This Is What Analysts Say Palantir (PLTR) Must Do to Justify Its Sky-High Valuation
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.
Unsurprisingly, some analysts say that the numbers needed to justify this valuation are staggering. For example, Bloomberg Intelligence's Damian Reimertz estimates that Palantir would have to generate $60 billion in revenue over the next year to trade at a valuation similar to its peers. That's many times more than the $4 billion Wall Street expects in 2025 or the $5.7 billion forecast for 2026. Separately, DA Davidson's five-star-rated Gil Luria stated that Palantir would require 50% yearly growth for the next five years, along with 50% profit margins, to bring its valuation down to levels seen in companies like Microsoft (MSFT).
While earnings are expected to grow 56% this year, growth rates are forecast to slow down to 31% and 33% in the following two years. Even with these challenges, many investors are holding onto the stock, unwilling to risk missing more gains. But history shows that stocks trading at lofty valuations can fall hard when results disappoint. For investors, Palantir's situation is clear: its growth story is still strong, but the high price tag means that there is little room for error, thereby making future earnings reports especially important.
Is PLTR Stock a Buy?
Turning to Wall Street, analysts have a Hold consensus rating on PLTR stock based on five Buys, 13 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average PLTR price target of $154.56 per share implies 17.1% downside risk.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
3 minutes ago
- CNBC
The S&P 500 heads for a fifth day of declines, but drug stocks are a bright spot
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets: Stocks are trading lower Thursday. The S & P 500 , in particular, is on pace for its fifth straight loss, wiping out all of August's gains. The rotation out of momentum-driven winners and stocks with lofty price-to-earnings multiples — the dominant market story of the week — isn't as pronounced Thursday, with stocks like Club name GE Vernova and Palantir holding up better on a relative basis. However, the influential "Magnificent Seven" cohort is mostly weaker, which explains why the traditional market-cap weighted S & P 500 is slightly underperforming the Invesco S & P 500 equal-weight ETF , known as the RSP. Holding up : The health-care sector is putting together a solid few days despite the broader market weakness. The group, which is still one of the worst performing sectors this year, came to life last week thanks to a surge in the beleaguered UnitedHealth Group on news that Berkshire Hathaway purchased a stake in managed care giant during the second quarter. Club name Eli Lilly also start to rebound from its post-earnings sell-off, giving the sector a lift. Fast-forward to Thursday, and pharma stocks are helping push the health-care group higher, and those rallies are linked to some better-than-feared trade news. According to the updated trade agreement framework between the United States and the European Union, branded pharmaceuticals imported from the EU will face a 15% tariff rate. Uncertainty over the Trump administration's Section 232 sectoral tariffs on pharmaceutical imports hasn't gone away, but 15% is much more manageable than some of the triple-digit threats President Donald Trump has previously floated. Europe is a popular place for drug manufacturing. Shares of both Bristol Myers Squibb and Eli Lilly were higher on Thursday as investors digested the tariff developments. With Thursday's move, Lilly shares are down less than 5% from where they closed the day before its disappointing obesity pill data sent the stock plunging 14% in a single session. Up next: Zoom Communications , Workday , Intuit and Ross Stores report after the closing bell on Thursday. Ross Stores is a rival of Club stock TJX Companies , which reported its own strong set of results Wednesday morning. Meanwhile, Costco peer BJ's Wholesale reports on Friday. However, the main event of the day will be Fed Chair Jerome Powell's speech at annual Jackson Hole Economic Symposium. It starts at 10 a.m. ET and will be a market-moving event. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Yahoo
30 minutes ago
- Yahoo
Exploring US High Growth Tech Stocks with Potential
As the S&P 500 faces its fifth consecutive day of declines and investors keenly await Federal Reserve Chair Jerome Powell's speech, the market sentiment remains cautious, particularly impacting technology stocks. In this environment, identifying high-growth tech stocks with strong fundamentals and innovative potential can be crucial for navigating the evolving economic landscape. Top 10 High Growth Tech Companies In The United States Name Revenue Growth Earnings Growth Growth Rating ACADIA Pharmaceuticals 10.87% 25.66% ★★★★★☆ ADMA Biologics 20.60% 23.25% ★★★★★☆ Palantir Technologies 25.25% 31.57% ★★★★★★ Workday 11.35% 29.87% ★★★★★☆ OS Therapies 57.14% 70.11% ★★★★★☆ Mereo BioPharma Group 51.44% 64.61% ★★★★★★ Circle Internet Group 27.36% 78.79% ★★★★★☆ RenovoRx 65.63% 68.83% ★★★★★☆ Vanda Pharmaceuticals 22.66% 59.11% ★★★★★☆ Gorilla Technology Group 27.68% 129.58% ★★★★★☆ Click here to see the full list of 67 stocks from our US High Growth Tech and AI Stocks screener. Let's review some notable picks from our screened stocks. Circle Internet Group Simply Wall St Growth Rating: ★★★★★☆ Overview: Circle Internet Group, Inc. operates as a platform, network, and market infrastructure for stablecoin and blockchain applications with a market cap of $31.30 billion. Operations: Circle Internet Group generates revenue primarily from data processing, amounting to $2.12 billion. Circle Internet Group has recently showcased robust financial maneuvers and strategic alliances that position it as a notable entity in the tech landscape. With an annualized revenue growth of 27.4% and earnings forecast to surge by 78.8%, the company's aggressive expansion is evident. Notably, their R&D expenditure aligns with their innovation trajectory, supporting developments in blockchain and stablecoin integrations across global payment channels. The recent $1.3 billion equity offering and strategic partnerships with entities like Corpay enhance their operational capabilities, ensuring they remain at the forefront of integrating digital assets with traditional finance systems, which could significantly influence future profitability and market presence. Click here to discover the nuances of Circle Internet Group with our detailed analytical health report. Gain insights into Circle Internet Group's historical performance by reviewing our past performance report. Reddit Simply Wall St Growth Rating: ★★★★★☆ Overview: Reddit, Inc. operates a digital community both in the United States and internationally with a market capitalization of $42.71 billion. Operations: Reddit primarily generates revenue through its Internet Information Providers segment, with a reported $1.67 billion in revenue. The company's operations focus on facilitating digital community interactions across various regions. Facing legal challenges and algorithm shifts from Google Search, Reddit has seen significant fluctuations in its stock price and user traffic dynamics. Despite these hurdles, the company reported a remarkable recovery with a 55% year-over-year revenue growth projection for Q3 2025, signaling resilience and adaptability in its business model. This performance is underscored by a turnaround to profitability in the first half of 2025, with net income reaching $115.46 million compared to a net loss previously. These developments highlight Reddit's potential to navigate through tech disruptions while leveraging its vast user base for sustained revenue generation. Unlock comprehensive insights into our analysis of Reddit stock in this health report. Understand Reddit's track record by examining our Past report. Semrush Holdings Simply Wall St Growth Rating: ★★★★☆☆ Overview: Semrush Holdings, Inc. provides an online visibility management software-as-a-service platform operating in the United States, the United Kingdom, and internationally with a market capitalization of approximately $1.15 billion. Operations: The company generates revenue primarily from its software and programming segment, amounting to $413.96 million. Operating as a software-as-a-service platform, it focuses on online visibility management across various international markets. Semrush Holdings, amidst a challenging market, is navigating its path toward profitability with projected earnings growth of 104.3% annually. Despite a recent dip to a net loss of $6.57 million in Q2 2025 from a net profit last year, the company's commitment to innovation is evident in its R&D investments, aligning with an industry trend towards enhanced digital marketing tools. The firm also announced a significant share repurchase program valued at $150 million, underscoring confidence in its long-term strategy and financial health. This move complements their revenue forecast which expects an 18% increase by year-end, signaling robust demand for their SEO and marketing analytics services despite rising costs in paid search segments. Delve into the full analysis health report here for a deeper understanding of Semrush Holdings. Evaluate Semrush Holdings' historical performance by accessing our past performance report. Next Steps Delve into our full catalog of 67 US High Growth Tech and AI Stocks here. Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports. Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe. Contemplating Other Strategies? Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CRCL RDDT and SEMR. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
an hour ago
- Yahoo
Bank Of America (BAC) Launches New Premium Card With Alaska Airlines' Loyalty Program
Alaska Airlines recently launched its enhanced Atmos Rewards loyalty program, co-branded with Bank of America, reflecting a strong partnership aimed at enticing global travelers. Over the last quarter, Bank of America's share price appreciated by 12%, aligned with a positive earnings report that showed increased net interest income and net income. Additionally, the bank's announcement of an increased dividend and a sizeable buyback program supported investor confidence. Even as the broader S&P 500 experienced declines during Powell's anticipated speech, BAC's actions during this period provided stability, bolstering its price performance. Bank of America has 1 possible red flag we think you should know about. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Alaska Airlines' new Atmos Rewards program, in collaboration with Bank of America, is expected to enhance customer acquisition, potentially boosting both companies' revenue streams. For Bank of America, this partnership might strengthen digital engagement efforts, aligning with its strategic focus on AI-driven efficiencies and a diversified credit portfolio. Over the past five years, Bank of America's total return, including share price and dividends, was 113.96%. This reflects substantial growth, particularly compared to the broader market, which returned 14.4% over the past year. Notably, the US Banks industry saw a similar performance of 24.4% over the same period. The recent news ties into forecasted revenue enhancements, with analysts predicting growth of 7.5% per year as the company leverages digital and AI investments. Earnings are expected to rise from US$26.59 billion to around US$32.9 billion by 2028. These projections support a consensus price target of US$53.08, currently about 9.79% higher than the present share price of US$48.35. The proactive steps to engage customers through high-value programs like Atmos Rewards could contribute positively to hitting these targets, aligning with expected earnings per share growth of US$4.73. Click here to discover the nuances of Bank of America with our detailed analytical financial health report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BAC. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
