Palantir (NYSE: PLTR) has been a polarizing stock ever since its public debut in September 2020. The data analytics company initially dazzled the bulls with its high growth rates, its goal of becoming the "default operating system for data" across the U.S. government, and the expansion of its commercial business. Its stock started trading at $10 per share on the first day and then eventually rallied to an all-time high of $39 during the buying frenzy in meme and growth stocks in January 2021.
Yet Palantir's stock now trades at less than $10. It lost its luster as its growth cooled off and rising interest rates popped its bubbly valuations. At its peak, Palantir had an enterprise value of $68 billion -- a whopping 44 times the revenue it would actually generate in 2021. Its enterprise value has since dropped to $19 billion, but that still doesn't make it a screaming bargain at 9 times this year's sales.
Should investors buy this out-of-favor growth stock as a turnaround play?
Source Fool.com