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SA Asks: Is Palantir a buy, sell or hold right now?
Seeking Alpha asked analysts whether Palantir was a buy, sell, or hold. One analyst said hold, noting that revenue grew 96% year over year in the third quarter and U.S. commercial revenue exceeded U.S. government revenue, while fourth-quarter guidance implied slower growth.
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What happened
Seeking Alpha asked analysts whether Palantir was a buy, sell, or hold. One analyst said hold, noting that revenue grew 96% year over year in the third quarter and U.S. commercial revenue exceeded U.S. government revenue, while fourth-quarter guidance implied slower growth.
Confirmed
Global impact / market context
The tension is between rapid recent sales growth and signs that growth may slow: that could temper expectations for future revenue. The analyst also argues the stock’s high price relative to sales leaves limited room for further valuation gains, making entry timing important to investors.
Analyst inference
The article places Palantir alongside software companies valued highly on expectations for artificial intelligence, naming Snowflake, ServiceNow, and Datadog. If investors become less willing to pay premium prices, these stocks could face valuation pressure even if their businesses continue growing.
Analyst inference
What to watch
- Check whether Palantir’s next guidance and reported revenue growth support or challenge the stated possibility of a slowdown after more than three years of growth-rate acceleration. Analyst inference
- Watch whether the value of newly closed contracts improves from the reported 6% year-over-year increase, since that may help indicate demand for future business. Analyst inference
- Compare Palantir’s share price with the cited $185 fair-value estimate and roughly 63 times trailing revenue, while recognizing these are one analyst’s assessments. Confirmed