# Is It Time to Take Profit with Palantir Technologies Stock?
## Palantir Technologies Stock Performance
– Palantir Technologies stock closed above $43 a share on October 9
– Stock up a whopping 151% in 2024, nearly matching NVIDIA’s gain
– Market cap close to $100 billion from $37 billion at the beginning of the year
## Recent Stock Movement
– Up 24% in the last month alone
– Inclusion in the [index] expected to raise stock price
– Stock now overbought by technical indicators at $43 a share
## Palantir’s Valuation
### Overvalued Metrics
– Price-to-earnings (P/E) ratio: 359.45
– Price-to-sales (P/S) ratio: 41.7
– PEG ratio: 4.6
– Expensive by fundamental measures
### Bullish Argument
– Difference between price and value
– Stocks like Palantir can be overvalued before growing into valuation
## Palantir’s Unique Qualities
– Ontology makes large language models (LLMs) useful
– Allows businesses to gain valuable insights from AI investments
– Platform enables leveraging multiple LLMs for experimentation
## Reasons to Hold PLTR Stock
– Insider selling in the last 90 days, but many part of pre-planned trades
– Executives receive significant stock compensation
– Various reasons to sell a stock, not just valuation concerns
## Possible Options Trade
– Buy puts on PLTR with longer-dated expiration date
– Right to purchase shares if stock falls to strike price
– Opportunity to lower average cost or maintain position in stock
## Individual Decision Making
– Factors like purchase price influence decision to sell
– Consider potential future stock movements and personal risk tolerance
– Investors must assess how they would react to significant stock price drops
In conclusion, the decision to sell Palantir Technologies stock at its current price point of $43 a share is a nuanced one that requires careful consideration of various factors. While the stock may be objectively overvalued based on traditional metrics, the company’s unique qualities and potential for future growth suggest that it may yet grow into its valuation. Investors should weigh their own risk tolerance, investment objectives, and individual circumstances before deciding whether to take profit on their Palantir holdings.