Pharma Bro' Martin Shkreli Defends Palantir's Valuation Amid 24% Surge, Says AI Firm's Cash Flow Justifies 'Expensive' Price

Martin Shkreli, the controversial former CEO of Turing Pharmaceuticals, has weighed in on the valuation of Palantir Technologies Inc., defending the AI firm's high price tag amid a 24% surge in its stock price. Shkreli, known for his polarizing views on the pharmaceutical industry, argues that Palantir's strong cash flow and growth prospects justify its valuation, despite the company's high revenue multiple.
Palantir, a software company specializing in AI and data analytics, has seen its stock price soar in recent months, reaching an all-time high of $106.91 in early 2025. The company's valuation, based on its revenue multiple, has also increased, with some analysts estimating it to be as high as 25x. This high valuation has drawn criticism from investors and analysts alike, with many questioning whether Palantir's growth prospects can sustain such a lofty price.
Shkreli, however, believes that Palantir's strong cash flow and growth potential justify its high valuation. In a series of tweets, he argued that Palantir's ability to generate significant cash from its operations, combined with its high gross margin and strong revenue growth, makes it an attractive investment opportunity. He also pointed out that Palantir's AI technology and market position contribute to its perceived value, as the company's platforms and solutions have the potential to transform industries and drive significant growth.
Palantir's cash flow has indeed been impressive, with the company reporting a strong operating cash flow of $994.71 million in the 12 months ended December 31, 2023. This cash flow, combined with the company's high gross margin of 79.6% and steady revenue growth, has led some analysts to argue that Palantir's valuation is justified, despite its high revenue multiple.
Shkreli's defense of Palantir's valuation comes as the AI industry continues to grow and attract significant investment. The increasing adoption of AI technologies across various sectors, coupled with the rising demand for scalable analytics solutions, has driven the expansion of the AI market. This growth, in turn, has fueled the expansion of AI-focused companies like Palantir, which has seen its market capitalization reach $236.53 billion as of February 2025.
As the AI landscape continues to evolve, investors and analysts will continue to scrutinize the valuations of AI-focused companies like Palantir. While some may question the sustainability of Palantir's high valuation, others, like Shkreli, argue that the company's strong cash flow and growth prospects justify its price. Ultimately, the market will determine whether Palantir's valuation is sustainable, as investors and analysts weigh the company's fundamentals and growth prospects against its high revenue multiple.