The steady drumbeat against PLTR is valuation but...
The steady drumbeat against PLTR is Valuation. Companies can grow into a high PE. More fail than succeed, but successes can be very large, Palantir's is just over 300 at this point and lower than it was in the fall of 2023. High PEs can persist during long periods of growth and investment. A combination of opportunity and executrion is what will determine ultimate success. It is undeniable that the opportunity is there.
During the past 13 years, the highest PE Ratio (TTM) of Amazon.com was 935.08. The lowest was 39.94. And the median was 95.76.
The average historical PE ratio of Tesla for the last five years is 232.34. The current P/E ratio of 60.56 is 74% lower than the historical average. Looking back at the last five years, TSLA's PE ratio peaked in the Dec 2020 quarter at 940.89, when the price was $235.22 and the EPS was $0.25.