Yes, Palantir (PLTR) Remains Overvalued

See our note from February 3rd HERE. Our view has not changed.

• Despite PLTR shares being off 25% from their peak earlier this month, the stock remains well above the level where it was when we called it expensive earlier this month.

• These are large, heavy, data-driven services deployments that PLTR engages in. PLTR warrants a good, old fashioned Services multiple given its good, old fashioned predictive analytics deployments - which PLTR charges too much for (have you looked at PLTR’s Op Margins?) Nobody ever confused the U.S. Government for an intelligent buyer.

• PLTR is not the only predictive analytics game in town. I don’t see why SAS Institute, IBM, Oracle, SAP or a number of other Analytics firms (public and private) could not deploy a software-based Analytics service that aggregates and analyzes disparate data sets in real-time or near-real-time.

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