Palantir Stock: Is the Incredible Valuation Justified?

2021 seems like a long time ago because so much has happened since. But just three years ago, economic stimulus sent stocks to the moon, only to come crashing back to Earth in 2022. Enthusiastic investors pushed stock valuations through the roof. For example, the popular lending platform Upstart Holdings peaked with a market cap of $32 billion, trading for a whopping 48 times sales. The company is worth $3.7 billion today with a more modest valuation of 7 times sales. Upstart wasn't worth the premium; however, some companies are.Amazon has traded with a premium valuation for decades, and investors have been richly rewarded to the tune of 7,000% over 20 years. But what about Palantir (NYSE: PLTR)? Is its premium valuation warranted?When Palantir stock traded for less than $10 per share in 2022, investors criticized the company for being unprofitable, using too much stock-based compensation, and struggling to grow commercially. These concerns have been put to rest. Here are the charts that tell the tale.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool