caution advised: why palantir technologies’ high valuation and moderate revenue growth raise doubts over share purchase

Based on the analysis provided, it is not recommended to purchase shares of Palantir Technologies at its current price due to concerns regarding its high valuation and moderate revenue growth. While the company reported solid first-quarter results, its stock price dropped 8% following the earnings report, likely due to its valuation of nearly 18x forward sales. Although Palantir increased its full-year revenue guidance and raised its adjusted operating income forecast, analysts expected a higher increase, and the high end of its full-year forecast only represents 21% growth compared to 2023. Additionally, the company’s revenue growth remains relatively modest for its international government and European commercial businesses. Therefore, it may be wise to wait for a lower stock price or signs of higher future revenue growth before considering purchasing shares of Palantir Technologies. The Motley Fool Stock Advisor service has previously identified ten stocks with the potential for significant returns, and Palantir Technologies was not included on the list.