PLTR - 1 Big Reason I'd Hold Off on Buying Palantir Technologies Stock Right Now
2024-06-02 10:36:00 ET
Businesses involved with artificial intelligence (AI) have seen the valuations of their stocks skyrocket over the past year. Investors are bullish on companies that can leverage next-gen technologies to their advantage and that can unlock future growth opportunities.
One company that has been neck-deep in AI has been Palantir Technologies (NYSE: PLTR) . Last year, the data analytics company unveiled its AI platform, AIP, which management says has been a big hit with customers. But as promising as the business's prospects appear to be, I wouldn't jump on Palantir's bandwagon just yet.
One thing that makes me wary is when management sets expectations that may be a bit high. That can make it incredibly difficult for the business to surpass expectations and it also means the stock is likely trading at a significant premium as investors are pricing in all that future growth management is talking about that has not yet materialized. And trading at more than 60 times its estimated future earnings , it's clear that is the case with Palantir.
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1 Big Reason I'd Hold Off on Buying Palantir Technologies Stock Right Now