Part 4/7:
Then there's Palantir, which has seen impressive market cap growth – at one point reaching $175 billion on a revenue projection of around $3.5 billion for the following year. Trading at about 50 times revenue, the valuation of Palantir has been described as “obscene” by some analysts. Notably, a recent reversal in its stock price, accompanied by more than twice the typical trading volume, mirrors previous behaviors seen in high-flying tech stocks like NVIDIA.
This reflects a broader trend in the market where heavily invested stocks show stark price reversals after significant high-flying momentum, prompting analysts to question the durability of such gains.