2 Reasons to Buy Palantir Stock Like There's No Tomorrow

Palantir Technologies (NASDAQ: PLTR) stock's stunning surge of 372% in 2024 has made the stock extremely expensive, which explains why investors may be wary of buying this high-flying artificial intelligence (AI) software specialist right now.Wall Street is expecting Palantir stock to dip in the coming year, as evident from the 12-month median price target of $39, which points toward a 48% drop from current levels. According to 22 analysts that cover Palantir, this median price target suggests that the stock may have gotten ahead of itself, and that's not surprising if we take a look at its valuation multiples.After all, a price-to-earnings ratio of 399 and a sales multiple of 72 tell us that investors will have to pay significantly rich multiples to buy this AI stock. The tech-laden Nasdaq-100 index, on the other hand, trades at 32 times earnings. However, there are a couple of reasons that Palantir may be worth buying hand over fist despite its expensive valuation.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool