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Key Points
Palantir Technologies (NASDAQ: PLTR) has experienced significant stock growth, rising from approximately $16 to $185, yielding about 1,000% gains. Analysts express concerns about the sustainability of this valuation amidst high expectations.
Tesla (NASDAQ: TSLA), which saw its shares increase from around $24 to $340 since 2020, has similarly benefited from low institutional ownership, with around 49% of its shares held by institutions. Palantir reports about 53% institutional ownership, indicating a trend where individual investors are more influential, contributing to potential stock volatility.
For reference, institutional ownership for other tech companies like Alphabet and Meta Platforms stands at 78%. The lower institutional presence in firms like Palantir and Tesla may drive their stock performance to levels deemed irrational by traditional valuation metrics.
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