palantir share dilution

The portfolio's price can fluctuate, but the income stream remains consistent. 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. 7 Top-Rated Energy Stocks to Fill Up Your Portfolio. It's still a major thorn in my side. History suggests that SBC isn't a stock price killer. Palantir remains deeply unprofitable, and its constantly diluting its shares with high stock-based compensation. The company is an unquestioned leader in the field of big data analytics. Current and future investors will have to keep track of Palantirs future quarterly financial reports to determine the potential of the company. I am bullish on PLTR stock. I'll have to review this more closely in a future article. Nevertheless, 287% is still quite robust. I wrote this article myself, and it expresses my own opinions. Palantir is a high-growth company that operates worldwide in both commercial and government segments. Its balance sheet thus looks pretty strong, with cash clearly outsizing any debt. If you want to reach out, you can send a direct message here on Seeking Alpha, or an email to jonathandavidweber@gmail.com. Third, I show how strong growth can adequately compensate for share dilution, at least over longer periods of time; patience is required. Does it make it a bad investment? And, it's also a powerful recruiting and retention tool. I have also generated over $30 million in online sales through my own business activities, along with several million dollar producing partners and affiliates. In the first nine months of 2021, its number of weighted-average shares jumped 165% year over year. As the company relies heavily on stock-based compensation, its number of weighted average shares has been rapidly increasing over the period. 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%. All rights reserved. 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. Subscribe right now because you get 14 days for FREE. Turning to Wall Street, PLTR stock has a Moderate Sell consensus rating. 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. Since going public as a direct listing in 2020, Palantir (NYSE:PLTR) has been a polarizing stock. Chief Executive Officer Alex Karp expects the company will have annual revenue growth of 30% or more from 2021 through 2025. Meanwhile, queasier investors should stick with more inflation-resistant tech stocks trading at more reasonable valuations. Let's use the same basic approach to look at three more companies. 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. Thankfully for them, government contracts last many years. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. The Upside Potential for SOFI Stock Is Limited. And, that's also in line with PLTR's long-term sales view, back from Q4 2020. 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. Nevertheless, PLTR is forecasted to grow like crazy as I've already demonstrated above. Invest better with The Motley Fool. Investors may refer to NXP Semiconductors (NASDAQ:NXPI) as an example of a semiconductor firm benefiting from the technology innovation in automobiles. Palantir generated $1.09 billion in revenue in 2020, but it posted a whopping net loss of $1.17 billion. This is the case for any IPO. Palantir had a share price of $30. If we look back at Palantir's history, the company has actually never been profitable since its inception 18 years ago. No cash balance or cash flow is included in the calculation. This is somewhat difficult for some investors to remember. Strong deal value, growing 50% to $3.6 billion, signals strong business ahead. Please disable your ad-blocker and refresh. Within the first nine months of 2021, the companys number of weighted average shares has increased by 165% year-over-year. Palantirs customers in healthcare and government may potentially expand their technology spending budgets. Despite Palantirs strong competitive positioning, I opine that the proposed scenario may not be likely since B2B/B2G sales cycles undergo a long duration (as experienced from my current job) and a 2x revenue growth from FY25(US$8B) to FY27(US$14B) will indicate Palantir to experience: (1) A 2x growth in customers and/or contract value, (2) Close to 7090% retention rate, as the company mentioned that the usual customer lifetime value is only 5 years. Further, backtesting allows the security selection methodology to be adjusted until past returns are maximized. Now, let's ignore share count just for a moment. Third, its growth in healthcare is rising. Specifically, backtested results do not reflect actual trading or the effect of material economic and market factors on the decision-making process. 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. I think it's useful to inspect the narratives. values the company at around $40 billion. At this point, I've written well over 20 articles on the company. Last but not least, the share price gets influenced positively thanks to the impact on the supply-demand situation of shares on the market. I sold a third of my position at the time to take out my original investment, then held on to the rest as Palantir's stock tumbled back to the high teens. However, the stock market did not seem to reciprocate such good news and instead, Palantir has dropped ~15% from US$ 26.75 to US$22.83 as of 15th Nov 2021. A buyback program could help offset the dilutive impact of SBC, which naturally benefits shareholders, as EPS growth will improve, all else equal. 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 FY2020, its revenue grew 47%. These multiples will be carried forward to our sensitivity analysis. WebTo give you an idea of how many shares were covered under the 2010 Plan, this is from the S-1 (emphasis mine): As of June 30, 2020, options to purchase 308,905,744 shares of Most investors dont have major gainers like TSLA or NVDA on their radar from the start. The Investment Community where "Cash Flow is King". Leo Sun owns C3.ai, Inc. and Palantir Technologies Inc. PLTR's unique software can create significant operational value for its customers, and ongoing global disruptions like the pandemic and war can help to catalyze adoption further. Hence, projecting such valuations does not seem realistic and the base cases outcome is recommended. Certainly, that's a view in the rearview mirror. Expect the company to win more customers in the coming year. Another argument made against Palantir is that its share-based compensation hurts investors a lot. And, that's why I emphasized adjusted numbers in Palantir: The Rule Of 40. 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). 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. We must continue to watch SBC and dilution like hawks. 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%) This is AMC / GameStop levels of dilution. Furthermore, PLTR has a narrative to maintain. 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). 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. government.". Not really. It's fair to say that I am one of the biggest Palantir (NYSE:PLTR) bulls on Seeking Alpha. Still, that valuation comparison is not fair. 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. its strong growth and its great position in its industry. One out of eight analysts have given Palantir a Buy rating, three have Hold ratings, and the remaining four have suggested a Sell. This suggests the stock has no near-term upside. Interestingly, share count isn't a concept that is instantly easy to see. 2023 InvestorPlace Media, LLC. Despite the long Here's how their share counts look over the last five years or so: Obviously CRM is diluting; up 51%. Buyer Beware! 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. 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. Thus, this seeks to explain why Palantir is experiencing a downward pressure in its share price since its recent high of ~US$2628/share. Palantir's stock is also down by 84% from its all-time 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. We essentially have built a food ontology that provides nutrition in mission critical systems. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. The amount of drag is dictated by a combination of dilution and growth. MULN Stock Alert: Does Mullen Have 3,000 Preorders For Its FIVE EV? Palantir Technologies Inc has, since peaking at $45 in early 2021, been moving down and then sideways in what seems to be a consolidation pattern. 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. Of particular concern was the approximately. For now, I'm allowing PLTR some room, given their strong value proposition, sticky products and of course their tremendous growth story. Now that shares are down slightly, Palantir is a stock to consider again. That being said, I think it's still important for bullish investors to recognize Palantir's weaknesses. 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. Just as it looked as though Palantir Technologies (NYSE:PLTR) would rally again, its quarterly earnings rained on its parade. 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. Value investors could buy Microsoft (NASDAQ:MSFT) at 14 times sales or Oracle (NYSE:ORCL) at 6.8 times. 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%. Disclaimer: This initiated report is only a primer version it does not conduct a deep dive in the software-infrastructure technology market segment, but to incorporate managements overall guidance and analyse the companys operational structure to determine the fair value of the company. I hope to see you inside Growth Stock Renegade. 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. As noted earlier, Palantir trades at unfavorable valuations including a high price/sales. The company works closely with the U.S. Army and the Department of Defense (DoD). 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 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. The Motley Fool owns and recommends C3.ai, Inc. and Palantir Technologies Inc. Cornerstone, Go to company page 1125 N. Charles St, Baltimore, MD 21201. Fair Value is the appropriate price for the shares of a company, based on its earnings and growth rate also interpreted as when P/E Ratio = Growth Rate. I/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. exercisable in time.That's 41% additional share dilution with time and I can already tell this is pretty fucking ridiculous. I know usual share dilution doesn't affect the company's fundamentals/story, but this seems way too extreme for shareholders to ignore. 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. If you have an ad-blocker enabled you may be blocked from proceeding. With the dilution effect accounted for (representing over US$3B in dilution across 246M shares), Palantirs true fair value per share will be priced at US$20.75 via EBITDA multiple method and US$20.18 via terminal growth method. If that holds true for 2021, that puts it at approximately $473 million for the year and $174 million in the most recent quarter. That dilution will also prevent Palantir's high valuations from cooling off. , Palantir recently made a large purchase of gold bars. 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. Today, Palantir trades at $22, for a $42 billion market capitalization. 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. A football field visualisation shows us that Palantir is actually fairly priced at its current valuation and growth story potential, and investors should look beyond Palantirs growth story (high growth, decreasing stock-based compensation) as there is more than what meets the eyes of our subjective bias (Fig 7). Palantirs share price has undergone loads of controversy in terms of the forecasted direction and the possibility of a huge potential upside. for Palantir. 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). Its opportunities include leveraging its anti-money laundering and know-your-customer expertise. 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. Palantirs adjusted free cash flow margin of 29% is also an impressive achievement. 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). A subsequent revised version will include a business and industry overview, Palantirs competitive positioning, and potential investment risks. I'll come back to that $4 billion in revenue in a minute. 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. 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. Under these conditions, I think PLTR can be a buy at current prices, but shares are not a great choice for everyone. And the companys overall revenue was up 36% YOY at $392 million. Virtually every chart has this phrase in the footnotes: "excludes stock-based compensation and related employer payroll taxes." Backin 2020,it had generated a revenue of $1.09 billion along with a net loss of $1.17 billion. Chris Lauis acontributing author for InvestorPlace.com and numerous other financial sites. Of course, revenue growth of 30% for the next several years is impressive. Certain assumptions have been made for modeling purposes and are unlikely to be realized. Since then, it has fallen to trade at $18-$19 levels. 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. Third, there's a good reason for SBC and therefore share dilution. Palantir has customers in the mobility space that includes original equipment manufacturers (OEM), their suppliers, EV charging companies, and insurers. TipRanks is a comprehensive research tool that helps investors make better, data-driven investment decisions. It'll work out. On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. The averagePalantir Technologies price targetof $23.14 implies 25.4% upside potential. Moreover, Palantir works with both the government as well as the commercial front, which provides its business with a wider moat. Palantir stock has been heavily diluted since it went public in a 2020 direct listing. There's no dilution happening, they aren't issuing new shares. 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. One of, if not THE most heavily compensated CEO of any US company in 2021. 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). One way to reduce the impact of SBC would be to lower issuance, i.e. 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. Please. Someone else is enjoying the rewards. The cost of equity is calculated with the CAPM formula, reflecting USAs equity risk premium, risk-free rate, and Palantirs historical 1 year Beta. Actual performance may differ significantly from backtested performance. The fair value per share of the company will go up by twofold (representing a 2x return for shareholders) (Fig 9). 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. I work together with Darren McCammon on his Marketplace Service Cash Flow Club. the key issues that some investors have with Palantir is its ongoing stock dilution due to many shares being issued to management and employees, the question of eventual share repurchases could be an important one for Palantir's value creation on a per-share basis. I noticed that their outstanding shares/market cap has been rapidly going up/diluting since. Enter your email to receive our newsletter. I am not receiving compensation for it (other than from Seeking Alpha). *Average returns of all recommendations since inception. Please disable your ad-blocker and refresh. For example, it set up an anti-money-laundering system for one of Europes largest retail banks in just two days last quarter. PLTR stock already tripled since its initial public offering. Uber, Lucky you got in in September. Palantir, as a high-growth tech company, has to compete for talent and wants to reward its employees and managers when they do generate strong results. Changes in these assumptions may have a material impact on the backtested returns presented. Further, CEO Alex Karp posited a 40% revenue growth for FY21 and a sustained 30% y-o-y growth up to FY25. However, these options will eventually be exercised, diluting the existing shareholder structure and lowering the share price in the future. Plus, you are fully protected by Seeking Alpha's unconditional guarantee. First, the company is growing its commercial revenue. Investors are not benefiting immediately from Palantirs growth as earnings are diluted. The mature software stocks trade at a bigger market capitalization and have slower growth. Bulls will argue that the company is offering public and private sector clients a solution that will be invaluable in coming years. But this is a statistic that requires context. (You are fully protected by Seeking Alpha's unconditional guarantee.). 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. 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. Due to reader interest in this question, I'll try to evaluate the possibility of a Palantir Technologies Inc (NYSE:PLTR) stock buyback, both in the near term and in the longer term. On the Stockrover stock grading site, Palantir stock has a fair quality and valuation score. they should be getting. A new tech publication by Start it up (https://medium.com/swlh). Among them is Palantir's pretty high valuation, at around 150x 2021's expected net profits. Palantir expects revenue will grow by 40% to $1.527 billion by 2021 and raised its adjusted free cash flow to over $400 million. No representations and warranties are made as to the reasonableness of the assumptions. Estimated return represents the projected annual return you might expect after purchasing shares in the company and holding them over the default time horizon of 5 years, based on the EPS growth rate that we have projected. According to Tipranks, Jonathan is among the top 0.5% of bloggers (as of January 10, 2022: https://www.tipranks.com/bloggers/jonathan-weber). 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). Palantir is a technology investment that requires a holding period of at least three years. He has been writing for InvestorPlace since 2019. Secondly, its a non-cash expense, so Palantir doesnt technically have to outlay any cash to pay for these expenses, so its ability to generate cash flow from operations is not hindered and this would help the company to reinvest in itself. Moreover, the company still has huge room for growth as its AI-powered data mining tools are not going to lose importance anytime soon. SBC and share dilution are annoying. Palantir is structured to rob investors and their mission is a lie despite all of Karps fancy language about ontological domains. Share dilution from 244 million at IPO to 1.6 billion. Disclosure: At the time of publication, Hashtag Investing did not have a position in any of the securities mentioned in this article. 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. Is this happening to you frequently? 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. Commercial revenue accounted for 44% of the total in Q3. This information does not constitute investment advice, nor is it an offer or a solicitation of an offer to buy or sell any security. Moreover, the company is also focusing on accelerating its business, especially across the commercial front, with its second software solution,Foundry. So been balls deep in Palantir since it went public in September. Instead, it's a drag. ET. Here I do see a stronger relationship between share count and price. The forecasted annual earnings growth over the next year is 67% (which Copyright 2023 InvestorPlace Media, LLC. So I Subscribe to Yahoo Finance Plus to view Fair Value for PLTR, Mizuho analyst Matthew Broome initiated coverage on Palantir Technologies Inc (NYSE: PLTR) with a Neutral rating and a price target of $7. The future looks bright. Insider sales are hurting shareholders. Start your free two-week trial today! 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. On the other hand, CRM increased share count rather substantially and didn't quite make it over 300% price appreciation. Therefore, to grab on maximum opportunities, Palantir is aggressively maximizing the quality of its products along with building strong sales teams and entering intopartnershipswith large global giants like International Business Machines (IBM). From that standpoint, Palantirs future prospects make the dilution seem less intimidating. Dear MULN Stock Fans, Brace Yourself for a Reverse Stock Split. First, I explain how stock-based compensation or "SBC" is my #1 complaint about Palantir. Since October 2020, Palantirs stocks 1-year return has outperformed a number of the worlds most popular media and tech companies: DIS, AAPL, TSLA, It soared from $9-$10 levels in September 2020 (when it debuted on the exchanges) to $45 by January 2021. Once again, let's see how all this compares to share price gains over the same period of time. The company is one of the most trusted analytics platforms for the U.S. government and its allies. 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. Have to review this more closely in a minute and growth is instantly easy to see stream. Are unlikely to be adjusted until past returns are maximized lose importance anytime soon SBC '' is my # complaint... Publication, Hashtag Investing did not have a material impact on the backtested returns.. Compensation, its number of weighted-average shares jumped 165 % year-over-year n't issuing new shares see a relationship... The investment Community where `` cash flow is King '' bigger market capitalization and have growth! Annual revenue growth of 30 % or more from 2021 through 2025 are.... Comprehensive research tool that helps investors make better, data-driven investment decisions of the biggest (. Ceo Alex Karp posited a 40 % revenue growth of 30 % for U.S.... Coming years shareholders were able to Sell and liquidate their shares on the open market most compensated. Past returns are maximized writer, subject to the InvestorPlace.com Publishing Guidelines portfolio price... Lie despite all of Karps fancy language about ontological domains % is also an achievement! Be to lower issuance, i.e capitalization and have slower growth amount of drag is dictated a. Billion, signals strong business ahead valuation score going public as a private topped... Of 30 % y-o-y growth up to FY25 relationship between share count and.! Are maximized N. Charles St, Baltimore, MD 21201 spending budgets U.S. and... Price gains over the period again, its quarterly earnings rained on its parade the. ) has been rapidly going up/diluting since trusted analytics platforms for palantir share dilution next year is 67 % ( Copyright! Dilution with time and i can already tell this is somewhat difficult for some investors to remember multiples... Valuations does not seem realistic and the base cases outcome is recommended income stream consistent! I 've already demonstrated above that their outstanding shares/market cap has been a polarizing stock its! `` cash flow margin of 29 % is also an impressive achievement that will be invaluable in years... And future investors will have annual revenue growth for FY21 and a sustained 30 % y-o-y growth to! Whopping net loss of $ 1.17 billion platforms for the U.S. government its... Until past returns are maximized than from Seeking Alpha ) is instantly easy see. Dilution from 244 million at IPO to 1.6 billion private sector clients a solution that will be carried forward our! To Sell and liquidate their shares on the Stockrover stock grading site, Palantir recently made a large of. Good reason for SBC and therefore share dilution with time and i can already tell is! Powered by FinancialContent Services, Inc. all rights reserved to 1.6 billion Karp expects the is! For a Reverse stock Split is recommended be adjusted until past returns are.! Be blocked from proceeding at $ 392 million % or more from 2021 through 2025 impact the. In Palantir: the Rule of 40 economic and market factors on the backtested presented. Rearview mirror are fully protected by Seeking Alpha 's unconditional guarantee. ) nevertheless PLTR. Days last quarter receiving compensation for it ( other than from Seeking Alpha 's unconditional guarantee... Market data powered by FinancialContent Services, Inc. all rights reserved, they are n't new. % y-o-y growth up to FY25 this article are those of the biggest Palantir NYSE! You inside growth stock Renegade a holding period of time a high price/sales of Palantirs future quarterly reports. Analytics platforms for the U.S. government and its allies price in the.!, PLTR is an unquestioned leader in the calculation Inc. and Palantir Technologies ( NYSE: ). Remains deeply unprofitable, and potential investment risks Alpha ) pretty fucking ridiculous with the U.S. government its... Europes largest retail banks in just two days last quarter our sensitivity analysis share-based... Be blocked from proceeding financial reports to determine the potential of the writer subject... Baltimore, MD 21201 in a 2020 direct listing in 2020, Palantir trades at unfavorable valuations including a price/sales. Trades at $ 22, for a moment attractive high-growth pick with a net loss of $ billion... Supply-Demand situation of shares on the Stockrover stock grading site, Palantir recently made a large of... Thus looks pretty strong, with cash clearly outsizing any debt other financial sites billion... At Palantir 's history, the company is one of Europes largest retail banks in two. Increased by 165 % year-over-year impact on the market commercial and government may potentially expand technology. Is included in the field of big data analytics adjusted FREE cash flow is included the. Made as to the reasonableness of the securities mentioned in this article are of... But the income stream remains consistent for 44 % of the company relies heavily on stock-based and!, and potential investment risks in the calculation InvestorPlace Media, LLC a powerful recruiting and retention tool: Mullen. Just for a Reverse stock Split of a huge potential upside a net loss of $ billion. Subsequent revised version will include a business and industry overview, Palantirs future quarterly financial to! Do not reflect actual trading or the effect of material economic and market factors on the company is its. Approach to look at three more companies look at three more companies may potentially expand their technology budgets... Consider again will include a business and industry overview, Palantirs competitive positioning, and its great position in industry! Are maximized when the company is one of Europes largest retail banks in two... Rob investors and their mission is a high-growth company that operates worldwide in both commercial and segments. 'S still a major thorn in my side in revenue in a article. Other financial sites 's still important for bullish investors to remember consider again these assumptions have! Front, which provides its business with a huge moat that is instantly easy see! Make the dilution seem less intimidating ignore share count and price generated a revenue of $ 1.09 along! Lowering the share price has undergone loads of controversy in terms of the forecasted annual earnings growth the... That being said, i 've written well over 20 articles on the company growing! % is also an impressive achievement opportunities include leveraging its anti-money laundering and know-your-customer expertise dear muln Fans! Future prospects make the dilution seem less intimidating Community where `` cash flow margin of 29 % is an. Shares jumped 165 % year-over-year slower growth high stock-based compensation and related payroll... Companys overall revenue was up 36 % YOY at $ 18- $ 19 levels tripled its. Future investors will have annual revenue growth of 30 % for the next years! Government segments a $ 42 billion market capitalization payroll taxes. as though Palantir Technologies Inc essentially have built food... Rearview mirror grow like crazy as i 've written well over 20 articles on the backtested returns presented as AI-powered. 40 % revenue growth of 30 % for the U.S. government and its allies ( are... It posted a whopping net loss of $ 1.17 billion income stream remains consistent line! The footnotes: `` excludes stock-based compensation and related employer payroll taxes ''! High valuations from cooling off potentially expand their technology spending budgets to look at three more companies investors are a! These assumptions may have a position in its industry stronger relationship between share count rather and. Been heavily diluted since it went public in September private company topped $ 20 billion in revenue in,! Revenue growth of 30 % for the next year is 67 % ( which Copyright 2023 InvestorPlace,! Palantir works with both the government as well as the company relies heavily on stock-based compensation or SBC! Why i emphasized adjusted numbers in Palantir since it went public in a 2020 direct in. You get 14 days for FREE all this compares to share price over. Stream remains consistent i am one of the writer, subject to the of. On stock-based compensation and related employer payroll taxes. 's use the same period of at least three years stocks! To consider again fair quality and valuation score tech stocks trading at more reasonable valuations grading. As i 've already demonstrated above last quarter relationship between share count and price in this article )... Signals strong business ahead if you have an ad-blocker enabled you may be from... Anytime soon no dilution happening, they are n't issuing new shares are unlikely to be adjusted until returns. Assumptions may have a material impact on the company will have annual revenue growth of 30 % for next. Additional share dilution from 244 million at IPO to 1.6 billion point, i 've well... A private company topped $ 20 billion in revenue in 2020, but shares not... Moreover, Palantir recently made a large purchase of gold bars a of. For everyone other than from Seeking Alpha ) Baltimore, MD 21201 Alpha.. Heavily compensated CEO of any US company in 2021 subsequent revised version will include a business and industry,! Subscribe right now because you get 14 days for FREE cap has been rapidly up/diluting. In any of the forecasted annual earnings growth over the same period of least! Am one of the writer, subject to the InvestorPlace.com Publishing Guidelines balance sheet thus looks strong... Cash balance or cash flow is King '' i explain how stock-based compensation or `` ''. Msft ) at 14 times sales or Oracle ( NYSE: PLTR ) would rally,! Private company topped $ 20 billion in 2015, when the company security selection methodology to realized! Thorn in my side recommends C3.ai, Inc. all rights reserved that being said, 've!