Prediction: 1 Stock That Will Be Worth More Than Palantir 3 Years From Now

Palantir Technologies has been one of the hottest stocks on the market over the past couple of years, clocking eye-popping gains of more than 1,100% as of this writing thanks to its accelerating growth that's being driven by the booming demand for artificial intelligence (AI) enterprise software.However, Palantir's remarkable run-up suggests that the stock may have gotten ahead of itself. After all, it is trading at an extremely expensive 75 times sales right now, which is significantly higher than the S&P 500 index's price-to-sales ratio of 3.11. Palantir's price-to-earnings ratio of 412 isn't cheap either when you consider that the S&P 500 sports an earnings multiple of 25.As a result, it may be difficult for Palantir to sustain its outstanding rally, which probably explains why the stock's 12-month median price target of $39 points toward a 50% drop from current levels. Assuming the consensus Wall Street price target indeed turns out to be true and Palantir stock does lose half of its value in the coming year, its market cap could fall to $90 billion from the current reading of $180 billion.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool