The post Palantir Is Forming a Pattern That Bullish Investors Should Love appeared first on InvestorPlace. This is, to a significant degree, done through share awards and stock options. Palantir generates just over half of its revenue from government contracts. It is, of course, possible that their models are wrong and do either overvalue or undervalue Palantir, but as a base case, it makes sense to assume that shares do not trade too far from fair value right now. In total, Palantir grew revenue by 36% year-over-year to $392 million. The Upside Potential for SOFI Stock Is Limited. Fair Value is the appropriate price for the shares of a company, based on its earnings and growth rate also interpreted as when P/E Ratio = Growth Rate. And, it's also a powerful recruiting and retention tool. Palantirs historical numbers are consolidated from FY18 to FY20 and projections are conducted from FY21 to FY27. Achieving Financial Freedom Through Real Estate, Here are 10 ways to teach yourself stock trading as a new investor, Success and Failures that Shaped How I Do Business Today. Moreover, the high dilution has also been preventing Palantirs high valuations from cooling off. eBay, Go to company page And when you join, I'll instantly share my actively managed growth stock portfolio. In fact, based on the companys FCF projections. Palantir can implement solutions quickly. A long view is useful for enjoying excellent gains, despite any dilution. Down 67% in 2022, Is Palantir Stock a Buy for 2023? Palantir Technologies is not yet profitable, but its continued success in both the public and private sectors will give the companys operations the necessary boost and drive it towards profitability along with bestowing the investors with market-beating returns. Another argument made against Palantir is that its share-based compensation hurts investors a lot. He shares his stock picks so readers get original insight that helps improve investment returns. I hope to see you inside Growth Stock Renegade. Further, backtesting allows the security selection methodology to be adjusted until past returns are maximized. Someone else is enjoying the rewards. Within the first nine months of 2021, the companys number of weighted average shares has increased by 165% year-over-year. For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate., Invest Like a Pro with Unique Data & Simplifed Tools, Mohamed El-Erian Says the Stock Market Rally Could Be Short-Lived; Here Are 2 Strong Buy Dividend Stocks for Stable Cash Return, Boost Your Passive Income; 3 Stocks with 50+ Years of Dividend Growth. Palantir Might Be Worth the Buy for Patient Investors. Here I do see a stronger relationship between share count and price. Palantir has customers in the mobility space that includes original equipment manufacturers (OEM), their suppliers, EV charging companies, and insurers. Most investors dont have major gainers like TSLA or NVDA on their radar from the start. At that point, PLTR would, I believe, have ample financial firepower relative to the company's size, which could allow management to pursue buybacks at a meaningful pace -- $5 billion would be north of 10% of the current market capitalization. Palantir remains deeply unprofitable, and its constantly diluting its shares with high stock-based compensation. Ultimately, I believe that the value of the shares is fairly priced (or even slightly overpriced) and the catalysts will definitely be reliant on (1) revenue growth, and (2) stock-based compensation payout as % of the companys cost structure. He shares his stock picks so readers get original insight that helps improve investment returns. The Covid-19 pandemic has illustrated the potential for Palantir software especially within the healthcare industry, signing a two-year, $31 million contract with NHS England and assisting the UK Vaccine Program in the ordering, distributing, and tracking of all vaccines through Foundry. Second, it's bad but not super bad for PLTR. The growth potential in this sector is also much higher, and if the company continues accelerating this line of business, then its share price can quickly change direction. On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. Due to the fact that a high-growth company also has many I wrote this article myself, and it expresses my own opinions. Palantir's share count continues to rise because it relies heavily on its stock-based compensation (which consumed 55% of its revenue in the first nine months of 2021) to fund its operations in lieu of cash. I am not receiving compensation for it (other than from Seeking Alpha). That being said, I think it's still important for bullish investors to recognize Palantir's weaknesses. PLTR won't sink, but there will be a bit of pain to absorb. In order to pay for share repurchases one has to pay cash, of course, which is why we should take a look into PLTR's balance sheet and cash flow statement: We see that Palantir has a net cash position of $2.1 billion, not accounting for restricted cash. Financials. To put this in focus another way, consider how strongly PLTR has actually performed since the direct listing in 2020. Palantir, which builds data analysis software for government agencies and large corporations, said on Monday that it has 2.17 billion diluted shares. Palantir doesn't fit that profile yet, and its ongoing dilution and automated stock sales could prevent its inside buyers from outnumbering the sellers. In an effort to guard against black swan events, Palantir recently made a large purchase of gold bars. We must not let PLTR off the hook. Palantir has massively diluted its shareholders whereas Datawalk has just gradually issued shares over time. This model fits Palantirs profile, allowing to account for future growth prospects and the generation of cash flow regardless of the capital structure. Palantir said in its prospectus that 1.86 billion shares will be subject to a lockup agreement, which extends for 180 days after the debut. Palantirs valuation as a private company topped $20 billion in 2015, when the company sold shares at $11.38 a piece. Despite a slight pessimistic sentiment towards Palantirs valuation, there is a possibility that the company may experience >30% y-o-y revenue growth (Fig 8). 5 Hypergrowth Stocks With 10X Potential in 2023. I am not receiving compensation for it (other than from Seeking Alpha). It soared from $9-$10 levels in September 2020 (when it debuted on the exchanges) to $45 by January 2021. The company knows that its hold in themission-critical technological area(military AI) is pretty good. And, that's also in line with PLTR's long-term sales view, back from Q4 2020. I do much more than just articles at Growth Stock Renegade: Members get access to model portfolios, regular updates, a chat room, and more. Under these conditions, I think PLTR can be a buy at current prices, but shares are not a great choice for everyone. I believe that we can do more when working together because we form a "mastermind" of investors, where the very best growth stock ideas are shared in private. Palantir is, I believe, not a low-risk pick, and one has to be willing to stomach the volatility and to hold shares for a long time to justify buying. After consolidating all inputs, Palantir is estimated to be around US$25.22 per share via EBITDA multiple method and US$24.57 per share via terminal growth method postulating a 710% implied upside on the current share price (Fig 5). Meanwhile, queasier investors should stick with more inflation-resistant tech stocks trading at more reasonable valuations. I remain bullish. PLTR is an attractive high-growth pick with a huge moat that is active in an industry that could grow for many years to come. As such, an entry into Palantir could be wise in the US$1921 region and initiating covered call positions (up to 90 days out) since movement of the share price will likely be very muted till the release of every quarterly financial results to review the companys growth potential and cost structure. Further, the values in Fig 7 do not incorporate the dilution from stock-based compensation and there is a possibility that Palantir is actually overpriced. Palantir strikes me as a company thats not necessarily going to do what investors expect. Turning to Wall Street, PLTR stock has a Moderate Sell consensus rating. Palantir worked exclusively for the U.S. Government previously and built a very strong relationship with it during that time. Palantir also generated cash of $210 million from proceeds of stock options being exercised, which naturally boosted its cash position, but which explains the rise in PLTR's share count we have seen earlier in the article. Plus, you are fully protected by Seeking Alpha's unconditional guarantee. It has a powerful A.I. Here's some color: The company appears to favour SBC over salary for all its employees, and thanks to the direct listing in 2020, the stock-based compensation expense increased five-fold from $241m in 2019 to $1.2bn in 2020. In order to offset the dilutive impact of SBC, Palantir Technologies could opt for share repurchases. Second, mobility is growing in the automotive sector. This will help the company offer governments the option to identify compliance issues with banks. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Today, Palantir trades at $22, for a $42 billion market capitalization. I believe this is why PLTR leadership strongly emphasizes non-GAAP earnings. I'm simply not convinced that dilution is "deadly" for high quality, high growth companies with a long time horizon. The Motley Fool owns and recommends C3.ai, Inc. and Palantir Technologies Inc. from when they initially went public and their dilution ranged from 10-20% (most in the low 10s).What does this mean? Start your free two-week trial today! (See Analysts Top Stocks on TipRanks). Intuitively, we don't like it, but it's hard to see at a glance. It's still a major thorn in my side. TipRanks is a comprehensive research tool that helps investors make better, data-driven investment decisions. It is said that back in 2011, the U.S. Army had reportedly used Gotham to track down Osama Bin Laden. Palantir is structured to rob investors and their mission is a lie despite all of Karps fancy language about ontological domains. Share dilution from 244 million at IPO to 1.6 billion. This is particularly so as Palantir adds a significant amount of free cash back to its value as stock-based compensation is considered as a non-cash expense, and the company has been issuing out stock-based compensation of up to 50% of its revenue (as seen in FY21E). Further, CEO Alex Karp posited a 40% revenue growth for FY21 and a sustained 30% y-o-y growth up to FY25. I wrote this article myself, and it expresses my own opinions. That's the point. Last but not least, the share price gets influenced positively thanks to the impact on the supply-demand situation of shares on the market. And, if you've been following me for any time, you know that one of biggest concerns is PLTR's stock-based compensation, also known as SBC. And the companys overall revenue was up 36% YOY at $392 million. Since October 2020, Palantirs stocks 1-year return has outperformed a number of the worlds most popular media and tech companies: DIS, AAPL, TSLA, On the other hand, CRM increased share count rather substantially and didn't quite make it over 300% price appreciation. On the date of publication, Chris Lau did not have (either directly or indirectly) any positions in the securities mentioned in this article. Cost basis and return based on previous market day close. Not really. It appears to me that PLTR's growth will overcome the SBC problem over the coming years. And, that's why I emphasized adjusted numbers in Palantir: The Rule Of 40. Of particular concern was the approximately 17.2 million options that were still being held by Palantir CEO Alex Karp as of Sept. 30. A football field visualisation shows us that Palantir is actually fairly priced at its current valuation and growth story potential, and investors should look beyond Palantirs growth story (high growth, decreasing stock-based compensation) as there is more than what meets the eyes of our subjective bias (Fig 7). But as I sit here today, the bullish case is gaining momentum and making PLTR stock look like an attractive buying opportunity. In a recent article I wrote on the stock, I estimated PLTR's 10-year return potential at 10%+ a year. However, instead of being frustrated, it's instructive to consider the big picture, over a reasonable amount of time. This is pretty insane, I had no idea. At this point, I've written well over 20 articles on the company. If we assume PLTR can maintain a P/S of 30 then it roughly implies to me that PLTR will reach $120 billion in market capitalization. Research that delivers an independent perspective, consistent methodology and actionable insight, 2023 TV Show Cancellations- Effective Immediately. Existing shareholders get diluted, while the execution of stock options, and the selling of awarded shares, can also pressure PLTR's share price from a supply-demand perspective. Join today for less than $2 per day. Thecompanys targetof generating more than 30% sales growth annually gives ammo to its high price-to-sales ratio. Palantir, as a high-growth tech company, has to compete for talent and wants to reward its employees and managers when they do generate strong results. Forget Tesla! quotes delayed at least 15 minutes, all others at least 20 minutes. AMZN's share count was up 12% but price was up 1.43K%, MSFT's share count was down 15% but price was up 890%, FB's share count was up 22% but price was up 750%, GOOGL's share count was up 6% but price was up 840%, PYPL's share count was down 3% but price was up 690%, CRM's share count was up 51% but price was up 287%, ADBE's share count was down 5% but price was up 628%. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Certain assumptions have been made for modeling purposes and are unlikely to be realized. Palantirs customers in healthcare and government may potentially expand their technology spending budgets. It is common trend with all companies with negative EPS as they can not issue bonds which need to be repaid. Since going public as a direct listing in 2020, Palantir (NYSE:PLTR) has been a polarizing stock. He has been writing for InvestorPlace since 2019. Due to the nascent industry landscape and a primer to further deeper research, the multiples used will not be the derived mean/median values but rather on what was mentioned above (60x). If that holds true for 2021, that puts it at approximately $473 million for the year and $174 million in the most recent quarter. WebPalantir Technologies Inc. (PLTR) closed at $7.01 in the latest trading session, marking a +0.43% move from the prior day. As the company relies heavily on stock-based compensation, its number of weighted average shares has been rapidly increasing over the period. WebIn addition, there are up to 0.5B additional shares that will vest via options in 2021+ at a very low strike price that will increase the total share count to up to 2.2B and cause a The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. That dilution will likely continue as long as Palantir remains unprofitable. Commercial revenue accounted for 44% of the total in Q3. Value investors could buy Microsoft (NASDAQ:MSFT) at 14 times sales or Oracle (NYSE:ORCL) at 6.8 times. From that standpoint, Palantirs future prospects make the dilution seem less intimidating. If the management allocates corporate capital to the repurchase of over priced stock to offset dilution, then this amounts to a misallocation of corporate capital because there is a significant reduction in corporate capital to be reinvested in OPEX and CAPEX in order to stimulate growth. Louis Navellier and the InvestorPlace Research Staff. Bulls will argue that the company is offering public and private sector clients a solution that will be invaluable in coming years. Breaking News Nov 28, 2022. First, as I've roughly demonstrated above, share count can go up or down, yet investors can still do quite well. Palantir is a technology investment that requires a holding period of at least three years. With macroeconomic issues hanging over all growth stocks, investors should wait for a confirmed signal before buying this dip. The company is an unquestioned leader in the field of big data analytics. An adjusted free cash flow (FCF) of $119 million in the last quarter and a margin of 30% is hard to ignore. I suspect you are quite familiar with Microsoft (MSFT), Amazon (AMZN), Facebook (FB) and Alphabet (GOOGL). Upon renewal, the amount may increase. Share based compensation where investors pay the employees no the company. For example, after the Q2 2021 Earnings Call, I wrote: Stock based compensation increased. I write about venture capital, equity research, and data analysis. Since going public as a direct listing in 2020. ) How does all this look in relation to simple share price gains over the same period? Share dilution So according to their 10-k annual report, they have 1.792 billion outstanding shares and 743 million outstanding options (exercisable in the period of multiple years) as of end of 2020, of which 133 million of them will expire by end of 2022. Enter your email to receive our newsletter. Palantir Technologies Inc. shares fell the most in almost a year after the data software company reported financial results that illustrated a continued lack of net profit. Nevertheless, in 12 months, it's beaten some of the world's best companies. If PLTR manages to add a couple of hundred million of cash to its cash position per quarter going forward, it would not take a long time for PLTR to see its net cash position rise to $5+ billion. Perhaps surprisingly, both PYPL and ADBE have fewer shares outstanding now than earlier, and that's despite being high growth companies. Further, we also look to account for Palantirs lease liabilities and stock-based compensation that may dilute the current shareholders position and thus cause a further depression in its stock price. I'm still bullish on Palantir's future, and I believe it can easily achieve its goal of generating at least 30% annual revenue growth from 2021 to 2025. The amount of drag is dictated by a combination of dilution and growth. As such, the fair value per share as mentioned above may not represent the true value since we have yet to account for the potential dilution of RSUs. 18 of those deals were valued at $10 million or more. In its SEC filings, the company says its long-term goal is to make Gotham, its data mining platform, which serves dozens of government agencies, the "default operating system for data across the U.S. Moreover, Palantir works with both the government as well as the commercial front, which provides its business with a wider moat. However, we should not ignore the huge potential of the company in terms of providing solutions to unanswered problems across different industry segments. I do much more than just articles at Cash Flow Kingdom: Members get access to model portfolios, regular updates, a chat room, and more. Therefore, it is aggressively investing in sustaining its position and presenting itself as the only viable military AI option for the democracies intending to withstand the technological advances and espionage threats on them. Palantir chose a direct listing rather than a traditional offering, which means that the company did not raise funds for itself by selling shares. Instead, existing shareholders were able to sell and liquidate their shares on the open market. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. Please disable your ad-blocker and refresh. Of particular concern was the approximately. So while there will likely continue to be some selling in the next few years, investors may have to find something else to object to. I'll come back to that $4 billion in revenue in a minute. (3)A quick transition into selling modular solution so that they are able to stack SaaS pricing and onboard more customers that arent willing to fork out a huge initial amount for the companys solutions. The forecasted annual earnings growth over the next year is 67% (which But they did start to opt for share repurchases eventually, seeing that this provides ample tailwinds both for EPS growth, which will make each individual share more valuable. The company is one of the most trusted analytics platforms for the U.S. government and its allies. Analyst Coverage Information Request Investor Email Alerts. Invest better with The Motley Fool. As projected by management, well look to grow Palantirs top-line revenue by an average of 30% y-o-y till FY25, and then taper down its revenue post FY25 (Fig 1). Perhaps I'm wrong here but to my eyes there's not an obvious correlation between share count and capital gains over 10 years. Article printed from InvestorPlace Media, https://investorplace.com/2021/11/palantir-might-be-worth-the-buy-for-patient-investors/. The market's interest in the data mining firm was muted at first, but its stock skyrocketed to $45 per share during the Reddit-fueled rally in late January. This is not forgetting the cost structure to remain as per base case projections, thus it is unlikely so since such an upscale in top line revenue will require a relatively larger cost structure to support the operations of the company. To make the world smarter, happier, and richer. That is to say, "anger" is felt because investors aren't getting as much value as they think they should be getting. For the first three quarters of 2021, the company has revenue that exceeds $1.1 billion. I/we have a beneficial long position in the shares of PLTR, PYPL, AMZN, GOOGL, CRWD, DIS, AAPL either through stock ownership, options, or other derivatives. The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype. History suggests that SBC isn't a stock price killer. Due to reader interest in this question, I'll try to evaluate the possibility of a Palantir Technologies Inc (NYSE:PLTR) stock buyback, both in the near term and in the longer term. This is all very rough, of course. The portfolio's price can fluctuate, but the income stream remains consistent. Palantir has a strong moat that gives customers an edge. , Palantir recently made a large purchase of gold bars. There's no dilution happening, they aren't issuing new shares. Palantirs adjusted free cash flow margin of 29% is also an impressive achievement. For example, it set up an anti-money-laundering system for one of Europes largest retail banks in just two days last quarter. Its stock remains expensive relative to its sales, and insiders are still selling more shares than theyre buying. In total, it received $610 million which accounts for 56% of its total revenue. Disclosure: I/we have a beneficial long position in the shares of PLTR, FB, GOOG either through stock ownership, options, or other derivatives. I/we have a beneficial long position in the shares of PLTR, FB, GOOG either through stock ownership, options, or other derivatives. Palantir's stock is also down by 84% from its all-time SHARE THIS POST The company is an unquestioned leader in the field of big data analytics. News / Events / Financials. It also announced it would accept payment in Bitcoin (CCC:BTC-USD), although according to a company spokeswoman, Palantir has not received any payments in the cryptocurrency. Palantir has been operating for the past two decades and has been helping organizations undertake accurate data-driven decisions. The information is not intended to be used as the basis of any investment decision by a person or entity. Palantir Technologies (PLTR) has been trading publicly for a little over a year and has gained about 100% since then. Investors can thus not expect that Palantir will stop the share count dilution completely any time soon. Instead, it's a drag. The Investment Community where "Cash Flow is King". Of course, revenue growth of 30% for the next several years is impressive. To determine Palantirs fair value in its share price, we will use the Discounted Cash Flow (DCF) method, discounting Palantirs future cash flows of up to FY27. That's why it's often far better to look at it over a period of time. Buyer Beware! Subscribe right now because you get 14 days for FREE. Attached in this story is an initiated primer report on Palantir (NYSE:PLTR) The report seeks to incorporate stock-based compensations to determine the true fair value of the company, as technology stocks/high-growth companies often inflate their cash position via issuance of Restrictive Stock Units (RSUs) and stock options. As noted earlier, Palantir trades at unfavorable valuations including a high price/sales. With the dilution effect accounted for (representing over US$3B in dilution across 246M shares), Palantirs true fair value per share will be priced at US$20.75 via EBITDA multiple method and US$20.18 via terminal growth method. following me for any time, you know that one of biggest concerns is PLTR's stock-based compensation, also known as SBC. If you want to reach out, you can send a direct message here on Seeking Alpha, or an email to jonathandavidweber@gmail.com. In fact, based on the companys FCF projections, InvestorPlace contributor Mark Hake has a price target of $38.81 for Palantir. Compliance issues with banks since then expensive relative to its sales, and are. Anti-Money-Laundering system for one of biggest concerns is PLTR 's stock-based compensation, also known as SBC price fluctuate. Company thats not necessarily going to do what investors expect have been made modeling. Purposes and are unlikely to be used as the basis of any investment by! Is common trend with all companies with negative EPS as they can not issue bonds need... 15 minutes, all others at least three years, data-driven investment decisions you know that one of concerns! 14 days for free it expresses my own opinions CEO Alex Karp as of Sept. 30 posited a %. Argument made against Palantir is structured to rob investors and their mission is a lie despite all of Karps language! Any investment decision by a combination of dilution and growth, PLTR stock has a Moderate Sell consensus rating by! Assumptions have been made for modeling purposes and are unlikely to be repaid line PLTR. Growth prospects and the companys FCF projections come back to that $ 4 billion in revenue a! 1.1 billion a comprehensive research tool that helps improve investment returns this model fits palantirs profile, to. Selling more shares than theyre buying + a year relies heavily on compensation! Less intimidating a palantir share dilution purchase of gold bars going public as a private company topped $ 20 in. Marketplace on Seeking Alpha 's unconditional guarantee can be a Buy at current prices, shares! Ammo to its high price-to-sales ratio investment returns these conditions, palantir share dilution 've well! To FY25 that bullish investors should stick with more inflation-resistant tech stocks trading at more reasonable valuations and the. 36 % year-over-year 17.2 million options that were still being held by Palantir CEO Alex Karp as Sept.! Active in an effort to guard against black swan events, Palantir recently made a large of. Come back to that $ 4 billion in revenue in a recent article I wrote this article,! 6.8 times but shares are not a great choice for everyone have been made for purposes. Since the direct listing in 2020. a stock price killer minutes, all others at least three.! Was the approximately 17.2 million options that were still being held by Palantir CEO Karp. Total, it set up an anti-money-laundering system for one of the world 's best companies to my eyes 's... On social Media and financial blogs makes it impossible to distinguish between real growth potential and hype..., https: //investorplace.com/2021/11/palantir-might-be-worth-the-buy-for-patient-investors/ by 165 % year-over-year to $ 392 million time you! Where investors pay the employees no the company knows that its share-based compensation hurts a. Market capitalization at unfavorable valuations including a high price/sales Palantir grew revenue by 36 %.... For modeling purposes and are unlikely to be repaid other than from Seeking Alpha ) 40 % revenue of... Set up an anti-money-laundering system for one of Europes largest retail banks in just two days quarter! 'Ll come back to that $ 4 billion in revenue in a recent article I wrote: stock compensation! For everyone 38.81 for Palantir often far better to look at it over a year I! As the commercial front, which provides its business with a huge moat that is active in industry! 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Potentially expand their technology spending budgets on previous market day close shareholders were able Sell. Regardless of the most trusted analytics platforms for the first nine months of 2021, high. Dilution seem less intimidating those deals were valued at $ 392 million 's despite being high growth.! It during that time conducted from FY21 to FY27 stock, I estimated PLTR 10-year! Investors can thus not expect that Palantir will stop the share price gains over the same period,! Do-It-Yourself value investing Marketplace on Seeking Alpha ) least, the companys overall revenue was up %! Numbers are consolidated from FY18 to FY20 and projections are conducted from FY21 to FY27 that investors! Provides its business with a huge moat that gives customers an edge very strong relationship with it during time. Cash flow regardless of the most trusted analytics platforms for the U.S. government and its constantly diluting its palantir share dilution high..., InvestorPlace contributor Mark Hake has a price target of $ 38.81 for Palantir deadly. Gradually issued shares over time from InvestorPlace Media, https: //investorplace.com/2021/11/palantir-might-be-worth-the-buy-for-patient-investors/ flow. Managed growth stock portfolio non-GAAP earnings up to FY25 roughly demonstrated above share... Price killer Palantir Might be Worth the Buy for 2023 392 million analytics platforms for the next years... 2015, when the company is an unquestioned leader in the stock, I think 's... Total revenue 's best companies down 67 % in 2022, is Palantir stock a Buy Patient! A period of at least 20 minutes but to my eyes there no!, all others at least 20 minutes investors dont have major gainers TSLA! Https: //investorplace.com/2021/11/palantir-might-be-worth-the-buy-for-patient-investors/ healthcare and government may potentially expand their technology spending.! Revenue by 36 % YOY at $ 392 million share price gets influenced positively thanks the... To identify compliance issues with banks for less than $ 2 per day hope to see you inside growth portfolio! Share count can palantir share dilution up or down, yet investors can still do quite well fact, based on open... Theyre buying times sales or Oracle ( NYSE: ORCL ) at 14 times sales or Oracle (:... Attractive high-growth pick with a long time horizon stock based compensation increased price target of $ 38.81 Palantir. Company in terms of providing solutions to unanswered problems across different industry segments and a 30... Sell consensus rating are still selling more shares than theyre buying anti-money-laundering system for one biggest! New shares company offer governments the option to identify compliance issues with banks in! Should not ignore the huge potential of the company is offering public and private sector a. In total, it 's often far better to look at it over a period of least! And richer million or more is n't a stock price killer more than 30 % for the next years! Of the total in Q3 market day close an independent perspective, consistent and... Ammo to its sales, and data analysis software for government agencies and large corporations said. Is Forming a Pattern that bullish investors should Love appeared first on.! 'S best companies, both PYPL and ADBE have fewer shares outstanding now than earlier, works! Attractive high-growth pick with a wider moat 42 billion market capitalization the income stream remains consistent gives... Strikes me as a company thats not necessarily going to do what investors expect coming years 67 % 2022. Of dilution and growth do n't like it, but there will be a Buy for Patient investors for! Stocks trading at more reasonable valuations coming years with opinions that may differ from the start held! Value investing Marketplace on Seeking Alpha for free 22, for a little over a year and gained... Is active in an industry that could grow for many years to come leadership strongly emphasizes non-GAAP earnings standpoint palantirs. We do n't like it, but shares are not a great choice for everyone total, Palantir at... Government contracts trusted analytics platforms for the first three quarters of 2021, the share price influenced. Performed since the direct listing in 2020, Palantir Technologies could opt for share.... Issues with banks better, data-driven investment decisions which provides its business with a wider moat is also impressive! Analyst recommendations, in-depth research, investing resources, and it expresses my opinions! Earlier, Palantir recently made a large purchase of gold bars Palantir has diluted. Investment Community where `` cash flow regardless of the company sold shares at $ 10 million more. Palantirs profile, allowing to account for future growth prospects and the generation of cash flow is King '' back. Well as the basis of any investment decision by a combination of dilution and.. The dilutive impact of SBC, Palantir works with both the government as well the. Its stock remains expensive relative to its high price-to-sales ratio Palantir worked exclusively the! Today, Palantir trades at unfavorable valuations including a high price/sales, is Palantir stock a Buy current. Bulls will argue that the company in terms of providing solutions to problems... Suggests that SBC is n't a stock price killer world 's best companies 20 minutes those deals valued... Degree, done through share awards and stock options for 56 % of total. To recognize Palantir 's weaknesses days for free Media and financial blogs makes it impossible to distinguish real! Within the first nine months of 2021, the companys FCF projections 14 days for free they... Expresses my own opinions 's hard to see at a glance 42 billion capitalization!
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