Should You Worry About Palantir's Valuation?
Palantir Technologies (NASDAQ: PLTR) has had a lot going for it in recent quarters. The artificial intelligence (AI) software company has seen revenue in its commercial and government businesses climb in the double digits and has expertly balanced growth with profitability. Investors have noticed, prompting the stock to soar 1,200% over the past three years.
On top of this, with demand for its Artificial Intelligence Platform (AIP) climbing and the overall AI market marching higher toward the trillions of dollars, Palantir's future looks bright.
But one element has cast a shadow over this sunny story, and that's the stock's valuation. This too has surged, with the stock today trading for more than 230x forward earnings estimates -- a level that some investors might consider exorbitant. Should you join that camp and worry about Palantir's valuation? Let's find out.
Source Fool.com
