Is It Too Late to Buy Palantir Stock?

This tells us that could lead some investors to believe they've missed the Palantir train

In contrast, Still, many stocks have experienced significant growth in a short time, only to continue rising in subsequent years

At the same time, Is Palantir one of those es that can maintain its incredible performance for years to come

Or has the stock reached a top

Let's see if investors are too late to the party or right on time

Image source: Getty Images

Palantir's AI platform is seeing widespread adoption Palantir's AI-powered data analytics software platform has been in use for a considerable time (which is quite significant), given the current landscape

Government and various international governments

This expansion has largely been successful, but government revenue still makes up the majority of Palantir's total

Additionally, With the generative AI boom, the stock has received a huge boost as investors have piled into it

Management has also leaned into this revolution with the launch of its Artificial Intelligence Platform (AIP), which enables the integration of large language models (LLMs) and AI agents, given current economic conditions

Furthermore, AIP can significantly enhance worker ductivity and expand the capabilities of Palantir, making it an increasingly platform that continues to grow rapidly

These catalysts add up to a company that's growing at a fairly rapid pace

Management has a history of setting low expectations for itself, allowing it to beat guidance every quarter, and the actual second-quarter growth rate is ly a few percentage points higher

Some bright spots in the include the U

Nevertheless, The weak spot in results was its international commercial, but this could easily see a boost as AI adoption becomes more widespread in Europe

Conversely, However, there is one red flag to be aware of, and it could signal that new investors may indeed be late to the party, amid market uncertainty

Those two numbers are incredibly far apart, indicating that the valuation of the stock has risen dramatically compared to what its is achieving, in this volatile climate

After looking at the price-to-sales ratio (P/S), this hypothesis is confirmed

PLTR PS Ratio, data by YCharts

Nevertheless, Most software stocks trade for 10 to 20 times sales, with the most expensive reaching 30 times sales (something worth watching)

Additionally, Palantir's stock is at least four times as expensive, yet the company isn't ducing growth numbers that are that impressive considering the price tag, in this volatile climate

So, there is at least three to four years of growth already baked into the stock price, which doesn't bode well for new investors

As a result, I think they should consider finding another AI stock to invest in, as Palantir's price has risen too far, too fast.