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

Core Viewpoint - Palantir's stock is considered overpriced despite its strong business performance and growth potential [1][4][11] Company Performance - Palantir's revenue increased by 48% year-over-year in the second quarter, surpassing $1 billion [4] - The company has a current revenue of $3.44 billion, with projections suggesting it could reach $11.6 billion if it maintains a 50% growth rate over the next three years [7] Valuation Concerns - Palantir's market capitalization exceeds $425 billion, making it the most expensive stock in the market [2][8] - The stock is priced at 122 times three-year forward earnings, indicating a significant overvaluation [8][10] - Comparatively, Nvidia, which has shown growth rates over 200%, never traded for more than 46 times sales or 51 times forward earnings, highlighting Palantir's inflated valuation [5] Competitive Landscape - ASML and AMD, valued around $275 billion each, are expected to surpass Palantir's market cap without any significant changes to their business [2][9] - Both ASML and AMD are reasonably priced and projected to achieve respectable growth, albeit slower than Palantir's [9] Future Projections - If Palantir's earnings were to be valued similarly to Nvidia's maximum valuation of about 50 times forward earnings, its market cap would drop to around $175 billion [10] - Despite the overvaluation, Palantir has a strong following, which may allow it to maintain elevated prices similar to Tesla [11]