Palantir Technologies (NASDAQ: PLTR) has seen its stock price soar by 379% this year alone, making it one of the biggest winners on the market. The company’s AI platform and government contracts have contributed to its rapid growth. However, the valuation of Palantir’s stock is now sky-high, with a price-to-sales ratio of 75.
The recent surge in shares can be attributed to strong third-quarter earnings reports, the election of Donald Trump, and partnerships with defense tech start-ups like Anduril. But for the stock to continue climbing, it will need to maintain its revenue growth pace of around 30%.
Revenue growth is now the key metric driving Palantir’s stock price growth. Analysts from The Motley Fool Stock Advisor service have identified other stocks that are expected to produce significant returns in the coming years.
If you’re considering investing $1,000 in Palantir Technologies, it may be worth examining these alternative options and considering the potential risks associated with Palantir’s valuation.
Source: https://www.nasdaq.com/articles/every-palantir-investor-should-keep-eye-number