Investing.com — Palantir (NASDAQ:) stock may face more downside in 2025 amid multiple compression risks, Jefferies analysts said Monday.
The company’s shares have declined by 15% year-to-date (YTD), yet the stock still trades at 46 times enterprise value to next twelve months revenue (EV/NTM rev), which is over twice the valuation of the next highest software company. This valuation comes after the stock experienced a 341% rally in 2024.
Jefferies analysts note that insider selling has been on the rise, with CEO Alex Karp selling more than $2 billion worth of Palantir stock and other executives selling over $600 million in the past five months. The increase in insider selling through Rule 10b5-1 trading plans could potentially create an overhang on the stock.
Palantir saw its EV/NTM revenue multiple contract by 15% YTD, dropping from 55 times to 46 times, following a 282% expansion in the multiple during 2024.
“The last time we…
