“You’re starting to see almost like a Tesla effect where valuations don’t really matter because there are these true believers in the company,” said Paul Marino, chief revenue officer at Themes ETFs. Those investors see “opportunities with everything that’s going on in the world today, whether that be on the defence side, whether that be on the transaction side, data side or AI side.”
Palantir Technologies Inc.’s breakneck rally shows no sign of letting up as investors remain captivated by its artificial intelligence promise despite one of the most expensive valuations among US stocks.
Shares of the data-analysis software company closed at a record for a third consecutive day Tuesday, pushing their gain for the year to 76%. While that’s good enough for second-best on the S&P 500 Index, it has Palantir trading at a staggering 205 times projected earnings over the next 12 months, a hefty premium to the broader market’s multiple of 22 times.
