Is Palantir Stock Too Risky To Invest In?

Date: November 17, 2022

Palantir has been one of the more controversial stocks and has left investors puzzled for well over 2 years now.

Be it concerns around its business model and revenue base, or the reports of this company’s connection with Cambridge Analytica. This company has managed to keep the stock market excited – be it in a good or bad way!

While I do agree that a strong bullish case can be made for this controversial stock, listed below are two reasons why I am staying away from it.

Reason 1: Palantir’s failed efforts to widen its customer and revenue base to more than large government clients, make this stock extremely vulnerable. The macroeconomic trends that exist today, if anything would make these diversification efforts more difficult.

Reason 2: For a company that makes no profit and has consistently missed earnings per share numbers. I find Palantir’s valuation a bit too high. This is especially true when compared to big tech giants such as Alphabet, Apple, and Microsoft.

Therefore, in summary: while I agree that Palantir stock may do wonders in coming years, I will pass on it for less risky options out there today.