At an annualized $1.57 billion and a $45.4 billion market capitalization, PLTR shares trade at 29 times price-to-sales. I wrote this article myself, and it expresses my own opinions. 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. 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. I have no business relationship with any company whose stock is mentioned in this article. There are also some issues that should not be neglected, however, such as Palantir's valuation and its high SBC. Virtually every chart has this phrase in the footnotes: "excludes stock-based compensation and related employer payroll taxes." WebIn addition, there are up to 0.5B additional shares that will vest via options in 2021+ at a very low strike price that will increase the total share count to up to 2.2B and cause a ET. Again, I'm almost certain you've heard of PayPal (PYPL), Salesforce (CRM) and Adobe (ADBE). Today, Palantir trades at $22, for a $42 billion market capitalization. I have also generated over $30 million in online sales through my own business activities, along with several million dollar producing partners and affiliates. The cost of equity is calculated with the CAPM formula, reflecting USAs equity risk premium, risk-free rate, and Palantirs historical 1 year Beta. On the other hand, CRM increased share count rather substantially and didn't quite make it over 300% price appreciation. 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). Since going public as a direct listing in 2020, Palantir (NYSE:PLTR) has been a polarizing stock. 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. To make the world smarter, happier, and richer. On the Stockrover stock grading site, Palantir stock has a fair quality and valuation score. Start your free two-week trial today! Really, the point is that PLTR's racing toward at least $4 billion in revenue by 2025 and various multiples make it clear to me that PLTR will continue to appreciate in price as a result. 1125 N. Charles St, Baltimore, MD 21201. He has been writing for InvestorPlace since 2019. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. (New pick just posted.). One of, if not THE most heavily compensated CEO of any US company in 2021. Hence, projecting such valuations does not seem realistic and the base cases outcome is recommended. The stock has a 52-week high of $45 and a 52-week low of $14.40. Its CEO, for example, received a massive $1.1 billion in cash and shares last year, shortly before the direct listing of the company. Further, backtesting allows the security selection methodology to be adjusted until past returns are maximized. Palantir has been one of the worst-hit stocks since the growth meltdown began last year. ET by MarketWatch Automation Venture Capital Unicorns Grew by Leaps and Bounds. So been balls deep in Palantir since it went public in September. Under these conditions, I think PLTR can be a buy at current prices, but shares are not a great choice for everyone. We accomplish this by combining several different income streams to form an attractive, steady portfolio payout. *Average returns of all recommendations since inception. Stocks tumble, Apple slides as China COVID protests spook investors to start week Palantirs customers in healthcare and government may potentially expand their technology spending budgets. In fact, based on the companys FCF projections, InvestorPlace contributor Mark Hake has a price target of $38.81 for Palantir. And, as long as growth is far greater than dilution, everything should work out fine. Join today for less than $2 per day. On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. Since going public as a direct listing in 2020. ) The company is an unquestioned leader in the field of big data analytics. The truth probably lies somewhere in between. 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 All rights reserved. Now, let's ignore share count just for a moment. It has a powerful A.I. they should be getting. This is pretty insane, I had no idea. In the last quarter, Palantir reported a. in commercial revenue. It's fair to say that I am one of the biggest Palantir (NYSE:PLTR) bulls on Seeking Alpha. From that standpoint, Palantirs future prospects make the dilution seem less intimidating. 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. We must continue to watch SBC and dilution like hawks. Is this happening to you frequently? The averagePalantir Technologies price targetof $23.14 implies 25.4% upside potential. 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. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. Disclosure: I/we have a beneficial long position in the shares of PLTR, PYPL, AMZN, GOOGL, CRWD, DIS, AAPL either through stock ownership, options, or other derivatives. 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. At the same time, with a P/S of 50 it reaches $200 billion, whereas with a P/S of 20 it reaches $80 billion. Backtested performance is not an indicator of future actual results. He shares his stock picks so readers get original insight that helps improve investment returns. Share based compensation where investors pay the employees no the company. History suggests that SBC isn't a stock price killer. Palantir's number of weighted-average shares rose 70% year over year at the end of 2020 following its direct listing. SHARE THIS POST Investors may refer to NXP Semiconductors (NASDAQ:NXPI) as an example of a semiconductor firm benefiting from the technology innovation in automobiles. The fair value per share of the company will go up by twofold (representing a 2x return for shareholders) (Fig 9). Overall, PLTR remains a stock I like, despite its high valuation, mainly due to its strong moat and multi-decade growth runway. Today, data is the Holy Grail around the globe, and this demand has turned the data analytics business into one of the most demanding ones in todays time. At the rate from the first quarter, this would take a little more than 2 years, and due to business growth, it seems likely that cash flows will increase instead of decline going forward, so the $5 billion net cash position could be hit earlier. Chris Lauis acontributing author for InvestorPlace.com and numerous other financial sites. Coupled with decreasing stock-based compensation as a % of revenue and increasing margins to achieve profitability, the growth story of Palantir seems to be in place for the stock to chart up to greater heights. Palantir, which builds data analysis software for government agencies and large corporations, said on Monday that it has 2.17 billion diluted shares. Third, its growth in healthcare is rising. Down 65% in This Bear Market, Can Palantir Recover in 2023? If the management allocates corporate capital to the repurchase of over priced stock to offset dilution, then this amounts to a misallocation of corporate capital because there is a significant reduction in corporate capital to be reinvested in OPEX and CAPEX in order to stimulate growth. The U.S. Immigration and Customs Enforcement (ICE) department also uses it to track down and deport undocumented immigrants. Another argument made against Palantir is that its share-based compensation hurts investors a lot. For the first three quarters of 2021, the company has revenue that exceeds $1.1 billion. It also announced it would accept payment in. Palantir remains deeply unprofitable, and its constantly diluting its shares with high stock-based compensation. Go to company page Namely, that it's growing like crazy, with strong adjusted cash flows, and hefty margins. Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. Palantir, however, is still relatively small compared to these giants, and the company is way less profitable. For now, investors should assume the stock is stuck in a $22 $27 trading range because earnings per share are not expanding. First, the company is growing its commercial revenue. There's no dilution happening, they aren't issuing new shares. We have war fighters who follow our nutrition. 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. This sounded like a huge red flag, but gave benefit of doubt since they've been private for so long. A subsequent revised version will include a business and industry overview, Palantirs competitive positioning, and potential investment risks. Furthermore, PLTR has a narrative to maintain. There are, however, also some negatives that are oftentimes brought up when Palantir is discussed. (Cognitive Computing) If a stock has dropped to a 52-week low, I'd like to see its insiders buy more shares than they're selling to consider it a potential turnaround play. However, this secretive software firm that The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Third, there's a good reason for SBC and therefore share dilution. The real question isn't compensation but dilution and share count. 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). The next target multiple will be 1020x, comprising of large systems integrators and enterprise AI companies such as IBM, Cognizant, etc), (2) 60x 3040% y-o-y growth (where Palantir is currently priced at), (3) 100x 50% y-o-y growth (evidenced by how DocuSign and Datadog are valued as they experience such high growth rates). However, we should not ignore the huge potential of the company in terms of providing solutions to unanswered problems across different industry segments. Palantir has a strong moat that gives customers an edge. eBay, Go to company page That is to say, "anger" is felt because investors aren't getting as much value as they think they should be getting. I'll have to review this more closely in a future article. For example, Palantir is helping the National Health Service (NHS) analyze information for millions of patients. I hope to see you inside Growth Stock Renegade. Growth will smooth over the share dilution, and the stock price is likely to rise as a result. 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. The amount of drag is dictated by a combination of dilution and growth. Disclosure: At the time of publication, Hashtag Investing did not have a position in any of the securities mentioned in this article. At this point, I've written well over 20 articles on the company. However, these options will eventually be exercised, diluting the existing shareholder structure and lowering the share price in the future. Palantir has customers in the mobility space that includes original equipment manufacturers (OEM), their suppliers, EV charging companies, and insurers. contributing author for InvestorPlace.com and numerous other financial sites. Palantir generated $1.09 billion in revenue in 2020, but it posted a whopping net loss of $1.17 billion. Thankfully for them, government contracts last many years. In 2004, when we looked at the available technology, we saw products that were too rigid to handle novel problems, and custom systems that took too long to deploy and required too many services to maintain and improve. 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. Palantirs share price has undergone loads of controversy in terms of the forecasted direction and the possibility of a huge potential upside. 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? exercisable in time.That's 41% additional share dilution with time and I can already tell this is pretty fucking ridiculous. 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. To determine Palantirs fair value in its share price, we will use the Discounted Cash Flow (DCF) method, discounting Palantirs future cash flows of up to FY27. Financials. If you have an ad-blocker enabled you may be blocked from proceeding. Facebook (FB) or Alphabet (GOOG) (GOOGL) when they were smaller. In FY2020, its revenue grew 47%. Despite these weaknesses, I remain bullish on Palantirs future. WACC (Fig 4) is estimated at 8.5% for Palantir. I am not receiving compensation for it (other than from Seeking Alpha). If other government agencies follow ICE's lead and adopt RAVEn or develop their own in-house data mining platforms, Palantir's government-facing business -- which already reported decelerating revenue growth over the past two quarters -- could face an unprecedented slowdown. 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. The companys valuation could thus be well above $20 billion if public investors are willing to buy the shares where theyve traded most recently in the private market. Palantir is pursuing a direct listing rather than a traditional IPO, meaning its not raising capital and is instead allowing existing stakeholders to sell shares to new investors. Palantir remains deeply unprofitable, and its constantly diluting its shares with high stock-based compensation. Moreover, the high dilution has also been preventing Palantirs high valuations from cooling off. 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. I am the founder of Growth Stock Renegade, a premium service on Seeking Alpha's Market Place. All rights reserved. Could Palantir Become the Next Salesforce? ICE has been doling out new contracts to develop RAVEn over the past three years, and its imminent launch would likely end the agency's relationship with Palantir -- which has attracted a lot of unwanted attention over its usage of FALCON to track and deport undocumented immigrants. 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. Moreover, Palantir works with both the government as well as the commercial front, which provides its business with a wider moat. 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. 5 Hypergrowth Stocks With 10X Potential in 2023. Palantir has never been a profitable companysince its inception. In fact, based on the companys FCF projections. Currency in USD Follow 2W 10W 9M 6.96 -0.05 (-0.71%) At close: January 13 04:00PM EST 6.94 -0.02 (-0.29%) I believe this is why PLTR leadership strongly emphasizes non-GAAP earnings. And, it's also a powerful recruiting and retention tool. Expect the company to win more customers in the coming year. Commercial revenue accounted for 44% of the total in Q3. Palantir doesn't fit that profile yet, and its ongoing dilution and automated stock sales could prevent its inside buyers from outnumbering the sellers. 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. Palantir is a technology investment that requires a holding period of at least three years. 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. WebPalantir Technologies Inc. (PLTR) closed at $7.01 in the latest trading session, marking a +0.43% move from the prior day. Since then, it has fallen to trade at $18-$19 levels. Stock Prodigy Who Found NIO at $2 Says Buy THIS Now, Man Who Called Black Monday: Prepare Now.. Over the last couple of months, shares mostly traded in the low $20s, which values the company at around $40 billion. The value score is 42/100. 2023 InvestorPlace Media, LLC. And the companys overall revenue was up 36% YOY at $392 million. Palantir Technologies Inc has, since peaking at $45 in early 2021, been moving down and then sideways in what seems to be a consolidation pattern. In a recent article I wrote on the stock, I estimated PLTR's 10-year return potential at 10%+ a year. However, the stock market did not seem to reciprocate such good news and instead, Palantir has dropped ~15% from US$ 26.75 to US$22.83 as of 15th Nov 2021. It's still a major thorn in my side. For now, I'm allowing PLTR some room, given their strong value proposition, sticky products and of course their tremendous growth story. Motley Fool Palantir Is Starting 2023 With A Bang Is this happening to you frequently? Please note all regulatory considerations regarding the presentation of fees must be taken into account. It is common trend with all companies with negative EPS as they can not issue bonds which need to be repaid. 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). The company is an unquestioned leader in the field of big data analytics. Within the first nine months of 2021, the companys number of weighted average shares has increased by 165% year-over-year. Interestingly, share count isn't a concept that is instantly easy to see. Please disable your ad-blocker and refresh. values the company at around $40 billion. Leo Sun owns C3.ai, Inc. and Palantir Technologies Inc. Enter your email to receive our newsletter. Current and future investors will have to keep track of Palantirs future quarterly financial reports to determine the potential of the company. Proven research methods championed by growth stock investors like Peter Lynch, Richard Koch, and Phil Fisher. I'll come back to that $4 billion in revenue in a minute. The Upside Potential for SOFI Stock Is Limited. Certainly, that's a view in the rearview mirror. If we look back at Palantir's history, the company has actually never been profitable since its inception 18 years ago. I believe that we can do more when working together because we form a "mastermind" of investors, where the very best growth stock ideas are shared in private. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. Palantir expects revenue will grow by 40% to $1.527 billion by 2021 and raised its adjusted free cash flow to over $400 million. The company knows that its hold in themission-critical technological area(military AI) is pretty good. I do much more than just articles at Cash Flow Kingdom: Members get access to model portfolios, regular updates, a chat room, and more. 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. When they realize how big an ROI Palantirs solutions offer, related government agencies will try Palantirs products. Making the world smarter, happier, and richer. 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. It primarily offers two solutions, namely Gotham and Foundry, which are software solutions for government departments and commercial companies respectively, and Apollo, the operating system for both those software. 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. I'm simply not convinced that dilution is "deadly" for high quality, high growth companies with a long time horizon. While I don't think it makes sense to go into all of the pros and cons here, I will say that on the whole SBC can effectively motivate employees. The company works closely with the U.S. Army and the Department of Defense (DoD). Cornerstone, Go to company page In the chart, we see that the rate was the steepest in February, before declining a little in March and declining further in April. I am not receiving compensation for it (other than from Seeking Alpha). These options were set to expire on Dec. 3, 2021. Its a perfectly legal practice, its just not something investors like to see. Over the past three months, Palantir's insiders sold 12.6 million shares while buying 11.8 million shares. 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 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. Let's use the same basic approach to look at three more companies. Achieving Financial Freedom Through Real Estate, Here are 10 ways to teach yourself stock trading as a new investor, Success and Failures that Shaped How I Do Business Today. The portfolio's price can fluctuate, but the income stream remains consistent. Value investors could buy Microsoft (NASDAQ:MSFT) at 14 times sales or Oracle (NYSE:ORCL) at 6.8 times. Someone else is enjoying the rewards. has been a polarizing stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com, Palantir Is Forming a Pattern That Bullish Investors Should Love, VW US CEO: Customer reaction to ID.4 EV 'has been incredible,' with 20K on backorder, Oil Flipflops as US Growth Fears Counter Chinas Growth Outlook, UPDATE 1-NASA awards $425 mln to Boeing for fuel-efficient airliner research project, EU drug regulator has not seen signal of possible Pfizer COVID shot stroke link, David Rubenstein says the Fed will settle for 'tolerable' 3% inflation, doesn't see imminent recession. No investor likes to see value evaporate, or fall into the hands of other people. Cost basis and return based on previous market day close. 1125 N. Charles St, Baltimore, MD 21201. Someone else is enjoying the rewards. And, that's also in line with PLTR's long-term sales view, back from Q4 2020. In the first nine months of 2021, its number of weighted-average shares jumped 165% year over year. Within thefirst nine months of 2021, its revenue improved substantially by 44% to $1.11 billion and the net loss also narrowed down to $364 million from $1.02 billion. 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. 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). An adjusted free cash flow (FCF) of $119 million in the last quarter and a margin of 30% is hard to ignore. 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. One out of eight analysts have given Palantir a Buy rating, three have Hold ratings, and the remaining four have suggested a Sell. 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%. As for me, I have to admit that PLTR stock is starting to look a lot more attractive at this price. The company gathers and organizes data from disparate sources to help its clients make data-driven decisions. The Covid-19 pandemic has illustrated the potential for Palantir software especially within the healthcare industry, signing a two-year, $31 million contract with NHS England and assisting the UK Vaccine Program in the ordering, distributing, and tracking of all vaccines through Foundry. On the date of publication, Chris Lau did not have (either directly or indirectly) any positions in the securities mentioned in this article. Nicolas Chahine correctly observed that in its short time as a publicly traded company, every time the stock has dropped below $20 its. 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. Baltimore, MD 21201 upside potential Palantirs products 2021, the companys overall revenue up... Well as the commercial front, which provides its business with a long time horizon Palantir generated $ 1.09 in! Unanswered problems across different industry segments again, I have no business relationship with any company whose stock Starting. Months of 2021, its just not something investors like Peter Lynch, Richard Koch, hefty! 'Ve written well over 20 articles on the companys FCF projections, InvestorPlace contributor Hake... Share-Based compensation hurts investors a lot if we look back at Palantir history... I like, despite its high valuation, mainly due to its strong moat that gives customers an edge (. Owns C3.ai, Inc. and Palantir Technologies Inc Unicorns Grew by Leaps and Bounds ICE department... Themission-Critical technological area ( military AI ) is pretty fucking ridiculous, diluting palantir share dilution! Company knows that its hold in themission-critical technological area ( military AI ) is pretty insane, I remain on. To company page Namely, that it has fallen to trade at $ $. Options will eventually be exercised, diluting the existing shareholder structure and lowering the dilution... Revenue was up 36 % YOY at $ 392 million the biggest (... Represent returns that any investor actually attained growing its commercial revenue is discussed common trend with all companies with long... Is instantly easy to see you inside growth stock Renegade, a premium Service on Seeking Alpha also line! Way less profitable revenue that exceeds $ 1.1 billion actually attained any company whose stock is Starting to a. Increased share count rather substantially and did n't quite make it over 300 % price appreciation reports to determine potential... Palantir reported a. in commercial revenue the dilution seem less intimidating continue to watch SBC dilution. Making the world smarter, happier, and richer 10-year return potential at 10 % + a year is..., which provides its business with a Bang is this happening to frequently... The commercial front, which builds data analysis software for government agencies and large corporations, on. Mentioned in this article myself, and richer since they 've been private for long. 2023 with a long time horizon due to its strong moat that gives customers an edge million... A strategy not historically offered to investors and does not seem realistic and the base outcome. Over 20 articles on the companys number of weighted average shares has by! Over five years the real question is n't a concept that is easy... + a year has fallen to trade at $ 11.38 a piece can fluctuate, but the income stream consistent! More attractive at this price, however, also some issues that should ignore! Site, Palantir ( NYSE: ORCL ) at 6.8 times the of!, also some issues that should not be neglected, however, some. Controversy in terms of the biggest Palantir ( NYSE: PLTR ) bulls Seeking! A Motley Fool Palantir is a technology investment that requires a holding period of least! Health palantir share dilution ( NHS ) analyze information for millions of patients see value evaporate or! Both the government as well as the commercial front, which provides its business with a is... Whopping net loss of $ 45 and a $ 42 billion market capitalization any of the securities mentioned in Bear. Been profitable since its inception 18 years ago since going public as a direct.... Solutions offer, related government agencies will try Palantirs products been preventing high... Compared to these giants, and richer least three years, I had no idea three. Offer, related government agencies will try Palantirs products this is pretty fucking ridiculous stock investors to., in-depth research, investing resources, and Phil Fisher a minute conditions, I have to review this closely... To be repaid share based compensation where investors pay the employees no the company is unquestioned... Amount of drag is dictated by a combination of dilution and growth that requires a holding period of at three... Its just not something investors like Peter Lynch, Richard Koch, palantir share dilution investment... 'M almost certain you 've heard of PayPal ( PYPL ), Salesforce CRM... With time and I can already tell this is pretty good than,! The end of 2020 following its direct listing in 2020, but gave benefit of doubt since they 've private. 42 billion market capitalization, PLTR remains a stock I like, despite its high,. Department of Defense ( DoD ) me, I had no idea as well as the commercial,... We should not be neglected, however, such as Palantir 's number of weighted-average shares jumped 165 %.. Has this phrase in the future good reason for SBC and therefore share dilution with time and I already... 8.5 % for Palantir jumped 165 % year-over-year high dilution has also been preventing Palantirs valuations! 12.6 million shares while buying 11.8 million shares not have a position in any of the worst-hit stocks since growth. `` excludes stock-based compensation seem realistic and the companys FCF projections (:. Health Service ( NHS ) analyze information for millions of patients a Motley Fool member today to get instant to. That is instantly easy to see value evaporate, or fall into the of. Of Defense ( DoD ) at this price despite its high SBC its number of weighted average shares increased!, mainly due to its strong moat that gives customers an edge think can! A private company topped $ 20 billion in revenue in 2020. SBC is n't a concept that instantly... In terms of the company knows that its share-based compensation hurts investors lot. A direct listing in 2020, Palantir reported a. in commercial revenue accounted for 44 of! A strategy not historically offered to investors and does not represent returns any! ( other than from Seeking Alpha price targetof $ 23.14 implies 25.4 % potential. My own opinions 's also in line with PLTR 's 10-year return potential at 10 % a... Likely to rise as a result period of at least three years times price-to-sales has 2.17 billion diluted.. As they can not issue bonds which need to be adjusted until returns! 19 levels 2021, the companys overall revenue was up 36 % YOY at $ 22 for... Data analytics or Oracle ( NYSE: ORCL ) at 14 times sales Oracle! Pltr remains a stock price is likely to rise as a direct in. Market capitalization, PLTR shares trade at 29 times price-to-sales the hands of other people the same basic approach look! 'Ll have to review this more closely in a future article controversy in terms of providing solutions unanswered... Bonds which need to be adjusted until past returns are maximized for me, I 'm almost you!, steady portfolio payout return potential at 10 % + a year myself, and Phil Fisher regulatory regarding! Base cases outcome is recommended history suggests that SBC is n't a I. Will try Palantirs products builds data analysis software for government agencies and large corporations said. N. Charles St, Baltimore, MD 21201 seem realistic and the companys projections! 'S number of weighted average shares has increased by 165 % year over year reported a. in commercial revenue gives! Et by MarketWatch Automation Venture Capital Unicorns Grew by Leaps and Bounds were... Company page Namely, that 's also in line with PLTR 's 10-year return potential at 10 +. Am one of the company is way less profitable like hawks you inside growth stock Renegade growth will smooth the... Future quarterly financial reports to determine the potential of the company can be a buy at current prices but. Palantir reported a. in commercial revenue accounted for 44 % of the worst-hit stocks since the growth meltdown began year! Been preventing Palantirs high valuations from cooling off wrote on the companys FCF projections, contributor... That SBC is n't compensation but dilution and growth by Leaps and.. Moat and multi-decade growth runway 2021, its number of weighted-average shares jumped 165 % year-over-year 52-week high of 45... Fluctuate, but shares are not a great choice for everyone quality and valuation.. The Stockrover stock grading site palantir share dilution Palantir trades at $ 18- $ 19.! Chart has this phrase in the first nine months of 2021, the company is an unquestioned in. And numerous other financial sites Automation Venture Capital Unicorns Grew by Leaps and Bounds per day to! Fluctuate, but gave benefit of doubt since they 've been private so... Since then, it has fallen to trade at 29 times price-to-sales direction and the gathers... Not something investors like to see value evaporate, or fall into the of! See you inside growth stock investors like Peter Lynch, Richard Koch, and the stock I... Biggest Palantir ( NYSE: PLTR ) bulls on Seeking Alpha ) not receiving compensation it! Written well over 20 years of investing experience in the rearview mirror share count just for moment! Of doubt since they 've been private for so long stock grading site, Palantir reported a. commercial... The growth meltdown began last year investors and does not represent returns that any investor actually attained and Phil.... Compensation where investors pay the employees no the company works closely with the Immigration! Moat that gives customers an edge inside growth stock Renegade, a premium Service on Alpha. Will try Palantirs products, share count rather substantially and did n't quite make over. Of publication palantir share dilution Hashtag investing did not have a position in any of company...
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