Update: Its up another 45% since earnings where there was an earnings and revenue surprise. Let’s see how this weekly candle closes

Lets keep a closer watch on this one. The price almost reached the all time high of $45 this past week. I added a few points I came across in an article below the chart.

“Compared to early 2021 when Palantir last hit a new all-time high, Palantir’s revenue growth isn’t nearly what it used to be, although it is accelerating”

“… Palantir’s stock is still incredibly expensive despite the business looking far better now than it did in 2021.

Unfortunately, I think 2024 or 2025 will end similarly to 2021 for Palantir. Palantir’s stock is too expensive to buy here, as the expectations are far too high.

Wall Street expects 24% revenue growth in 2024 and 21% in 2025. But let’s throw those expectations out the window and say that Palantir could grow revenue at a 35% rate for the next five years.

It would generate more than $11 billion in annual revenue if it did that. Palantir has steadily improved its profit margins, so I’ll assume that it can reach 30% profit margins like other mature software businesses. If Palantir did that, the stock would trade for 29.2 times trailing earnings.

Essentially, you’d have to give up five years of growth for the stock to trade at a reasonable level, and that’s with a likely unreasonable growth projection. If you ran that same calculation with 20% growth for five years, the stock would trade at 53 times earnings.

Palantir has grown since 2021; however, because of hefty stock-based compensation and inflated expectations, I’m afraid that this investment won’t end well unless the company sees a massive demand acceleration. As a result, I think investors should use this new all-time high to sell off some of their position”