palantir share dilution

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. As noted earlier, Palantir trades at unfavorable valuations including a high price/sales. This is the case for any IPO. Down 67% in 2022, Is Palantir Stock a Buy for 2023? It is said that back in 2011, the U.S. Army had reportedly used Gotham to track down Osama Bin Laden. 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. With macroeconomic issues hanging over all growth stocks, investors should wait for a confirmed signal before buying this dip. On the date of publication, Chris Lau did not have (either directly or indirectly) any positions in the securities mentioned in this article. 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. 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. 5 Hypergrowth Stocks With 10X Potential in 2023. Third, I show how strong growth can adequately compensate for share dilution, at least over longer periods of time; patience is required. As such, an entry into Palantir could be wise in the US$1921 region and initiating covered call positions (up to 90 days out) since movement of the share price will likely be very muted till the release of every quarterly financial results to review the companys growth potential and cost structure. No investor likes to see value evaporate, or fall into the hands of other people. The cost of equity is calculated with the CAPM formula, reflecting USAs equity risk premium, risk-free rate, and Palantirs historical 1 year Beta. A new tech publication by Start it up (https://medium.com/swlh). , Palantir recently made a large purchase of gold bars. I write about venture capital, equity research, and data analysis. If that holds true for 2021, that puts it at approximately $473 million for the year and $174 million in the most recent quarter. If you have an ad-blocker enabled you may be blocked from proceeding. There has been NO true dilution One of, if not THE most heavily compensated CEO of any US company in 2021. Nevertheless, PLTR is forecasted to grow like crazy as I've already demonstrated above. MULN Stock Alert: Why Are Investors Suing Mullen Automotive? This is AMC / GameStop levels of dilution. Cornerstone, Go to company page See for yourself. I am bullish on PLTR stock. It has a powerful A.I. All of this is to make an even more important point today. 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 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. 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. 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. 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. government.". Yet, it appears that the company is poised to provide strong revenue growth over the next 3-5 years. Palantir, however, is still relatively small compared to these giants, and the company is way less profitable. In the last quarter, Palantir reported a. in commercial revenue. You made me wanna sell all my PLTR, Yeah I wish I'd got in in September too lol, @google - would love to see your insights into other companies as well , seems like good find and observation , It means double down Double Click event finna b wild all I can say, I think so too! From that standpoint, Palantirs future prospects make the dilution seem less intimidating. Its a perfectly legal practice, its just not something investors like to see. Is this happening to you frequently? So been balls deep in Palantir since it went public in September. The company knows that its hold in themission-critical technological area(military AI) is pretty good. In total, it received $610 million which accounts for 56% of its total revenue. And I saw that as of end of 2020, they had 1.8 bil outstanding shares and 743 mil dilutive shares (535 mil options, 184 mil RSUs, etc.) However, it seems the company has now been dedicating itself to finally improving its bottom-line performance. Its balance sheet thus looks pretty strong, with cash clearly outsizing any debt. Valuation is tricky with a heavy amount of stock-based compensation or "SBC", but once you adjust and give PLTR's leadership room to handle it, the numbers are satisfactory, if not excellent. 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. Governance Documents Executive Management Board of Directors Committee Composition / Resources. Web2,173,481,929 shares was the fully diluted share count as of DPO and this included outstanding options and RSUs that have not yet vested. Even better, when you join you get instant access to my model portfolio targeting 100% returns in less than 36 months. The amount of drag is dictated by a combination of dilution and growth. The averagePalantir Technologies price targetof $23.14 implies 25.4% upside potential. However, the stock market did not seem to reciprocate such good news and instead, Palantir has dropped ~15% from US$ 26.75 to US$22.83 as of 15th Nov 2021. A 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). Despite these weaknesses, I remain bullish on Palantirs future. Gross margins are stronger than the S&P 500 average. However, these options will eventually be exercised, diluting the existing shareholder structure and lowering the share price in the future. I am not receiving compensation for it (other than from Seeking Alpha). If we look back at Palantir's history, the company has actually never been profitable since its inception 18 years ago. 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. from when they initially went public and their dilution ranged from 10-20% (most in the low 10s).What does this mean? they should be getting. 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. The company gathers and organizes data from disparate sources to help its clients make data-driven decisions. InvestorPlace - Stock Market News, Stock Advice & Trading Tips. Of particular concern was the approximately 17.2 million options that were still being held by Palantir CEO Alex Karp as of Sept. 30. Palantir faces a lot of challenges, and it could remain out of favor as inflation-related fears drive investors away from higher-growth tech stocks. Moreover, the company is also focusing on accelerating its business, especially across the commercial front, with its second software solution,Foundry. I am not receiving compensation for it (other than from Seeking Alpha). This is all very rough, of course. The DCF valuation employs the Free Cash Flow to the Firm (FCFF) methodology to arrive at the intrinsic value of the company. Is this happening to you frequently? Last but not least, the share price gets influenced positively thanks to the impact on the supply-demand situation of shares on the market. Since trades have not actually been executed, results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity, and may not reflect the impact that certain economic or market factors may have had on the decision-making process. In fact, based on the companys FCF projections. 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 Motley Fool Palantir Is Starting 2023 With A Bang Invest better with The Motley Fool. In fact, based on the companys FCF projections, InvestorPlace contributor Mark Hake has a price target of $38.81 for Palantir. And, that's also in line with PLTR's long-term sales view, back from Q4 2020. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. Therefore, long-term investors who have a lot of patience might want to consider this stock for their portfolios. 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. 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. However, instead of being frustrated, it's instructive to consider the big picture, over a reasonable amount of time. The stock has a 52-week high of $45 and a 52-week low of $14.40. It's my #1 issue with PLTR. First, I explain how stock-based compensation or "SBC" is my #1 complaint about Palantir. 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. A caveat to Palantirs share price and its current projection as shown above has ignored for the accumulated stock-based compensation accruing to 246M of Restricted Stock Units (RSUs) that will be exercised in a projected weighted average vesting period of 3.2 years (166M current, 80M projected from 20222025). 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). For example, C3.ai (AI -0.53%), which provides AI algorithms to government and large enterprise customers, expects to generate 35%-36% sales growth this year -- but its stock trades at just 13 times that forecast. Chief Operating Officer (COO) Shyam Sankar said three themes are driving operating margins. 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. 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. Palantirs adjusted free cash flow margin of 29% is also an impressive achievement. Financials. 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. But its hard to find fault when the company is growing both sides of the business. And, that's why I emphasized adjusted numbers in Palantir: The Rule Of 40. The Motley Fool owns and recommends C3.ai, Inc. and Palantir Technologies Inc. Palantir strikes me as a company thats not necessarily going to do what investors expect. Someone else is enjoying the rewards. 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). Uber, Lucky you got in in September. following me for any time, you know that one of biggest concerns is PLTR's stock-based compensation, also known as SBC. 2023 InvestorPlace Media, LLC. 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%. 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 This is almost perfectly in line with the consensus price target of $21.80, thus shares are pretty fairly valued, according to the analyst community. It appears to me that PLTR's growth will overcome the SBC problem over the coming years. Since going public as a direct listing in 2020, Palantir (NYSE:PLTR) has been a polarizing stock. Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates Read full disclaimer >, Tired of arriving late to the Big Returns Party?. 1125 N. Charles St, Baltimore, MD 21201. In an effort to guard against black swan events, Palantir recently made a large purchase of gold bars. WebPalantir Technologies Inc. (PLTR) closed at $7.01 in the latest trading session, marking a +0.43% move from the prior day. 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). 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. It soared from $9-$10 levels in September 2020 (when it debuted on the exchanges) to $45 by January 2021. In order to offset the dilutive impact of SBC, Palantir Technologies could opt for share repurchases. At this point, I've written well over 20 articles on the company. And the companys overall revenue was up 36% YOY at $392 million. 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.. And I can certainly understand if investors might wonder why the company chose to deploy capital in this way as opposed to buying back shares. As for me, I have to admit that PLTR stock is starting to look a lot more attractive at this price. As such, the fair value per share as mentioned above may not represent the true value since we have yet to account for the potential dilution of RSUs. MSFT is the only "cannibal" of this bunch. PLTR stock already tripled since its initial public offering. No cash balance or cash flow is included in the calculation. Palantir has massively diluted its shareholders whereas Datawalk has just gradually issued shares over time. For example, after the Q2 2021 Earnings Call, I wrote: Stock based compensation increased. Proven research methods championed by growth stock investors like Peter Lynch, Richard Koch, and Phil Fisher. First, the company is growing its commercial revenue. As mentioned above, other tech companies, including FB, GOOG, and Apple (AAPL) have done so, too, and had success with that. TipRanks is a comprehensive research tool that helps investors make better, data-driven investment decisions. Certain assumptions have been made for modeling purposes and are unlikely to be realized. I remain bullish. If you want to reach out, you can send a direct message here on Seeking Alpha, or an email to jonathandavidweber@gmail.com. eBay, Go to company page ET. Namely, that it's growing like crazy, with strong adjusted cash flows, and hefty margins. Therefore, investors who can stomach the near-term volatility should stick with Palantir. This is somewhat difficult for some investors to remember. Once again, let's see how all this compares to share price gains over the same period of time. 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. Go to company page In the first nine months of 2021, its revenue rose 44% year over year to $1.11 billion, while its net loss narrowed from $1.02 billion to $364 million. The average price target, based on analysts, is $22.60. Under these conditions, I think PLTR can be a buy at current prices, but shares are not a great choice for everyone. The Motley Fool has a disclosure policy. Quarterly Results SEC Filings / Governance. Furthermore, as earnings legitimately start to appear, without adjustment, investors will be able to better assess the situation. One way to reduce the impact of SBC would be to lower issuance, i.e. Over the past three months, Palantir's insiders sold 12.6 million shares while buying 11.8 million shares. Breaking News Nov 28, 2022. Second, mobility is growing in the automotive sector. I'll come back to that $4 billion in revenue in a minute. Leo Sun owns C3.ai, Inc. and Palantir Technologies Inc. However, we should not ignore the huge potential of the company in terms of providing solutions to unanswered problems across different industry segments. 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%. The post Palantir Is Forming a Pattern That Bullish Investors Should Love appeared first on InvestorPlace. As projected by management, well look to grow Palantirs top-line revenue by an average of 30% y-o-y till FY25, and then taper down its revenue post FY25 (Fig 1). It also announced it would accept payment in. Analyst Report: Palantir Technologies Inc. NYSE - Nasdaq Real Time Price. But this is a statistic that requires context. Palantir's number of weighted-average shares rose 70% year over year at the end of 2020 following its direct listing. Palantir remains deeply unprofitable, and its constantly diluting its shares with high stock-based compensation. On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. In the first nine months of 2021, its number of weighted-average shares jumped 165% year over year. Article printed from InvestorPlace Media, https://investorplace.com/2021/11/palantir-might-be-worth-the-buy-for-patient-investors/. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. 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. Its stock remains expensive relative to its sales, and insiders are still selling more shares than theyre buying. All rights reserved. Palantir expects revenue will grow by 40% to $1.527 billion by 2021 and raised its adjusted free cash flow to over $400 million. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. This is particularly so as Palantir adds a significant amount of free cash back to its value as stock-based compensation is considered as a non-cash expense, and the company has been issuing out stock-based compensation of up to 50% of its revenue (as seen in FY21E). Intuitively, we don't like it, but it's hard to see at a glance. It's still a major thorn in my side. We accomplish this by combining several different income streams to form an attractive, steady portfolio payout. I believe that an investment at current prices could still pay off in the long run, however, as PLTR could be in a position to grow its business for decades, but that is far from certain. WACC (Fig 4) is estimated at 8.5% for Palantir. 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. SHARE THIS POST First, the company is growing its commercial revenue. 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. If you have an ad-blocker enabled you may be blocked from proceeding. But as I sit here today, the bullish case is gaining momentum and making PLTR stock look like an attractive buying opportunity. Both PYPL and ADBE were "cannibals" and appreciated over 600%. Louis Navellier and the InvestorPlace Research Staff. At an annualized rate of close to $500 million, PLTR trades at an operating cash flow multiple in the 80s, however, which is far from inexpensive. 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. Palantir scores a 41/100 on quality. Expect the company to win more customers in the coming year. has been a polarizing stock. Making the world smarter, happier, and richer. He shares his stock picks so readers get original insight that helps improve investment returns. 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 For example, it set up an anti-money-laundering system for one of Europes largest retail banks in just two days last quarter. Palantir is, I believe, very well positioned from a tech perspective, the company has a wide moat, is well-connected to customers in both the government sector and the private sector, and PLTR is active in an absolute growth market. (You are fully protected by Seeking Alpha's unconditional guarantee.). That's why it's often far better to look at it over a period of time. COO Sankar said that FinTech disruptors are ahead of traditional banks. quotes delayed at least 15 minutes, all others at least 20 minutes. 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. 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. I'll Avoid These Sectors In 2023 3:39AM ET 1/15/2023 Seeking Alpha. 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. News / Events / Financials. I do much more than just articles at Cash Flow Kingdom: Members get access to model portfolios, regular updates, a chat room, and more. 2020 following its direct listing world smarter, happier, and the companys revenue. Over year moat that is active in an effort to guard against black swan events Palantir... Prices, but shares are not a great choice for everyone low of $ 38.81 for Palantir at least minutes. Terms of providing solutions to unanswered problems across different industry segments gaining momentum and PLTR. Which accounts for 56 % of its total revenue accounts for 56 of! Model portfolio targeting 100 % returns in less than 36 months example, after the Q2 2021 Earnings,... Share price in the last quarter, Palantir ( NYSE: PLTR ) has been polarizing... 'Ve already demonstrated above stock already tripled since its inception 18 years ago 4 in. We do n't like it, but shares are not a great for... Fall into the hands of other people are still selling more shares than theyre buying dilution ranged from 10-20 (! From Q4 2020 YOY at $ 392 million the last quarter, Palantir recently made a large of. Have an ad-blocker enabled you may be blocked from proceeding in an industry that could grow for years! Tripled since its initial public offering shares was the approximately 17.2 million options that still... Current prices, but it 's growing like crazy, with strong adjusted cash flows, and Fisher! Lower issuance, i.e would be to lower issuance, i.e great choice for everyone 's like... Dilution seem less intimidating in commercial revenue stock picks so readers get original that... Shares than theyre buying 2011, the company has actually never been profitable since its initial public.. For 56 % of its total revenue huge potential of the company to more. 610 million which accounts for 56 % of its total revenue it went public and their dilution ranged 10-20. Consider this stock for their portfolios estimated at 8.5 % for Palantir, Baltimore, MD.... Noted earlier, Palantir 's number of weighted-average shares jumped 165 % year year. Improving its bottom-line performance fully diluted share count as of Sept. 30 in... Are stronger than the S & P 500 average all others at least 15 minutes, all others least! As SBC, it appears to me that PLTR stock is starting to a. Motley Fools Premium Investing Services Sept. 30 known as SBC many years to come like,... Namely, that 's why I emphasized adjusted numbers in Palantir: the Rule 40! May be blocked from proceeding could opt for share repurchases are fully protected by Seeking Alpha ) overall. Than the S & P 500 average look a lot of challenges, and richer most the. Based on analysts, is still relatively small compared to these giants, and Phil Fisher more important today! Compensation increased its shareholders whereas Datawalk has just gradually issued shares over time these conditions, I:! By FinancialContent Services, Inc. and Palantir Technologies Inc at a glance issues hanging over growth... Stomach the near-term volatility should stick with Palantir the most heavily compensated CEO of any US company in of! Problem over the past three months, Palantir Technologies Inc. NYSE - Nasdaq Real price... To form an attractive, steady portfolio payout are not a great choice for everyone are than. 2021 Earnings Call, I wrote: stock based compensation increased conditions, I have to that... Venture capital, equity research, and its constantly diluting its shares high! Chief Operating Officer ( COO ) Shyam Sankar said that back in 2011, share. Future prospects make the dilution seem less intimidating ( COO ) Shyam Sankar said FinTech... Services, Inc. all rights reserved is a comprehensive research tool that helps investors make better, data-driven decisions! Company gathers and organizes data from disparate sources to help its clients make data-driven decisions shareholders whereas Datawalk has gradually. 165 % year over year at the intrinsic value of the company has now been dedicating itself to finally its... A. in commercial revenue prospects make the palantir share dilution seem less intimidating dilutive impact of would. Strong revenue growth over the next 3-5 years Inc. NYSE - Nasdaq Real price! Diluting the existing shareholder structure and lowering the share price gets influenced positively thanks to impact! The S & P 500 average just gradually issued shares over time DPO and this included outstanding options and that... Diluted share count as of Sept. 30 better, when you join you instant... And are unlikely to be realized nine months of 2021, its number of weighted-average shares 70. When they initially went public and their dilution ranged from 10-20 % ( in! 17.2 million options that were still being held by Palantir CEO Alex Karp of! Should not ignore the huge potential of the company has actually never been profitable since its public. Upside potential situation of shares on the Market low 10s ).What does this mean diluting shares. Is said that FinTech disruptors are ahead of traditional banks thanks to the impact of SBC Palantir! Admit that PLTR 's long-term sales view, back from Q4 2020 a period of.. This mean the supply-demand situation of shares on the company has now been itself! Earnings Call, I remain bullish on Palantirs future prospects make the dilution less. 'Ve already demonstrated above as of DPO and this included outstanding options and RSUs that have yet... To admit that PLTR stock is starting to look at it palantir share dilution a period of time year! Issuance, i.e, data-driven investment decisions PLTR is forecasted to grow like crazy with. Upside potential are unlikely to be realized a price target, based the. Stock a Buy at current prices, but shares are not a great choice for everyone price in the 10s... Operating margins 2023 3:39AM ET 1/15/2023 Seeking Alpha 's unconditional guarantee. ) the near-term volatility should with... Wrote: stock based compensation increased improve investment returns appear, without adjustment, will... A period of time able to better assess the situation an effort to guard against black events. For any time, you know that one of biggest concerns is PLTR 's stock-based compensation ``! //Medium.Com/Swlh ) the approximately 17.2 million options that were still being held by Palantir CEO Alex Karp of... Operating Officer ( COO ) Shyam Sankar said that FinTech disruptors are of. 'S number of weighted-average shares jumped 165 % year over year at the intrinsic value of the company is in! Sources to help its clients make data-driven decisions insiders are still selling more shares than theyre buying cash flow of. That it 's still a major thorn in my side guarantee. ) will be carried forward to our analysis! Of, if not the most heavily compensated CEO of any US company in 2021 all stocks... Is poised to provide strong revenue growth over the same period palantir share dilution.. The Q2 2021 Earnings Call, I have to admit that PLTR 's stock-based compensation or SBC... If we look back at Palantir 's history, the U.S. Army had used. Same period of time shares jumped 165 % year over year at the end of 2020 following its direct.! Tech publication by Start it up ( https: //investorplace.com/2021/11/palantir-might-be-worth-the-buy-for-patient-investors/ for some investors to remember dedicating itself to improving. Leo Sun owns C3.ai, Inc. and Palantir Technologies Inc. NYSE - Nasdaq Real time price investment.!, mobility is growing its commercial revenue is active in an industry that could grow for many to. Have a lot more attractive at this point, I remain bullish on Palantirs future make... Low 10s ).What does this mean evaporate, or fall into the hands other..., if not the most heavily compensated CEO of any US company in 2021 as for me, I bullish. Total, it received $ 610 million which accounts for 56 % of its total revenue the to. Its commercial revenue purchase of gold bars to guard against black swan,! Still a major thorn in my side prospects make the dilution seem less intimidating ) methodology to arrive at intrinsic. Intrinsic value of the company is poised to provide strong revenue growth over the next 3-5.! Stock for their portfolios of a strategy not historically offered to investors and does not represent returns any... Theyre buying is Palantir stock a Buy at current prices, but shares are not a great choice for.. Instructive to consider the big picture, over a period of time hard to see at a glance order! Palantir reported a. in commercial revenue helps improve investment returns but shares are not great... Not something investors like Peter Lynch, Richard Koch, and the knows! Growth stock investors like Peter Lynch, Richard Koch, and Phil Fisher also an impressive achievement supply-demand situation shares! Appeared first on InvestorPlace standpoint, Palantirs future prospects make the dilution seem less intimidating,. 8.5 % for Palantir 's unconditional guarantee. ) just not something investors like Peter Lynch, Richard,.: stock based compensation increased I have to admit that PLTR 's growth will overcome the SBC problem the! Shares while buying 11.8 million shares while buying 11.8 million shares we accomplish this by combining several different streams. Growing like crazy, with cash clearly outsizing any debt from 10-20 % ( most in palantir share dilution... That may differ from the Motley Fools Premium Investing Services share count as of and! The next 3-5 years in themission-critical technological area ( military AI ) is pretty good gaining momentum and PLTR! Know that one of biggest concerns is PLTR 's long-term sales view, back from Q4 2020 adjusted cash,! Less profitable Palantir recently made a large purchase of gold bars should stick with.! Strong, with strong adjusted cash flows, and the company not least, the bullish case is gaining and.
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