Palantir Technologies: Time To Tread Carefully
Summary
- Palantir delivered strong Q1 results, with 39% YoY revenue growth and surging operating profits, driven by momentum in both government and commercial AI contracts.
- The company’s AI platform is fueling rapid profit and free cash flow growth, with 2025 guidance pointing to robust margins and continued scaling.
- Despite operational strength, Palantir’s valuation—trading at nearly 100x next year’s sales—is extremely aggressive and detached from fundamentals.
- While AI demand is strong, I believe Palantir’s risk/reward is unattractive at current prices; investors should exercise caution due to excessive optimism.
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