Palantir Just Guided to 134% U.S. Commercial Growth. After a 15% Pop, the Stock Costs 42 Times Revenue.
The quarter was extraordinary, and the guidance got even better. But look at what the new price pays for each dollar of sales.
Overview
Palantir Technologies (NASDAQ: PLTR) reported second-quarter results after the market closed Monday, and shares jumped about 15% in after-hours trading to around $144 as of this writing. It's easy to see why. Revenue grew 93% year over year, and management raised its full-year guidance across the board.
But the pop comes with math worth doing. At around $144, the artificial intelligence (AI) software company is valued at about $347 billion. Set that against the approximately $8.15 billion of revenue management now expects for 2026, and the stock costs about 42 times this year's guided sales. Not earnings -- sales.
Details
So, did a quarter this good finally make the growth stock worth its price? I don't think it did.
Source
Originally published at www.fool.com.