This AI Stock Is Up 360% So Far in 2024. Here Is Why It Could Be a Bust in 2025.

Group 1 - Palantir Technologies (PLTR) has seen a remarkable stock increase of 360% since the beginning of 2024, providing significant returns for investors [1] - The current valuation of Palantir is concerning, with a price-to-sales (P/S) ratio exceeding 31, indicating that investors may wait 31 years to recoup their investment through sales alone, not profits [3][14] - Palantir is projected to generate approximately $2.8 billion in revenue this year, with a market capitalization of $187 billion, which is nearly twice as expensive compared to previous market bubbles fueled by low interest rates [9][12] Group 2 - The excitement surrounding artificial intelligence (AI) has drawn parallels between Palantir and Microsoft during the late 1990s, suggesting that Palantir's stock may be experiencing an unsustainable surge [8][5] - Historical context shows that Microsoft faced a significant stock collapse due to unrealistic valuations, taking about 18 years to reach new highs despite substantial revenue growth of over 330% during that period [7][4] - The current market conditions suggest that Palantir could be a prime candidate for a significant downturn in 2025, as its stock price may not be supported by its underlying fundamentals [11][15]