Is It Too Late to Buy Palantir Technologies Stock?
Palantir Technologies (NYSE: PLTR) has soared thus far in 2023, driven higher by a general rebound in technology stocks and advances in artificial intelligence (AI) that are taking the world by storm. Shares of the data mining and AI specialist are up 177% so far this year, more than 13 times the 14% gains of the S&P 500. That impressive achievement largely erased the terrible share price performance of last year, when it lost more than 64%. Tracked since the start of 2022, it is now almost back to even.
While the debate rages as to just how far demand for AI could run, Palantir is reaping the rewards of its long history of developing next-generation algorithms, which dates back 20 years -- long before AI joined the cultural zeitgeist. Further backstopping Palantir's rise is its steadily improving financial results over the past year, which suggests the broader economic meltdown that weighed it down might finally be abating.
What does this mean for investors who stayed on the sidelines during Palantir Technologies' recent rally? Should they simply buy the stock and hold it for the long term, or take a hard pass based on its frothy valuation?
Source Fool.com
