Palantir Technologies (PLTR) has seen an incredible 300% gain in shares this year, making it one of the most talked-about platforms fueling the artificial intelligence narrative. With just a few weeks left in 2024, the company may have a last big milestone achievement up its sleeve.
On December 13, the Nasdaq-100 index will be reconstituted, and Palantir investors should pay attention to what happens next. The new selection of companies added to the index is expected to include growth stocks and lucrative opportunities beyond the S&P 500.
Palantir has already announced its entry into the S&P 500 and transitioned from the New York Stock Exchange (NYSE) to the Nasdaq, with shares gaining about 10% in just seven trading days. Management expressed confidence that Palantir will meet the eligibility requirements of the Nasdaq-100 Index.
The stock’s performance following these milestones suggests a positive outlook for Palantir. However, becoming a member of the Nasdaq-100 alone does not make the stock a buy. Investors should consider the company’s growth outlook, Wall Street’s take on its trajectory, and valuation.
Palantir’s Artificial Intelligence Platform (AIP) is driving the company’s growth, with many analysts remaining bullish on the stock. However, the current price-to-sales multiple of 63.5 and forward price-to-earnings ratio of 149 are considered high. A potential pullback in the stock is likely, but investors should not panic. Instead, they should monitor Palantir and consider using dollar-cost averaging over a long-term horizon to take advantage of any future opportunities.
Source: https://www.fool.com/investing/2024/12/08/should-you-buy-palantir-stock-before-dec-13