Prediction: 2 Stocks That Will Be Worth More Than Palantir 3 Years From Now

Core Viewpoint - Palantir's current market valuation of approximately $250 billion is questioned as potentially unsustainable given its growth rates and earnings multiples [1][2][4]. Valuation Concerns - Palantir's valuation exceeds 200 times forward earnings and nearly 100 times sales, which is not supported by its growth metrics [4]. - In comparison, Nvidia has maintained a maximum of 45 times sales and 50 times forward earnings, with a revenue growth rate peaking at 265% year over year, while Palantir's fastest growth since 2023 was only 36% [5]. Competitive Landscape - Companies like Adobe and CrowdStrike are expected to surpass Palantir in valuation within the next few years due to their more reasonable stock prices and growth potential [6]. - Adobe trades at 18 times forward earnings and 7.4 times sales, presenting an attractive investment opportunity despite concerns over generative AI competition [8]. Revenue Comparisons - Over the past 12 months, Palantir generated $2.86 billion in revenue compared to Adobe's $22 billion, indicating a significant gap that will take years for Palantir to close even with a sustained growth rate of 35% [10]. - Analysts project Palantir's growth to be 31% in 2025 and 28% in 2026, which may be overly optimistic given the current valuation [11]. CrowdStrike Analysis - CrowdStrike, a cybersecurity software provider, has similar growth rates to Palantir but is currently leading in revenue [12][14]. - CrowdStrike's valuation at 27 times sales is considered high but more reasonable compared to Palantir's, and its expected growth rate of 20% over the next two years may lead to a convergence in valuations [16][17].