Down Nearly 40% From Its Highs, Is Palantir Stock a Once-in-a-Decade Buying Opportunity?

2 days ago 6

Keithen Drury, The Motley Fool

Wed, June 17, 2026 astatine 4:35 AM CDT 3 min read

Palantir (NASDAQ: PLTR) was erstwhile the hottest artificial quality (AI) banal connected Wall Street. Investors were enjoying monster gains, and the company's maturation complaint kept accelerating. Now, lone 1 of those is true. Palantir is down astir 40% from its all-time high, but the company's maturation complaint hasn't slowed.

Those 2 items aren't usually correlated with each other, leaving investors wondering whether it's clip to bargain the dip oregon if this archetypal large sell-off is simply a motion of much symptom to come. The reply whitethorn astonishment you, arsenic immoderate of Palantir's awesome gains weren't tied to concern performance.

Missed Nvidia successful 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" awesome flashed for a little-known chipmaker called Nvidia. For the archetypal clip successful years, that aforesaid "Total Conviction" awesome is flashing for a institution 1/100th the size of Nvidia. Continue »

Image source: The Motley Fool.

Palantir's banal inactive has a premium terms tag

Palantir was 1 of the archetypal companies to person a applicable and utile exertion of AI. Originally, Palantir sold its AI-powered analytics bundle to assorted authorities entities, which stay immense clients for Palantir. Now, Palantir has a thriving commercialized conception and has shown respective companies the benefits of incorporating AI exertion into their interior systems.

This has intelligibly been successful, arsenic Palantir delivered awesome gross maturation implicit the past fewer years. In the archetypal quarter, its wide gross roseate 85% twelvemonth implicit year, with peculiar spot coming from the U.S. broadside of its business. U.S. commercialized gross roseate 133% twelvemonth implicit year, and U.S. authorities gross roseate 84% twelvemonth implicit year. There's perfectly thing to kick astir with those results, particularly since Palantir is this profitable. In Q1, it posted a 53% nett income margin, putting it among the astir profitable companies successful the market.

Palantir has precocious profitability and immense growth. What much tin investors inquire for?

All of this comes astatine a price. And for Palantir, that terms was excessively precocious for galore to pay. Even with Palantir dropping astir 40% from its all-time highs, it inactive trades for 87 times guardant earnings.

So, adjacent aft 2026's beardown maturation is priced in, it's 1 of the much costly stocks successful the market. For Palantir to commercialized astatine a much tenable 30 times earnings, it indispensable astir triple its net beyond what it volition bash successful 2026. That's a problem, due to the fact that Wall Street analysts lone expect Palantir's net per stock (EPS) to emergence from $1.47 successful 2026 to $2.08 successful 2027 -- a 42% gain. If Palantir tin support that 40% oregon truthful maturation rate, it volition instrumentality much than 3 years to triple its earnings.

Read Entire Article