Palantir Stock Faces Pressure as Revenue Growth Lags Expectations
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Palantir stock is overvalued based on actual revenue growth, which was only 17% in Q3 2023. Stock trades at over 13x 2024 revenue targets.
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Enterprise AI software demand is overhyped. Companies are interested but not aggressively adding to IT budgets.
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Palantir's AI Platform (AIP) tripled users in Q3 but revenue impact will take time. 300+ organizations have used AIP but total customers only 453.
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Financial services company Principal has 25 AI use cases but will only initially implement 3, showing slow deployment.
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Consensus estimates only forecast 20% revenue growth next couple years. But stock needs over 30% growth to justify valuation. Price target should be $10 or lower.