Is Palantir Stock a Buy Ahead of Nasdaq-100 Potential Inclusion?
Palantir Technologies (NASDAQ: PLTR) is on fire in 2024, enjoying a staggering 300% surge in its share price this year alone. The company’s AI capabilities and recent inclusion in the S&P 500 have fueled this explosive growth, setting the stage for a potential entry into the prestigious Nasdaq-100 index by December 13th.
Palantir’s Potential Nasdaq-100 Entry:
The Nasdaq-100 index is reconstituted on December 13th, and analysts believe Palantir has a strong chance of joining this exclusive group of growth stocks. According to the company’s press release, Palantir anticipates meeting the Nasdaq-100 eligibility requirements. Historically, any US-listed company added to the S&P 500 has seen significant stock price appreciation, and investors are rightfully excited about the potential for further upside should Palantir secure a spot in the Nasdaq-100.
Growth Story and Wall Street’s Take:
Palantir’s is a company on the rise. Its Artificial Intelligence Platform (AIP) is a game-changer in its industry, driving substantial revenue growth and margin expansion. Top analysts like Dan Ives of Wedbush Securities and Mariana Perez Mora of Bank of America remain bullish on the stock. In essence, Wall Street sees a bright future for Palantir.
The Valuation Concern:
While the future looks bright, potential investors should consider the current valuation. With a P/S ratio of 63.5 and a forward P/E of 149, Palantir is considered pricey.
