Palantir at All-Time Highs: Buy Now or Brace for a Reality Check? - Yahoo Finance

The Motley Fool's Stefon Walters analyzes whether Palantir Technologies stock is worth buying at current all-time highs.

Palantir's stock is trading at an extremely high 270 times forward earnings as of July 29, raising concerns about valuation sustainability. The data analytics company, known for government contracts and link analysis technology, faces questions about whether its growth rates can justify current prices. Historical comparisons show other software companies like Zoom, Bill Holdings, and Snowflake experienced significant declines after reaching similar stretched valuations.

• Palantir trades at 270x forward earnings, an unsustainable valuation for a government contractor
• Past software companies at triple-digit multiples saw drops of 45-86% from their peaks
• Dollar-cost averaging recommended for investors who believe in long-term potential
• The Motley Fool's Stock Advisor team excluded Palantir from their top 10 investment picks