Palantir’s Ultra-Expensive Valuation Sparks Worry Into Results
If Palantir wants to satisfy investors, it has a high bar to clear when it reports after the close on Monday.
Photographer: Stefan Wermuth/BloombergThe setup ahead of Palantir Technologies Inc. earnings is a familiar one: The stock hovers around a record and boasts the highest price-to-earnings ratio on the S&P 500 Index.
Wall Street has long been leery of Palantir’s runaway valuation. More than twice as many analysts assign the stock sell or hold ratings than buy. Its forward price-to-earnings ratio is 229, more than double the second-priciest tech company — Crowdstrike Holdings Inc. — and eight times as expensive as tech peers. Shares advanced about 4% in mid-day Monday trading.