‘The Time Is Now’—Why Palantir Stock Just Became Unignorable

Big money bets are piling into Palantir as institutional FOMO hits overdrive. The data-mining giant—long a polarizing play—is suddenly flashing buy signals even Wall Street can’t ignore.

Bulls see an AI edge, bears see hype. But with contracts stacking up and shorts getting squeezed, one thing’s clear: this isn’t your 2020 meme stock anymore.

Just don’t tell the ‘smart money’ they’re late to the party—again.

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Palantir’s incredible track record over the past year is well known by this juncture, as the company continues to deliver record revenues, strong margins, and a growing list of satisfied customers.

The company is particularly known for its defense- and security-related business, and global tensions have a tendency to boost its share price. All told, PLTR is up some 450% over the trailing 12 months.

Though assessing that “Palantir’s bull case is stronger than ever,” investor Kenio Fontes believes that the time has finally come to say farewell.

“Even with optimistic growth and margin assumptions, Palantir’s premium valuation is hard to justify,” explains the 5-star investor.

Of course, that’s not to say that the investor is down on Palantir’s growth prospects – far from it. Not only is the “AI war tech” thesis firmly intact, and growing commercial revenue gives the investor even more optimism. The problem is that these positive numbers are already priced into the share price.

And that’s just the rub, emphasizes Fontes, who notes that the company’s valuation is an “F.” In addition, the record-setting growth will eventually reach a natural limit.

“PLTR should not continue to trade at 200x forward earnings, but rather as a premium company with predictable free cash FLOW that has reached greater maturity, and therefore the multiple will reduce to something closer to the market average,” adds Fontes.

In the meantime, the investor believes that there are better options out there for those looking to take advantage of the AI trend, but in a more predictable and slightly less risky fashion. Summing up, Fontes urges investors to steer clear of this one for now.

“PLTR has currently become an avoidable stock, with no compelling reasons to have it,” concludes Fontes, who rates PLTR a Sell. (To watch Fontes’ track record, click here)

Wall Street is neither hot nor cold on Palantir, but rather somewhere in the lukewarm middle. With 10 Hold ratings – to go along with 3 Buys and 4 Sells – PLTR has a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $104.27 has a downside of ~25%. (See)

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