Core Viewpoint - Palantir Technologies is considered the most overvalued megacap stock of the century, with a TTM P/S ratio of 119, significantly higher than historical peaks of other tech giants [5][16][18]. Company Overview - Palantir has experienced a dramatic increase in market capitalization, rising from $15 billion at the end of 2022 to $352 billion as of July 22, reflecting investor excitement about its sustainable moat and growth potential [6][10]. - The company operates two main segments: Gotham, which focuses on military applications and data analysis, and Foundry, which aids businesses in managing big data [8][9]. Financial Performance - Palantir has maintained an annual sales growth rate between 25% and 35%, supported by long-term government contracts [10]. - The company achieved recurring profitability ahead of Wall Street expectations, validating its dual-platform model [11]. Market Positioning - Palantir is viewed as a key defense stock, benefiting from its alignment with national security priorities under the Trump administration [12]. - The company's unique offerings in AI and data mining contribute to its irreplaceability, leading to premium valuations [7]. Valuation Concerns - Palantir's TTM P/S ratio of 119 is unprecedented, with no other megacap stock maintaining a ratio above 30 for an extended period [16][18]. - Concerns exist regarding the sustainability of its revenue, as a significant portion of its pre-tax income is derived from interest on cash rather than core operations [22]. Future Outlook - Uncertainty surrounding defense spending post-2027 and potential political shifts could impact Palantir's growth trajectory [19][20]. - The company may face challenges during market corrections, as its high valuation makes it vulnerable to shifts in investor sentiment [21].