Three Overvalued Stocks Set for a Price Correction Within 18 Months

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Analysts have raised concerns about three highly valued stocks: Palantir Technologies, Tesla, and MicroStrategy, predicting significant declines in the next 18 months. Palantir is trading with a price-to-earnings (P/E) ratio exceeding 600 and a price-to-sales ratio greater than 130, despite a 380% price increase over the last year. Analysts warn it may face a drop of over 50% due to extreme hype.

Tesla’s revenue dropped 12% to $22.5 billion in its latest quarter, with earnings falling 16% to $1.2 billion. Despite its high valuation with a P/E of 250, concerns about increasing competition and negative press surrounding CEO Elon Musk have analysts skeptical about its sustainability.

MicroStrategy, leveraging its significant Bitcoin holdings (approximately 640,000 BTC), has a market cap around $100 billion. Its revenue was $226 million in the first half of the year, but it reported an unrealized gain on digital assets of $8.1 billion—raising questions about its stability if cryptocurrency values decline.

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