For the first three quarters of 2021, the company has revenue that exceeds $1.1 billion. History suggests that SBC isn't a stock price killer. In an effort to guard against black swan events, Palantir recently made a large purchase of gold bars. Investors are not benefiting immediately from Palantirs growth as earnings are diluted. The company is one of the most trusted analytics platforms for the U.S. government and its allies. ), although according to a company spokeswoman, Palantir has not received any payments in the cryptocurrency. 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. Facebook (FB) or Alphabet (GOOG) (GOOGL) when they were smaller. As noted earlier, Palantir trades at unfavorable valuations including a high price/sales. We essentially have built a food ontology that provides nutrition in mission critical systems. Namely, that it's growing like crazy, with strong adjusted cash flows, and hefty margins. Due to the fact that there is no need to pay down debt, and since capital expenditures are pretty low, while the company also does not need to add growth through M&A (as its organic growth is strong already), it would not seem like a huge surprise if PLTR eventually starts buying back its own shares. Intuitively, we don't like it, but it's hard to see at a glance. The information set forth herein has been obtained or derived from sources generally available to the public and believed by the author(s) to be reliable, but the author(s) does not make any representation or warranty, express or implied, as to its accuracy or completeness. First, as I've roughly demonstrated above, share count can go up or down, yet investors can still do quite well. 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. Just as it looked as though Palantir Technologies (NYSE:PLTR) would rally again, its quarterly earnings rained on its parade. However, we should not ignore the huge potential of the company in terms of providing solutions to unanswered problems across different industry segments. 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). 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. . 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. Palantir Investor Relations. I am an investor, entrepreneur, father, husband, coach and teacher. 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. Please disable your ad-blocker and refresh. In the Q3 2021 earnings conference call on Nov.9, he said, legacy compliance solutions are often 2 or more decades behind. But this is a statistic that requires context. On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. I suspect you are quite familiar with Microsoft (MSFT), Amazon (AMZN), Facebook (FB) and Alphabet (GOOGL). Stock Prodigy Who Found NIO at $2 Says Buy THIS Now, Man Who Called Black Monday: Prepare Now.. 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. Certain assumptions have been made for modeling purposes and are unlikely to be realized. 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. The portfolio's price can fluctuate, but the income stream remains consistent. With macroeconomic issues hanging over all growth stocks, investors should wait for a confirmed signal before buying this dip. 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). At the rate from the first quarter, this would take a little more than 2 years, and due to business growth, it seems likely that cash flows will increase instead of decline going forward, so the $5 billion net cash position could be hit earlier. Backtested results are adjusted to reflect the reinvestment of dividends and other income and, except where otherwise indicated, are presented gross-of fees and do not include the effect of backtested transaction costs, management fees, performance fees or expenses, if applicable. 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. From that standpoint, Palantirs future prospects make the dilution seem less intimidating. I hope to see you inside Growth Stock Renegade. 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. 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. reduce the number of new stock options that are awarded to execs and employees. Palantirs customers in healthcare and government may potentially expand their technology spending budgets. We have war fighters who follow our nutrition. 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). Down 67% in 2022, Is Palantir Stock a Buy for 2023? 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. 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. On the date of publication, Chris Lau did not have (either directly or indirectly) any positions in the securities mentioned in this article. Expect the company to win more customers in the coming year. Share-based compensation expenses have declined in recent quarters, which is in line with what one would expect from the above chart. Nevertheless, in 12 months, it's beaten some of the world's best companies. The averagePalantir Technologies price targetof $23.14 implies 25.4% upside potential. The big picture is that share count is a hot button issue. Palantirs adjusted free cash flow margin of 29% is also an impressive achievement. First, the company is growing its commercial revenue. Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. The company is an unquestioned leader in the field of big data analytics. Palantir has several positives that aren't even disputed by most bulls, e.g. Furthermore, significant share dilution has passed and should not be a problem as the company advances. I do see some risk in P/S compression but in looking at some reasonable comparisons, PLTR's P/S at around 30 isn't completely outlandish for a quality, high growth company. See for yourself. Theres likely a few reasons for Palantir to favour SBC over salary. Palantir Might Be Worth the Buy for Patient Investors. ET by MarketWatch Automation Venture Capital Unicorns Grew by Leaps and Bounds. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. If history repeats itself, then PLTR stock could set up as a profitable trade. 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%. This is, to a significant degree, done through share awards and stock options. It soared from $9-$10 levels in September 2020 (when it debuted on the exchanges) to $45 by January 2021. Palantir, which builds data analysis software for government agencies and large corporations, said on Monday that it has 2.17 billion diluted shares. 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. At 150x forward earnings, and at around 30x net revenues, PLTR is far from a cheap stock. The TipRanks Smart Score performance is based on backtested results. 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. He has been writing for InvestorPlace since 2019. In fact, based on the companys FCF projections. The Motley Fool owns and recommends C3.ai, Inc. and Palantir Technologies Inc. Enter your email to receive our newsletter. 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. So I Due to the fact that a high-growth company also has many This is all very rough, of course. Strong deal value, growing 50% to $3.6 billion, signals strong business ahead. I appreciate your feedback, comments and questions. (Cognitive Computing) Someone else is enjoying the rewards. 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. Investors can thus not expect that Palantir will stop the share count dilution completely any time soon. All of this is to make an even more important point today. Cost of debt is calculated by taking the blended average on the lease debt taken by Palantir (6.35%) and credit facilities (2.75%) and adding the 10-year risk free rate. If you have an ad-blocker enabled you may be blocked from proceeding. Thus, this seeks to explain why Palantir is experiencing a downward pressure in its share price since its recent high of ~US$2628/share. 7 Top-Rated Energy Stocks to Fill Up Your Portfolio. Turning to Wall Street, PLTR stock has a Moderate Sell consensus rating. Actual performance may differ significantly from backtested performance. No investor likes to see value evaporate, or fall into the hands of other people. 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. 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. Palantir worked exclusively for the U.S. Government previously and built a very strong relationship with it during that time. 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. Meanwhile, queasier investors should stick with more inflation-resistant tech stocks trading at more reasonable valuations. Palantir has been operating for the past two decades and has been helping organizations undertake accurate data-driven decisions. TipRanks is a comprehensive research tool that helps investors make better, data-driven investment 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). PLTR stock already tripled since its initial public offering. However, I need to point out a few things. I am the founder of Growth Stock Renegade, a premium service on Seeking Alpha's Market Place. Palantir strikes me as a company thats not necessarily going to do what investors expect. Its balance sheet thus looks pretty strong, with cash clearly outsizing any debt. This is AMC / GameStop levels of dilution. 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. Plus, there is a 14-day FREE TRIAL. WACC (Fig 4) is estimated at 8.5% for Palantir. And, as long as growth is far greater than dilution, everything should work out fine. Palantir Technologies ( PLTR) has been trading publicly for a little over a year and has gained about 100% since then. And, that's also in line with PLTR's long-term sales view, back from Q4 2020. For example, Palantir is helping the National Health Service (NHS) analyze information for millions of patients. Disclosure: 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. Since then, it has fallen to trade at $18-$19 levels. This sounded like a huge red flag, but gave benefit of doubt since they've been private for so long. If you have an ad-blocker enabled you may be blocked from proceeding. Insider sales are hurting shareholders. In total, Palantir grew revenue by 36% year-over-year to $392 million. 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. I write about venture capital, equity research, and data analysis. 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. When they realize how big an ROI Palantirs solutions offer, related government agencies will try Palantirs products. A buyback program could solve the SBC issue, but do not expect one in the very near term, despite the fact that PLTR's balance sheet is clean. Further, CEO Alex Karp posited a 40% revenue growth for FY21 and a sustained 30% y-o-y growth up to FY25. Nasdaq It appears to me that PLTR's growth will overcome the SBC problem over the coming years. WebPalantir Technologies Inc. (PLTR) NYSE - NYSE Delayed Price. 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. 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. First, consider price to sales ratios for CrowdStrike (CRWD), Fortinet (FTNT), PLTR and Snowflake (SNOW). 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?. 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. News Events. 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 only thing that will happen is that is that insiders (employees and private equity investors) will be able to sell their shares once the lock up ends. Join today for less than $2 per day. Palantir scores a 41/100 on quality. Second, mobility is growing in the automotive sector. Current and future investors will have to keep track of Palantirs future quarterly financial reports to determine the potential of the company. 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. 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. Perhaps surprisingly, both PYPL and ADBE have fewer shares outstanding now than earlier, and that's despite being high growth companies. Since going public as a direct listing in 2020. ) Therefore, long-term investors who have a lot of patience might want to consider this stock for their portfolios. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. 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). The potential Since going public as a direct listing in 2020, Palantir (NYSE:PLTR) has been a polarizing stock. There's no dilution happening, they aren't issuing new shares. Article printed from InvestorPlace Media, https://investorplace.com/2021/11/palantir-might-be-worth-the-buy-for-patient-investors/. We must not let PLTR off the hook. Backin 2020,it had generated a revenue of $1.09 billion along with a net loss of $1.17 billion. A subsequent revised version will include a business and industry overview, Palantirs competitive positioning, and potential investment risks. The cost of equity is calculated with the CAPM formula, reflecting USAs equity risk premium, risk-free rate, and Palantirs historical 1 year Beta. And when you join, I'll instantly share my actively managed growth stock portfolio. Stock Based Compensation: The Dilution Potential Of The Worst Offenders 7:01PM ET 1/15/2023 Seeking Alpha. its strong growth and its great position in its industry. Thankfully for them, government contracts last many years. In a recent article I wrote on the stock, I estimated PLTR's 10-year return potential at 10%+ a year. 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%. Third, its growth in healthcare is rising. 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. I am bullish on PLTR stock. So been balls deep in Palantir since it went public in September. has been a polarizing stock. Palantir is a technology investment that requires a holding period of at least three years. One of, if not THE most heavily compensated CEO of any US company in 2021. 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. In order to offset the dilutive impact of SBC, Palantir Technologies could opt for share repurchases. 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. 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. 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. Of particular concern was the approximately 17.2 million options that were still being held by Palantir CEO Alex Karp as of Sept. 30. Following which, we can identify that Palantir will be growing at a 32.9% CAGR from US$1.5B in FY21 to US$8.4B in FY27 (hitting the target of US$5B at FY25 too). 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. Palantir has been one of the worst-hit stocks since the growth meltdown began last year. Yet, it appears that the company is poised to provide strong revenue growth over the next 3-5 years. At the same time, with a P/S of 50 it reaches $200 billion, whereas with a P/S of 20 it reaches $80 billion. As the demand for counter-intelligence tools by the government outstrips supply (tech tools that government agencies can develop in-house), companies like Palantir have been immensely deriving profits out of it. No representations and warranties are made as to the reasonableness of the assumptions. 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. At the same time, however, cash flows are not overly huge relative to how the company is valued, and even if all operating cash flows were diverted to share repurchases, the company would only manage to buy back around 1% of its shares per year -- less than the rate at which its share count has risen so far. And, the point is that an increase in share count is more like friction than a full stop. 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. 18 of those deals were valued at $10 million or more. values the company at around $40 billion. I do much more than just articles at Growth Stock Renegade: Members get access to model portfolios, regular updates, a chat room, and more. Bulls will argue that the company is offering public and private sector clients a solution that will be invaluable in coming years. Over the last couple of months, shares mostly traded in the low $20s, which values the company at around $40 billion. There are, however, also some negatives that are oftentimes brought up when Palantir is discussed. ET. Palantir Technologies (PLTR) has an average rating of hold and price targets ranging from $4.50 to $15, according to analysts polled by Capital IQ. It should also benefit from the growing need for real-time data, and remain a top play on the expanding AI market. To put this in focus another way, consider how strongly PLTR has actually performed since the direct listing in 2020. This poses a question; Is the market mispricing Palantirs growth story or has the market priced in additional setbacks of Palantir such as huge dilution in Palantirs stock-based compensation, a low probability to suppress its margins as the company seeks to expand and increase its top line revenue growth, and most importantly, the inability to consistently hit its 30% y-o-y revenue growth target? Learn More. Go to company page It's still a major thorn in my side. Financials. This information is provided for illustrative purposes only. contributing author for InvestorPlace.com and numerous other financial sites. The company is an unquestioned leader in the field of big data analytics. A buyback program could help offset the dilutive impact of SBC, which naturally benefits shareholders, as EPS growth will improve, all else equal. Moreover, the company is also focusing on accelerating its business, especially across the commercial front, with its second software solution,Foundry. The DCF valuation employs the Free Cash Flow to the Firm (FCFF) methodology to arrive at the intrinsic value of the company. SHARE THIS POST Now that shares are down slightly, Palantir is a stock to consider again. However, the stock market did not seem to reciprocate such good news and instead, Palantir has dropped ~15% from US$ 26.75 to US$22.83 as of 15th Nov 2021. In an effort to guard against black swan events, Palantir is a comprehensive research tool that helps make. Operating for the past two decades and has gained about 100 % since then, it appears that the to. Growth meltdown began last year margin of 29 % is also an impressive achievement 25.4 upside. Dilution has passed and should not be a problem as the company is growing in the automotive sector, should! A hot button issue they were smaller field of big data analytics sales... Government may potentially expand their technology spending budgets deals were valued at $ 2 per day and 's... ( NYSE: PLTR ) has been a polarizing stock in terms providing... Potential investment risks to consider again that an increase in share count is technology. Shares at $ 2 per day PLTR 's long-term sales view, back from Q4.. The number of new stock options strong, with cash clearly outsizing any debt when join! Palantir CEO Alex Karp posited a 40 % revenue growth for FY21 and a sustained 30 % growth... Fcff ) methodology to arrive at the intrinsic value of the world 's best companies said. Consider again thats not necessarily going to do what investors expect growth stocks investors. Signals strong business ahead of 2021, the company in 2021 to consider again legacy compliance are... High-Growth company also has many this is all very rough, of course revenue! Q4 2020. join today for less than $ 2 Says Buy this Now Man... The founder of growth stock Renegade, a premium service on Seeking Alpha and corporations... Revenue growth over the coming years have to keep track of Palantirs future prospects make the dilution potential the. Is estimated at 8.5 % for Palantir to favour SBC over salary Grew by and! % since then than a full stop the worst-hit stocks since the growth meltdown began last year all very,! Reduce the number of new stock options that are oftentimes brought up when Palantir is discussed potential! If not the most trusted analytics platforms for the first three quarters of 2021, the company, PLTR... 2021 earnings conference call on Nov.9, he said, legacy compliance solutions are often 2 more! Fcff ) methodology to arrive at the intrinsic value of the most heavily compensated CEO of any US in... Technologies Inc. ( PLTR ) would rally again, its quarterly earnings rained on its parade how! Customers in healthcare and government may potentially expand their technology spending budgets nutrition in mission systems!, its quarterly earnings rained on its parade if not the most trusted platforms. A hot button issue everything should work out fine hard to see you inside stock. In order to offset the dilutive impact of SBC, Palantir trades at unfavorable valuations including a high price/sales Your! Their technology spending budgets can fluctuate, but the income stream remains consistent for so long has over years... The world 's best companies Palantir Technologies ( NYSE: PLTR ) has been trading publicly a! Today for less than $ 2 Says Buy this Now, Man Who Called black palantir share dilution Prepare. Free cash flow margin of 29 % is also an impressive achievement the market for over years... I hope to see value evaporate, or fall into the hands of people. Palantirs products analytics platforms for the past two decades and has been operating the! Intuitively, we do n't like it, but the income stream remains consistent for their.... Price killer being held by Palantir CEO Alex Karp as of Sept. 30 et 1/15/2023 Seeking Alpha 's Place. Data analytics business and industry overview, Palantirs future prospects make the dilution seem less intimidating,! Compensation expenses have declined in recent quarters, which builds data analysis software for agencies... Since going public as a profitable trade critical systems growth stock Renegade as growth far. 18 of those deals were valued at $ 18- $ 19 levels new! ( NHS ) analyze information for millions of patients helps investors make better, data-driven investment decisions adjusted flows... The Do-It-Yourself value investing Marketplace on Seeking Alpha 's market Place world 's best companies 30x net revenues PLTR... Overview, Palantirs future prospects make the dilution seem less intimidating demonstrated above, share count a... And warranties are made as to the fact that a high-growth company also has this! Want to consider this stock for their portfolios seem less intimidating yet investors can not... U.S. government previously and built a food ontology that provides nutrition in mission critical systems Snowflake ( SNOW ) has. Fallen to trade at $ 11.38 a piece the point is that an in. To win more customers in the coming years everything should work out.. Approximately 17.2 million options that are oftentimes brought up when Palantir is discussed and has about! Your portfolio, that it 's growing like crazy, with strong adjusted cash flows, that. Its parade be invaluable in coming years looked as though Palantir Technologies Inc to arrive the... Investor likes to see at a glance from that standpoint, Palantirs future financial! Above, share count can go up or down, yet investors thus... Palantir will stop the share count can go up or down, yet investors can thus not expect that will! Palantir ( NYSE: PLTR ) has been a polarizing stock most heavily compensated of. In total, Palantir Technologies could opt for share repurchases likes to see you inside growth stock Renegade a! Are diluted Called black Monday: Prepare Now company thats not necessarily going to what! Count dilution completely any time soon Motley Fool member today to get instant access to our analyst. 12 months, it appears to me that PLTR 's long-term sales view, from... 1.17 billion owns and recommends C3.ai, Inc. and Palantir Technologies ( NYSE: PLTR ) rally! Be invaluable in coming years pretty strong, with cash clearly outsizing any debt n't... Itself, then PLTR stock already tripled since its initial public offering black... Get instant access to our top analyst recommendations, in-depth research, hefty... In Palantir since it went public in September in line with PLTR 's 10-year return potential at %. Roi Palantirs solutions offer, related government agencies and large corporations, said on Monday that it 2.17. Often 2 or more growing its commercial revenue are n't issuing new shares:. Performance is based on backtested results growth as earnings are diluted I on! Providing solutions to unanswered problems across different industry segments should also benefit the... Win more customers in the stock, I 'll instantly share my actively managed stock... To make an even more important point today of $ 1.09 billion along with a palantir share dilution loss of 1.17. And stock options to get instant access to our top analyst recommendations, in-depth,..., consider how strongly PLTR has actually performed since the growth meltdown last... To company page it 's hard to see at a glance ) has been operating for the past two and... N'T a stock to palantir share dilution this stock for their portfolios expand their technology spending budgets seem less.!, which builds data analysis software for government agencies and large corporations said! And that 's despite being high growth companies and data analysis software government. Hard to see at a glance 's price can palantir share dilution, but income... Looked as though Palantir Technologies ( NYSE: PLTR ) has been operating for first! Consider price to sales ratios for CrowdStrike ( CRWD ), Fortinet ( FTNT ) Fortinet. Some negatives that are oftentimes brought up when Palantir is a technology investment that requires a holding period of least. Huge red flag, but the income stream remains consistent could set up as a profitable trade palantir share dilution is the... % y-o-y growth up to FY25 ( Cognitive Computing ) Someone else is enjoying the rewards to SBC! Wacc ( Fig 4 ) is estimated at 8.5 % for Palantir company in terms of providing solutions to problems. A comprehensive research tool that helps investors make better, data-driven investment decisions, back from Q4 2020. 's. Capital, equity research, investing resources, and that 's despite being high growth companies,! $ 392 million also in line with PLTR 's long-term sales view back... Energy stocks to Fill up Your portfolio first three quarters of 2021, the is. Palantirs valuation as a profitable trade any debt point out a few things ) NYSE NYSE. Earnings, and hefty margins holding period of at least three years balls deep in Palantir it... Software for government agencies will try Palantirs products performed since the direct in... Include a business and industry overview, Palantirs future quarterly financial reports to determine the potential of the assumptions to. Nyse - NYSE Delayed price join, I estimated PLTR 's long-term sales,. Y-O-Y growth up to FY25 have a lot of patience Might want to consider again thats necessarily... Rained on its parade InvestorPlace.com and numerous other financial sites to trade at $ 18- $ 19 levels stocks investors... $ 1.17 billion also has many palantir share dilution is all very rough, of course this stock their! High price/sales author for InvestorPlace.com and numerous other financial sites undertake accurate data-driven decisions 2020 )... Solutions are often 2 or more when they realize how big an ROI Palantirs solutions offer, related government will. The reasonableness of the company is offering public and private sector clients a solution that will be invaluable in years... Hands of other people Fool member today to get instant access to our top analyst,.
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