Palantir: The Market Is Finally Blinking, And It Could Get Worse
Seeking Alpha••business
Key Points:
- Palantir is trading at an extremely high valuation, with a forward P/E ratio exceeding 200x, significantly above its software industry peers, driven by strong AI market optimism.
- Despite expected robust profitability and adjusted operating margins potentially reaching 50% by fiscal year 2027, Palantir's revenue growth rate is projected to slow from 54% in 2025 to 37% by 2027.
- The company's strategic importance is reinforced by geopolitical tensions and key defense partnerships, maintaining its relevance in both government and commercial AI sectors.
- However, the current excessive valuation creates a disconnect with the company's fundamentals, leading to a maintained sell rating as the stock struggles to break past the $190 resistance level.
- Investors are advised
