Is Palantir the Next Tesla?

Few stocks have been called overvalued and a scam as much as (NASDAQ: TSLA) has. However, the returns keep coming, and long-term shareholders have been rewarded, even if it hasn't been the smoothest of rides.

Part of the reason for Tesla's stock success is the loyalty of retail investors who don't think about cash flows or valuation, instead buying the stocks they feel can succeed. Part of the reason for Tesla's success is its CEO, Elon Musk. Whether you like him or not, it doesn't matter. The reality is, his leadership created a strong following in Tesla's stock, and his vision for the future captured the imagination of shareholders.

While Tesla has faced several sell-offs and calls for it to be worth far less than it actually is (there's still an analyst who has a $120 price target on Tesla's stock, according to Yahoo! Finance), it has maintained its elevated levels for a long time and has bounced back after each sell-off. With the rise of retail investors, stocks that defy logic have become a trend, and I think it could be a similar story with Palantir (NASDAQ: PLTR).

Continue reading

Source Fool.com