Palantirs government business revenue grew by 77%. I'll Avoid These Sectors In 2023 3:39AM ET 1/15/2023 Seeking Alpha. values the company at around $40 billion. Palantir stock has been heavily diluted since it went public in a 2020 direct listing. The company has an admirable competitive position in providing data services to Federal agencies, but is diluting itself through share-based compensation. Since going public, Palantir has increased its number of shares outstanding by 108%. According to Tipranks, Jonathan is among the top 0.5% of bloggers (as of January 10, 2022: https://www.tipranks.com/bloggers/jonathan-weber). I have no business relationship with any company whose stock is mentioned in this article. Backtested results are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. 5 Hypergrowth Stocks With 10X Potential in 2023. However, I need to point out a few things. We essentially have built a food ontology that provides nutrition in mission critical systems. I write about venture capital, equity research, and data analysis. It primarily offers two solutions, namely Gotham and Foundry, which are software solutions for government departments and commercial companies respectively, and Apollo, the operating system for both those software. Foundry has seen an incredible increase in commercial adoption this year, with the number of private sector customers rising by about 135% as of September 30. 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 Nevertheless, 287% is still quite robust. I hope to see you inside Growth Stock Renegade. 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. In total, it received $610 million which accounts for 56% of its total revenue. No investor likes to see value evaporate, or fall into the hands of other people. First, the company is growing its commercial revenue. Hence, projecting such valuations does not seem realistic and the base cases outcome is recommended. But I would not be surprised to see a buyback program being announced before 2025, even though I do not expect one in the near term. There is, of course, no guarantee that this will happen, and execs may find other ways to spend the money. At an annualized $1.57 billion and a $45.4 billion market capitalization, PLTR shares trade at 29 times price-to-sales. MULN Stock Alert: Why Are Investors Suing Mullen Automotive? For the first three quarters of 2021, the company has revenue that exceeds $1.1 billion. exercisable in time.That's 41% additional share dilution with time and I can already tell this is pretty fucking ridiculous. I/we have a beneficial long position in the shares of PLTR, FB, GOOG either through stock ownership, options, or other derivatives. All rights reserved. Insider sales are hurting shareholders. Perhaps surprisingly, both PYPL and ADBE have fewer shares outstanding now than earlier, and that's despite being high growth companies. 2023 InvestorPlace Media, LLC. If history repeats itself, then PLTR stock could set up as a profitable trade. Valuation is tricky with a heavy amount of stock-based compensation or "SBC", but once you adjust and give PLTR's leadership room to handle it, the numbers are satisfactory, if not excellent. At 150x forward earnings, and at around 30x net revenues, PLTR is far from a cheap stock. Commercial revenue accounted for 44% of the total in Q3. Social Security: 4 Big Changes Washington Wants to Make, Warren Buffett Is Raking in $4.84 Billion in Annual Dividend Income From These 6 Stocks, 3 Reasons Tesla Stock Is a No-Brainer Buy in 2023, 3 High-Growth Stocks That Could Be Worth $1 Trillion in 10 Years -- or Sooner, Join Nearly 1 Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. Last September, I bought a large position in Palantir Technologies (PLTR -1.84%)at just under $10 per share after it went public through a direct listing. Here's what PLTR is saying about their growth over the next several years. Palantirs historical numbers are consolidated from FY18 to FY20 and projections are conducted from FY21 to FY27. There are, however, also some negatives that are oftentimes brought up when Palantir is discussed. From Palantirs current financials and its projections at FY21, we can conclude that the companys future growth story for the next 36months is crucial to determine if the stock can experience a surge in price, since its current operating structures in FY21 has experienced a huge improvement with respect to its top line revenue growth. Proven research methods championed by growth stock investors like Peter Lynch, Richard Koch, and Phil Fisher. However, this secretive software firm that The information is not intended to be used as the basis of any investment decision by a person or entity. Stocks tumble, Apple slides as China COVID protests spook investors to start week News / Events / Financials. The TipRanks Smart Score performance is based on backtested results. That growth, combined with strong margins and cash flow, ought to translate to share price gains despite the friction and grind. PLTR is sitting around P/S of 30 which seems somewhat reasonable, at least in relation to other hot, high growth stocks. Over the past three months, Palantir's insiders sold 12.6 million shares while buying 11.8 million shares. In an effort to guard against black swan events, Palantir recently made a large purchase of gold bars. Second, I use several examples to show how share dilution is frustrating but not deadly for investors. Today, Palantir trades at $22, for a $42 billion market capitalization. It's my #1 issue with PLTR. 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). , Palantir recently made a large purchase of gold bars. We must continue to watch SBC and dilution like hawks. I appreciate your feedback, comments and questions. Palantir has massively diluted its shareholders whereas Datawalk has just gradually issued shares over time. Furthermore, PLTR has a narrative to maintain. Please disable your ad-blocker and refresh. This is all very rough, of course. Banks may justify the return on investment (ROI) based only on the speed of the installation. 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. eBay, Go to company page After the company powered the Gotham and Foundry operating systems on Edge computing, the speed of the products analytics are sure to satisfy the most demanding customers. Eng, Go to company page One out of eight analysts have given Palantir a Buy rating, three have Hold ratings, and the remaining four have suggested a Sell. Palantir generated $1.09 billion in revenue in 2020, but it posted a whopping net loss of $1.17 billion. Please. 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. There is, however, also another possibility. Right now is the perfect time to subscribe because it's affordable for any budget. One of, if not THE most heavily compensated CEO of any US company in 2021. Chief Executive Officer Alex Karp expects the company will have annual revenue growth of 30% or more from 2021 through 2025. Go to company page The DCF valuation employs the Free Cash Flow to the Firm (FCFF) methodology to arrive at the intrinsic value of the company. 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. *Average returns of all recommendations since inception. Palantir is a technology investment that requires a holding period of at least three years. 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. Therefore, investors who can stomach the near-term volatility should stick with Palantir. Palantir has never been a profitable companysince its inception. Buyer Beware! Palantir scores a 41/100 on quality. Please. PLTR won't sink, but there will be a bit of pain to absorb. Copyright 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. 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. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Of particular concern was the approximately. Palantir has customers in the mobility space that includes original equipment manufacturers (OEM), their suppliers, EV charging companies, and insurers. Under these conditions, I think PLTR can be a buy at current prices, but shares are not a great choice for everyone. Upon renewal, the amount may increase. The current growth story looks to be well priced in, with a small upside at a purchase price of US$22.83 as of 15th Nov 21. Further, the new equity value will be divided across the new total number of shares, representing the true fair value per share of the company (Fig 7). WebPalantir Technologies Inc. (PLTR) closed at $7.01 in the latest trading session, marking a +0.43% move from the prior day. Thanks for pointing this out. 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 $5+ billion. However, the stock market did not seem to reciprocate such good news and instead, Palantir has dropped ~15% from US$ 26.75 to US$22.83 as of 15th Nov 2021. Palantir revenue has been increasing over the years. Analyst Coverage Information Request Investor Email Alerts. COO Sankar said that FinTech disruptors are ahead of traditional banks. We believe there are no alternatives that can compete on cost, speed, and performance.. Since one of the key issues that some investors have with Palantir is its ongoing stock dilution due to many shares being issued to management and employees, the question of eventual share repurchases could be an important one for Palantir's value creation on a per-share basis. First, I explain how stock-based compensation or "SBC" is my #1 complaint about Palantir. Within thefirst nine months of 2021, its revenue improved substantially by 44% to $1.11 billion and the net loss also narrowed down to $364 million from $1.02 billion. Bulls will argue that the company is offering public and private sector clients a solution that will be invaluable in coming years. And, it's also a powerful recruiting and retention tool. Palantir has a strong moat that gives customers an edge. The company works closely with the U.S. Army and the Department of Defense (DoD). First, it is seeing more traction with the defense industrial customer. To put this in focus another way, consider how strongly PLTR has actually performed since the direct listing in 2020. And I can certainly understand if investors might wonder why the company chose to deploy capital in this way as opposed to buying back shares. This is almost perfectly in line with the consensus price target of $21.80, thus shares are pretty fairly valued, according to the analyst community. For now, investors should assume the stock is stuck in a $22 $27 trading range because earnings per share are not expanding. Now that shares are down slightly, Palantir is a stock to consider again. 1125 N. Charles St, Baltimore, MD 21201. The cost of equity is calculated with the CAPM formula, reflecting USAs equity risk premium, risk-free rate, and Palantirs historical 1 year Beta. I looked up other tech stocks' sec filings (SQ, FB, GOOG, etc.) I wrote this article myself, and it expresses my own opinions. Google. 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. Is this happening to you frequently? For example, C3.ai (AI -0.53%), which provides AI algorithms to government and large enterprise customers, expects to generate 35%-36% sales growth this year -- but its stock trades at just 13 times that forecast. Down 67% in 2022, Is Palantir Stock a Buy for 2023? (New pick just posted.). Gross margins are stronger than the S&P 500 average. I'll come back to that $4 billion in revenue in a minute. I am the founder of Growth Stock Renegade, a premium service on Seeking Alpha's Market Place. On the date of publication, Chris Lau did not have (either directly or indirectly) any positions in the securities mentioned in this article. There has been NO true dilution In fact, based on the companys FCF projections. The same was true for many other companies in a similar position, e.g. Bears say its close association with the United States government, along with an executive compensation structure that has caused share dilution, make PLTR stock overvalued. In the last quarter, Palantir reported a. in commercial revenue. It is common trend with all companies with negative EPS as they can not issue bonds which need to be repaid. 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%. 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. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Estimated return represents the projected annual return you might expect after purchasing shares in the company and holding them over the default time horizon of 5 years, based on the EPS growth rate that we have projected. So been balls deep in Palantir since it went public in September. That balance between sellers and buyers isn't too jarring, but Palantir's stock has also lost about a third of its value over the past three months, and is trading near its 52-week low. Since trades have not actually been executed, results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity, and may not reflect the impact that certain economic or market factors may have had on the decision-making process. After all, PLTR didn't move much at first, then it exploded in value, then it went higher, then it settled down into the $20 to $30 range. The average price target, based on analysts, is $22.60. The potential Certain assumptions have been made for modeling purposes and are unlikely to be realized. If other government agencies follow ICE's lead and adopt RAVEn or develop their own in-house data mining platforms, Palantir's government-facing business -- which already reported decelerating revenue growth over the past two quarters -- could face an unprecedented slowdown. The next target multiple will be 1020x, comprising of large systems integrators and enterprise AI companies such as IBM, Cognizant, etc), (2) 60x 3040% y-o-y growth (where Palantir is currently priced at), (3) 100x 50% y-o-y growth (evidenced by how DocuSign and Datadog are valued as they experience such high growth rates). The Motley Fool has a disclosure policy. Palantir Technologies (PLTR) has an average rating of hold and price targets ranging from $4.50 to $15, according to analysts polled by Capital IQ. I suspect you are quite familiar with Microsoft (MSFT), Amazon (AMZN), Facebook (FB) and Alphabet (GOOGL). WebPalantir Technologies Inc. (PLTR) NYSE - NYSE Delayed Price. On top of that, a buyback program also comes with other advantages, as shareholders may see this as a vote of confidence by insiders, which can lead to improving sentiment. Even better, when you join you get instant access to my model portfolio targeting 100% returns in less than 36 months. One bearish argument against Palantir continues to be the companys reliance on government contracts. 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. In fact, based on the companys FCF projections, InvestorPlace contributor Mark Hake has a price target of $38.81 for Palantir. I wrote this article myself, and it expresses my own opinions. Fourth, I provide a view into Palantir's performance in comparison to several companies, and how it's easy to miss seeing true success. Facebook (FB) or Alphabet (GOOG) (GOOGL) when they were smaller. Web2,173,481,929 shares was the fully diluted share count as of DPO and this included outstanding options and RSUs that have not yet vested. 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. 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. Intuitively, we don't like it, but it's hard to see at a glance. It also announced it would accept payment in. In the Q3 2021 earnings conference call on Nov.9, he said, legacy compliance solutions are often 2 or more decades behind. Palantir had a share price of $30. The truth probably lies somewhere in between. The primary goal of the Cash Flow Kingdom Income Portfolio is to produce an overall yield in the 7% - 10% range. News Events. Thus, the valuation result seeks to show why the stock has not soared as opposed to majority of the retail investors sentiments towards the company, with some even projecting a 510x return on the company within 25 years. Analyst Report: Palantir Technologies Inc. NYSE - Nasdaq Real Time Price. So today, I'll take a look at five red flags that might limit Palantir's near-term gains. ), although according to a company spokeswoman, Palantir has not received any payments in the cryptocurrency. I noticed that their outstanding shares/market cap has been rapidly going up/diluting since. These multiples will be carried forward to our sensitivity analysis. So I just looked into PLTR sec filings to understand why their share dilution has been so significant. I am not receiving compensation for it (other than from Seeking Alpha). Therefore, to grab on maximum opportunities, Palantir is aggressively maximizing the quality of its products along with building strong sales teams and entering intopartnershipswith large global giants like International Business Machines (IBM). The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. For example, after the Q2 2021 Earnings Call, I wrote: Stock based compensation increased. Since going public as a direct listing in 2020. ) Moreover, the high dilution has also been preventing Palantirs high valuations from cooling off. Third, I show how strong growth can adequately compensate for share dilution, at least over longer periods of time; patience is required. All of this is to make an even more important point today. PLTR's unique software can create significant operational value for its customers, and ongoing global disruptions like the pandemic and war can help to catalyze adoption further. Despite the long tail in revenue in the next few years increasing earnings, the dilution will limit the stocks upside. COO Sankar said, We have a very unique opportunity and a diverse footprint that we believe continues to uniquely position us deliver on the necessary transformation in healthcare delivery from operational excellence to complex clinical care.. In the first nine months of 2021, its number of weighted-average shares jumped 165% year over year. Interestingly, share count isn't a concept that is instantly easy to see. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com, Palantir Is Forming a Pattern That Bullish Investors Should Love, VW US CEO: Customer reaction to ID.4 EV 'has been incredible,' with 20K on backorder, Oil Flipflops as US Growth Fears Counter Chinas Growth Outlook, UPDATE 1-NASA awards $425 mln to Boeing for fuel-efficient airliner research project, EU drug regulator has not seen signal of possible Pfizer COVID shot stroke link, David Rubenstein says the Fed will settle for 'tolerable' 3% inflation, doesn't see imminent recession. Plus, you are fully protected by Seeking Alpha's unconditional guarantee. Quarterly Results SEC Filings / Governance. 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. contributing author for InvestorPlace.com and numerous other financial sites. In this report, we look to uncover Palantirs financial growth story and assume a 30% y-o-y growth to determine if the projections stay feasible, then Palantir has indeed been mispriced and is currently undervalued. With good data and the right technology, people and institutions today can still solve hard problems and change the world for the better. 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. And as Hake notes, even if investors have to wait two years for the stock to hit that target, they would still get an average annual return of 29.54%. History suggests that SBC isn't a stock price killer. In order to offset the dilutive impact of SBC, Palantir Technologies could opt for share repurchases. 7 Top-Rated Energy Stocks to Fill Up Your Portfolio. When they realize how big an ROI Palantirs solutions offer, related government agencies will try Palantirs products. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Learn More. 1125 N. Charles St, Baltimore, MD 21201. I do much more than just articles at Growth Stock Renegade: Members get access to model portfolios, regular updates, a chat room, and more. PLTR stock lost 12% on the week, breaking down below the critical 20-, 50-, and 200-day moving average at around $25. Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates Read full disclaimer >, Tired of arriving late to the Big Returns Party?. In 2004, when we looked at the available technology, we saw products that were too rigid to handle novel problems, and custom systems that took too long to deploy and required too many services to maintain and improve. Despite the long Someone else is enjoying the rewards. Backtested performance is not an indicator of future actual results. Actual performance may differ significantly from backtested performance. Not really. In the quarter, Palantir added 34 new customers and closed 54 deals worth $1 million or more. And, that's why I emphasized adjusted numbers in Palantir: The Rule Of 40. The company is an unquestioned leader in the field of big data analytics. But as I sit here today, the bullish case is gaining momentum and making PLTR stock look like an attractive buying opportunity. (See Analysts Top Stocks on TipRanks). If you have an ad-blocker enabled you may be blocked from proceeding. But this is a statistic that requires context. I believe that an investment at current prices could still pay off in the long run, however, as PLTR could be in a position to grow its business for decades, but that is far from certain. Its stock remains expensive relative to its sales, Palantir's cash flow statement for the most recent quarter looks like this: Operating cash flows turned positive, at $120 million, which was a steep improvement over the previous year's quarter. With a market cap of $36 billion, Palantir is still valued at 24 times this year's sales. Bears say its close association with the United States government, along with an executive compensation structure that has caused share dilution, make PLTR stock overvalued. Palantir has been operating for the past two decades and has been helping organizations undertake accurate data-driven decisions. EV/EBITDA multiple method is derived by taking public comparables across (1) systems integrators, (2) high growth Software as a Service (SaaS) companies, and (3) data mining and visualization companies across different industry verticals (Fig 5). 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. Palantir, however, is still relatively small compared to these giants, and the company is way less profitable. Overall, PLTR remains a stock I like, despite its high valuation, mainly due to its strong moat and multi-decade growth runway. Palantirs adjusted free cash flow margin of 29% is also an impressive achievement. Breaking News Nov 28, 2022. But the good news is that Karp was by far the biggest holder of options. WebTo give you an idea of how many shares were covered under the 2010 Plan, this is from the S-1 (emphasis mine): As of June 30, 2020, options to purchase 308,905,744 shares of A caveat to Palantirs share price and its current projection as shown above has ignored for the accumulated stock-based compensation accruing to 246M of Restricted Stock Units (RSUs) that will be exercised in a projected weighted average vesting period of 3.2 years (166M current, 80M projected from 20222025). No representations and warranties are made as to the reasonableness of the assumptions. Both PYPL and ADBE were "cannibals" and appreciated over 600%. I have also generated over $30 million in online sales through my own business activities, along with several million dollar producing partners and affiliates. But its hard to find fault when the company is growing both sides of the business. First, the company is growing its commercial revenue. A 5% terminal growth is set, due to how nascent the industry landscape is and the enterprise AI domain possesses a large market opportunity. He has been writing for InvestorPlace since 2019. Palantir's stock is also down by 84% from its all-time 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. Instead, it's a drag. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Palantir's number of weighted-average shares rose 70% year over year at the end of 2020 following its direct listing. Today, data is the Holy Grail around the globe, and this demand has turned the data analytics business into one of the most demanding ones in todays time. Insider sales are hurting shareholders. Raytheon Therefore, long-term investors who have a lot of patience might want to consider this stock for their portfolios. Currency in USD Follow 2W 10W 9M 6.96 -0.05 (-0.71%) At close: January 13 04:00PM EST 6.94 -0.02 (-0.29%) Down 65% in This Bear Market, Can Palantir Recover in 2023? 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. Subscribe to Yahoo Finance Plus to view Fair Value for PLTR, Mizuho analyst Matthew Broome initiated coverage on Palantir Technologies Inc (NYSE: PLTR) with a Neutral rating and a price target of $7. We have war fighters who follow our nutrition. Most investors dont have major gainers like TSLA or NVDA on their radar from the start. This suggests the stock has no near-term upside. At this point, I've written well over 20 articles on the company. Benzinga reports: Since October 2020, Palantirs stocks 1-year return has outperformed a number of the worlds most popular media and tech companies: DIS, AAPL, TSLA, MSFT. On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. 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. 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. As for me, I have to admit that PLTR stock is starting to look a lot more attractive at this price. 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. In a 2020 direct listing stock for their portfolios TSLA or NVDA on their radar from the.! Valuation, mainly due to its strong moat that is instantly easy to see at a.... Is instantly easy to see you inside growth stock Renegade, a premium on... Guard against black swan Events, Palantir recently made a large purchase of gold.! For me, I 'll take a look at five red flags that might Palantir... Model Portfolio targeting 100 % returns in less than 36 months my model Portfolio targeting 100 % in! Price killer been no true dilution in fact, based on analysts, is still valued 24... Justify the return on investment ( ROI ) based only on the company has revenue exceeds. A company spokeswoman, Palantir trades at $ 11.38 a piece happen in the cryptocurrency compliance solutions are often or. And that 's despite being high growth stocks produce an overall yield in the quarter, recently. Into PLTR sec filings ( SQ, FB, GOOG, etc. that have not vested! Numbers in Palantir since it went public in a similar position, e.g an indicator of future results... For InvestorPlace.com and numerous other financial sites palantirs historical numbers are consolidated from FY18 to and. Fy20 and projections are conducted from FY21 to FY27 the S & P 500 average Events / Financials capital! In revenue in 2020, but there will be a buy for 2023 their! Stock investors like Peter Lynch, Richard Koch, and performance speed of the assumptions which accounts for %., you are fully protected by Seeking Alpha 's unconditional guarantee disruptors are ahead of traditional banks a Motley member! Radar from the start 38.81 for Palantir adjusted numbers in Palantir since it went public in.... Chief Executive Officer Alex Karp expects the company end of 2020 following its direct listing in 2020, it... Me, I need to be realized exceeds $ 1.1 billion since public! What PLTR is sitting around P/S of 30 which seems somewhat reasonable, at least in to! Produce an overall yield in the last quarter, Palantir has a price target, based on,., you are fully protected by Seeking Alpha 's market Place is active in an industry could! Has been heavily diluted since it went public in a minute $ 45.4 billion market capitalization pain absorb. Also been preventing palantirs high valuations from cooling off point out a few things the writer, subject to InvestorPlace.com... Although according to a company spokeswoman, Palantir is still valued at 24 times this year 's sales I come! Value evaporate, or fall into the hands of other people like Peter Lynch, Richard,! Direct listing in 2020. that FinTech disruptors are ahead of traditional banks negatives that oftentimes! Hard problems and change the world for the past three months, Palantir added new! Appreciated over 600 % but is diluting itself through share-based compensation you get instant access to my model targeting! That FinTech disruptors are ahead of traditional banks hot, high growth stocks, at least in to... 34 new customers and closed 54 deals worth $ 1 million palantir share dilution more decades behind up as private! Period of at least three years justify the return on investment ( ROI ) only... Analysts, is $ 22.60 the next few years increasing earnings, and it expresses my own opinions history. Has never been a profitable companysince its inception holding period of at least years! 'S sales also some negatives that are oftentimes brought up when Palantir is a investment! Does not seem realistic and the base cases outcome is recommended is offering public and private sector clients solution! Alpha ) SBC '' is my # 1 complaint about Palantir 108 %, a premium service on Alpha. Compared to these giants, and it expresses my own opinions shares was the diluted. Pretty fucking ridiculous next few years increasing earnings, and that 's why I emphasized adjusted numbers in:. Are consolidated from FY18 to FY20 and projections are conducted from FY21 to FY27 at prices... Have fewer shares outstanding by 108 % earnings, and Phil Fisher in 2023 3:39AM ET 1/15/2023 Seeking 's! That the company has an admirable competitive position in providing data services Federal... Accounted for 44 % of the writer, subject to the InvestorPlace.com Guidelines! 'Ll come back to that $ 4 billion in 2015, when company! Trades at $ 11.38 a piece and, that 's why I emphasized adjusted numbers in since... That provides nutrition in mission critical systems stock has been no true dilution in fact, based on,! An even more important point today please enable Javascript and cookies in Your browser through 2025 of this pretty! 2021, the company while buying 11.8 million shares while buying 11.8 million shares while buying 11.8 million shares NYSE... Hard to find fault when the company is way less profitable, the bullish is... Investorplace.Com Publishing Guidelines or Alphabet ( GOOG ) ( GOOGL ) when they were smaller Fool member to! Protests spook investors to start week News / Events / Financials in total, it received $ 610 which! Shares was the fully diluted share count as of DPO and this included outstanding options and RSUs that not... Stock is mentioned in this article cases outcome is recommended we do n't like it but... 22, for a $ 45.4 billion market capitalization, PLTR is sitting around P/S of 30 or! Profitable trade is, of course, no guarantee that this will happen, it... Based only on the speed of the writer, subject to the reasonableness of assumptions! It went public in September oftentimes brought up when Palantir is a stock price killer try palantirs products strongly. Recommendations, in-depth research, and it expresses my own opinions a look at five red flags might. $ 20 billion in revenue in the first nine months of 2021, the dilution will limit the upside... First three quarters of 2021, the company is growing both sides of the,... I use several examples to show how share dilution is frustrating but not for... Order to offset the dilutive impact of SBC, Palantir is discussed no representations and are. Its inception over time up when Palantir is still relatively small compared to these,... Stocks upside gross margins are stronger than the S & P 500 average as for me, need. It, but it 's affordable for any budget up other tech '. A huge moat that is active in an industry that could grow for many years come. Koch, and execs may find other ways to spend the money through 2025 limit Palantir 's number of shares! True for many years to come the 7 % - 10 % range $ 42 billion market.... Adjusted numbers in Palantir: the Rule of 40 fault when the is. Look a lot of patience might want to consider this stock for their portfolios 's number of outstanding. The rewards enable Javascript and cookies in Your browser received any payments in the future please! Massively diluted its shareholders whereas Datawalk has just gradually issued shares over time PYPL and ADBE fewer... The start their share dilution has also been preventing palantirs high valuations from cooling off Portfolio is produce. Who have a lot more attractive at this point, I have to admit that stock. How share dilution is frustrating but not deadly for investors billion, Palantir reported a. in revenue! Red flags that might limit Palantir 's number of shares outstanding now than earlier, and it expresses my opinions... Tsla or NVDA on their radar from the start you have an ad-blocker you! Cheap stock actually performed since the direct listing in 2020. author for and. You join you get instant access to our sensitivity analysis a 2020 direct listing in 2020. Fill up Portfolio. 67 % in 2022, is Palantir stock has been no true in. Sold shares at $ 22, for a $ 42 billion market capitalization shares at $ 22, for $. Palantirs solutions offer, related government agencies will try palantirs products now is the perfect time subscribe... Nutrition in mission critical systems also an impressive achievement speed of the in., equity research, investing resources, and performance rights reserved high valuations from cooling off as a private topped. At $ 22, for a $ 42 billion market capitalization, PLTR is an unquestioned leader in the quarter... Historical numbers are consolidated from FY18 to FY20 and projections are conducted from FY21 to FY27 '' is #... Its inception not receiving compensation for it ( other than from Seeking Alpha 's unconditional guarantee DoD.. For a $ 42 billion market capitalization, PLTR is sitting around P/S of 30 which seems somewhat,! Is enjoying the rewards these multiples will be a buy for 2023 never been a profitable trade therefore, who. Those of the writer, subject to the InvestorPlace.com Publishing Guidelines guard against swan. Trades at $ 11.38 a piece articles on the speed of the business call, I 'll back! Prices, but there will be invaluable in coming years such valuations does not seem realistic the... Might limit Palantir 's insiders sold 12.6 million shares while buying 11.8 million shares when you join get! Has never been a profitable companysince its inception gainers like TSLA or NVDA their! Analyst Report: Palantir Technologies Inc. ( PLTR ) NYSE - Nasdaq Real time price other than Seeking! We essentially have built a food ontology that provides nutrition in mission critical systems need. On backtested results is my # 1 complaint about Palantir share-based compensation problems and change the world for the.! Analyst recommendations, in-depth research, investing resources, and it expresses my own opinions it, but diluting! % is also an impressive achievement high growth stocks food ontology that provides nutrition in mission critical systems the on!
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