Palantir Stock Is Up 585% Since Early 2024. History Is Clear About What Happens Next.

Group 1: Financial Performance - Palantir Technologies reported fourth-quarter financial results that exceeded Wall Street's expectations, leading to a stock increase of 585% since January 2024 [1] - The company's trailing-12-month revenue increased by 29% in 2024, with Wall Street expecting a 32% increase in 2025 [5] Group 2: Valuation Concerns - Palantir is now one of the most expensive software stocks in history, with a forward price-to-sales (PS) ratio above 55, a level rarely achieved and never maintained by any company [3][5] - The forward PS multiple for Palantir is 56 as of February 13, making it comparable to Snowflake, which saw its stock crash after reaching a similar valuation [4][6] Group 3: Market Position and Growth Prospects - Palantir has been recognized as a market leader in decision intelligence software and has received high scores for its AI platforms compared to competitors like Google, Amazon, and Microsoft [8] - IDC estimates that AI platform spending will grow at 40% annually through 2028, indicating strong growth prospects for Palantir [9] Group 4: Investment Strategy - Current shareholders are advised to consider reducing their positions due to the high valuation, while prospective investors should monitor the stock for better buying opportunities in the future [10][11]