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I am cautious about investing in Palantir (NASDAQ:PLTR) due to its current overvaluation, with my analysis suggesting a negative compound annual decline rate of 4% over the next five years and a negative margin of safety of 61.74%. While the company’s focus on cost-saving data analytics software may provide some recession resistance, its heavy reliance on government contracts and exposure to a potential U.S. recession could lead to significant losses for investors in the medium to long term. Previous examples of overvalued companies like Cisco, Amazon, Tesla, and Google experiencing substantial stock price declines during past economic downturns further support this cautionary outlook.
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