Palantir Doesn’t Need Heroics To Justify Its High Valuation

hapabapa At first glance, the valuation assigned to Palantir Technologies Inc. (NASDAQ:NYSE:PLTR) looks very inflated. Palantir has a market capitalization of $52 billion with 2023 revenue of only $2.2 billion and top-line growth of only 17%. Operating income was $209 million (non-GAAP). Thus, PLTR stock trades at 24x sales (ttm) and 62x operating income (run-rate) with tepid revenue growth. How can this valuation make sense? In this article, I take a closer look and explain why Palantir’s high valuation is ultimately justified. Specifically, given the scalable nature of its software business, Palantir doesn't need to perform any heroics for profitability…