Palantir Technologies stock (NASDAQ: PLTR) has had a remarkable run this year, more than doubling since early January to trade at around $160 per share. The stock has been buoyed by surging interest in generative AI and a wave of new government contracts following the re-election of Donald Trump as U.

Palantir's stock has delivered extraordinary returns, but its current valuation is extremely stretched, trading at a forward P/E above 200. Read the latest analysis on the stock here.

As CEO Alex Karp noted in the recent report, the company's Rule of 40 score, which is based on a combination of revenue growth and operating margin, increased to 83%, which exceeds the conventional standard for an investable software stock by a wide margin.