The AI and data solutions provider Palantir Technologies (PLTR), is scheduled to report its Q3 earnings on November 4, aiming to sustain its impressive growth trajectory this year. Although momentum in the AI sector remains strong, I have concerns about Palantir’s ability to sustain its rally. Specifically, the company relies heavily on positive annual guidance updates to demonstrate that demand for its software is still robust, which may pose a risk if future updates fall short. Therefore, I believe a neutral stance may be prudent for Palantir ahead of the Q3 report.
Furthermore, although Palantir’s AI growth story is still in its early stages and its fundamentals may ultimately justify its current share price in the coming years, I believe that investors who have purchased shares at these valuations ahead of the Q3 report may be paying overly optimistic multiples.
Reviewing Palantir’s Performance in 2024
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