Can Palantir Return to $100?

Palantir (PLTR) is undoubtedly a great company, known for its cutting-edge data analytics and government contracts. However, despite its strong fundamentals, this stock is not on my watchlist because I believe there are better investment opportunities in the market. While some investors are optimistic about a potential rebound to $100, I remain cautious.

Stock Performance & Valuation Concerns

• 52-Week Range: The stock has seen a wide fluctuation, with a low of $20.33 and a high of $125.41 over the past year.

Palantir Technologies Inc. (PLTR)

• Current Price: PLTR is trading around $83, which is significantly closer to its recent high than its low.

• Valuation: The stock's P/E ratio seems overvalued, indicating that investors may be paying a premium for expected growth rather than current earnings.

Why I’m Avoiding PLTR?

1. Far From the 52-Week Low

   When evaluating a stock, I always consider the 52-week low. Since PLTR is trading much higher than its lowest price, I see limited margin for safety. If a stock is significantly above its low, there’s a risk of downside rather than upside.

2. No Dividend Yield

   Many investors, including myself, prefer stocks that offer dividends as they provide passive income and stability. PLTR does not pay dividends, making it less attractive compared to other investment options.

3. High Volatility & Speculation

   PLTR has a history of large price swings, making it a risky bet. While some traders may capitalize on these fluctuations, long-term investors may face uncertainty.

4. Better Opportunities Elsewhere

   The market has plenty of other solid stocks with better risk-reward ratios. Instead of chasing a potential rebound, I would rather allocate my capital to companies with stronger fundamentals and lower valuation risks.

Could PLTR Hit $100?

Yes, there is a possibility that PLTR could climb back to $100, especially if:

Earnings surprise to the upside

New government contracts boost revenue

AI and data analytics sector continues to gain momentum

However, the risks—overvaluation, lack of dividends, and potential downside—outweigh the potential rewards for me. Therefore, I won’t be taking the risk at this level.