Is It Too Late to Buy Palantir Technologies Stock?
Palantir Technologies (NYSE: PLTR) has been one of the standout performers on the stock market in 2023, with huge gains of 180% so far. Artificial intelligence (AI) has been one of the key reasons behind the stock's terrific surge, as the company is expected to win big from the fast-growing adoption of this technology.
However, Palantir's revenue growth has been impacted this year by a slowdown in government spending, which may be a point of concern for investors given the stock's rich valuation. Does this mean that Palantir stock isn't a worthy investment anymore? Or, will artificial intelligence accelerate its growth and help justify the valuation?
Palantir is now trading at an expensive 19 times sales, which is nearly triple the company's price-to-sales ratio at the end of 2022. Also, its trailing earnings multiple stands at 262. However, the surge in the company's stock price has mostly been driven by its prospects in the AI software market, not by its financial growth, which slowed in 2023.
Source Fool.com
