What Next For Palantir Stock

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What Next For Palantir Stock

What'S Next For Palantir (Pltr) Stock?

If you had invested $10K into the Palantir (PLTR) stock 5 years ago, it would be worth around $95K. In other words, the Palantir (PLTR) stock has gained an upside of 810% in just the last 5 years.

So, the big question is whether you can expect the same performance from Palantir (PLTR) stock in the next few years? To understand this, we must take a closer look at Palantir (PLTR) stock.

Palantir (Pltr) Stock Is Overvalued

Over the years, Palantir (PLTR) has managed to build its own software platform. This covers all of their products, such as Apollo, Foundry, and Gotham.

With the help of its own architecture, Palantir (PLTR) converts raw and messy data into something useful. They are now also deploying AI across the cloud, which further highlights the importance of Palantir (PLTR).

In the start, Palantir (PLTR) got a stable footing by winning government contracts. But now, they also offer their services commercially, which has improved the revenue.

The approach of Palantir (PLTR) is very simple... They start with a small workflow for the client and then introduce more AI tools and modules at a low cost.

Right now, Palantir (PLTR) is trading at 240 times its forward earnings, which is way higher than the sector average. So, there's no doubt that Palantir (PLTR) stock looks expensive.

In order to justify the high stock price, Palantir (PLTR) will need a very high earnings growth, which is just not possible. Also, the products of Palantir (PLTR) are not something that you see in day-to-day life.

With all things considered, Palantir (PLTR) stock looks very expensive right now. So, caution is needed as Palantir (PLTR) stock appears to be in a bubble, which might pop anytime.

However, if the Palantir (PLTR) stock drops to more reasonable levels, then it might be worth looking at! But before that happens, it is best to just watch the Palantir (PLTR) stock from a distance.

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