PLTR - Palantir's Stock Is Up 50% Halfway Through 2024. Is There More Growth Ahead in the Second Half?
2024-07-10 06:00:00 ET
The first half of the year has been a good one for stocks involved with artificial intelligence (AI). Palantir Technologies (NYSE: PLTR) has seen its share price increase by 50% through the first six months of 2024, well above the S&P 500 's gains of 14%. The data analytics company, however, is still in the early innings of its growth, as it sees plenty of potential for its AI platform, AIP, to generate more opportunities and draw in more customers in the future.
After accumulating such impressive gains through the first half of 2024, is there more in the tank for the stock this year? Can Palantir still be a good buy right now, or is the stock likely running out of steam?
Palantir has been doing well this year, but one problem that could limit further gains is that it's trading at an inflated price-to-earnings (P/E) multiple of nearly 230. Over time, that multiple should come down, provided that Palantir keeps growing and its margins improve. And there's reason to be optimistic on this end, as the company's profit margins are much stronger than they have been in the past.
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Palantir's Stock Is Up 50% Halfway Through 2024. Is There More Growth Ahead in the Second Half?