Palantir’s high valuation is leaving little room for rescue opportunities as the stock momentum breaks, according to Ritholtz Wealth Management CEO Josh Brown. The company’s P/E ratio exceeds 500 and its forward multiple surpasses 180, making it a “no-man’s land” between value and momentum investments.
Brown stated that no value managers are close to taking notice of Palantir yet, while momentum traders are likely taking profits due to the recent decline. Despite this, Brown believes long-term investors can “grit their teeth” and ride out the pullback.
However, he also sees Palantir as one of the best-positioned companies for several market themes, including rising geopolitical tensions and the artificial intelligence boom. The company has become synonymous with next-generation warfare.
Wall Street is still skeptical, with average analysts polled by LSEG holding a hold rating and predicting further downside over the next year. Virtus Investment Partners’ Joe Terranova recommends watching for shares to fall near $84 or $85 as a potential buying opportunity.
Source: https://www.cnbc.com/2025/02/20/josh-brown-says-palantir-is-now-trapped-in-a-no-mans-land-after-stock-momentum-breaks.html