Palantir's Valuation Is Unrealistic and Unsustainable. Here Is Why You Should Consider Selling.
The stock price of data analytics company Palantir Technologies (NYSE: PLTR) has been on a tear since it reported its first-quarter 2023 earnings on May 8. Investors became bullish after the company beat analysts' revenue and earnings estimates and forecast profitability for the rest of 2023.
Following the earnings release, Ark Invest CEO Cathie Wood, a particularly vocal supporter of Palantir, bought millions of shares of the company through her Ark Innovation ETF and Ark Next Generation Internet investment funds. Her acquisition of the stock apparently boosted market sentiment toward Palantir and helped increase demand for its shares. Wood and her investment firm have had some success in the past at selecting technology sector winners.
The stock price rose 132% between the Q1 report's release day and the day it released its second-quarter results on Aug. 7. The stock's price-to-sales (P/S) ratio of 6.9 at the beginning of 2023 rose to a P/S above 21 as of Aug. 1.
Source Fool.com
