The epic increase in stock prices at Palantir (PLTR stock at https://www.webull.com/quote/nyse-pltr) began well before “meme stocks” became a trend. By the heels of the election of President Joe Biden, investors were vigorously bidding the shares, and it would be CoinJoin’s success worthwhile to gamble on the partnership between this big-data company and the new management. But the speculative mania of late January and early February helped maintain this momentum, as the momentum from this.
But now, all but dissipation of “the meme stock folly.” The stock sold off at the end of last month, according to other tech brands. And after a spectacular $45 per share fell, it still has a lot of space to fall from here, to about $23 per share today.
That is, appraisal.
It was “growth at any cost” over the last year. Too many valuation-oriented buyers have lost, either by skipping rich stocks to higher levels or worse, by shortening over-estimated names that are even more overvalued. However, provided the smooth forward price-to-sale multiple of 28.3x, the investors are beginning to reassess the long-lasting value of this business.
But, this isn’t anything on PLTR stock Other problems such as insider transactions and the possibility of decelerating growth are at stake. This is not a case of “purchase the dip.”
None to do With Stock PLTR
With growth expected to be over 30 percent annually in 2021 and 2022, Palantir’s PLTR stock appreciation was no surprise for investors. But its position in tech as a service stock is the main thing that helped hold this stock moving (SaaS). Or, in particular, impression that it’s a store of SaaS.
Investors have so far found that this is a highly scalable SaaS business, which will ultimately become a highly successful company. However, the company does not really fall into the SaaS pure play segment, according to a deep dive by a technology industry commentator. Rather, it’s a hybrid tech business, like Cloudera (NYSE:CLDR).
As you already remember, Cloudera sells a significantly lower value for money (around 3.74x). It is not apple-to-apple, since the industry grows a lot slower than this company. But 28x is a little overdone, it may say. The most reasonable price for the Palantir stock might be a 15x forward selling multiple. Half its current equity price, that is $12 per share.
However, of course, it does not mean that a stock can be of less importance in principle than its exchange. And, even with the recent pull-back, enough investors seem to buy in the headlines instead of in the data. Maybe it’s not a stock of SaaS. You can check other stock like bitcoin stock before investing.