Close Menu
Global News HQ
    What's Hot

    3 Reasons the Bitcoin Surge Isn’t Over | The Motley Fool

    July 27, 2025

    This One Mistake Could Be Ruining Your Laundry, Pros Say—But It’s So Easy to Fix

    July 27, 2025

    I’m a Solo Traveler, and I’m Eyeing These 13 Amazon Deals on Personal Safety Devices—From $9

    July 27, 2025
    Recent Posts
    • 3 Reasons the Bitcoin Surge Isn’t Over | The Motley Fool
    • This One Mistake Could Be Ruining Your Laundry, Pros Say—But It’s So Easy to Fix
    • I’m a Solo Traveler, and I’m Eyeing These 13 Amazon Deals on Personal Safety Devices—From $9
    • Creating an Effective Training Plan for New Employees
    • Hurry, These Will Sell Out—Walmart Is Slashing Prices on Popular Camping Chairs
    Facebook X (Twitter) Instagram YouTube TikTok
    Trending
    • 3 Reasons the Bitcoin Surge Isn’t Over | The Motley Fool
    • This One Mistake Could Be Ruining Your Laundry, Pros Say—But It’s So Easy to Fix
    • I’m a Solo Traveler, and I’m Eyeing These 13 Amazon Deals on Personal Safety Devices—From $9
    • Creating an Effective Training Plan for New Employees
    • Hurry, These Will Sell Out—Walmart Is Slashing Prices on Popular Camping Chairs
    • Philipp Plein Resort 2026 Menswear Collection
    • Your Comic-Con 2025 News: 'Peacemaker,' 'Starfleet Academy' and More Thrills
    • US Feds File Suit to Forfeit $7.1M in Crypto With Ties to Oil and Gas Storage Fraud
    Global News HQ
    • Technology & Gadgets
    • Travel & Tourism (Luxury)
    • Health & Wellness (Specialized)
    • Home Improvement & Remodeling
    • Luxury Goods & Services
    • Home
    • Finance & Investment
    • Insurance
    • Legal
    • Real Estate
    • More
      • Cryptocurrency & Blockchain
      • E-commerce & Retail
      • Business & Entrepreneurship
      • Automotive (Car Deals & Maintenance)
    Global News HQ
    Home - Finance & Investment - Should You Buy Palantir Technologies Stock Before Feb. 3? | The Motley Fool
    Finance & Investment

    Should You Buy Palantir Technologies Stock Before Feb. 3? | The Motley Fool

    Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp VKontakte Email
    Should You Buy Palantir Technologies Stock Before Feb. 3? | The Motley Fool
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Palantir Technologies (PLTR) was one of the hottest stocks of 2024, rising by a staggering 340%. A $15,000 investment in the data analytics stock at the start of the year would have been worth more than $66,000 by the end of it.

    A big reason for Palantir stock’s impressive performance is the exciting revenue growth the business has been generating. Using artificial intelligence (AI), its data analytics platform has unlocked new ways for government and commercial customers to automate their processes and enhance their decision-making.

    With CEO Alex Karp seeing a lot more growth coming in the future, investors have been eager to buy up shares of the business. Palantir reports its next round of earnings numbers on Feb. 3. Should investors buy the stock before that happens?

    Will Palantir’s revenue growth zoom higher?

    Palantir’s Artificial Intelligence Platform (AIP) has proven to be a huge catalyst for the business. The company has been showing potential customers — through what it calls boot camps — the value that its platform can have for businesses, and sales have been taking off as a result of strong AI-related demand. In fact, Palantir’s already high level of revenue growth has been accelerating in recent quarters.

    PLTR Operating Revenue (Quarterly YoY Growth) data by YCharts

    When the company last reported earnings in November, Karp said that demand was “unrelenting” and that the company “absolutely eviscerated this quarter,” with revenue growing at a rate of 30% year over year.

    Karp has been hyping up the business, and that means expectations will be high for Palantir when it releases its results on Feb. 3. But even if it can deliver, that may not be enough to send the stock soaring.

    Is the stock’s slow start to 2025 a sign of things to come?

    Shares of Palantir are down just over 5% to start the new year as I write this. That’s not a huge sell-off by any means, but it could be a sign that perhaps the feverish excitement around the stock is starting to wane.

    The biggest problem for the AI stock is undoubtedly its valuation. Although Palantir’s earnings have been growing, the stock is still incredibly expensive and is trading at around 150 times next year’s expected profits. Even if you take a longer-term view, its price/earnings-to-growth (PEG) multiple is more than 3. Typically, a growth stock is viewed as a cheap buy if its PEG ratio is below 1, and Palantir is nowhere near that.

    The caution for those looking at the short term is that even if Palantir’s growth rate has accelerated yet again, that may not be enough to trigger a big rally for the stock. That’s because at such a high premium, a lot of growth is already priced into its valuation. Unless Palantir massively beats earnings expectations and provides glowing guidance for the rest of the year, there’s the possibility that it’s stock could still fall in value in the short term.

    Why investors may want to hold off on buying Palantir’s stock

    At its current valuation, Palantir’s stock looks to have a lot more downside risk than possible upside.

    Palantir’s upcoming earnings numbers may help tell investors two important things. The first is whether Palantir’s growth is truly unrelenting and still going higher. The second is whether the market is starting to cool off and if Palantir’s valuation is becoming more of a concern for investors. If the company delivers a strong quarter and the stock doesn’t rally, it could be further confirmation that there’s some growing hesitancy around the stock’s high price.

    This is one of the riskier stocks to own this year due to its enormous valuation and while it may be an intriguing one to follow, there are many better-priced growth stocks out there to buy today.

    David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.

    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp Email
    Previous ArticleThe Year's First New Moon Ushers In Big Changes—Here's Why
    Next Article PayPal Updates User Agreement, Makes Available Form 1099Ks

    Related Posts

    3 Reasons the Bitcoin Surge Isn’t Over | The Motley Fool

    July 27, 2025

    Client Challenge

    July 27, 2025

    Chipotle Shares Slide on Weak Same-Store Sales. Time to Buy the Dip or Run for the Hills? | The Motley Fool

    July 27, 2025

    Unlock Your Home Equity: Why Ending Capital Gains on Home Sales Would Be a Game Changer for Retirees

    July 26, 2025
    Leave A Reply Cancel Reply

    ads
    Don't Miss
    Finance & Investment
    4 Mins Read

    3 Reasons the Bitcoin Surge Isn’t Over | The Motley Fool

    Bitcoin (BTC 0.45%) is having another fantastic year. After the leading digital asset’s price soared…

    This One Mistake Could Be Ruining Your Laundry, Pros Say—But It’s So Easy to Fix

    July 27, 2025

    I’m a Solo Traveler, and I’m Eyeing These 13 Amazon Deals on Personal Safety Devices—From $9

    July 27, 2025

    Creating an Effective Training Plan for New Employees

    July 27, 2025
    Top
    Finance & Investment
    4 Mins Read

    3 Reasons the Bitcoin Surge Isn’t Over | The Motley Fool

    Bitcoin (BTC 0.45%) is having another fantastic year. After the leading digital asset’s price soared…

    This One Mistake Could Be Ruining Your Laundry, Pros Say—But It’s So Easy to Fix

    July 27, 2025

    I’m a Solo Traveler, and I’m Eyeing These 13 Amazon Deals on Personal Safety Devices—From $9

    July 27, 2025
    Our Picks
    Finance & Investment
    4 Mins Read

    3 Reasons the Bitcoin Surge Isn’t Over | The Motley Fool

    Bitcoin (BTC 0.45%) is having another fantastic year. After the leading digital asset’s price soared…

    Home Improvement & Remodeling
    4 Mins Read

    This One Mistake Could Be Ruining Your Laundry, Pros Say—But It’s So Easy to Fix

    Key Points Laundry detergent contains active ingredients like enzymes and surfactants, which can go bad.You’ll…

    Pages
    • About Us
    • Contact Us
    • Disclaimer
    • Homepage
    • Privacy Policy
    Facebook X (Twitter) Instagram YouTube TikTok
    • Home
    © 2025 Global News HQ .

    Type above and press Enter to search. Press Esc to cancel.

    Go to mobile version