‘No One Doing It Better,’ Says Investor About Palantir Stock

Palantir Technologies (NASDAQ:PLTR) has seen its share prices increase around 5% in the days following last week’s AIPCon 6, during which the company and some of its notable customers presented a number of success stories stemming from the use of PLTR’s AI technologies.

Contributing to the positive sentiment, PLTR announced a slew of new commercial partnerships coinciding with the event. These represented a wide swath of industries, and included high-profile companies such as Qualcomm, Walgreens, and Heineken.

The upswing was a welcome change for investors, after a month of dropping prices. Could this signify that PLTR – which has risen over 260% during the past 12 months – is about to enjoy more gains up ahead?

One investor known by the pseudonym MMMT Wealth believes this just might be the case.

“The new partnerships could be a catalyst for future growth, reinforcing my cautious optimism about PLTR’s valuation,” states the investor.

MMMT further explains that PLTR’s success in attracting new customers from across the commercial landscape speaks highly to its dominant position in the AI race. It also suggests that the sky is the limit for future growth, as PLTR’s wares could be adopted by companies far and wide.

“Every big company needs data to compete at the next level, and there’s currently no company doing it better than PLTR,” notes MMMT.

The investor also spotlights PLTR’s growing revenues per employee, which has increased from $80,000 to $211,000 over the past 21 months. This is yet another reason, points out MMMT, for the company’s robust cash flow margins of 52%.

There is a hang up, however, that MMMT cites. PLTR’s valuations, which sit at 142x price-to-earnings and 48x price-to-sales, are among the highest in the market. However, these figures have come down significantly from multiples of 230x and 90x, respectively, points out the investor, where the high-flying PLTR had been situated prior to the recent pullback.

“At today’s valuation, I think it’s a lot more justifiable, though of course, still very expensive,” concludes MMMT, who is rating PLTR a Buy. (To watch MMMT Wealth’s track record, click here)

Wall Street, however, is not rushing in. With 4 Buy, 10 Hold, and 4 Sell ratings, PLTR holds a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $94.27 would translate into gains of ~8% in the year ahead. (See PLTR stock forecast)

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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.