[Nomsa]

Anyone else in on Palantir or got any thoughts on their price right now?

They’ve been crushing it this year with a 187% rise, and there’s some real potential long-term as their AI-driven products like Foundry keep grabbing attention.

That said, their P/S ratio is sitting at 42 – pretty steep, especially compared to other high-growth names like Nvidia, which is at 37. Plus, roughly 75% of Palantir’s revenue comes from U.S. government contracts, so I’m wondering if shifting priorities after the election might shake things up.

Do you think a correction could be coming? I’d love to hear some perspectives.

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[Malcolm]

I do not hold any Palantir stock myself but I do not see the buzz (and frankly over hype) about AI going anywhere anytime soon.

Plus, yeah they get a lot of cash from govt contracts but I do not see defence spending (earlier in the year they secured a $480m contract that could make up 9% of their FY24 US govt revenue alone – https://www.prosperus.asia/stocks/us-stocks/palantirs-strategic-milestone-securing-a-480-million-defense-contract/) coming down anytime soon either. Do you?

 

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[Nomsa]

I see your points Malcolm, but I’m still cautious. While AI demand seems set to continue, the heavy reliance on government contracts could become a vulnerability, especially if budget priorities shift. We might see reallocations depending on who takes over in the U.S.

With that high P/S ratio, Palantir might be more exposed to any shakeups than we think. So I’m still on the fence about whether the stock is worth its current premium. A correction in the near-term doesn’t feel implausible.

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