Palantir is already worth more than Coca-Cola with the tenth of income. Wall Street has lost its head with AI

Palantir Technologies has just passed giants such as Samsung, Costco or Coca-Cola, reaching the 411,000 million dollars of stock market capitalization.

Why is it important. A company that bills 1,000 million dollars to the quarter is worth more than others that generate ten times greater income. It is the purest manifestation of “Ia washing“What Wall Street consumes.

The facts. The data analysis company founded by Peter Thiel in 2003 reported a 48% growth in income to exceed for the first time the 1,000 million quarterly dollars.

Their commercial contracts in the United States fired 93%, while the government rose 53%. The benefit grew by 144% to 327 million.

In figures. The per (Price to Earnings Ratioprice of the action divided by the benefit of the action) of Palantir reaches 596more than ten times higher than that of Nvidia (57) and almost twenty times Apple’s (31).

To justify its current assessment, the company would have to maintain an annual growth of 55% for four consecutive years. Even in that optimistic scenario, it would quote the income of 2029 at 25 times.

The context. Wall Street lives a speculative bubble fed by any company that mentions the magical words: ‘artificial intelligence’. Palantir, who for years has been fighting for growing beyond his defense contracts, has reinvented himself as the company that “makes” the AI models in the real world “work.

• His CEO, Alex Karp, proclamation that “the great language models simply do not work without palantir.”

Yes, but. The euphoria hides several problems. The company quotes its future sales to 80 times, a metric that exceeds any historical precedent in the S&P 500.

Deutsche Bank, who maintained sale recommendation, admitted that “something special is happening” but recognizes that “the valuation is still very challenging.” It is the same bank as The recommendation has uploaded just not to seem completely out of market reality.

Between the lines. Karp used the results conference To attack elite universities and promise that AI will give “super powers” to workers without higher training.

A populist speech that fits perfectly with the current political narrative, but that does not justify an assessment that makes Palantir the most overrated company of the most important stock market index in the world.

The big question. Can a company that invoice 4,000 million annually the same as Johnson & Johnson, a multinational that generates 85,000 million? Or that Coca-Cola, global icon whose income multiplies by ten?

The markets have decided yes, betting that IA will completely transform the economy. Palantir has become the symbol of that bet.

With all that that implies when the bubble explodes.

Outstanding image | Palantir

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