PLTR Palantir Technologies Inc. - Fundamental Analysis

Palantir Technologies trades at an exceptionally high valuation with a P/E of 1740x and Price/Sales of 105x, significantly above sector averages, which creates substantial downside risk despite robust 62.8% YoY revenue growth and 200% earnings growth. The company exhibits elite profitability with 80.8% gross margins and 33.3% operating margins, outperforming most software peers, while maintaining a fortress balance sheet with minimal leverage (Debt/Equity: 0.04) and strong liquidity (Current Ratio: 6.43). However, the complete lack of earnings estimate beats over the past four quarters, coupled with sustained insider selling totaling $188.66M in the last six months, raises concerns about near-term execution and sentiment. While long-term price momentum remains strong with a 3-year return of +1986.5%, recent underperformance (-3.1% over 1M) and stretched valuations relative to even high-growth peers like AMD and MU suggest limited near-term upside unless growth accelerates materially.