‘Don’t be Duped by Doomsayers,’ Says Investor About Palantir Stock
Palantir (NASDAQ:PLTR) shares keep soaring, fueled by a rapidly increasing slew of sovereign and commercial clientele. The stock has been on an unstoppable bull run, skyrocketing nearly 370% in the past year.
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Palantir’s most recent Q4 2024 report added more fuel to the rally, with revenue up 36% year-over-year, reaching $828 million – beating Wall Street’s forecast by $46.28 million. And the company isn’t slowing down. Its Q1 guidance blew projections, with revenue expected to land between $858 million and $862 million, leaving the Street’s $799.36 million estimate in the dust.
Yet, with shares in an almost parabolic ascent, some investors are starting to get jittery. Has the stock run too far, too fast – even for a company firing on all cylinders?
One investor, known by the pseudonym Deep Value Investing, thinks the bears have got it all wrong.
“Skeptics don’t get it. I believe Palantir has the strongest narrative in the US equities market today, with spectacular growth results,” asserts the 5-star investor. “I believe this is just the beginning.”
Deep Value explains that PLTR’s AIP platform truly separates them from the rest of the field. According to the investor, Palantir’s ontology-based approach allows it to successfully map and make connections using an organization’s unique data, workflows, and decision-making processes.
This allows PLTR to address one of the biggest concerns involved in AI integrations, notes Deep Value, namely that the models “hallucinate” and are not truly connected with the realities of organizational operations.
“Palantir is already addressing hallucinations in AI models through their ontology-based approach,” explains Deep Value. In the investor’s view, Palantir is on the cusp of providing programmable AI agents that will be able to fully revolutionize businesses by replacing many a worker.
“I maintain my strong buy rating with a long-term investment timeframe,” concludes Deep Value. “Will there be a pullback in the next weeks? Probably, but over the next 24 months, I believe this will be just noise.” (To watch Deep Value Investing’s track record, click here)
Wall Street analysts, however, are not willing to take risks on that ‘noise.’ With 2 Buy, 10 Hold, and 5 Sell recommendations, PLTR holds a consensus Hold (i.e., Neutral) rating. Its 12-month average price target of $88.60 would lead to losses of ~20% over the coming year. (See PLTR stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
