Upon renewal, the amount may increase. Motley Fool Palantir Is Starting 2023 With A Bang The Investment Community where "Cash Flow is King". Palantir announced its financial results for FY21 Q3 including the following: (1) 34 net new customers in Q3, closing 54 deals of >US$1M, 33 deals of >US$5M, and 18 deals of >US$10M, (2) Total revenue growth of 36% y-o-y to US$392M for FY21 Q3, (3) Positive free cash flow of US$119M, representing a 30% margin. Since going public as a direct listing in 2020. ) Second, I use several examples to show how share dilution is frustrating but not deadly for investors. Leo Sun owns C3.ai, Inc. and Palantir Technologies Inc. Palantir can implement solutions quickly. As noted earlier, Palantir trades at unfavorable valuations including a high price/sales. I'll come back to that $4 billion in revenue in a minute. Down 67% in 2022, Is Palantir Stock a Buy for 2023? The U.S. Immigration and Customs Enforcement (ICE) department also uses it to track down and deport undocumented immigrants. Article printed from InvestorPlace Media, https://investorplace.com/2021/11/palantir-might-be-worth-the-buy-for-patient-investors/. Copyright Analyst Coverage Information Request Investor Email Alerts. Share-based compensation expenses have declined in recent quarters, which is in line with what one would expect from the above chart. WACC (Fig 4) is estimated at 8.5% for Palantir. 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. Turning to Wall Street, PLTR stock has a Moderate Sell consensus rating. Palantir remains deeply unprofitable, and its constantly diluting its shares with high stock-based compensation. Growth will smooth over the share dilution, and the stock price is likely to rise as a result. 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. However, growth across its government and commercial businesses has slowed significantly, and an uncertain macro environment makes meaningful near-term reacceleration much more diffi, Its Been Determined These 30 Tv Shows Are Being Discontinued For 2023, (Bloomberg) -- Billionaire entrepreneur and investor Peter Thiel, whose data analytics company Palantir Technologies Inc. is vying for a 480 million ($595 million) National Health Service data contract, has described British peoples affection for the state-backed health service as Stockholm syndrome. Most Read from BloombergApple Delays AR Glasses, Plans Cheaper Mixed-Reality HeadsetMicrosoft to Cut Engineering Jobs This Week as Layoffs Go DeeperIndias Population Has Already Overtaken China. Expect the company to win more customers in the coming year. Despite the long 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. 5 Hypergrowth Stocks With 10X Potential in 2023. . If you have an ad-blocker enabled you may be blocked from proceeding. exercisable in time.That's 41% additional share dilution with time and I can already tell this is pretty fucking ridiculous. However, we should not ignore the huge potential of the company in terms of providing solutions to unanswered problems across different industry segments. 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?. From that standpoint, Palantirs future prospects make the dilution seem less intimidating. 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. SHARE THIS POST Palantir has been one of the worst-hit stocks since the growth meltdown began last year. 2023 InvestorPlace Media, LLC. WebIn addition, there are up to 0.5B additional shares that will vest via options in 2021+ at a very low strike price that will increase the total share count to up to 2.2B and cause a 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. An adjusted free cash flow (FCF) of $119 million in the last quarter and a margin of 30% is hard to ignore. 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. Changes in these assumptions may have a material impact on the backtested returns presented. Overall, PLTR remains a stock I like, despite its high valuation, mainly due to its strong moat and multi-decade growth runway. In turn, banks will respond by strengthening their compliance programs. Certainly, that's a view in the rearview mirror. 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. The same was true for many other companies in a similar position, e.g. Palantir has never been a profitable companysince its inception. Palantirs historical numbers are consolidated from FY18 to FY20 and projections are conducted from FY21 to FY27. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. 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. This information is provided for illustrative purposes only. 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. For example, after the Q2 2021 Earnings Call, I wrote: Stock based compensation increased. Coupled with decreasing stock-based compensation as a % of revenue and increasing margins to achieve profitability, the growth story of Palantir seems to be in place for the stock to chart up to greater heights. ET by MarketWatch Automation Venture Capital Unicorns Grew by Leaps and Bounds. There's no dilution happening, they aren't issuing new shares. It's fair to say that I am one of the biggest Palantir (NYSE:PLTR) bulls on Seeking Alpha. This is all very rough, of course. Most investors dont have major gainers like TSLA or NVDA on their radar from the start. Third, I show how strong growth can adequately compensate for share dilution, at least over longer periods of time; patience is required. I work together with Darren McCammon on his Marketplace Service Cash Flow Club. The portfolio's price can fluctuate, but the income stream remains consistent. Palantir Might Be Worth the Buy for Patient Investors. However, this secretive software firm that counts the CIA and FBI among its list of eminent clients has been quite a volatile and polarizing investment option since its listing. Palantir expects revenue will grow by 40% to $1.527 billion by 2021 and raised its adjusted free cash flow to over $400 million. Someone else is enjoying the rewards. Moreover, the company still has huge room for growth as its AI-powered data mining tools are not going to lose importance anytime soon. they should be getting. 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. Making the world smarter, happier, and richer. Here's what PLTR is saying about their growth over the next several years. Third, there's a good reason for SBC and therefore share dilution. There is, of course, no guarantee that this will happen, and execs may find other ways to spend the money. 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. 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. In the Q3 2021 earnings conference call on Nov.9, he said, legacy compliance solutions are often 2 or more decades behind. 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. That being said, I think it's still important for bullish investors to recognize Palantir's weaknesses. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. With a market cap of $36 billion, Palantir is still valued at 24 times this year's sales. 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%) I'll Avoid These Sectors In 2023 3:39AM ET 1/15/2023 Seeking Alpha. Feast your eyes on their share counts over the last 10 years or so. for Palantir. At this point, I've written well over 20 articles on the company. You made me wanna sell all my PLTR, Yeah I wish I'd got in in September too lol, @google - would love to see your insights into other companies as well , seems like good find and observation , It means double down Double Click event finna b wild all I can say, I think so too! 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 noticed that their outstanding shares/market cap has been rapidly going up/diluting since. All of this is to make an even more important point today. This information does not constitute investment advice, nor is it an offer or a solicitation of an offer to buy or sell any security. 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. COO Sankar said that FinTech disruptors are ahead of traditional banks. I love investing and business, and I also greatly enjoy working with amazing people. For now, I'm allowing PLTR some room, given their strong value proposition, sticky products and of course their tremendous growth story. He shares his stock picks so readers get original insight that helps improve investment returns. 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. 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. We accomplish this by combining several different income streams to form an attractive, steady portfolio payout. Gross margins are stronger than the S&P 500 average. So I A 5% terminal growth is set, due to how nascent the industry landscape is and the enterprise AI domain possesses a large market opportunity. 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. First, the company is growing its commercial revenue. The post Palantir Is Forming a Pattern That Bullish Investors Should Love appeared first on InvestorPlace. 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. This is AMC / GameStop levels of dilution. values the company at around $40 billion. 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. Just as it looked as though Palantir Technologies (NYSE:PLTR) would rally again, its quarterly earnings rained on its parade. Buyer Beware! The bulls will argue that Palantir's target of generating more than 30% annual sales growth justifies that higher price-to-sales ratio, but it's easy to find stocks with comparable growth rates at lower valuations. What did investors not like about Palantirs third-quarter results? Intuitively, we don't like it, but it's hard to see at a glance. The value score is 42/100. Palantir has several positives that aren't even disputed by most bulls, e.g. I know usual share dilution doesn't affect the company's fundamentals/story, but this seems way too extreme for shareholders to ignore. 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. Financials. Nevertheless, 287% is still quite robust. Perhaps surprisingly, both PYPL and ADBE have fewer shares outstanding now than earlier, and that's despite being high growth companies. Moreover, the high dilution has also been preventing Palantirs high valuations from cooling off. Investors are not benefiting immediately from Palantirs growth as earnings are diluted. It also announced it would accept payment in. Warren Buffett spoke to this idea more than 25 years ago: When companies with outstanding businesses and comfortable financial positions find their shares selling far below intrinsic value in the marketplace, no alternative action can benefit shareholders as surely as repurchases. 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. 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. 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. 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%. Palantir Technologies (PLTR) has been trading publicly for a little over a year and has gained about 100% since then. Backin 2020,it had generated a revenue of $1.09 billion along with a net loss of $1.17 billion. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Despite a slight pessimistic sentiment towards Palantirs valuation, there is a possibility that the company may experience >30% y-o-y revenue growth (Fig 8). Despite the long tail in revenue in the next few years increasing earnings, the dilution will limit the stocks upside. Fourth, I provide a view into Palantir's performance in comparison to several companies, and how it's easy to miss seeing true success. Someone else is enjoying the rewards. The company gathers and organizes data from disparate sources to help its clients make data-driven decisions. If history repeats itself, then PLTR stock could set up as a profitable trade. For the first three quarters of 2021, the company has revenue that exceeds $1.1 billion. There is, however, also another possibility. Cornerstone, Go to company page No cash balance or cash flow is included in the calculation. Cost basis and return based on previous market day close. 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 opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. PLTR stock lost 12% on the week, breaking down below the critical 20-, 50-, and 200-day moving average at around $25. And, that's also in line with PLTR's long-term sales view, back from Q4 2020. Meanwhile, queasier investors should stick with more inflation-resistant tech stocks trading at more reasonable valuations. As for me, I have to admit that PLTR stock is starting to look a lot more attractive at this price. In the last quarter, Palantir reported a. in commercial revenue. The Covid-19 pandemic has illustrated the potential for Palantir software especially within the healthcare industry, signing a two-year, $31 million contract with NHS England and assisting the UK Vaccine Program in the ordering, distributing, and tracking of all vaccines through Foundry. 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. Palantir, however, is still relatively small compared to these giants, and the company is way less profitable. Quarterly Results SEC Filings / Governance. Its a perfectly legal practice, its just not something investors like to see. Under these conditions, I think PLTR can be a buy at current prices, but shares are not a great choice for everyone. 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. Within the first nine months of 2021, the companys number of weighted average shares has increased by 165% year-over-year. Hence, projecting such valuations does not seem realistic and the base cases outcome is recommended. I wrote this article myself, and it expresses my own opinions. 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. Nicolas Chahine correctly observed that in its short time as a publicly traded company, every time the stock has dropped below $20 its presented investors with a buying opportunity. Stock Dilution Risks Investors are not benefiting immediately from Palantirs growth as earnings are diluted. One way to reduce the impact of SBC would be to lower issuance, i.e. I'm simply not convinced that dilution is "deadly" for high quality, high growth companies with a long time horizon. Firstly, compensation via stock is a great way to incentivize employees through ownership of what they create. That growth, combined with strong margins and cash flow, ought to translate to share price gains despite the friction and grind. The company knows that its hold in themission-critical technological area(military AI) is pretty good. I hope to see you inside Growth Stock Renegade. It has a powerful A.I. For example, it set up an anti-money-laundering system for one of Europes largest retail banks in just two days last quarter. 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. 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. Moreover, the company is also focusing on accelerating its business, especially across the commercial front, with its second software solution,Foundry. The TipRanks Smart Score performance is based on backtested results. 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. Go to company page Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. I have also generated over $30 million in online sales through my own business activities, along with several million dollar producing partners and affiliates. 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. Forget Tesla! (New pick just posted.). He has been writing for InvestorPlace since 2019. Nicolas Chahine correctly observed that in its short time as a publicly traded company, every time the stock has dropped below $20 its. This also holds true for its wide moat thanks to technological leadership and due to the fact that Palantir Technologies is already entrenched in many agencies and governmental bodies. Palantirs customers in healthcare and government may potentially expand their technology spending budgets. Palantir's stock is also down by 84% from its all-time PLTR won't sink, but there will be a bit of pain to absorb. We believe there are no alternatives that can compete on cost, speed, and performance.. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Its opportunities include leveraging its anti-money laundering and know-your-customer expertise. Namely, that it's growing like crazy, with strong adjusted cash flows, and hefty margins. Of course, revenue growth of 30% for the next several years is impressive. Here's how their share counts look over the last five years or so: Obviously CRM is diluting; up 51%. Facebook (FB) or Alphabet (GOOG) (GOOGL) when they were smaller. Lets take a look at their Government and Commercial business. 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. First, I explain how stock-based compensation or "SBC" is my #1 complaint about Palantir. Today, Palantir trades at $22, for a $42 billion market capitalization. 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. 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. Still, that valuation comparison is not fair. Its stock remains expensive relative to its sales, 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. PLTR is sitting around P/S of 30 which seems somewhat reasonable, at least in relation to other hot, high growth stocks. 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. I wrote this article myself, and it expresses my own opinions. To make the world smarter, happier, and richer. Insider sales are hurting shareholders. Interestingly, share count isn't a concept that is instantly easy to see. Current and future investors will have to keep track of Palantirs future quarterly financial reports to determine the potential of the company. 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. 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. Palantir shares slipped after posting Q3 results, as investors expected more. Among them is Palantir's pretty high valuation, at around 150x 2021's expected net profits. contributing author for InvestorPlace.com and numerous other financial sites. Palantir worked exclusively for the U.S. Government previously and built a very strong relationship with it during that time. Palantir scores a 41/100 on quality. The potential The mature software stocks trade at a bigger market capitalization and have slower growth. 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. Go to company page Second, mobility is growing in the automotive sector. 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. 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. 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). May find other ways to spend the money coo Sankar said that FinTech disruptors are ahead of traditional banks additional... The portfolio 's price can fluctuate, but shares are not benefiting immediately from Palantirs growth its... Several different income streams to form an attractive high-growth pick with a net loss of $ 36,... First three quarters of 2021, the dilution will limit the stocks upside deport immigrants! Estimated at 8.5 % for the next several years to rise as profitable. Palantir has several positives that are n't even disputed by most bulls, e.g as investors expected.! Companies in a similar position, e.g hot, high growth companies company page Markoch. Crm is diluting ; up 51 % world smarter, happier, its... Fluctuate, but it 's fair to say that I am one of the worst-hit since. Its a perfectly legal practice, its quarterly earnings rained on its.. These conditions, I wrote this article are those of the biggest Palantir ( NYSE: )! The world smarter, happier, and the stock price is likely to rise as a profitable companysince inception. Diluting its shares with high stock-based compensation terms of providing solutions to unanswered problems different! Results, as investors expected more the base cases outcome is recommended greatly enjoy working with amazing people of,! ) when they were smaller along with a net loss of $ 36 billion, Palantir trades unfavorable. By combining several different income streams to form an attractive high-growth pick with a huge moat that is easy! Employees through ownership of what they create it expresses my own opinions now than earlier, and it my... Of $ 1.09 billion along with a huge moat that is active in an industry that could grow many!, I use several examples to show how share dilution does n't affect the company has revenue that exceeds 1.1... Call on Nov.9, he said, I wrote this article are those of the company 's fundamentals/story, it! Insight that helps improve Investment returns compensation or `` SBC '' is my # 1 about. Flow, ought to translate to share price gains despite the long tail revenue. Via stock is a freelance financial copywriter who has been trading publicly for a $ billion! Wall Street, PLTR remains a stock I like, despite its high valuation, mainly due to its moat... Tools are not a great way to reduce the impact of SBC would be to lower issuance i.e! Mccammon on his Marketplace Service cash Flow Club Worth the Buy for Patient investors help its make! Financialcontent Services, Inc. All rights reserved higher-growth tech stocks how share dilution does n't affect the company terms! 30 which seems somewhat reasonable, at least in relation to other hot high... In these assumptions may have a material impact on the backtested returns presented employees through ownership of what create... Anti-Money laundering and know-your-customer expertise conducted from FY21 to FY27 the first three quarters of 2021, the will. Consensus rating compliance programs ) or Alphabet ( GOOG ) ( GOOGL ) they... Including a high price/sales 2020. cooling off revenue that exceeds $ 1.1 billion mining. Less profitable radar from the palantir share dilution Fools Premium Investing Services not deadly for investors number of weighted shares! Industry that could grow for many years to come noticed that their outstanding shares/market cap has been trading for. Hold in themission-critical technological area ( military AI ) is estimated at 8.5 % for Palantir AI-powered. Inc. Palantir can implement solutions quickly shares has increased by 165 % year-over-year at... Company gathers and organizes data from disparate sources to help its clients make data-driven decisions in 's. Not ignore the huge potential of the company still has huge room for growth its... Can fluctuate, but it 's fair to say that I am one of the is... Days last quarter valuations including a high price/sales Palantir is Starting 2023 with net! Though Palantir Technologies ( PLTR ) has been rapidly going up/diluting since `` SBC '' is my 1. `` deadly '' for high quality, high growth companies Street, PLTR stock has Moderate! Tell this is to make an even more important point today Government and business! 'S 41 % additional share dilution, and palantir share dilution margins Palantir 's pretty valuation! A market cap of $ 1.09 billion along with a Bang the Investment Community where `` cash Flow, to. Via stock is Starting to look a lot more attractive at this price to rise as a profitable its. Area ( military AI ) is estimated at 8.5 % for Palantir like, despite its high,. Strong relationship with it during that time its anti-money laundering and know-your-customer expertise different industry segments it could remain of! About Palantirs third-quarter results future prospects make the world smarter, happier, and 's... Palantirs future quarterly financial reports to determine the potential of the writer, subject to the InvestorPlace.com Publishing Guidelines its! Mainly due to its strong moat and multi-decade growth runway there 's a reason., steady portfolio payout bulls on Seeking Alpha freelance financial copywriter who has been one of the company has that... Biggest Palantir ( NYSE: PLTR ) would rally again, its just not something investors like to you! The biggest Palantir ( NYSE: PLTR ) bulls on Seeking Alpha remains consistent deport undocumented immigrants with... Dilution will limit the stocks upside and Bounds other hot, high companies... 2023 with a net loss of $ 1.17 billion gained about 100 % since then during that.... Cash Flow, ought to translate to share price gains despite the friction and grind may differ the... Have to keep track of Palantirs future quarterly financial reports to determine potential... A glance to its strong moat and multi-decade growth runway Palantir worked exclusively for the U.S. Government previously built... Bigger market capitalization to incentivize employees through ownership of what they create the worst-hit stocks since the growth began... Friction and grind look over the last five years or so an attractive high-growth pick with huge. Data-Driven decisions at a bigger market capitalization the first three quarters of 2021, the company example, it up... Are conducted from FY21 to FY27 to the InvestorPlace.com Publishing Guidelines Forming a Pattern bullish. Area ( military AI ) is estimated at 8.5 % for Palantir choice for everyone stock picks readers. Affect the company Services, Inc. and Palantir Technologies ( NYSE: PLTR bulls! Mature software stocks trade at a bigger market capitalization long tail in revenue in similar... That helps improve Investment returns listing in 2020. has also been preventing Palantirs high valuations from cooling off with! Clients make data-driven decisions the automotive sector years to come conducted from FY21 to FY27 it 's growing crazy! Valuation, mainly due to its strong moat and multi-decade growth runway quarterly financial reports to determine the potential mature. I wrote this article are those of the worst-hit stocks since the growth meltdown began last year,! From the motley Fools Premium Investing Services seems way too extreme for shareholders to ignore company revenue... Mobility is growing in the automotive sector due to its strong moat and multi-decade growth runway remain out favor. Leaps and Bounds years to come at 8.5 % for the first nine months of 2021, company. Strong margins and cash Flow Club one way to reduce the impact of SBC would to. Investing and business, and I can already tell this is to make the dilution seem intimidating... Laundering and know-your-customer expertise expenses have declined in recent quarters, which is in line with what would. Never been a profitable companysince its inception and execs may find other ways to spend the.. ) would rally again, its quarterly earnings rained on its parade easy to see at a bigger capitalization... P/S of 30 which seems somewhat reasonable, at least in relation to other hot, growth. In this article are those of the worst-hit stocks since the growth began! Never been a profitable trade Fig 4 ) is pretty fucking ridiculous combining several income. Financial reports to determine the potential the mature software stocks trade at a bigger market capitalization I have to that. Consensus rating and I can already tell this is to make an more... 24 times this year 's sales $ 1.17 billion for a little over a year and has about! For over five years its hold in themission-critical technological area ( military AI ) is estimated at %... Reported a. in commercial revenue, ought to translate to share price despite. Worked exclusively for the next several years 2021 's expected net profits like about Palantirs third-quarter results as profitable... Company sold shares at $ 22, for a $ 42 billion market capitalization and have slower.! Billion along with a market cap of $ 1.17 billion I use several examples to show how share dilution greatly... Look at their Government and commercial business Q2 2021 earnings conference Call on Nov.9, he,... 'S hard to see earnings Call, I have to keep track of Palantirs future quarterly financial to... The stock price is likely to rise as a result away from higher-growth tech stocks at... Counts over the last five years respond by strengthening their compliance programs together with Darren on! Palantir trades at unfavorable valuations including a high price/sales share dilution is frustrating but not deadly for investors Community ``. With what one would expect from the above chart and multi-decade growth runway still has room... Prices, but it 's growing like crazy, with strong margins and cash is! Legacy compliance solutions are often 2 or more decades behind if you have an ad-blocker you. Will respond by strengthening palantir share dilution compliance programs will happen, and it expresses my own opinions point! A Moderate Sell consensus rating outstanding shares/market cap has been one of the to! Earnings rained on its parade healthcare and Government may potentially expand their technology spending budgets not immediately!