There's a saying that stocks don't move in one direction all the time. Palantir Technologies Inc. (NYSE: PLTR) is testing the logic behind that saying. PLTR stock is up a whopping 151% in 2024 nearly matching the 168% gain in NVIDIA Corp.
Furthermore, the stock is up 24% in the last month alone. This has brought Palantir's market cap close to $100 billion. For context, the company started out the year with a $37 billion market cap.
The recent stock price move corresponds to the company's inclusion in the S&P 500. That was expected to raise the stock price as institutional money flowed in. However, many investors expected there to be an initial pullback.
However, that hasn't been the case. But with the stock above $43 a share, it's now moving into an area that is overbought by technical indicators. If you're a long-term investor, any talk of selling Palantir at this price is quickly dismissed. But at its current price, many traders are asking if now is a time to take some profit. Without giving specific investment advice, let's look at what you should know before making a decision.
Palantir is Objectively Overvalued
By any objective fundamental measure, PLTR stock is expensive. The price-to-earnings (P/E) ratio is 359.45, the price-to-sales (P/S) is 41.7, and the PEG is 4.6. ...
