Buy The Dip Palantir Stock

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Buy The Dip Palantir Stock

Should You Buy The Dip In Palantir Stock?

Palantir's stock price took a dip despite the strong earnings report. This makes one wonder if it is the right time to buy the Palantir stock or not!

The profit numbers and the revenue of Palantir are way above the forecasts. In fact, the revenue growth was recorded at 85%. Another piece of good news was the growth seen in the US commercial division, as the company's main client was just the US government.

Palantir's P/E Ratio Is Very High

Palantir is also running bootcamps where it showcases how its products can be used. The data shows these bootcamps have also helped Palantir to secure new business.

So, if everything is going so well, then why is the Palantir share price falling? A quick look at the Palantir share price shows it is still trading at a high valuation despite the dip!

The trailing P/E of Palantir is 153, which is quite high. But, it has gone down when we look at the same number from a few months ago. But, we still can't justify saying the Palantir stock is available at a discount with a P/E of 153.

So, there's nothing wrong with the results, but it's just that the share price is a little too high. And when the Palantir share prices dip even lower, it will only make it an even more attractive option for the investors.

Amidst all of this, Palantir is also facing a major challenge from Anthropic Cluade. For starters, Palantir also uses Claude's AI tool, which means it is dependent on Anthropic.

Another issue is that Claude is now releasing plugins that are really good at doing certain tasks. So, in theory, customers could do their work with Claude's plugin instead of relying on Palantir.

With all things considered, it is wise to stay away from Palantir for now. But if the Palantir stock price dips even lower and the valuation gets reasonable, then you can consider taking an entry.

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