Prediction: 2 Stocks That Will Be Worth More Than Palantir 1 Year From Now

Palantir Technologies (NASDAQ: PLTR) has been one of the best-performing stocks of the artificial intelligence (AI) era. Even after a recent pullback, the software stock known for its focus on defense and counterterrorism is up 1,410% since the start of 2023. That growth has been largely driven by the emergence of its artificial intelligence platform (AIP), which it launched in 2023. AIP has unleashed the power of its deep data mining software and further differentiated its software from alternatives, allowing its customers to dramatically accelerate their workflows.Palantir's revenue growth has now accelerated for six straight quarters, and its operating margin has improved for eight consecutive quarters, excluding a one-time stock grant in the fourth quarter. While Palantir's business continues to look impressive, the growth in the stock has dramatically outpaced the business, and its valuation is significantly higher than its software and AI peers. Palantir stock now trades at a price-to-sales ratio of 78. The valuation could get cut in half and Palantir would still be one of the most expensive stocks on the market.Meanwhile, this $213 billion company does face real risks. A new administration is looking to trim the budget of the U.S. government and an economic slowdown or a recession could lower demand from commercial customers. Additionally, geopolitical tensions could drive away European customers or further cool off growth in that region. Palantir is vulnerable to a pullback due to its valuation and the risks outlined here.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool