apparent winners.Similarly, Palantir (PLTR -1.12%), a leading AI software company, has seen massive interest from customers and investors alike. The revenue growth rate improved in recent quarters, while the stock price increased by more than 56% in the first half of 2024.While Palantir's prospects look bright, I can't convince myself to buy the stock -- at least, not until I become more comfortable with some of its major risks.Image source: Getty Images.Palantir is well positioned in the AI racePalantir might not be a well-known customer tech name like Amazon and Alphabet. Still, it has been a critical player in the enterprise-software sector, especially in serving the government sector.Founded in 2003 to help the U.S. government in counterterrorism operations, Palantir has, over the years, expanded to serve public sectors in the U.S. and abroad. With the help of Palantir's Gotham platform, government agencies gain insights from unstructured data sources (internal and external). These insights guide them in making critical decisions, many of which are matters of life and death.With the experience gained from serving the public sector, Palantir entered the commercial sector with its Foundry platform, helping massive corporations analyze complex datasets to enhance decision making and business operations. So, while AI technology might have gained the limelight lately, Palantir has been utilizing it over the years to help its clients make sense of their vast data sources.Since last year, unsurprisingly, Palantir has been favorably positioned to leverage the heightened interest in AI to offer AI solutions. For instance, the tech company launched the Artificial Intelligence Platform (AIP) in April last year, enabling existing clients to leverage the latest AI technologies (such as large language models) on their existing data and infrastructure. The company also introduced the AIP boot camp, allowing potential clients to experience the impact of AI on their existing business operations.Statista estimated the AI market will reach $184 billion in 2024 and could grow to $827 billion in 2030. With revenue of $2.2 billion in 2023, Palantir's prospects look almost infinite relative to the opportunity ahead.But there are significant risks to considerWhile the opportunity seems almost unlimited for Palantir, there are still hard questions investors must ask before jumping on the bandwagon.Topping the list is whether the recent interest in AI will be sustainable or fizzle out, just like the metaverse did in the last few years. For instance, JP Morgan estimated the metaverse would generate an annual revenue of $1 trillion in its 2022 report. But two years later, everyone seems to have lost interest in this area. In fact, Statista estimates the industry will reach $74 billion in 2024.If the AI trend proves to be just a fad, or if the AI industry develops much slower than anticipated, AI software companies like Palantir will face a similar fate. Thus, while Palantir's 2024 first-quarter growth rate improved to 21% (up from 18% in the same period last year), there needs to be more evidence of the sustainability of the recent trend -- at least a few more quarters of improving growth rates to confirm the sustainability of the tailwind.Besides, I'm also wary about Palantir's sky-high valuation. For perspective, the stock trades at a price-to-earnings (PE) ratio of 215. Comparatively, Alphabet trades at a PE ratio of 29 times.If Palantir fails to meet investors' expectations, or if the AI trend proves to be weaker than expected, the stock price could plunge to reflect the new reality. The risk is enormous. Palantir's stock must fall by more than 85% to reach Alphabet's valuation.What it means for investorsMany argue that the AI tailwind is one of the biggest trends in a generation, one that will revolutionize work and personal lives. Palantir could be one of those huge winners -- at least, that's what its ardent supporters think. The company has proven tools to help customers reap the value from AI on day one, a massive advantage compared to many young start-ups still changing their offerings.Still, I'm not convinced that Palantir's stock is a good value. It's too expensive, and I'm unsure if the interest in AI among corporations is sustainable over the longer term. I will remain on the sideline until I become more comfortable with these two issues.","news_type":1},"isVote":1,"tweetType":1,"viewCount":117,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":86,"xxTargetLangEnum":"ORIG"},"commentList":[],"hasMoreComment":false,"orderType":2}