Palantir is trading at a 74 price-to-sales ratio right now. They are seeing strong demand for their AI platform, with recent quarterly revenue growth over 90% year-over-year. The concern is that this valuation mirrors the peak multiples of SaaS stocks in 2020 and 2021. Snowflake hit a P/S of 221, Cloudflare went over 100, and Datadog reached 70. Even though those companies kept growing revenue, their multiples eventually compressed and shares dropped 70% or more from the top. At 74 times sales, Palantir's price assumes growth won't slow down at all. History suggests the stock might trade flat or drop until sales can catch up to the current price, even if the company keeps executing well.