Is Palantir Stock A Buy Or Sell At Its Current Valuation?

Summary

  • Palantir's stock has declined by more than 60% from its record price set about a year ago due to mounting macro headwinds.
  • Investors have been migrating away from high-valuation growth stocks, especially those in emerging technologies, as pandemic-era policy support dwindles with tightening monetary policy on the horizon.
  • Yet, there have been no material changes to the bullish thesis supporting Palantir's growth trajectory - the company continues to be well-positioned for growth opportunities arising from digitization trends.
  • Paired with its debt-free balance sheet, robust cash-on-hand balance, continued strength in generating cash from operations, and high-visibility revenues, Palantir makes a favourable investment ahead of the upcoming rate hikes with promising upside realizable over both the near and longer term.
Palantir headquarters in Silicon Valley

Sundry Photography/iStock Editorial via Getty Images

Palantir (NYSE: NYSE:PLTR) continues to be caught in the broader market rout these days, with the stock’s value declining more than 12% since the year opened. The current macro backdrop has not made a favourable environment for high-growth segment stocks. The recent release of

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Disclosure: I/we have a beneficial long position in the shares of PLTR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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