RE: It's a Mad mad mad world7 Aug 2025 16:31
Time will tell Snoopz, personally I wouldn't pay $182 for one share of a company that has a P/E over (600 since earnings) and doesn't pay a dividend. I'd say anyone jumping into Palantir, at the current price, is taking a massive risk with no dividend income to show at least some return. If you read my original post I said:
"Palantir has a market cap of around $379 Billion, where the combined Market cap BT, Lloyds, Vodafone and BP has a market cap of around $206.38 Billion. BP's annual revenue alone, comes in at more than £140 Billion, I'm I wrong in thinking that US Tech valuations have gone mad?"
That says it all, how can Palantir have a P/E more than all of those put together. AstraZeneca is currently the most expensive company on the FTSE100, with a market cap of £171.412 Billion ($229.725 Billion), the next most expensive is HSBC with a market cap of £162.503 Billion ($217.78 Billion). Palantir current market cap is $430.59 Billion, so its Market Cap isn't far short of the two most expensive FTSE100's companies combined Market Cap, and Palantir's revenue is only just over $1 Billion; That's a massive bet on Palantir's earnings growth.
Remember WeWork? It was marketed as something new and revolutionary in subletting of Office space, but Regus had been doing the same for decades. WeWork was valued at around $47 Billion at its peak and went to nothing in two years, Softbank reportedly lost $14 Billion on that, ouch. I remember saying to people, at the peak of the WeWork hype, that I couldn't understand the valuation since its business model is nothing new as Regus were already established in the same business.
I'd rather go slow and steady with value dividend stocks, than risk losing my shirt chasing rainbows.
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