Palantir Q4: Unprecedented Demand For AIP But Stock Overvalued, Downgrade To Sell
Portfolio Pulse from
Palantir Technologies Inc. has been downgraded to a Sell rating due to overvaluation concerns, despite strong growth in U.S. commercial revenue driven by AIP technology. The company faces competition and high stock-based compensation costs, impacting margins and free cash flow.

February 04, 2025 | 5:00 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
Palantir Technologies Inc. has been downgraded to a Sell rating due to overvaluation, despite strong growth in U.S. commercial revenue driven by AIP technology. The company faces competition and high stock-based compensation costs, impacting margins and free cash flow.
The downgrade to a Sell rating is based on the stock being overvalued, with a fair value of $70 per share. Despite a 64% YoY increase in U.S. commercial revenue driven by AIP technology, the company faces significant challenges from competition and high stock-based compensation costs, which are expected to impact margins and free cash flow negatively. These factors contribute to a likely short-term negative impact on the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100