Where Palantir Stock Lands in 5 Years Comes Down to One Number
The AI software maker is worth $418 billion after growing revenue 93% last quarter. Whether the stock beats the market from here hinges on a single growth rate.
Overview
Palantir Technologies (NASDAQ: PLTR) costs about 150 times earnings. As of this writing, shares sit near $174, valuing the artificial intelligence (AI) software specialist at $418 billion -- about 16% below their record high of $207.52.
For the stock to beat a 10%-a-year market over the next five years, that $418 billion has to compound into roughly $674 billion by mid-2031. And that requirement arguably translates all the way down to a single figure: revenue growth of about 36% a year, sustained for five straight years.
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Details
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.