Meet the newest addition to the S&P 500 index. Its stock has soared 845% since the start of last year
Palantir Technologies (ticker: PLTR) is one of the latest additions to the S&P 500, having joined the benchmark index on September 23. This makes it one of only 11 companies to be added to the index this year. Since the emergence of generative AI early last year, Palantir’s stock has risen 845%, as its expertise in this field has driven steady revenue and profit growth.
Palantir has been developing cutting-edge AI-based solutions for over two decades. The company has earned its reputation by developing complex algorithms for U.S. intelligence agencies, the military, and law enforcement. Its systems have developed a remarkable ability to connect seemingly unrelated data to thwart terrorist plots and bring criminals to justice.
The company has expanded beyond its roots by applying the same data mining expertise to corporate systems. Palantir’s AI and analytics systems process data and provide companies with solutions to real-world problems. When companies began demanding usable AI last year, Palantir quickly developed its Artificial Intelligence Platform (AIP), a generative AI system that provided data-driven answers. The system uses company-specific data to develop customized solutions.
BUT:
- The company didn’t turn a profit until 2023.
- Today, its P/E ratio is 675!!! The average P/E ratio for the S&P 500 is 25. This means the company is overvalued by a factor of 27 compared to the average S&P 500 company.
- According to all of our ratings, Palantir Technologies is in the bottom half of the market
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