Market Gurus Warn Palantir Is History’s Most Overvalued Company- Crash Coming ?

16 days ago
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🔴 Palantir’s $155 share price implies that the company is worth a staggering $370 billion – more than many big, famous companies considered either ‘safe’ or high-value investments. The problem, writes Wall Street analyst Chris MacDonald, is that Palantir is neither: the company was unprofitable for decades and only started making money recently.

🔴 The math doesn’t add up, the expert argues: investors are paying huge sums compared to what Palantir actually makes:

⚫️ 360 times more than what the company actually earned last year for each share

⚫️153 times what it’s expected to earn next year

⚫️more than $100 for every $1 the company actually makes in sales

🔴 To maintain its premium status, Palantir would have to make 15 times more in the next 25 years, the Wall Street expert says. That means every year it would need to grow its sales by about 35%, year after year, for 25 years straight. Is that possible? Hardly

🔴 "Palantir shareholders unwilling to sell shares of the richly-valued stock need to take their medicine now," financial website Seeking Alpha reports, warning that the firm is highly overvalued despite recent declines

🔴 The Economist issued a similar warning back in August, comparing Palantir’s bloated market value to Cisco’s just before the dot-com bubble burst in 2000

Why does Palantir fuel the frenzy?

🔴 The simple answer is to make a quick buck. The company's executives are profiting from the overvalued stock

🔴This November, Palantir CEO Alex Karp and other executives sold shares worth $200 million — dubbed “monster insider trading” by US financial media

🔴That conduct looks like the US modus operandi: since the 1990s the US economy has relied more and more on bubbles

Source
https://x.com/geo_prime1

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