Palantir Stock’s Meteoric Rise Defies Valuation Concerns
Palantir Technologies (PLTR) continues its extraordinary rally, defying skeptics who label it overvalued. The stock has surged 340% in the past year and 105% year-to-date, currently trading around $154. This performance comes despite a price-to-sales ratio of 120—40 times higher than the S&P 500 average.
The company's Artificial Intelligence Platform (AIP) has driven accelerating revenue growth and expanding operating margins over the past two years. While Q4 2024 saw a temporary margin dip due to a one-time stock compensation expense, Palantir's fundamentals appear to justify investor enthusiasm. The AI specialist has transformed from a post-IPO darling to a 2022 laggard, before reclaiming its status as a market leader.