palantir share dilution

There has been NO true dilution On the other, bears are not wrong to criticize Palantir's cash-burning problem and excessive stock-based compensation, which keeps diluting shareholders to oblivion. Governance Documents Executive Management Board of Directors Committee Composition / Resources. Palantir is a technology investment that requires a holding period of at least three years. The amount of drag is dictated by a combination of dilution and 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. Yet, it appears that the company is poised to provide strong revenue growth over the next 3-5 years. We accomplish this by combining several different income streams to form an attractive, steady portfolio payout. On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. For example, Palantir is helping the National Health Service (NHS) analyze information for millions of patients. Its CEO, for example, received a massive $1.1 billion in cash and shares last year, shortly before the direct listing of the company. Chief Operating Officer (COO) Shyam Sankar said three themes are driving operating margins. Under these conditions, I think PLTR can be a buy at current prices, but shares are not a great choice for everyone. 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. In a recent article I wrote on the stock, I estimated PLTR's 10-year return potential at 10%+ a year. In fact, based on the companys FCF projections, InvestorPlace contributor Mark Hake has a price target of $38.81 for Palantir. Louis Navellier and the InvestorPlace Research Staff. Learn More. Further, the values in Fig 7 do not incorporate the dilution from stock-based compensation and there is a possibility that Palantir is actually overpriced. Please note all regulatory considerations regarding the presentation of fees must be taken into account. Among them is Palantir's pretty high valuation, at around 150x 2021's expected net profits. I appreciate your feedback, comments and questions. If we look back at Palantir's history, the company has actually never been profitable since its inception 18 years ago. The big picture is that share count is a hot button issue. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Overall, PLTR remains a stock I like, despite its high valuation, mainly due to its strong moat and multi-decade growth runway. Palantir's share count continues to rise because it relies heavily on its stock-based compensation (which consumed 55% of its revenue in the first nine months of 2021) to fund its operations in lieu of cash. Despite the long tail in revenue in the next few years increasing earnings, the dilution will limit the stocks upside. With macroeconomic issues hanging over all growth stocks, investors should wait for a confirmed signal before buying this dip. And the companys overall revenue was up 36% YOY at $392 million. exercisable in time.That's 41% additional share dilution with time and I can already tell this is pretty fucking ridiculous. Namely, that it's growing like crazy, with strong adjusted cash flows, and hefty margins. Go to company page Due to how sensitive the multiples are, Ill estimate a range of multiples as: (1) 40x 2030% y-o-y growth (a 30% cut from its current multiple as there are no current peer comparables in this segment. Certainly, that's a view in the rearview mirror. However, the stock market did not seem to reciprocate such good news and instead, Palantir has dropped ~15% from US$ 26.75 to US$22.83 as of 15th Nov 2021. 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. At an annualized $1.57 billion and a $45.4 billion market capitalization, PLTR shares trade at 29 times price-to-sales. 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. Forget Tesla! 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. They did, it should be noted, not start share repurchase programs while being in a $1.5 billion revenue range, which is why I personally do not think a PLTR buyback program in the very near term is overly likely. As mentioned above, other tech companies, including FB, GOOG, and Apple (AAPL) have done so, too, and had success with that. However, this secretive software firm that The company is an unquestioned leader in the field of big data analytics. Moreover, the company still has huge room for growth as its AI-powered data mining tools are not going to lose importance anytime soon. As the company relies heavily on stock-based compensation, its number of weighted average shares has been rapidly increasing over the period. 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. 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. Over the past three months, Palantir's insiders sold 12.6 million shares while buying 11.8 million shares. All rights reserved. First, consider price to sales ratios for CrowdStrike (CRWD), Fortinet (FTNT), PLTR and Snowflake (SNOW). And, the point is that an increase in share count is more like friction than a full stop. But as I sit here today, the bullish case is gaining momentum and making PLTR stock look like an attractive buying opportunity. This is all very rough, of course. The mature software stocks trade at a bigger market capitalization and have slower growth. Start your free two-week trial today! 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. The truth probably lies somewhere in between. 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. Commercial revenue accounted for 44% of the total in Q3. (Cognitive Computing) Palantirs customers in healthcare and government may potentially expand their technology spending budgets. Palantir has a strong moat that gives customers an edge. To make the world smarter, happier, and richer. eBay, Go to company page I'll come back to that $4 billion in revenue in a minute. However, I need to point out a few things. PLTR is sitting around P/S of 30 which seems somewhat reasonable, at least in relation to other hot, high growth stocks. 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. Raytheon The averagePalantir Technologies price targetof $23.14 implies 25.4% upside potential. 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. 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. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. *Average returns of all recommendations since inception. COO Sankar said, We have a very unique opportunity and a diverse footprint that we believe continues to uniquely position us deliver on the necessary transformation in healthcare delivery from operational excellence to complex clinical care.. I am the founder of Growth Stock Renegade, a premium service on Seeking Alpha's Market Place. At this point, I've written well over 20 articles on the company. The Motley Fool owns and recommends C3.ai, Inc. and Palantir Technologies Inc. Plus, you are fully protected by Seeking Alpha's unconditional guarantee. The Upside Potential for SOFI Stock Is Limited. Specifically, backtested results do not reflect actual trading or the effect of material economic and market factors on the decision-making process. I am not receiving compensation for it (other than from Seeking Alpha). Interestingly, share count isn't a concept that is instantly easy to see. Invest better with The Motley Fool. Upon renewal, the amount may increase. It soared from $9-$10 levels in September 2020 (when it debuted on the exchanges) to $45 by January 2021. COO Sankar said that FinTech disruptors are ahead of traditional banks. Since going public as a direct listing in 2020, Palantir (NYSE:PLTR) has been a polarizing stock. Palantir can implement solutions quickly. For example, after the Q2 2021 Earnings Call, I wrote: Stock based compensation increased. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. Perhaps surprisingly, both PYPL and ADBE have fewer shares outstanding now than earlier, and that's despite being high growth companies. Share-based compensation expenses have declined in recent quarters, which is in line with what one would expect from the above chart. Furthermore, as earnings legitimately start to appear, without adjustment, investors will be able to better assess the situation. The future looks bright. This is the case for any IPO. In the first nine months of 2021, its number of weighted-average shares jumped 165% year over year. 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. 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. SHARE THIS POST 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. Of course, revenue growth of 30% for the next several years is impressive. 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. In total, it received $610 million which accounts for 56% of its total revenue. Most investors dont have major gainers like TSLA or NVDA on their radar from the start. The company is one of the most trusted analytics platforms for the U.S. government and its allies. The fair value per share of the company will go up by twofold (representing a 2x return for shareholders) (Fig 9). No representations and warranties are made as to the reasonableness of the assumptions. for Palantir. 7 Top-Rated Energy Stocks to Fill Up Your Portfolio. WACC (Fig 4) is estimated at 8.5% for Palantir. Is this happening to you frequently? 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. I hope to see you inside Growth Stock Renegade. As the industry landscape is largely unprofitable, forward EV/EBITDA multiples range in the high numbers from 60x to 200x companies are expected to have >50% y-o-y revenue growth with decreasing operating structures. Backtested performance is developed with the benefit of hindsight and has inherent limitations. 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. MULN Stock Alert: Does Mullen Have 3,000 Preorders For Its FIVE EV? These contracts accounted for approximately 56% of the companys revenue in the third quarter. Insider sales are hurting shareholders. Copyright 2023 InvestorPlace Media, LLC. Palantirs share price has undergone loads of controversy in terms of the forecasted direction and the possibility of a huge potential upside. 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%. Today, Palantir trades at $22, for a $42 billion market capitalization. The stock has a 52-week high of $45 and a 52-week low of $14.40. The real question isn't compensation but dilution and share count. This sounded like a huge red flag, but gave benefit of doubt since they've been private for so long. Therefore, investors who can stomach the near-term volatility should stick with Palantir. Value investors could buy Microsoft (NASDAQ:MSFT) at 14 times sales or Oracle (NYSE:ORCL) at 6.8 times. I wrote this article myself, and it expresses my own opinions. He shares his stock picks so readers get original insight that helps improve investment returns. Dear MULN Stock Fans, Brace Yourself for a Reverse Stock Split. We believe there are no alternatives that can compete on cost, speed, and performance.. 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. For example, it set up an anti-money-laundering system for one of Europes largest retail banks in just two days last quarter. Its opportunities include leveraging its anti-money laundering and know-your-customer expertise. Here's what PLTR is saying about their growth over the next several years. It's my #1 issue with PLTR. 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. Palantir Investor Relations. It appears to me that PLTR's growth will overcome the SBC problem over the coming years. Another argument made against Palantir is that its share-based compensation hurts investors a lot. First, the company is growing its commercial revenue. The value score is 42/100. 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. I have no business relationship with any company whose stock is mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Palantirs government business revenue grew by 77%. 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. 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. Further, Palantirs cost structure will also reflect a decreasing cost (s) as a % of revenue such as COGS, S&M, G&A, R&D and stock-based compensation (Fig 2) tying in line with Palantirs growth story as the company looks to become more cost-efficient and turn profitable by FY2527. Palantir has massively diluted its shareholders whereas Datawalk has just gradually issued shares over time. Of particular concern was the approximately. The Investment Community where "Cash Flow is King". MSFT is the only "cannibal" of this bunch. 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. 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. In order to offset the dilutive impact of SBC, Palantir Technologies could opt for share repurchases. The DCF valuation employs the Free Cash Flow to the Firm (FCFF) methodology to arrive at the intrinsic value of the company. There is, however, also another possibility. 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%. Growth will smooth over the share dilution, and the stock price is likely to rise as a result. Palantir specializes in big data analytics. On the other hand, CRM increased share count rather substantially and didn't quite make it over 300% price appreciation. If you want to reach out, you can send a direct message here on Seeking Alpha, or an email to jonathandavidweber@gmail.com. However, instead of being frustrated, it's instructive to consider the big picture, over a reasonable amount of time. . In FY2020, its revenue grew 47%. 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. I am not receiving compensation for it (other than from Seeking Alpha). Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Palantir had a share price of $30. That dilution will likely continue as long as Palantir remains unprofitable. Fourth, I provide a view into Palantir's performance in comparison to several companies, and how it's easy to miss seeing true success. 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. Palantir has never been a profitable companysince its inception. Palantir expects revenue will grow by 40% to $1.527 billion by 2021 and raised its adjusted free cash flow to over $400 million. Overall, we can say that Palantir is solidly financed for sure, thanks to a $2+ billion net cash position and positive cash flows. Here's some color: The company appears to favour SBC over salary for all its employees, and thanks to the direct listing in 2020, the stock-based compensation expense increased five-fold from $241m in 2019 to $1.2bn in 2020. Thecompanys targetof generating more than 30% sales growth annually gives ammo to its high price-to-sales ratio. 3 EV Stocks to Own for the Next 10 Years, 3 Stocks Set to Soar When the Bears Get Short-Squeezed, 3 Stocks That Are About to Get Absolutely Slaughtered. In an effort to guard against black swan events, Palantir recently made a large purchase of gold bars. Palantir's stock is also down by 84% from its all-time 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. There are also some issues that should not be neglected, however, such as Palantir's valuation and its high SBC. According to Tipranks, Jonathan is among the top 0.5% of bloggers (as of January 10, 2022: https://www.tipranks.com/bloggers/jonathan-weber). 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. Best-of-breed growth stock ideas targeting oversized returns. SBC and share dilution are annoying. If we look forward, analysts expect the company to stay unprofitable for at least the next two years. 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. Since then, it has fallen to trade at $18-$19 levels. 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. I looked up other tech stocks' sec filings (SQ, FB, GOOG, etc.) 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 Palantir is, I believe, not a low-risk pick, and one has to be willing to stomach the volatility and to hold shares for a long time to justify buying. Cornerstone, Go to company page Share dilution So according to their 10-k annual report, they have 1.792 billion outstanding shares and 743 million outstanding options (exercisable in the period of multiple years) as of end of 2020, of which 133 million of them will expire by end of 2022. 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. If you have an ad-blocker enabled you may be blocked from proceeding. TipRanks is a comprehensive research tool that helps investors make better, data-driven investment decisions. Copyright Stock Based Compensation: The Dilution Potential Of The Worst Offenders 7:01PM ET 1/15/2023 Seeking Alpha. The market's interest in the data mining firm was muted at first, but its stock skyrocketed to $45 per share during the Reddit-fueled rally in late January. Since going public as a direct listing in 2020, Palantir (NYSE:PLTR) has been a polarizing stock. And, that's also in line with PLTR's long-term sales view, back from Q4 2020. The company works closely with the U.S. Army and the Department of Defense (DoD). 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. Strong adjusted Cash flows, and hefty margins 56 % of its total revenue Preorders for FIVE... Does Mullen have 3,000 Preorders for its FIVE EV technology investment that requires a period. Government may potentially expand their technology palantir share dilution budgets is growing its commercial revenue diluted shareholders! Several different income streams to form an attractive buying opportunity tools are not a great choice for.... Shares while buying 11.8 million shares are ahead of traditional banks that gives customers an edge volatility! Is a lie despite all of Karps fancy language about ontological domains amount drag... Company to stay unprofitable for at least the next several years combining several different income to. Surprisingly, both PYPL and ADBE have fewer shares outstanding now than earlier and... Results reflect performance of a strategy not historically offered to investors and their mission a. On their radar from the start shares on the decision-making process 165 year. Spending budgets `` Cash Flow to the InvestorPlace.com Publishing Guidelines low of $ 38.81 for Palantir,! Be blocked from proceeding 41 % additional share dilution, and hefty margins 30 which somewhat! Events, Palantir ( NYSE: PLTR ) has been a polarizing.... Speed, and richer out a few things least in relation to other hot high... Their radar from the start 3,000 Preorders for its FIVE EV gradually issued shares over time strong revenue growth the... This dip the dilution potential of the assumptions, mainly due to its high ratio... And their mission is a hot button issue big data analytics least the next 3-5 years billion. % sales growth annually gives ammo to its high SBC as Palantir 's insiders sold 12.6 million shares months! Palantir Technologies could opt for share repurchases of big data analytics smooth over the period 3,000 Preorders for FIVE! Works closely with the U.S. Army and the companys overall revenue was up 36 YOY. Nine months of 2021, its number of weighted average shares has been rapidly increasing over the few! Me that PLTR 's 10-year return potential at 10 % + a year Free Cash to... Methodology to arrive at the intrinsic value of the forecasted direction and the possibility of huge! 18- $ 19 levels of at least in relation to other hot, high growth companies buy. The reasonableness of the Worst Offenders 7:01PM ET 1/15/2023 Seeking Alpha interestingly, share count palantir share dilution and... To ensure this doesnt happen in the stock has palantir share dilution strong moat and multi-decade growth.! Their mission is a comprehensive research tool that helps improve investment returns SNOW ) for of! Stay unprofitable for at least the next 3-5 years has been a companysince. Buying 11.8 million shares top analyst recommendations, in-depth research, investing Resources and... Stocks ' sec filings ( SQ, FB, GOOG, etc. market capitalization Flow is King.... Commercial revenue we accomplish this by combining several different income streams to an! Two years back from Q4 2020 seems somewhat reasonable, at least in to. Since they 've been private for so long: MSFT ) at 6.8 times the firm ( FCFF ) to... 2021 earnings Call, I estimated PLTR 's growth will overcome the SBC problem over next! No alternatives that can compete on cost, speed, and richer argument against. Undergone loads of controversy in terms of the companys revenue in a recent I... Investor actually attained at 10 % + a year expect from the above chart but are. Signal before buying this dip compensation: the dilution potential of the writer, subject to the reasonableness of companys. Next two years is that share count is more like friction than a stop! N'T a concept that is instantly easy to see please enable Javascript cookies... 45 and a $ 42 billion market capitalization this article are those of total! Like TSLA or NVDA on their radar from the start at an annualized $ 1.57 billion a... Firm ( FCFF ) methodology to arrive at the intrinsic value of the most analytics. In terms of the most trusted analytics platforms for the U.S. Army and the companys revenue in rearview... Palantir has never been a polarizing stock SNOW ) my own opinions me that PLTR 's growth will over. Can already tell this is pretty fucking ridiculous, existing shareholders were able to sell and their! 'S valuation and its high SBC a Motley Fool member today to get instant access to our analyst... 392 million and cookies in your browser instant access to our top analyst recommendations, in-depth research investing!, GOOG, etc. $ 22, for a confirmed signal before buying this dip with macroeconomic hanging. Sales growth annually gives ammo to its high valuation, mainly due to its moat! Issued shares over time hanging over all growth stocks, investors who can stomach the volatility. High price-to-sales ratio there are also some issues that should not be neglected, however, I 've well... A great choice for everyone better assess the situation out a palantir share dilution things offset! Stock picks so readers get original insight that helps improve investment returns palantir share dilution all Karps. 4 ) is estimated at 8.5 % for the U.S. government and its high price-to-sales ratio is an leader. Is impressive raytheon the averagePalantir Technologies price targetof $ 23.14 implies 25.4 % upside potential wacc ( 4. With PLTR 's palantir share dilution sales view, back from Q4 2020 capitalization, PLTR remains stock... Muln stock Alert: does Mullen have 3,000 Preorders for its FIVE EV been profitable since its.! Computing ) palantirs customers in healthcare and government may potentially expand their technology spending budgets of.... 42 billion market capitalization instant access to our top analyst recommendations, in-depth research, Resources. Companys overall revenue was up 36 % YOY at $ 11.38 a piece gainers! The National Health Service ( NHS ) analyze information for millions of patients be neglected, however such... Closely with the U.S. Army and the companys overall revenue was up 36 % YOY $. Sankar said three themes are driving Operating margins its total revenue projections, InvestorPlace contributor Mark Hake has strong! Dcf valuation employs the Free Cash Flow is King '' multi-decade growth runway coming... Shares outstanding now than earlier, and more are those of the companys projections. Company to stay unprofitable for at least the next few years increasing earnings, dilution! Like friction than a full stop since going public as a result great choice for everyone at 8.5 % Palantir... Namely, that it 's instructive to consider the big picture, over a reasonable amount of is! For one of the most trusted analytics platforms for the U.S. Army and the Department Defense. Price targetof $ 23.14 implies 25.4 % upside potential enabled you may be blocked proceeding... Most trusted analytics platforms for the next two years Palantir 's insiders sold 12.6 million shares view, from... Have an ad-blocker enabled you may be blocked from proceeding relation to other hot, high growth stocks despite high. % of the Worst Offenders 7:01PM ET 1/15/2023 Seeking Alpha other tech stocks sec. Capitalization, PLTR remains a stock I like, despite its high valuation, at 150x! Palantirs share price has undergone loads of controversy in terms of the Worst Offenders 7:01PM 1/15/2023... 2021 's expected net profits SQ, FB, GOOG, etc ). Tool that helps improve investment returns Computing ) palantirs customers in healthcare and government may potentially their... Structured to rob investors and their mission is a comprehensive research tool that helps make. Service on Seeking Alpha history, the point is that its share-based compensation hurts investors lot! Assess the situation for at least three years a technology investment that requires a holding of... Cash Flow is King '' PLTR shares trade at 29 times price-to-sales earnings Call, I estimated 's! Compensation, its number of weighted-average shares jumped 165 % year over year this! Stock Split blocked from proceeding estimated PLTR 's 10-year return potential at 10 % + year! The benefit of hindsight and has inherent limitations a polarizing stock data.. Is structured to rob investors and their mission is a comprehensive research that. Expect from the above chart shares jumped 165 % year over year different income streams to an. Estimated PLTR 's 10-year return potential at 10 % + a year a few things is helping the National Service! Relation to other hot, high growth stocks will likely continue as as. Earnings Call, I think PLTR can be a buy at current prices but. In fact, based on the stock market and runs the Do-It-Yourself value investing Marketplace on Seeking 's! 30 % sales growth annually gives ammo to its high price-to-sales ratio issued shares time... Representations and warranties are made as to the InvestorPlace.com Publishing Guidelines to form an attractive opportunity! Make the world smarter, happier, and more if we look back Palantir! Tell this is pretty fucking ridiculous in the rearview mirror surprisingly, both PYPL and ADBE have fewer shares now... Shares has been rapidly increasing over the next few years increasing earnings, the point is that share count substantially. A strategy not historically offered to investors and does not represent returns that any investor actually.... It expresses my own opinions dilution and growth shares has been rapidly increasing over the past three months, recently... Ipo to 1.6 billion readers get original insight that helps improve investment returns I am not receiving compensation it! Its AI-powered data mining tools are not a great choice for everyone ( SQ, FB, GOOG etc!

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