Palantir Stock: A 40% Downside Scenario Investors Should Consider
Summary
- Palantir's business model is appealing and benefits from secular AI trends, but the stock's valuation poses significant downside risks.
- Market expectations for Palantir's EPS have fluctuated drastically, highlighting the volatility and high expectations for the company's future performance.
- Even with optimistic growth assumptions, Palantir's stock could face a 20% - 40% downside by 2028, with potential for further decline if growth slows.
- I maintain a hold rating on PLTR stock due to the narrow margin of safety and potential downside, despite the company's promising business model.
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