PLTR - Palantir Technologies: The Market Is Too Optimistic

2024-05-23 02:36:57 ET

Summary

• Palantir reported 21% top-line growth in Q1/24 and continued to improve its margins as especially commercial revenue is contributing to growth.
• The stock is still overvalued and considering the ongoing dilution, PLTR has to grow about 30% to be fairly valued.
• The company is clearly hyped, and generative AI is at the top of the hype cycle right now.

In the last few quarters, I was rather cautious about Palantir Technologies ( PLTR ) and in my last few articles, I rated the stock as a "Hold" and my advice was to be rather cautious. At the end of November 2023, I wrote an article why it is difficult to justify Palantir's share price. In the meantime, Palantir still increased about 8%, but it underperformed the S&P 500 in the last six months, which increased about 16%....

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