Latest news with #Palantir
Yahoo
29 minutes ago
- Business
- Yahoo
Identify Outliers Like Palantir with Money Flows
PLTR helps businesses and governmental organizations make sense of complex data with its AI-infused data analytics platform. PLTR's first-quarter fiscal 2025 earnings report showed total quarterly revenue of $884 million, $370 million in free cash flow, and adjusted per-share earnings of $0.13 for the quarter. It's no wonder PLTR shares are up 97% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock. Palantir Becoming a Big Money Favorite Institutional volumes reveal plenty. In the last year, PLTR has enjoyed strong investor demand, which we believe to be institutional support. Each green bar signals unusually large volumes in PLTR shares. They reflect our proprietary inflow signal, pushing the stock higher: Plenty of technology names are under accumulation right now. But there's a powerful fundamental story happening with Palantir. Palantir Fundamental Analysis Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, PLTR has had strong sales and earnings growth: 3-year sales growth rate (+23%) 3-year EPS growth rate (+71.6%) Source: FactSet Also, EPS is estimated to ramp higher this year by +25.8%. Now it makes sense why the stock has been generating Big Money interest. PLTR has a track record of strong financial performance. Marrying great fundamentals with MoneyFlows software has found some big winning stocks over the long term. Palantir has become a top-rated stock at MoneyFlows. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis. It's up 521% since its first appearance on the rare Outlier 20 report in February 2024. The blue bars below show when PLTR was a top pick…rising with Big Money inflows: Tracking unusual volumes reveals the power of money flows. This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward. Palantir Price Prediction The PLTR action isn't new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio. Disclosure: the author holds no position in PLTR at the time of publication. If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level and follow our free weekly MoneyFlows insights. This article was originally posted on FX Empire More From FXEMPIRE: Buy Like Big Money: Bentley Systems Lifting Off Coinbase on Fire from Sustained Big Money Buys Some Gains for the Aussie Dollar After the RBA Unexpectedly Holds Navigating China's Economic Challenges: A Q&A with Scope Ratings' Dennis Shen S&P 500 and Nasdaq 100 Analysis: Golden Cross, Golden Opportunity France: Multi-year Budget Plan Supports Fiscal Outlook but Great Uncertainty Remains
Yahoo
an hour ago
- Business
- Yahoo
2 Hot AI Stocks You Should Consider Selling Right Now
Key Points AI stocks are soaring, and some are now clearly overvalued. Palantir has a record price-to-sales ratio and is going to struggle to grow into its market cap. is growing slowly and is deeply unprofitable. 10 stocks we like better than Palantir Technologies › It seems like anything related to artificial intelligence (AI) has turned to gold in the last year. There are now trillions of AI-related dollars in value driving the stock market higher as prices soar for anything deemed an AI winner. Most of the largest companies in the world are now related to or investing heavily in AI, meaning that future stock returns hinge on this fast-growing sector. So far, it is keeping up its end of the bargain with stock prices at all-time highs. All this excitement has led some stocks to become greatly overvalued. Booms are almost always followed by busts, because the promise of a new technology leads people to get too optimistic about future growth, which eventually doesn't live up to the extreme expectations that accompany the boom. Here are two AI stocks to consider selling during this AI boom. Palantir's extreme valuation Maybe the hottest AI stock out there is Palantir Technologies (NASDAQ: PLTR). The AI software provider for the United States government and large corporations has a current market cap of $363 billion, making it the 24th-largest company in the world as I write this. The business is growing quickly as its AI products get rapidly adopted. Revenue grew 39% year over year last quarter, driven by 55% revenue growth in the United States and 71% growth from U.S. commercial customers. Corporations are signing large deals with Palantir, with 139 deals worth at least $1 million closed just in the first quarter. It is a profitable software start-up, with a 20% operating income margin. All this can be true and yet not matter for any investor considering buying the stock today. The thing is, Palantir only generated $3.1 billion in revenue in the trailing 12 months compared to a $363 billion market cap. That gives the stock a price-to-sales (P/S) ratio of 123, which is higher than any company of this size in history. Let's run some numbers to show why this makes Palantir stock overvalued. Assuming Palantir grows its revenue at the recent 39% rate for the next five years, it would grow its revenue to $16 billion. Taking its current profit margin and expanding it to 30%, the company would be generating just under $5 billion in earnings in five years. Or, a price-to-earnings (P/E) ratio of 72.6. Even if Palantir keeps growing at this blistering rate for five more years, the stock would still trade at a highly expensive earnings ratio. This means forward returns will be disappointing for Palantir shareholders. Now is a good time to consider selling your shares of this high-flying stock. slow growth (NYSE: BBAI) does not look overvalued at first glance, at least compared to Palantir. It has a P/S ratio of 13. If it can deploy its AI-powered, intelligence decision solutions across the United States, it may have a chance to grow much larger than its current market cap of $2.4 billion at an $8 share price. The problem is the company's underlying growth rate. Revenue was only up 5% year over year last quarter to $35 million, even though there's an AI spending boom. competes directly with Palantir and seems to be losing out to the much larger company. Profits keep eluding the company. It posted a $21 million operating loss last quarter on just $35 million in revenue. It keeps raising money through stock offerings, with shares outstanding up 100% since going public through a special purpose acquisition company (SPAC). Management brags about deals with the Department of Defense, such as a recent contract to modernize the Joint Chiefs of Staff, but this is only a $13.4 million deal over 3.5 years. It is not going to move the needle for business anytime soon. The stock may be soaring, but this is the exact wrong company to bet on during a technology boom. revenue is barely growing, it is losing out to the competition, and it is burning a lot of money. This is why you should consider selling stock after its recent run-up. Just because it has AI in the name does not mean it is a good stock to buy. Should you invest $1,000 in Palantir Technologies right now? Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $665,092!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,477!* Now, it's worth noting Stock Advisor's total average return is 1,055% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy. 2 Hot AI Stocks You Should Consider Selling Right Now was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 hours ago
- Business
- Yahoo
Palantir Technologies (PLTR): 'I'm Gonna Revise My Price Target When It Gets To 200,' Says Jim Cramer
We recently published . Palantir Technologies Inc. (NASDAQ:PLTR) is one of the stocks Jim Cramer recently discussed. Palantir Technologies Inc. (NASDAQ:PLTR) is a data analytics company whose shares have gained 98% year-to-date. The firm has experienced a positive environment driven by its ability to help the US government cut costs, leverage AI to increase business efficiencies, and strong earnings reports with strong Rule of 40 scores. In his previous comments about Palantir Technologies Inc. (NASDAQ:PLTR), Cramer has boasted that he was among the first to call a $100 price level. This time, he reiterated his opinion and added that he was ahead of analysts who were now raising the firm's share price target to $200: 'Remember Palantir, I said at 50 it goes to 100. When it gets to 150, it gets to 200. I'm gonna revise my price target when it gets to 200. Cause it doesn't matter. It doesn't matter, it's got the Rule of 40. It has the messianic CEO. When you bring them in, they make you money. And it has what this market really wants. Which is momentum. Here's what Cramer commented about Palantir Technologies Inc. (NASDAQ:PLTR)'s price levels earlier: 'I love what they do. Because I think that they are helping everything from consumer product companies to financials to trying to get the Pentagon to do the right thing. Good piece in New Yorker by Dexter Filkins about drones and I'm thinking more about that's Palantir. I just think that, and the other guys at Palantir are all delightful. But you know, Karp has to be Karp. Look, you can be who you want.' While we acknowledge the potential of PLTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Time of India
8 hours ago
- Business
- Time of India
Donald Trump's AI plan gains tech giant support to boost US tech edge in AI race against China
The US President Donald Trump's administration has launched a comprehensive Artificial Intelligence (AI) policy aimed at enhancing US technological leadership while reducing regulatory barriers to AI development. Tired of too many ads? go ad free now This AI Action Plan focuses on accelerating data infrastructure, exporting US AI technology stacks, and strengthening global partnerships to counter China's growing AI influence. Major US technology companies—including Palantir, Google, Meta, and Amazon—have welcomed the move, calling it a crucial step toward innovation and economic growth. However, experts caution that while deregulation and technology exports may strengthen US competitiveness, challenges such as ideological bias in AI models and geopolitical concerns over 'AI dominance' remain. What is Donald Trump's AI plan The Trump administration has unveiled a comprehensive Artificial Intelligence (AI) policy aimed at solidifying America's leadership in emerging technologies. This policy, called the AI Action Plan, focuses on reducing regulatory barriers, expanding technological exports, and strengthening global alliances to counter China's rising influence in AI development and governance. The White House aims to accomplish its ambitious, Silicon Valley-aligned vision by loosening regulations on artificial intelligence, while introducing one key MAGA-friendly provision focused on eliminating political 'bias' within AI systems. The strategy is built on three core pillars: accelerating AI innovation, expanding US AI infrastructure, and positioning American hardware and software as the global standard for AI development. Additionally, the plan emphasises that large language models used by federal agencies must remain 'objective and free from top-down ideological bias,' according to the 28‑page document released by the White House on Wednesday. Tired of too many ads? go ad free now Donald Trump's AI Policy: Key goals of the AI action plan The newly unveiled policy outlines three major areas of focus: Reducing red tape: The administration aims to simplify regulations and ease permitting for AI infrastructure, including large-scale data centers and energy support systems. Exporting US AI technology: The plan calls for exporting complete AI stacks—hardware, models, software, applications, and standards—to allied nations. Officials argue that meeting global demand will prevent reliance on rival nations' technology. Countering Chinese influence: The policy pledges to actively counter China's growing presence in international AI governance, ensuring that global standards align more closely with US values and innovation priorities. US tech giants welcome Trump's AI plan but warn of challenges in correcting bias The plan received widespread approval from the American tech industry: Palantir Technologies lauded the plan, calling AI 'the birthright of the country that harnessed the atom and put a man on the moon.' NetChoice, a leading industry trade group representing Meta, Amazon, and Google, praised the focus on deregulation and investment in innovation. The group emphasised that streamlined policies would accelerate adoption and commercialization of AI across industries, as reported. A significant aspect of the plan focuses on correcting 'ideological bias' in AI systems. Experts warn, however, that addressing such biases is inherently difficult and may face constitutional challenges under the First Amendment. High-performing language models often need to process sensitive or contested subjects such as climate change, public policy, and social issues, which complicates attempts to create fully 'neutral' systems. Trump's AI dominance plan raises global trust concerns While the plan calls for US 'AI dominance,' experts caution that this language could strain relations with allied countries wary of overdependence on American technology. Vivek Chilukuri, director of the technology and national security program at CNAS, noted that Washington already has significant leverage across the AI stack. He argued for fostering balanced partnerships that respect other nations' sovereignty while promoting US-led innovation. Analysts warn that a purely dominance-oriented approach may evoke concerns similar to existing anxieties around dependence on US cloud providers and digital infrastructure. The Trump administration's AI plan represents a strategic shift toward deregulation and global technology expansion, signaling strong government support for rapid innovation. While this may accelerate US leadership in AI, implementation challenges including managing AI bias, navigating geopolitical sensitivities, and ensuring equitable access to technology will define its success. Experts stress the need for careful execution, emphasising partnerships and responsible AI practices to maintain trust both domestically and internationally. Also Read |
Business Insider
13 hours ago
- Business
- Business Insider
Why Now's the Time to Dump Palantir Technologies Stock (PLTR)
Palantir Technologies (PLTR) has had another impressive year in AI, but its stock now trades as if it has already conquered every challenge it may face in the coming decade. With the share price up more than 430% over the past year and a forward P/E north of 670, investors are paying a steep premium for a narrative that still carries significant downside risk. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. While the company's operational momentum is undeniable, the gap between performance and valuation has grown too wide to overlook. For those sitting on substantial gains, this could be a prudent time to reevaluate. I'm issuing a Sell rating—though with a healthy dose of caution. PLTR Blooms from Analytics to Commercial Enterprise Many will consider the firm a newcomer, but Palantir began in 2003 as a government-focused data analytics firm and has since expanded into commercial enterprise software and full-stack AI. Its three flagship platforms, Gotham, Foundry, and Apollo, are now bolstered by AIP (Artificial Intelligence Platform), which integrates LLMs into core workflows. These tools enable clients across multiple industries to harness vast quantities of operational data, thereby transforming their decision-making. Over the years, Palantir has steadily evolved its product suite to become modular, scalable, and commercially-friendly. That effort has clearly paid off by some distance. In Q1 2025, the company reported 769 customers, representing a 39% year-over-year increase. Revenue also jumped 39% to $884 million. U.S. commercial revenue alone surpassed a $1 billion annualized run rate, a key milestone that illustrates the company's deliberate shift away from a dependence on defense. The financial health of the firm is also impressive, with an adjusted operating margin of 44% and adjusted free cash flow reaching $370 million. The quarter ended with over $5.4 billion in cash and comparatively low levels of debt. It's rare to see this combination of growth, profitability, and balance sheet strength in a company still considered fairly early in its AI commercial journey. But the valuation? That's where the story starts to unravel, but more on that later. Strategic Direction & Market Context Despite my caution, it's clear that Palantir isn't just riding the AI wave; it's still actively shaping it. With AIP, management is embedding AI directly into decision-making pipelines across some of the world's largest firms. It's not just building gimmicky chatbots or standalone copilots. It's building intelligent workflows that span logistics, operations, supply chains, and national security. Despite promising diversification in recent years, government demand remains a key pillar for PLTR. The U.S. Army's $100 million contract to expand the TITAN battlefield AI platform marks a continuation of Palantir's leadership in military AI. And more broadly, defense and intelligence agencies continue to lean on Gotham for mission-critical decision-making. These are long-cycle, high-stakes contracts, sticky and significant for the balance sheet. However, what really interests me is the commercial arena. Citi is utilizing Palantir for its wealth management operations while insurer AIG expects Palantir's underwriting software to double its five-year revenue CAGR. Meanwhile, restaurant chain Wendy's is detecting supply chain breakdowns within minutes using AIP. In these partnerships, Palantir is demonstrating its ability to solve core operational bottlenecks at scale, not just handle large amounts of data. Even manufacturing is becoming a growth engine. Palantir's Warp Speed platform is helping drive U.S. reindustrialization efforts, positioning the company within one of the few bipartisan macro trends still standing: domestic supply chain resilience. All this gives Palantir a strong narrative and a foundation for multi-year growth. But even the best stories need to be priced appropriately, and that's where PLTR's bullish case becomes snagged. Bullish vs Bearish PLTR Comparison Palantir's fundamentals make a solid case for long-term optimism. The company is scaling rapidly, generating positive cash flow, and expanding its footprint across both traditional and emerging industries. In Q1 alone, it secured 139 contracts valued at over $1 million each—31 of which topped $10 million—highlighting strong commercial momentum. A net dollar retention rate of 124% suggests not only repeat business but also expanding customer relationships. The company continues to add logos at a healthy clip, while deepening ties with many of its largest accounts. Throw in its cash-rich, debt-free position and positive margin trajectory, and it's clear that Palantir isn't a speculative growth story anymore; it's a mature, expanding business. But even the best business can become a bad investment at the wrong price. Palantir's valuation is extreme by any metric. A forward P/E ratio over 670, an EV/Sales ratio approaching 92, and price-to-cash-flow multiples far exceeding sector averages raise doubts about PLTR's ability to sustain its performance in the medium to long term. Valuation Analysis of PLTR Stock I remain quite skeptical of the current valuation, but let's break down the numbers. Using management's FY25 revenue midpoint of $3.9 billion and projecting a slowdown to 20% annual growth by FY30, along with a 35% free cash flow margin, a 9% WACC, and a 4% terminal growth rate, the fair value comes out to roughly $111 per share. That's about 25% below the current market price, suggesting investors are paying a premium even under relatively bullish assumptions. From this brief overview of the competition, it feels that Palantir is now trading not just above peers, but above nearly every rational comparison. Unless growth significantly accelerates or margin expansion goes parabolic, these multiples are simply unsustainable. Is Palantir Technologies Stock a Strong Buy? On Wall Street, PLTR stock carries a Hold consensus rating based on three Buy, ten Hold, and three Sell ratings over the past three months. PLTR's average stock price target of $104.85 implies almost 30% downside potential over the next twelve months. Palantir Remains a Great Company and a Risky Stock Palantir's rise over the past few years has been impressive by nearly every measure. It has evolved from a misunderstood government contractor into a key player in the AI-powered enterprise stack, with a diverse client base spanning defense, finance, healthcare, insurance, and manufacturing. Its cash flow is solid, and its competitive moat remains intact—for now. That said, I believe the market may be getting ahead of itself. At current valuations, Palantir isn't just priced for continued execution—it's priced for perfection. That's a precarious position, and it leads me to a cautious Sell rating. If there's one lesson the market consistently reinforces, it's this: great companies don't always translate into great stocks, especially when expectations are sky-high.
