Why I Sold All of My Palantir Stock
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 09 2024
0mins
Should l Buy PLTR?
Source: Fool
Investment Decision: The author sold their entire position in Palantir before its earnings announcement due to concerns over high valuation metrics, despite the company's strong growth and productivity gains from its Artificial Intelligence Platform (AIP).
Future Considerations: While acknowledging the potential for Palantir's stock to rise, the author remains cautious about repurchasing shares until the company's valuation becomes more reasonable, reflecting on past investment mistakes as a guiding factor.
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Analyst Views on PLTR
Wall Street analysts forecast PLTR stock price to rise
17 Analyst Rating
5 Buy
10 Hold
2 Sell
Hold
Current: 129.130
Low
50.00
Averages
192.88
High
255.00
Current: 129.130
Low
50.00
Averages
192.88
High
255.00
About PLTR
Palantir Technologies Inc. is engaged in building software to assist in counterterrorism investigations and operations. The Company has built four principal software platforms, including Palantir Gotham (Gotham), Palantir Foundry (Foundry), Palantir Apollo (Apollo), and Palantir Artificial Intelligence Platform (AIP). Apollo is a cloud-agnostic, single control layer that coordinates ongoing delivery of new features, security updates, and platform configurations, helping to ensure the continuous operation of critical systems. Gotham enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants. Foundry transforms the ways organizations operate by creating a central operating system for their data. AIP enables responsible artificial intelligence (AI)-advantage across the enterprise by using primary, core components built to effectively activate large language models and other AI within any organization.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Significant Revenue Growth: Palantir has achieved double-digit revenue growth for several consecutive quarters amid the AI boom, demonstrating strong market performance and reinforcing its position as a tech startup.
- Substantial Investment Returns: An investment of $10,000 at Palantir's IPO would now be worth over $142,820, despite a decline from a peak of $180,000, indicating robust investment return potential.
- Dual Growth from Government and Commercial Clients: Palantir's government revenue continues to grow in double digits, while commercial clients are rapidly increasing, reflecting widespread demand for its software in data application and strategy revamping, suggesting significant future growth potential.
- AI Platform Boosts Earnings: The launch of the Artificial Intelligence Platform (AIP) in 2023 has supercharged Palantir's technology and earnings growth, with a surge in commercial customer numbers indicating that the company may see more shareholder gains ahead.
See More
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- Government Contract Growth: Palantir has built a solid portfolio of government contracts, with government revenue continuing to grow in double digits, indicating a strong foundation in the public sector that is likely to drive future revenue growth.
- Surge in Commercial Customers: The launch of Palantir's software has led to a rapid increase in commercial customers, enhancing their ability to leverage data for decision-making, suggesting significant expansion potential in the commercial market with ample room for future growth.
- AI Platform Boost: The introduction of the Artificial Intelligence Platform (AIP) in 2023 has supercharged Palantir's technology and earnings growth, and combined with strong government and commercial performance, indicates the potential for increased shareholder returns in the future.
See More
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- Nvidia's Strong Performance: Nvidia boasts a five-year average annual return of 67.87%, reflecting its robust performance amid the AI wave, with future growth likely fueled by significant investments from major tech companies in AI infrastructure.
- Palantir's Rapid Growth: Palantir's fourth-quarter revenue surged 70% year-over-year, with a 34% increase in customer count, and its 'Rule of 40' metric jumped from 81% to 127%, indicating high profitability from sales, although international expansion is hindered by a talent shortage.
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- Palantir's Rapid Growth: Palantir posted a 70% year-over-year revenue increase in Q4, with a 34% rise in customer count, and its 'Rule of 40' score surged from 81% to 127%, demonstrating high profitability per sales dollar, despite challenges in international expansion.
- MercadoLibre's Market Potential: MercadoLibre boasts 115 million unique buyers and a 39% year-over-year revenue growth in Q3, with a net profit margin of 5.7%, and while facing competitive pressures, its forward P/E of 31 suggests attractive pricing.
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See More
Palantir Technologies Stock Soars Amid AI Boom
- Significant Revenue Growth: Palantir has achieved double-digit revenue growth over the past few quarters, driven by innovations in artificial intelligence that enable customers to easily apply AI, thereby rapidly boosting the company's performance.
- Substantial Investment Returns: An investment of $10,000 at Palantir's 2020 IPO would now be worth over $142,820, despite a recent pullback in stock price, indicating strong investment potential.
- Growing Government Contracts: Palantir has long relied on government contracts, with current government revenue continuing to grow in double digits, while commercial customers are also rapidly increasing, reflecting strong demand across multiple sectors.
- AI Platform Launch: The launch of Palantir's Artificial Intelligence Platform (AIP) in 2023 has further enhanced its technological capabilities and driven growth in its commercial business, suggesting that shareholders may see more gains in the future.
See More
Palantir's Revenue Soars Amid AI Boom
- Significant Revenue Growth: Palantir has achieved double-digit revenue growth for several consecutive quarters amid the AI boom, demonstrating strong market performance and reinforcing its position as a tech startup.
- Substantial Investment Returns: An investment of $10,000 at Palantir's IPO would now be worth over $142,820, despite a decline from a peak of $180,000, indicating robust investment return potential.
- Dual Growth from Government and Commercial Clients: Palantir's government revenue continues to grow in double digits, while commercial clients are rapidly increasing, reflecting widespread demand for its software in data application and strategy revamping, suggesting significant future growth potential.
- AI Platform Boosts Earnings: The launch of the Artificial Intelligence Platform (AIP) in 2023 has supercharged Palantir's technology and earnings growth, with a surge in commercial customer numbers indicating that the company may see more shareholder gains ahead.
See More
Palantir Technologies IPO Investment Returns Astound Investors
- Significant Investment Returns: An investment of $10,000 in Palantir at its 2020 IPO would now exceed $142,820, despite a recent decline from a peak of $180,000, highlighting the company's robust growth potential in the AI sector.
- Government Contract Growth: Palantir has built a solid portfolio of government contracts, with government revenue continuing to grow in double digits, indicating a strong foundation in the public sector that is likely to drive future revenue growth.
- Surge in Commercial Customers: The launch of Palantir's software has led to a rapid increase in commercial customers, enhancing their ability to leverage data for decision-making, suggesting significant expansion potential in the commercial market with ample room for future growth.
- AI Platform Boost: The introduction of the Artificial Intelligence Platform (AIP) in 2023 has supercharged Palantir's technology and earnings growth, and combined with strong government and commercial performance, indicates the potential for increased shareholder returns in the future.
See More
Recommendations for Hyper-Growth Tech Stocks
- Nvidia's Market Performance: Nvidia boasts a 67.87% average annual return over the past five years, continuously launching new chips amid the AI wave, which is expected to further solidify its leadership in the data center market and attract more investor interest.
- Palantir's Growth Potential: Palantir reported a 70% year-over-year revenue increase in Q4, with a 34% rise in customer count, and its 'Rule of 40' shows a remarkable 127% growth and profitability, indicating strong market appeal despite challenges in international expansion.
- MercadoLibre's Sustained Growth: MercadoLibre excels in e-commerce and fintech in Latin America, with 115 million unique buyers and a 39% year-over-year revenue increase in Q3, demonstrating robust growth potential in a competitive market.
- ETF Investment Opportunities: The Vanguard Information Technology ETF, featuring several 'Magnificent Seven' stocks, offers a quality growth investment channel, and while market volatility is a concern, long-term investors can still benefit significantly.
See More
Nvidia Continues to Grow as Semiconductor Giant
- Nvidia's Strong Performance: Nvidia boasts a five-year average annual return of 67.87%, reflecting its robust performance amid the AI wave, with future growth likely fueled by significant investments from major tech companies in AI infrastructure.
- Palantir's Rapid Growth: Palantir's fourth-quarter revenue surged 70% year-over-year, with a 34% increase in customer count, and its 'Rule of 40' metric jumped from 81% to 127%, indicating high profitability from sales, although international expansion is hindered by a talent shortage.
- MercadoLibre's E-commerce Potential: MercadoLibre serves 115 million unique buyers and 72 million monthly active fintech users in Latin America, achieving a 39% year-over-year revenue increase and marking its 27th consecutive quarter of over 30% revenue growth, despite facing competitive pressures.
- Vanguard ETF Investment Opportunity: The Vanguard Information Technology ETF includes over 300 growth stocks, providing a convenient investment avenue, although market volatility may lead to sharper pullbacks in fast-growing stocks, necessitating readiness for long-term investors.
See More
Four Hyper-Growth Tech Stocks to Buy in 2026
- Nvidia's Strong Performance: Nvidia has excelled in the AI wave with a five-year average annual return of 67.87%, and its forward P/E ratio of 24.3 is significantly lower than the five-year average of 37.4, indicating attractive stock pricing and future growth potential.
- Palantir's Rapid Growth: Palantir posted a 70% year-over-year revenue increase in Q4, with a 34% rise in customer count, and its 'Rule of 40' score surged from 81% to 127%, demonstrating high profitability per sales dollar, despite challenges in international expansion.
- MercadoLibre's Market Potential: MercadoLibre boasts 115 million unique buyers and a 39% year-over-year revenue growth in Q3, with a net profit margin of 5.7%, and while facing competitive pressures, its forward P/E of 31 suggests attractive pricing.
- Vanguard Tech ETF Investment Opportunity: The Vanguard Information Technology ETF includes several 'Magnificent Seven' stocks, offering exposure to over 300 growth stocks, and while market volatility is a concern, long-term investors can still benefit significantly.
See More
Palantir Technologies Stock Soars Amid AI Boom
- Significant Revenue Growth: Palantir has achieved double-digit revenue growth over the past few quarters, driven by innovations in artificial intelligence that enable customers to easily apply AI, thereby rapidly boosting the company's performance.
- Substantial Investment Returns: An investment of $10,000 at Palantir's 2020 IPO would now be worth over $142,820, despite a recent pullback in stock price, indicating strong investment potential.
- Growing Government Contracts: Palantir has long relied on government contracts, with current government revenue continuing to grow in double digits, while commercial customers are also rapidly increasing, reflecting strong demand across multiple sectors.
- AI Platform Launch: The launch of Palantir's Artificial Intelligence Platform (AIP) in 2023 has further enhanced its technological capabilities and driven growth in its commercial business, suggesting that shareholders may see more gains in the future.
See More
