Palantir Trades at 64X Sales. Here's Whether That Premium Is Justified.
The stock burned investors who shelled out for Palantir near the stock's highs last year.
Overview
Palantir Technologies (NASDAQ: PLTR) is one of the few companies that has consistently delivered breathtaking results, living up to all the hype around artificial intelligence (AI). Yet many investors who bought Palantir stock near its highs last year have lost money. It's another reminder that the price investors pay for a stock matters.
Fast-forward to today, when Palantir trades at 64 times its trailing-12-month sales. That's still a significant premium over most stocks on Wall Street. Although the stock burned investors last year, I believe Palantir's exceptional business justifies its current premium. That said, investors who buy Palantir stock will want to be careful how they do it.
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Originally published at www.fool.com.