Forget Palantir Technologies: This Cash-Flow Fintech Pioneer Under $30 Is a Considerably Better Buy

Palantir trades at very high valuation multiples, including 154x trailing earnings, 93x forward earnings, and 63x sales, with enterprise value to EBITDA at 159x. Revenue growth is strong, but the valuation leaves little room for error and relies on outcomes that have not occurred in software history. Sentiment appears concentrated in retail hype, with a viral bullish post later shifting to bearish readings. PayPal trades near $44.23 after a large decline and has been punished for competition in branded checkout. PayPal generated $5.56 billion in free cash flow on $33.17 billion of FY25 revenue, with net income of $5.23 billion and non-GAAP EPS of $5.31. The stock trades at about 8x trailing and forward P/E and roughly 5x EV/EBITDA, while also returning capital through large share repurchases.

"The Palantir story is priced for outcomes that have never happened in software history. The stock trades at a trailing 154x earnings, a forward 93x, and a staggering 63x sales. On enterprise value to EBITDA, the multiple is 159x. CEO Alex Karp called the company "an n of 1" with a Rule of 40 score of 127%, and the market has obliged by capitalizing every word of that pitch. The Reddit footprint confirms what the multiple implies: PLTR sentiment is concentrated in wallstreetbets, with one viral post during the May rally titled "The market will literally never go down again" drawing more than 9,000 upvotes before sentiment collapsed days later to a bearish reading of 28."

"PayPal generated $5.56 billion in free cash flow on $33.17 billion of FY25 revenue, with net income of $5.23 billion and non-GAAP EPS of $5.31. Net income rose 26.19% year over year. The stock trades at a trailing P/E of 8 and a forward P/E of 8, with EV/EBITDA at 5x. Palantir generated $2.27 billion in FY25 free cash flow. PayPal generated more than double that, and the market values it at roughly one eighth of Palantir's capitalization."

"PayPal repurchased roughly 86 million shares for $6.0 billion over the trailing twelve months, including 23 million shares f"

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