Palantir Shares Surge 2900% in 2023, but Future Outlook Remains Grim
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Fool
- AI Revolution Attracts Investment: PwC analysts predict the artificial intelligence market will exceed $15 trillion by 2030, drawing significant investor attention and highlighting the immense potential of this sector.
- Palantir's Stock Surge: Since the beginning of 2023, Palantir's shares have skyrocketed over 2900%, propelling its market cap to the 19th largest publicly traded company on Wall Street, reflecting strong market confidence in its AI technologies.
- Valuation Risks: With a current price-to-sales ratio of approximately 127, significantly above the historical 30 threshold for large tech firms, Palantir's stock is at risk of a substantial correction, indicating potential volatility ahead.
- Bleak Future Outlook: Historical trends suggest that every major technological innovation has faced a bubble-bursting event, and Palantir may encounter similar challenges in 2026, prompting investors to approach its future performance with caution.
PLTR
$193.98+Infinity%1D
Analyst Views on PLTR
Wall Street analysts forecast PLTR stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for PLTR is 187.87 USD with a low forecast of 50.00 USD and a high forecast of 255.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
3 Buy
11 Hold
2 Sell
Hold
Current: 193.380
Low
50.00
Averages
187.87
High
255.00
Current: 193.380
Low
50.00
Averages
187.87
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.
