Palantir stock: why Paul Meeks sees potential despite ‘egregious’ overvaluation

Palantir Technologies Inc PLTR is extending losses this morning as macro concerns continue to weigh on US tech stocks.

And while the big data analytics firm may still be “egregiously overvalued”, there are things about PLTR that Paul Meeks, the chief investment officer of Harvest Portfolio, finds “impressive”.

Palantir stock is currently going for about 180 times its estimated earnings for 2025 – and that’s when it has tanked nearly 30% since mid-February.

Even Nvidia, in comparison, is trading at less than 30 times forward at the time of writing.

Palantir has diversified its revenue

Palantir has been quick in diversifying its revenue streams in recent years, which Paul Meeks dubbed “impressive” in his recent interview with CNBC.

”, he agreed that PLTR shares are, nonetheless, “egregiously overvalued” at current levels.

Plus, Alex Karp – chief executive of the artificial intelligence company unloaded PLTR worth millions of dollars last month, which suggests “even he agrees that the stock is expensive,” Meeks added.

Note that Palantir stock does not currently pay a dividend either to appear any more attractive to investors despite overvaluation.

However, Wall Street analysts don’t particularly agree with Meeks’ view on PLTR shares, given that the mean target on them currently sits at about $94, which indicates a potential upside of close to 20% from current levels.

Is it worth investing in Palantir stock?

Palantir’s stock has been slipping in recent weeks even though its AIPCon event earlier this month announced a number of new customers, including notable ones like Delta Air Lines and Walgreens.

At its annual conference, the company also highlighted how its AI solutions are helping drive innovation in American manufacturing.

PLTR has also teamed up with San Jose headquartered air mobility company Archer Aviation on next-gen aviation.

At the time, its CEO Alex Karp told investors:

Still, analysts at Goldman Sachs recently reiterated their $80 price target on Palantir stock, citing valuation risks, particularly in the wake of a possible recession ahead.