Palantir Technologies (NYSE: PLTR), a provider of cybersecurity solutions, has gained for the second consecutive trading session. Since entering the public market in September 2020, its shares have gained on average three digits. Are PLTR shares currently overvalued?
Looking at the records, we shall examine various developments regarding PLTR that may be either forward-shifting or backward-shifting. Over the past five business days, PLTR Stocks has posted an increase of 41.30% and has experienced a 29.21% growth over the past thirty business days. In the last three months, the stock rose 274.28%. From the start of the calendar year, the company has achieved a positive performance of 53.84%.
Palantir Technologies (PLTR) intends to gain a long-term market share for government data protection and analytics contracts. Several US intelligence agencies and special services use Palantir. Until Palantir went public, most of the company’s operations were classified. However, anecdotal evidence suggests that Palantir also has cyber intelligence capabilities in high demand and limited supply.
Palantir’s commercial customers have rapidly grown since going public. As a result, in the year 2020, the company signed its largest-ever contract worth $300 million over five years with an unnamed company in the aerospace industry. Further, Palantir is building up the list of clients with a focus on pharmaceutical production and logistics.
Palantir’s revenue for last year was expected to exceed $1 billion. As a result of the company’s high price-to-sales ratio, it looks more expensive than most similar-sized defense IT contractors in the industry.
Although Palantir Technologies (PLTR) offers a wide range of services, its government clients consistently provide a steady cash flow. In contrast, due to the growing portfolio of new business contracts with commercial entities, long-term investors should feel more comfortable with the high valuation.