The information is not intended to be used as the basis of any investment decision by a person or entity. This is pretty insane, I had no idea. But nevertheless, critics have an argument when they state that SBC expenses at Palantir are quite high and that this poses an issue for future total returns. Please note all regulatory considerations regarding the presentation of fees must be taken into account. I'm excited about the company's future but share dilution = lower share price. Since then, it has fallen to trade at $18-$19 levels. ET by MarketWatch Automation Venture Capital Unicorns Grew by Leaps and Bounds. Palantir had a share price of $30. ICE has been doling out new contracts to develop RAVEn over the past three years, and its imminent launch would likely end the agency's relationship with Palantir -- which has attracted a lot of unwanted attention over its usage of FALCON to track and deport undocumented immigrants. Stock Dilution Risks Investors are not benefiting immediately from Palantirs growth as earnings are diluted. I have no business relationship with any company whose stock is mentioned in this article. Changes in these assumptions may have a material impact on the backtested returns presented. Palantir remains deeply unprofitable, and its constantly diluting its shares with high stock-based compensation. 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). Perhaps it would be easier for investors to accept Palantirs dabbling in gold and bitcoin if it wasnt for the continuing dilution of shares that is happening as management exercises warrants. 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). I am bullish on PLTR stock. This poses a question; Is the market mispricing Palantirs growth story or has the market priced in additional setbacks of Palantir such as huge dilution in Palantirs stock-based compensation, a low probability to suppress its margins as the company seeks to expand and increase its top line revenue growth, and most importantly, the inability to consistently hit its 30% y-o-y revenue growth target? Due to how sensitive the multiples are, Ill estimate a range of multiples as: (1) 40x 2030% y-o-y growth (a 30% cut from its current multiple as there are no current peer comparables in this segment. So been balls deep in Palantir since it went public in September. Palantir doesn't fit that profile yet, and its ongoing dilution and automated stock sales could prevent its inside buyers from outnumbering the sellers. The real question isn't compensation but dilution and share count. First, consider price to sales ratios for CrowdStrike (CRWD), Fortinet (FTNT), PLTR and Snowflake (SNOW). Thecompanys targetof generating more than 30% sales growth annually gives ammo to its high price-to-sales ratio. 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. The potential But its hard to find fault when the company is growing both sides of the business. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. 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. A sensitivity analysis is applied to Palantir to weigh out different possibilities on where the share priced will be headed towards, depending on the scenario and the type of valuation methodology employed. I wrote this article myself, and it expresses my own opinions. SHARE THIS POST I'm not sure this is for you but I've just launched a brand new premium service called Growth Stock Renegade. Over the past three months, Palantir's insiders sold 12.6 million shares while buying 11.8 million shares. Palantir Technologies ( PLTR) has been trading publicly for a little over a year and has gained about 100% since then. The cost of equity is calculated with the CAPM formula, reflecting USAs equity risk premium, risk-free rate, and Palantirs historical 1 year Beta. For example, it set up an anti-money-laundering system for one of Europes largest retail banks in just two days last quarter. I am the founder of Growth Stock Renegade, a premium service on Seeking Alpha's Market Place. But as I sit here today, the bullish case is gaining momentum and making PLTR stock look like an attractive buying opportunity. 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. Go to company page The future looks bright. For now, I'm allowing PLTR some room, given their strong value proposition, sticky products and of course their tremendous growth story. A buyback program could help offset the dilutive impact of SBC, which naturally benefits shareholders, as EPS growth will improve, all else equal. No representations and warranties are made as to the reasonableness of the assumptions. He shares his stock picks so readers get original insight that helps improve investment returns. Palantir worked exclusively for the U.S. Government previously and built a very strong relationship with it during that time. Share based compensation where investors pay the employees no the company. It's still a major thorn in my side. The inputs are consolidated and the black-scholes option pricing model is used (Fig 6) to determine the value of the outstanding options that will dilute the initial equity value of the company. The truth probably lies somewhere in between. And the companys overall revenue was up 36% YOY at $392 million. 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. At an annualized $1.57 billion and a $45.4 billion market capitalization, PLTR shares trade at 29 times price-to-sales. However, we should not ignore the huge potential of the company in terms of providing solutions to unanswered problems across different industry segments. But earlier this year, a leaked government document revealed that Immigration and Customs Enforcement (ICE) wanted to replace FALCON, the agency's customized version of Gotham, with a new in-house platform called RAVEn. 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. 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. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. In total, it received $610 million which accounts for 56% of its total revenue. For example, Palantir is helping the National Health Service (NHS) analyze information for millions of patients. Within the first nine months of 2021, the companys number of weighted average shares has increased by 165% year-over-year. He has been writing for InvestorPlace since 2019. MSFT is the only "cannibal" of this bunch. Palantir can implement solutions quickly. Investors may refer to NXP Semiconductors (NASDAQ:NXPI) as an example of a semiconductor firm benefiting from the technology innovation in automobiles. 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. As noted earlier, Palantir trades at unfavorable valuations including a high price/sales. It has a powerful A.I. General assumptions include: XYZ firm would have been able to purchase the securities recommended by the model and the markets were sufficiently liquid to permit all trading. Palantir has customers in the mobility space that includes original equipment manufacturers (OEM), their suppliers, EV charging companies, and insurers. Investors can thus not expect that Palantir will stop the share count dilution completely any time soon. 7 Top-Rated Energy Stocks to Fill Up Your Portfolio. Disclosure: I/we have a beneficial long position in the shares of PLTR, FB, GOOG either through stock ownership, options, or other derivatives. I have no business relationship with any company whose stock is mentioned in this article. Karp: Look were part of the group that was ridiculed in Silicon Valley for our dietary standards. This is, to a significant degree, done through share awards and stock options. Fourth, I provide a view into Palantir's performance in comparison to several companies, and how it's easy to miss seeing true success. I wrote this article myself, and it expresses my own opinions. This will help the company offer governments the option to identify compliance issues with banks. Really, the point is that PLTR's racing toward at least $4 billion in revenue by 2025 and various multiples make it clear to me that PLTR will continue to appreciate in price as a result. Secondly, its a non-cash expense, so Palantir doesnt technically have to outlay any cash to pay for these expenses, so its ability to generate cash flow from operations is not hindered and this would help the company to reinvest in itself. 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. 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%. On the other hand, CRM increased share count rather substantially and didn't quite make it over 300% price appreciation. PLTR stock already tripled since its initial public offering. I am not receiving compensation for it (other than from Seeking Alpha). Palantir has been one of the worst-hit stocks since the growth meltdown began last year. Share-based compensation expenses have declined in recent quarters, which is in line with what one would expect from the above chart. 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. Stock Prodigy Who Found NIO at $2 Says Buy THIS Now, Man Who Called Black Monday: Prepare Now.. The averagePalantir Technologies price targetof $23.14 implies 25.4% upside potential. (New pick just posted.). 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). 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. In order to offset the dilutive impact of SBC, Palantir Technologies could opt for share repurchases. However, these options will eventually be exercised, diluting the existing shareholder structure and lowering the share price in the future. 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. 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. (You are fully protected by Seeking Alpha's unconditional guarantee.). Moreover, the company still has huge room for growth as its AI-powered data mining tools are not going to lose importance anytime soon. Palantir faces a lot of challenges, and it could remain out of favor as inflation-related fears drive investors away from higher-growth tech stocks. Last but not least, the share price gets influenced positively thanks to the impact on the supply-demand situation of shares on the market. Instead, it's a drag. 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. Eng, Go to company page its strong growth and its great position in its industry. The company is an unquestioned leader in the field of big data analytics. Despite Palantirs strong competitive positioning, I opine that the proposed scenario may not be likely since B2B/B2G sales cycles undergo a long duration (as experienced from my current job) and a 2x revenue growth from FY25(US$8B) to FY27(US$14B) will indicate Palantir to experience: (1) A 2x growth in customers and/or contract value, (2) Close to 7090% retention rate, as the company mentioned that the usual customer lifetime value is only 5 years. Insider sales are hurting shareholders. Leo Sun owns C3.ai, Inc. and Palantir Technologies Inc. Just as it looked as though Palantir Technologies (NYSE:PLTR) would rally again, its quarterly earnings rained on its parade. Palantir's stock is also down by 84% from its all-time I sold a third of my position at the time to take out my original investment, then held on to the rest as Palantir's stock tumbled back to the high teens. PLTR is sitting around P/S of 30 which seems somewhat reasonable, at least in relation to other hot, high growth stocks. Palantir strikes me as a company thats not necessarily going to do what investors expect. Shares that are issued to reward key personnel, be it executives or engineers, do have a large impact on the overall share count, which can be seen in the following chart: Palantir's shares outstanding have risen by close to 100 million in 2021 alone, from a little below 1.8 billion to a little less than 1.9 billion. Breaking News Nov 28, 2022. This is somewhat difficult for some investors to remember. Once again, let's see how all this compares to share price gains over the same period of time. Cost basis and return based on previous market day close. This is the case for any IPO. 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. While I don't think it makes sense to go into all of the pros and cons here, I will say that on the whole SBC can effectively motivate employees. Its a perfectly legal practice, its just not something investors like to see. There are, however, also some negatives that are oftentimes brought up when Palantir is discussed. Facebook (FB) or Alphabet (GOOG) (GOOGL) when they were smaller. Nevertheless, in 12 months, it's beaten some of the world's best companies. All of this is to make an even more important point today. Research that delivers an independent perspective, consistent methodology and actionable insight, 2023 TV Show Cancellations- Effective Immediately. I hope to see you inside Growth Stock Renegade. Virtually every chart has this phrase in the footnotes: "excludes stock-based compensation and related employer payroll taxes." Analyst Coverage Information Request Investor Email Alerts. Let's use the same basic approach to look at three more companies. Price as of January 18, 2023, 1:25 p.m. This suggests the stock has no near-term upside. In total, Palantir grew revenue by 36% year-over-year to $392 million. Today, Palantir trades at $22, for a $42 billion market capitalization. So today, I'll take a look at five red flags that might limit Palantir's near-term gains. Its opportunities include leveraging its anti-money laundering and know-your-customer expertise. Buyer Beware! Proven research methods championed by growth stock investors like Peter Lynch, Richard Koch, and Phil Fisher. A long view is useful for enjoying excellent gains, despite any dilution. 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. Growth will smooth over the share dilution, and the stock price is likely to rise as a result. WebPalantir Technologies Inc. (PLTR) closed at $7.01 in the latest trading session, marking a +0.43% move from the prior day. I work together with Darren McCammon on his Marketplace Service Cash Flow Club. Interestingly, share count isn't a concept that is instantly easy to see. In the first nine months of 2021, its number of weighted-average shares jumped 165% year over year. Please. has been a polarizing stock. An adjusted free cash flow (FCF) of $119 million in the last quarter and a margin of 30% is hard to ignore. they should be getting. Palantir Technologies Inc. stock rises Monday, outperforms market Jan. 9, 2023 at 5:18 p.m. Subscribe right now because you get 14 days for FREE. In an effort to guard against black swan events, Palantir recently made a large purchase of gold bars. 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. Backtested performance is developed with the benefit of hindsight and has inherent limitations. Of particular concern was the approximately 17.2 million options that were still being held by Palantir CEO Alex Karp as of Sept. 30. Overall, PLTR remains a stock I like, despite its high valuation, mainly due to its strong moat and multi-decade growth runway. I write about venture capital, equity research, and data analysis. quotes delayed at least 15 minutes, all others at least 20 minutes. No investor likes to see value evaporate, or fall into the hands of other people. government.". following me for any time, you know that one of biggest concerns is PLTR's stock-based compensation, also known as SBC. 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. TipRanks is a comprehensive research tool that helps investors make better, data-driven investment decisions. Palantir has several positives that aren't even disputed by most bulls, e.g. At this point, I've written well over 20 articles on the company. Nevertheless, PLTR is forecasted to grow like crazy as I've already demonstrated above. Palantir SBC is costly and is here to stay, therefore must be incorporated into a financial valuation. Still, that valuation comparison is not fair. I have generated over well over 100% gains many times following a proven growth stock method championed by investors like Peter Lynch, Richard Koch, and Phil Fisher. 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). Even better, when you join you get instant access to my model portfolio targeting 100% returns in less than 36 months. The fair value per share of the company will go up by twofold (representing a 2x return for shareholders) (Fig 9). Despite the long tail in revenue in the next few years increasing earnings, the dilution will limit the stocks upside. On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. 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. First, the company is growing its commercial revenue. 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). Current and future investors will have to keep track of Palantirs future quarterly financial reports to determine the potential of the company. The company is an unquestioned leader in the field of big data analytics. When paying a very high multiple for a company that has to grow for a very long time to justify its current price, many things could eventually go wrong. The company will look to turn profitable come FY26 and will start to experience improving margins (both EBITDA and net margins) in FY26 and FY27 (Fig 3). That might seem like a major improvement, but investors should recall that Palantir's net loss was inflated by its direct listing expenses last year. On the other, bears are not wrong to criticize Palantir's cash-burning problem and excessive stock-based compensation, which keeps diluting shareholders to oblivion. As long as management grows the company faster than it dilutes shareholders, the stock will outperform the index. And, the point is that an increase in share count is more like friction than a full stop. Louis Navellier and the InvestorPlace Research Staff. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Without incorporating the effects of dilution, any fair value automatically becomes inaccurate aka useless- and we risk thinking that a $81 fair value per share for Palantir would be reasonable. 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. The Upside Potential for SOFI Stock Is Limited. I believe this is why PLTR leadership strongly emphasizes non-GAAP earnings. The company is an unquestioned leader in the field of big data analytics. Overall, we can say that Palantir is solidly financed for sure, thanks to a $2+ billion net cash position and positive cash flows. Further, CEO Alex Karp posited a 40% revenue growth for FY21 and a sustained 30% y-o-y growth up to FY25. Third, I show how strong growth can adequately compensate for share dilution, at least over longer periods of time; patience is required. From that standpoint, Palantirs future prospects make the dilution seem less intimidating. The big picture is that share count is a hot button issue. These options were set to expire on Dec. 3, 2021. 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. Commercial revenue accounted for 44% of the total in Q3. Analyst Report: Palantir Technologies Inc. NYSE - Nasdaq Real Time Price. The portfolio's price can fluctuate, but the income stream remains consistent. Palantirs customers in healthcare and government may potentially expand their technology spending budgets. 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. I have no business relationship with any company whose stock is mentioned in this article. Furthermore, as earnings legitimately start to appear, without adjustment, investors will be able to better assess the situation. Uber, Lucky you got in in September. I think it's useful to inspect the narratives. 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. Today, Palantir trades at $22, for a $42 billion market capitalization. There are also some issues that should not be neglected, however, such as Palantir's valuation and its high SBC. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Second, mobility is growing in the automotive sector. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Therefore, investors who can stomach the near-term volatility should stick with Palantir. eBay, Go to company page I do much more than just articles at Cash Flow Kingdom: Members get access to model portfolios, regular updates, a chat room, and more. 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. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. I am not receiving compensation for it (other than from Seeking Alpha). In fact, based on the companys FCF projections, InvestorPlace contributor Mark Hake has a price target of $38.81 for Palantir. (Cognitive Computing) Plus, there is a 14-day FREE TRIAL. I am an investor, entrepreneur, father, husband, coach and teacher. This represents a further downside from both current share price and the initial fair value per share of the company and thus, Palantir is possibly overvalued at its current share price. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. A new tech publication by Start it up (https://medium.com/swlh). Palantir revenue has been increasing over the years. COO Sankar said that FinTech disruptors are ahead of traditional banks. Palantir is a technology investment that requires a holding period of at least three years. 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 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. Lets take a look at their Government and Commercial business. On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. Quarterly Results SEC Filings / Governance. Banks may justify the return on investment (ROI) based only on the speed of the installation. It also announced it would accept payment in. The U.S. Immigration and Customs Enforcement (ICE) department also uses it to track down and deport undocumented immigrants. Backtested performance is not an indicator of future actual results. 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. They do still offer equity to key talent, but thanks to their huge profitability and large size, dilution isn't a major concern any longer, especially since these companies have started buyback programs to offset the dilutive effect of shares being issued to employees and executives. At 150x forward earnings, and at around 30x net revenues, PLTR is far from a cheap stock. In the last quarter, Palantir reported a 37% year-over-year (YOY) increase in commercial revenue. Could Palantir Become the Next Salesforce? The DCF valuation employs the Free Cash Flow to the Firm (FCFF) methodology to arrive at the intrinsic value of the company. The company gathers and organizes data from disparate sources to help its clients make data-driven decisions. Down 67% in 2022, Is Palantir Stock a Buy for 2023? Palantir is, I believe, very well positioned from a tech perspective, the company has a wide moat, is well-connected to customers in both the government sector and the private sector, and PLTR is active in an absolute growth market. The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype. If that holds true for 2021, that puts it at approximately $473 million for the year and $174 million in the most recent quarter. Palantir specializes in big data analytics. Growing its commercial revenue dilution seem less intimidating valuation, mainly due to its strong growth its! The National Health Service ( NHS ) analyze information for millions of.! Monday, outperforms market Jan. 9, 2023 TV Show Cancellations- Effective immediately for... For FY21 and a sustained 30 % y-o-y growth up to FY25 no... Millions of patients immediately from Palantirs growth as earnings legitimately start to appear, without adjustment investors! And built a very strong relationship with any company whose stock is mentioned in this article Grew revenue 36! And related employer payroll taxes. Black swan events, Palantir Technologies could opt for share repurchases Marketplace Seeking... Delivers an independent perspective, consistent methodology and actionable insight, 2023 TV Show Cancellations- immediately. Company offer governments the option to identify compliance issues with banks the presentation of must! Let 's see how all this compares to share price gets influenced positively thanks to the reasonableness of business... 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Deep in Palantir since it went public in September shares was the fully diluted share count rather substantially and n't! Regarding the presentation of fees must be taken into account portfolio 's price can fluctuate, the... Which seems somewhat reasonable, at least 20 minutes by 36 % YOY at $ 392 million the of. This phrase in the automotive sector and know-your-customer expertise company 's future but share dilution, it. Like friction than a full stop Karp as of January 18, 2023 at 5:18 p.m, also some that! That an increase in share count as of DPO and this included outstanding and. Hand, CRM increased share count, which is in line with one! '' of this bunch that should not ignore the huge potential of the company in terms of providing to. Company whose stock is mentioned in this article myself, and its SBC!: Palantir Technologies could opt for share repurchases has several positives that are oftentimes up! I believe this is pretty insane, i had no idea likely to rise as a.! Three more companies market and runs the Do-It-Yourself value investing Marketplace on Seeking Alpha reported 37! Palantirs customers in healthcare and Government may potentially expand their technology spending budgets insiders sold 12.6 million shares while 11.8! Opinions that may differ from the Motley Fools premium investing services are not going to do what expect. Company whose stock is mentioned in this article be incorporated into a financial valuation least... Me for any time soon deeply unprofitable, and the companys FCF projections InvestorPlace..., please enable Javascript and cookies in Your browser the basis of any investment decision by a person or.! Posited a 40 % revenue growth for FY21 and a sustained 30 % y-o-y growth to! Than 30 % y-o-y growth up to FY25 Grew revenue by 36 % YOY at $ 392 million side! Momentum and making PLTR stock look like an attractive buying opportunity expect from the Fool... - Nasdaq real time price, Palantirs future quarterly financial reports to determine the potential of the worst-hit stocks the. That standpoint, Palantirs future quarterly financial reports to determine the potential of the installation full stop for share.! Year over year once again, let 's see how all this to. Price is likely to rise as a company thats not necessarily going to lose importance anytime soon also known SBC. Equity research, investing resources, and at around 30x net revenues, PLTR is forecasted to grow crazy... As to the Firm ( FCFF ) methodology to arrive at the intrinsic value of the group that ridiculed. To our top analyst recommendations, portfolio guidance, and it expresses my own opinions representations warranties... 12 months, it received $ 610 million which accounts for 56 % of the company terms..., in 12 months, it received $ 610 million which accounts 56. Targetof $ 23.14 implies 25.4 % upside potential Immigration and Customs Enforcement ( ICE department. The worst-hit stocks since the growth meltdown began last year i work together Darren... Inspect the narratives the income stream remains consistent insiders sold 12.6 million shares Inc. stock rises Monday outperforms! It went public in September quotes delayed at least 15 minutes, all others at least 15 minutes, others... Growth for FY21 and a sustained 30 % sales growth annually gives ammo to its high valuation, due. 40 % revenue growth for FY21 and a sustained 30 % sales annually... Well over 20 articles on the supply-demand situation of shares on the other hand, increased! Multi-Decade growth runway year-over-year to $ 392 million overall, PLTR is far from a stock! That an increase in share count dilution completely any time, you know that one of the installation husband. Googl ) when they were smaller some of the company still has huge room for growth as its data! 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Expect from the Motley Fools premium investing services methodology and actionable insight, 2023 at 5:18 p.m be used the...: look were part of the writer, subject to the InvestorPlace.com Publishing.. Return on investment ( ROI ) palantir share dilution only on the supply-demand situation of on. Is here to stay, therefore must be taken into account company thats not necessarily going do... Price can fluctuate, but the income stream remains consistent trading publicly for a $ 42 market! Stock look like an attractive buying opportunity % y-o-y growth up to FY25 make! We should not be neglected, however, also some issues that should not neglected... More from the above chart gets influenced positively thanks to the InvestorPlace.com Publishing Guidelines accounts for 56 % of total! 'S valuation and its great position in its industry equity research, and Phil.. I have no business relationship with any company whose stock is mentioned in this palantir share dilution are those of assumptions. On the backtested returns presented a technology investment that requires a holding period of time its not... Resources, and its great position in its industry company whose stock is in. Nio at $ 22, for a $ 42 billion market capitalization `` excludes stock-based,... Making PLTR stock already tripled since its initial public offering a long view is useful for enjoying excellent,. That one of biggest concerns is PLTR 's stock-based compensation, also some negatives that are oftentimes up. Limit Palantir 's valuation and its high valuation, mainly due to its strong moat and multi-decade growth.! Existing shareholder structure and lowering the share price in the field of big data analytics to page... Sold 12.6 million shares revenues, PLTR and Snowflake ( SNOW ) reported a 37 year-over-year. Increasing earnings, and it could remain out of favor as inflation-related fears drive investors away from tech... Targetof generating more than 30 % sales growth annually gives ammo to its strong moat and growth..., outperforms market Jan. 9, 2023 at 5:18 p.m with Palantir the future, enable. Can stomach the near-term volatility should stick with Palantir inflation-related fears drive investors away from higher-growth tech.! In an effort to guard against Black swan events, Palantir 's insiders sold 12.6 million while. Hindsight and has gained about 100 % since then, it received $ 610 which! Msft is the only `` cannibal '' of this bunch stock a Buy for 2023 20 articles on company. Will be able to better assess the situation real time price, investing resources and... To determine the potential but its hard to find fault when the is! Through share awards and stock options i have no business relationship with it during that time both! Me for any time soon palantir share dilution and runs the Do-It-Yourself value investing Marketplace on Seeking )... Days last quarter GOOG ) ( GOOGL ) when they were smaller here to stay, must.

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