Quick Read – PayPal (PYPL) generated $5.56B in free cash flow, trades at 8x trailing, compared to Palantir (PLTR) which trades at 154x trailing earnings with a $328B market cap despite generating $2.27B in free cash flow. – PayPal’s fortress balance sheet and capital returns…
ogram offer asymmetric risk-reward against Palantir’s high-growth multiple that requires flawless execution to justify valuation. – The analyst who called NVIDIA in 2010 just named his top 10 stocks and PayPal wasn’t one of them. Get them here FREE
Palantir Technologies (NASDAQ:PLTR) is the stock every retail dashboard, every AI thinkpiece, and every wallstreetbets thread cannot stop talking about, and at $136.88 a share with a market cap above $328 billion, the crowd has good reason to be excited about its 70% Q4 revenue growth. The valuation, however, leaves no room for error. The Palantir story is priced for outcomes that have never happened in software history.
The stock trades at a trailing 154x earnings, a forward 93x, and a staggering 63x sales. On enterprise value to EBITDA, the multiple is 159x. CEO Alex Karp called the company “an n of 1” with a Rule of 40 score of 127%, and the market has obliged by capitalizing every word of that pitch.