Part 4/8:
A deeper look into other remarkable tech companies provides further context to Palantir's valuation. Amazon reached a valuation of $250 billion in 2015, backed by $107 billion in revenue and a net profit of only $0.6 billion as they were focused on reinvesting into their business. Microsoft, in the late '90s tech bubble, had a P/S ratio of 20 at its peak, while Cisco—a classic cautionary tale of overvaluation—hit a P/S of 28 during the same period.
This historic perspective highlights the anomaly that Palantir represents, especially given its profitability since late 2022, contrasting with many tech firms that were still fighting to break even.