Wall Street Analysts Flag Palantir as Overvalued AI Play Amid 600% Rally
Palantir's meteoric 600% surge over the past year faces growing skepticism as analysts project a 17% downside from current levels. The data analytics firm, now ranking among the world's top 25 companies by market cap, reported accelerating revenue growth of 48% last quarter alongside explosive 93% expansion in US commercial sales.
While contract values soared 140% year-over-year to $2.27 billion, the stock's valuation appears disconnected from fundamentals. 'Profit margins expanding during hypergrowth phases is historically unsustainable,' noted one institutional trader, drawing parallels to previous tech bubbles. The company's government ties and AI positioning have fueled retail investor enthusiasm despite mounting concerns about stretched valuations.
