🥇 Best S&P500 Stock | Palantir Bullets #111

Hi, I am Arny. Thank you for joining +7,000 investors spotting Palantir asymmetries.

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Editor: Emanuele Marabella

Last week, Palantir closed the year with almost a 400% return, becoming the best-performing stock of the S&P 500.

While I was optimistic at the beginning of 2024, the results far exceeded the rosiest expectations I shared at the end of 2023, but I’m not complaining!

“Palantir, currently at $18 per share, trades at 14x Revenues. If Revenue Growth accelerates to ~30% or above in the next year I believe Palantir's EV/Sales could expand to ~20x EV/Sales multiple. That would correspond to a ~66x FCF under a ~30% FCF Margin assumption.” - Arny Trezzi

📈 Palantir in 2024: Will the Rally Continue?

Now, a natural question arises at a ~54x EV/Sales. Is Palantir a bubble?

OnlyCFO

, a leading tech & finance newsletter, provided a comprehensive and balanced analysis of the topic:

“As discussed earlier, being “expensive” based on a simple revenue multiple doesn’t necessarily mean the stock is overvalued. This is where short sellers can get really burned (especially in the short-term)….And there have been many short sellers of Palantir that have lost A LOT of money over the past 12 months.” - OnlyCFO

Palantir - Is it a bubble?

Palantweets

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Yours,
Arny

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Disclaimer: The views and opinions expressed above are current as of the date of this document and are subject to change without notice. Materials referenced above will be provided for educational purposes only. None of the above will include investment advice, a recommendation or an offer to sell, or a solicitation of an offer to buy, any securities or investment products.