Is It Too Late to Buy Palantir Stock at $60?

Palantir Technologies (PLTR) continued to tear higher in today's session, closing the day up 3% to finish north of $60 per share. The data analytics stock now trades at a premium to even its freshly raised Street-high price target of $57, which was hiked by vocal PLTR bull Dan Ives of Wedbush after last week’s forecast-crushing earnings report.

Ives, who rates Palantir stock at “Outperform” and has dubbed the Alex Karp-run company as the “Messi of AI,” also weighed in after the electoral victory of Donald Trump to note that PLTR could benefit from “major AI initiatives” under the incoming administration. 

Investors seem to agree, sending Palantir stock up 45% over the past week alone. The stock is now up 250% year to date, and set a record high of $62.08 earlier.

Despite the strong performance, “Hold”-rated PLTR stock hasn’t won over too many analysts due to its rich valuation metrics, including an adjusted forward price/earnings ratio of 154.21 and a price/sales ratio of 47.64 - suggesting the stock is trading at a premium to not just most of its peers, but also its own historically lofty valuations. 

Palantir’s future growth prospects appear promising, driven by increasing demand for data analytics and AI solutions. However, for investors who are considering picking up shares around current levels, it’s worth pointing out that the stock appears more vulnerable than ever to a short-term pullback after the last week’s worth of vertical gains.