These 2 stocks have been falling recently, but experts still consider them expensive

In recent weeks, Wall Street has been in selling mode, leading to sharp declines in some previously strong rising stocks. These include technology companies Palantir and Tesla, whose shares have seen significant losses. Shares of Palantir have fallen around 37% from their peak, while Tesla has fallen to less than half its previous value.

While these declines would seem to present an interesting buying opportunity, there are still reasons to be cautious and not invest in these stocks just yet.

Palantir's problems: high valuation and uncertainty of government contracts

One of the main reasons to be cautiouswith an investment in Palantir $PLTR is its still high valuation. Even after a significant drop, the stock is trading at a forward price-to-earnings (P/S) ratio of over 49, which is extremely high. By comparison, in recent years, software companies have been valued at about half that ratio despite showing higher growth.

Another risk factor is the uncertain future of government contracts.…