This article first appeared on GuruFocus.
Palantir Technologies (NASDAQ:PLTR) rose about 4% on Monday as investors weighed fresh commentary on the company’s lofty valuation and slowing growth assumptions.
The stock’s bounce follows headlines about an AI contract surge and reports of insider selling that helped trigger late-week volatility, underscoring how quickly sentiment can shift in popular AI names.
Commentators pointed out that Palantir trades at a very high forward multiple, roughly 200 times forward earnings in some estimates, raising questions about how much growth the market already prices in. That math leaves little room for disappointment if revenue growth cools.
Some investors are eyeing alternatives such as Alphabet (GOOG), Micron Technology (MU) and Nvidia (NASDAQ:NVDA) as lower-risk ways to play AI, while others argue Palantir’s contract momentum and government links could sustain a premium.
For now, analysts and traders say the key risk is not a single bad report but less good news, any slowdown versus sky-high expectations could compress the multiple and amplify volatility heading into the earnings season.
