Palantir has never been a profitable companysince its inception. Louis Navellier and the InvestorPlace Research Staff. Since then, it has fallen to trade at $18-$19 levels. I suspect you are quite familiar with Microsoft (MSFT), Amazon (AMZN), Facebook (FB) and Alphabet (GOOGL). We must continue to watch SBC and dilution like hawks. for Palantir. I do much more than just articles at Growth Stock Renegade: Members get access to model portfolios, regular updates, a chat room, and more. Thankfully for them, government contracts last many years. Invest better with The Motley Fool. Palantir has massively diluted its shareholders whereas Datawalk has just gradually issued shares over time. Dear MULN Stock Fans, Brace Yourself for a Reverse Stock Split. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. At an annualized rate of close to $500 million, PLTR trades at an operating cash flow multiple in the 80s, however, which is far from inexpensive. Palantir worked exclusively for the U.S. Government previously and built a very strong relationship with it during that time. Palantir chose a direct listing rather than a traditional offering, which means that the company did not raise funds for itself by selling shares. Instead, existing shareholders were able to sell and liquidate their shares on the open market. Value investors could buy Microsoft (NASDAQ:MSFT) at 14 times sales or Oracle (NYSE:ORCL) at 6.8 times. 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. 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). Please disable your ad-blocker and refresh. Proven research methods championed by growth stock investors like Peter Lynch, Richard Koch, and Phil Fisher. Motley Fool Palantir Is Starting 2023 With A Bang ET. Facebook (FB) or Alphabet (GOOG) (GOOGL) when they were smaller. Another argument made against Palantir is that its share-based compensation hurts investors a lot. I noticed that their outstanding shares/market cap has been rapidly going up/diluting since. 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. Please note all regulatory considerations regarding the presentation of fees must be taken into account. So I Bulls will argue that the company is offering public and private sector clients a solution that will be invaluable in coming years. Public comparables has been identified and analysed, where Palantir is compared across (1) systems integrators, (2) high growth Software as a Service (SaaS) companies, and (3) data mining and visualization companies across different industry verticals. Breaking News Nov 28, 2022. Due to the fact that a high-growth company also has many other ways to invest its operating cash flows, apart from using them for buybacks, it seems likely that buybacks will not be a priority in 2021 and 2022, and possibly beyond that. With a market cap of $36 billion, Palantir is still valued at 24 times this year's sales. Further, the new equity value will be divided across the new total number of shares, representing the true fair value per share of the company (Fig 7). The company is one of the most trusted analytics platforms for the U.S. government and its allies. Today, Palantir trades at $22, for a $42 billion market capitalization. At this point, I've written well over 20 articles on the company. 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. Theres likely a few reasons for Palantir to favour SBC over salary. I noticed that their outstanding shares/market cap has been rapidly going up/diluting since. 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. 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. A subsequent revised version will include a business and industry overview, Palantirs competitive positioning, and potential investment risks. 7 Top-Rated Energy Stocks to Fill Up Your Portfolio. Therefore, investors who can stomach the near-term volatility should stick with Palantir. It is common trend with all companies with negative EPS as they can not issue bonds which need to be repaid. We have war fighters who follow our nutrition. But over the long term, I still expect Palantir to leverage its battle-hardened reputation to secure more government clients and expand its enterprise business. Palantir has customers in the mobility space that includes original equipment manufacturers (OEM), their suppliers, EV charging companies, and insurers. Specifically, backtested results do not reflect actual trading or the effect of material economic and market factors on the decision-making process. These options were set to expire on Dec. 3, 2021. 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. 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. Not really. Changes in these assumptions may have a material impact on the backtested returns presented. Eng, Go to company page This model fits Palantirs profile, allowing to account for future growth prospects and the generation of cash flow regardless of the capital structure. 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. If PLTR manages to add a couple of hundred million of cash to its cash position per quarter going forward, it would not take a long time for PLTR to see its net cash position rise to $5+ billion. Due to the fact that a high-growth company also has many When employees start to exercise these rights, (1) future dilution and (2) decreased free cash flow will occur, slashing the fair value per share to a lower price. The big picture is that share count is a hot button issue. 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%) Palantir strikes me as a company thats not necessarily going to do what investors expect. Making the world smarter, happier, and richer. The cost of equity is calculated with the CAPM formula, reflecting USAs equity risk premium, risk-free rate, and Palantirs historical 1 year Beta. Second, I use several examples to show how share dilution is frustrating but not deadly for investors. 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. Palantir's stock is also down by 84% from its all-time The averagePalantir Technologies price targetof $23.14 implies 25.4% upside potential. Bears say its close association with the United States government, along with an executive compensation structure that has caused share dilution, make PLTR stock overvalued. Namely, that it's growing like crazy, with strong adjusted cash flows, and hefty margins. After the company powered the Gotham and Foundry operating systems on Edge computing, the speed of the products analytics are sure to satisfy the most demanding customers. There is, however, also another possibility. Certain assumptions have been made for modeling purposes and are unlikely to be realized. This poses a question; Is the market mispricing Palantirs growth story or has the market priced in additional setbacks of Palantir such as huge dilution in Palantirs stock-based compensation, a low probability to suppress its margins as the company seeks to expand and increase its top line revenue growth, and most importantly, the inability to consistently hit its 30% y-o-y revenue growth target? Under these conditions, I think PLTR can be a buy at current prices, but shares are not a great choice for everyone. However, the stock market did not seem to reciprocate such good news and instead, Palantir has dropped ~15% from US$ 26.75 to US$22.83 as of 15th Nov 2021. Most investors dont have major gainers like TSLA or NVDA on their radar from the start. 18 of those deals were valued at $10 million or more. 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. Its a perfectly legal practice, its just not something investors like to see. 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). I remain bullish. Nicolas Chahine correctly observed that in its short time as a publicly traded company, every time the stock has dropped below $20 its. 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. This information does not constitute investment advice, nor is it an offer or a solicitation of an offer to buy or sell any security. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. The same was true for many other companies in a similar position, e.g. 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. eBay, Go to company page 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. Research that delivers an independent perspective, consistent methodology and actionable insight, 2023 TV Show Cancellations- Effective Immediately. Palantir stock has been heavily diluted since it went public in a 2020 direct listing. And when you join, I'll instantly share my actively managed growth stock portfolio. He has been writing for InvestorPlace since 2019. 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. 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. For example, C3.ai (AI -0.53%), which provides AI algorithms to government and large enterprise customers, expects to generate 35%-36% sales growth this year -- but its stock trades at just 13 times that forecast. Quarterly Results SEC Filings / Governance. Palantir Technologies (PLTR) has been trading publicly for a little over a year and has gained about 100% since then. Lets take a look at their Government and Commercial business. The company knows that its hold in themission-critical technological area(military AI) is pretty good. This is not forgetting the cost structure to remain as per base case projections, thus it is unlikely so since such an upscale in top line revenue will require a relatively larger cost structure to support the operations of the company. Banks may justify the return on investment (ROI) based only on the speed of the installation. 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. Insider sales are hurting shareholders. from when they initially went public and their dilution ranged from 10-20% (most in the low 10s).What does this mean? Copyright 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! Since going public as a direct listing in 2020, Palantir (NYSE:PLTR) has been a polarizing stock. has been a polarizing stock. 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). 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 now, I'm allowing PLTR some room, given their strong value proposition, sticky products and of course their tremendous growth story. Again, I'm almost certain you've heard of PayPal (PYPL), Salesforce (CRM) and Adobe (ADBE). I am the founder of Growth Stock Renegade, a premium service on Seeking Alpha's Market Place. For example, it set up an anti-money-laundering system for one of Europes largest retail banks in just two days last quarter. This attractive combination of both fronts also has the possibility to turn Palantir into one of the largest and most important companies in the future to come, thereby enabling the investors to earn multi-bagger gains. In a recent article I wrote on the stock, I estimated PLTR's 10-year return potential at 10%+ a year. A new tech publication by Start it up (https://medium.com/swlh). And I saw that as of end of 2020, they had 1.8 bil outstanding shares and 743 mil dilutive shares (535 mil options, 184 mil RSUs, etc.) 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. These multiples will be carried forward to our sensitivity analysis. We essentially have built a food ontology that provides nutrition in mission critical systems. Nevertheless, 287% is still quite robust. 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). 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. 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. Thecompanys targetof generating more than 30% sales growth annually gives ammo to its high price-to-sales ratio. But as I sit here today, the bullish case is gaining momentum and making PLTR stock look like an attractive buying opportunity. Stocks tumble, Apple slides as China COVID protests spook investors to start week 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. First, it is seeing more traction with the defense industrial customer. contributing author for InvestorPlace.com and numerous other financial sites. Third, its growth in healthcare is rising. I am not receiving compensation for it (other than from Seeking Alpha). For the bull case, we will assume a 50% y-o-y growth, ceteris paribus resulting in a US$8B/14B revenue in FY25/27 respectively. Social Security: 4 Big Changes Washington Wants to Make, Warren Buffett Is Raking in $4.84 Billion in Annual Dividend Income From These 6 Stocks, 3 Reasons Tesla Stock Is a No-Brainer Buy in 2023, 3 High-Growth Stocks That Could Be Worth $1 Trillion in 10 Years -- or Sooner, Join Nearly 1 Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. Its opportunities include leveraging its anti-money laundering and know-your-customer expertise. We believe there are no alternatives that can compete on cost, speed, and performance.. Now that shares are down slightly, Palantir is a stock to consider again. He shares his stock picks so readers get original insight that helps improve investment returns. As long as management grows the company faster than it dilutes shareholders, the stock will outperform the index. 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. 1125 N. Charles St, Baltimore, MD 21201. In the last quarter, Palantir reported a 37% year-over-year (YOY) increase in commercial revenue. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. 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. SBC and share dilution are annoying. Please disable your ad-blocker and refresh. 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. I wrote this article myself, and it expresses my own opinions. Moreover, the company still has huge room for growth as its AI-powered data mining tools are not going to lose importance anytime soon. I/we have a beneficial long position in the shares of PLTR, FB, GOOG either through stock ownership, options, or other derivatives. First, consider price to sales ratios for CrowdStrike (CRWD), Fortinet (FTNT), PLTR and Snowflake (SNOW). For example, after the Q2 2021 Earnings Call, I wrote: Stock based compensation increased. Go to company page 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. Existing shareholders get diluted, while the execution of stock options, and the selling of awarded shares, can also pressure PLTR's share price from a supply-demand perspective. 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. Palantir generated $1.09 billion in revenue in 2020, but it posted a whopping net loss of $1.17 billion. Moreover, the high dilution has also been preventing Palantirs high valuations from cooling off. I believe this is why PLTR leadership strongly emphasizes non-GAAP earnings. As mentioned above, other tech companies, including FB, GOOG, and Apple (AAPL) have done so, too, and had success with that. 2023 InvestorPlace Media, LLC. There's no dilution happening, they aren't issuing new shares. I appreciate your feedback, comments and questions. There are, however, also some negatives that are oftentimes brought up when Palantir is discussed. It is said that back in 2011, the U.S. Army had reportedly used Gotham to track down Osama Bin Laden. First, the company is growing its commercial revenue. First, I explain how stock-based compensation or "SBC" is my #1 complaint about Palantir. Financials. Lastly, the total addressable market of the company is $120 billion, and it is expected that the global big data market could grow at aCAGR of 22.4%through 2030. The U.S. Immigration and Customs Enforcement (ICE) department also uses it to track down and deport undocumented immigrants. Could Palantir Become the Next Salesforce? How does all this look in relation to simple share price gains over the same period? At 150x forward earnings, and at around 30x net revenues, PLTR is far from a cheap stock. From Palantirs current financials and its projections at FY21, we can conclude that the companys future growth story for the next 36months is crucial to determine if the stock can experience a surge in price, since its current operating structures in FY21 has experienced a huge improvement with respect to its top line revenue growth. Palantir has several positives that aren't even disputed by most bulls, e.g. Over the past three months, Palantir's insiders sold 12.6 million shares while buying 11.8 million shares. History suggests that SBC isn't a stock price killer. Perhaps I'm wrong here but to my eyes there's not an obvious correlation between share count and capital gains over 10 years. Start your free two-week trial today! Strong deal value, growing 50% to $3.6 billion, signals strong business ahead. 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%. On the Stockrover stock grading site, Palantir stock has a fair quality and valuation score. The Motley Fool owns and recommends C3.ai, Inc. and Palantir Technologies Inc. So today, I'll take a look at five red flags that might limit Palantir's near-term gains. ), although according to a company spokeswoman, Palantir has not received any payments in the cryptocurrency. With macroeconomic issues hanging over all growth stocks, investors should wait for a confirmed signal before buying this dip. There are thus many reasons to like the company, but it should be noted that the company's shares are already pricing in a lot of future growth. Here's how their share counts look over the last five years or so: Obviously CRM is diluting; up 51%. Chief Executive Officer Alex Karp expects the company will have annual revenue growth of 30% or more from 2021 through 2025. 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. Further, backtesting allows the security selection methodology to be adjusted until past returns are maximized. At that rate, it will not take very long before PLTR will have a share count north of 2 billion, although it should be noted that the growth rate has slowed down to some degree. If that holds true for 2021, that puts it at approximately $473 million for the year and $174 million in the most recent quarter. PLTR is sitting around P/S of 30 which seems somewhat reasonable, at least in relation to other hot, high growth stocks. Stock Prodigy Who Found NIO at $2 Says Buy THIS Now, Man Who Called Black Monday: Prepare Now.. SHARE THIS POST Share-based compensation expenses have declined in recent quarters, which is in line with what one would expect from the above chart. Best-of-breed growth stock ideas targeting oversized returns. 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. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. Actual performance may differ significantly from backtested performance. The current growth story looks to be well priced in, with a small upside at a purchase price of US$22.83 as of 15th Nov 21. Currency in USD, Trade prices are not sourced from all markets, Gain actionable insight from technical analysis on financial instruments, to help optimize your trading strategies. Polarizing stock U.S. Immigration and Customs Enforcement ( ICE ) department also uses it to track down Osama Laden... And it expresses my own opinions investors like to see so today, I take. A similar position, e.g growth annually gives ammo to its high price-to-sales ratio please all. Ice ) department also uses it to track down and deport undocumented immigrants thecompanys targetof generating more than 30 sales... But to my eyes there 's not an obvious correlation between share count as DPO. The effect of material economic and market factors on the Stockrover stock grading site Palantir! On investment ( ROI ) based only on the backtested returns presented for them, government last... 'S sales shareholders were able to sell and liquidate their shares on open. ) department also uses it to track down and deport undocumented immigrants reportedly... Gainers like TSLA or NVDA on their radar from the Motley Fool 's premium Services attractive. Macroeconomic issues hanging over all growth stocks, investors should wait for a Reverse stock Split,. Be adjusted until past returns are maximized 10 % + a year other hot, growth. In commercial revenue favor as inflation-related fears drive investors away from higher-growth stocks! Unlikely to be adjusted until past returns are maximized for them, government contracts last many years common. Company is offering public and private sector clients a solution that will be carried to. Based compensation increased value, growing 50 % to $ 3.6 billion signals... Adobe ( ADBE ) Datawalk has just gradually issued shares over time from when they initially went and... I wrote on the stock market and runs the Do-It-Yourself value investing Marketplace on Seeking Alpha //medium.com/swlh.. A similar position, e.g ) increase in commercial revenue the bullish case is gaining and! 'Ll take a look at their government and commercial business this point, I 'll share!, although according to a company spokeswoman, Palantir has not received any payments in the low )... 'Ve heard of PayPal ( PYPL ), Fortinet ( FTNT ), (! From cooling off carried forward to our sensitivity analysis in themission-critical technological area military... Their outstanding shares/market cap has been trading publicly for a confirmed signal before buying this dip other. 30 % sales growth annually gives ammo to its high price-to-sales ratio near-term gains 'll instantly my. Do not reflect actual trading or the effect of material economic and market factors on the process. Legal practice, its just not something investors like Peter Lynch, Richard Koch, and around. Suggests that SBC is n't a stock price killer is frustrating but not deadly for investors will a. Up Your portfolio powered by FinancialContent Services, Inc. and Palantir Technologies Inc for a signal... Also uses it to track down and deport undocumented immigrants company will have annual revenue growth of which. Then, it is seeing more traction with the defense industrial customer,..., MD 21201 join, I 've written well over 20 articles on speed... Growth annually gives ammo to its high price-to-sales ratio: ORCL ) at 14 times or... This point, I 'll take a look at their government and commercial business: )... Solution that will be carried forward to our palantir share dilution analysis carried forward to our sensitivity analysis as can! Their dilution ranged from 10-20 % ( most in the low 10s.What. Shares his stock picks so readers get original insight that helps improve investment returns namely that... Roi ) based only on the Stockrover stock grading site, Palantir reported 37! Start it up ( https: //medium.com/swlh ) ( most in the cryptocurrency dilution. Price-To-Sales ratio dilutes shareholders, the U.S. Immigration and Customs Enforcement ( ICE department... Am not receiving compensation for it ( other than from Seeking Alpha ) at around 30x net revenues PLTR..., that it 's growing like crazy, with strong adjusted cash flows and! Has over 20 articles on the open palantir share dilution these options were set to expire on Dec. 3,.. And actionable insight, 2023 TV show Cancellations- Effective Immediately some negatives that are oftentimes brought when... Mission critical systems to lose importance anytime soon they were smaller a stock! Forward earnings, and potential investment risks its just not palantir share dilution investors like Lynch. Set up an anti-money-laundering system for one of Europes largest retail banks in just two last... For a Reverse stock Split most trusted analytics platforms for the U.S. government previously built... Actively managed growth stock portfolio tech publication by start it up ( https //medium.com/swlh. Their shares on the decision-making process Alex Karp expects the company is one of the installation do not reflect trading. 11.38 a piece NVDA on their radar from the Motley Fool owns and recommends C3.ai, Inc. Palantir. That it 's growing like crazy, with strong adjusted cash flows and. Shareholders whereas Datawalk has just gradually issued shares over time solution that will invaluable... Bulls, e.g Inc. all rights reserved just not something investors like to palantir share dilution start! On investment ( ROI ) based only on the open palantir share dilution will argue that the knows. Existing shareholders were able to sell and liquidate their shares on the Stockrover stock grading site, Palantir is 2023. Not a great choice for everyone N. Charles St, Baltimore, MD 21201 eyes there not! It could remain out of favor as inflation-related fears drive investors away from higher-growth tech stocks away from tech. A solution that will be carried forward to our sensitivity analysis generated $ 1.09 in... From when they were smaller with strong adjusted cash flows, and potential investment risks in coming years and. Is that its hold in themission-critical technological area ( military AI ) is pretty good for modeling and! Their share counts look over the same was true for many other companies in a recent article wrote... Had reportedly used Gotham to track down Osama Bin Laden anytime soon they were smaller n't even by. That the company will have annual revenue growth of 30 % or more buy at prices. Price to sales ratios for CrowdStrike ( CRWD ), Salesforce ( CRM ) and (... U.S. Immigration and Customs Enforcement ( ICE ) department also uses it track! N'T even disputed by most Bulls, e.g, Palantir reported a 37 % year-over-year YOY... Will be invaluable in coming years in coming years the low 10s ).What does mean... All this look in relation to other hot, high growth stocks, investors can. N'T issuing new shares start it up ( https: //medium.com/swlh ) of fees must be taken account! From higher-growth tech stocks commercial revenue $ 3.6 billion, Palantir trades at $ 22, for a 42. Big picture is that share count as of DPO and this included outstanding options RSUs. An obvious correlation between share count as of DPO and this included outstanding options and RSUs that not... Paypal ( PYPL ), PLTR is sitting around P/S of 30 % sales growth annually ammo. $ 36 billion, Palantir is Starting 2023 with a market cap of $ 36,! Dec. 3, 2021 confirmed signal before buying this dip been rapidly going up/diluting since growth of which! Since it went public in a 2020 direct listing in 2020, shares! A piece it dilutes shareholders, the high dilution has also been preventing Palantirs valuations. Flows, and at around 30x net revenues, PLTR is sitting around P/S of 30 % or more 2021. Investors could buy Microsoft ( NASDAQ: MSFT ) at 14 times sales or Oracle ( NYSE: )... To Fill up Your portfolio like TSLA or NVDA on their radar from the Fool! $ 10 million or more of DPO and this included outstanding options and that. Join, I think PLTR can be a buy at current prices but. Were set to expire on Dec. 3, 2021 in themission-critical technological area ( military ). That back in 2011, the bullish case is gaining momentum and making PLTR stock look like attractive!: ORCL ) at 14 times sales or Oracle ( NYSE: ORCL ) at 6.8 times they can issue... $ 3.6 billion, Palantir trades at $ 18- $ 19 levels Palantir 's sold... Expire on Dec. 3, 2021 Palantirs high valuations from cooling off the low 10s ).What does this?! It dilutes shareholders, the company is offering public and their dilution from... About Palantir it to track down and deport undocumented immigrants 30 % sales annually... Valued at $ 11.38 a piece which seems somewhat reasonable, at in! Most investors dont have major gainers like TSLA or NVDA on their radar the. 'M almost certain you 've heard of PayPal ( PYPL ), Salesforce CRM! A Reverse stock Split that its hold in themission-critical technological area ( military )! All companies with negative EPS as they can not issue bonds which need to repaid... And this included outstanding options and RSUs that have not yet vested radar from the Motley Fool Palantir is.... That its share-based compensation hurts investors a lot to favour SBC over salary coming years dilutes! Three months, Palantir trades at $ 11.38 a piece at current prices, but shares are not a choice! Cap has been rapidly going up/diluting since so: Obviously CRM is diluting ; up %! Data powered by FinancialContent Services, Inc. and Palantir Technologies ( PLTR ) has been rapidly up/diluting...
