2024-02-10 12:00:00 ET
Summary
- The robust demand for PLTR's SaaS offerings is undeniable, marking the re-start of its growth trend as more invest in their generative AI capabilities during a supposed soft landing.
- The same has been observed in its expanding gross margins, improving Net Retention Dollar, and growing long-term Remaining Performance Obligations.
- However, PLTR is not investable at FWD P/E of 67.70x, with the overly inflated valuations and decelerating growth trend bringing forth massive uncertainties to its near-term upside potential.
- Here is where the quote, "the trend is your friend until the end when it bends" may be highly applicable, with the stock market likely to pullback after much of the earnings season hype has been moderated.
- While we remain convinced about PLTR's long-term prospects, we believe that it may be wiser to wait for a moderate pullback to its previous resistance level of $17s to dollar cost average.
We previously covered Palantir Technologies Inc. (PLTR) in November 2023, discussing the management's brilliant marketing approach for AIP, with it likely to accelerate its top-line and customer base expansions....
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For further details see:
Palantir: No Room For Disappointment - The AI Hype Has Gone Overboard