Palantir's Meteoric Rise Faces Questions About Sustainability

As Palantir prepares to join the Nasdaq 100, analysts debate its valuation and future growth potential amid new partnerships and market dynamics.

Palantir Technologies has surged over 340% this year, making it the top-performing stock in the S&P 500 for 2024, with a current market cap of $165 billion.
The company is set to join the Nasdaq 100 on December 23, following its recent inclusion in the S&P 500 and record-breaking profits in the latest quarter.
A strategic partnership with Booz Allen Hamilton aims to expand Palantir's AI software integration capabilities, particularly in complex defense industry environments.
While Palantir's government and commercial revenue continue to grow, analysts warn of its high valuation, with shares trading at 161 times forward earnings.
Speculation arises over whether Palantir's stock momentum is sustainable, as some investors take profits and analysts highlight risks of a potential pullback.