Furthermore, as earnings legitimately start to appear, without adjustment, investors will be able to better assess the situation. 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%. 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 not receiving compensation for it (other than from Seeking Alpha). The company works closely with the U.S. Army and the Department of Defense (DoD). I believe this is why PLTR leadership strongly emphasizes non-GAAP earnings. Third, there's a good reason for SBC and therefore share dilution. I remain bullish. 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. I think it is an attractive long-term buy because its innovative technology has immense growth potential in the years to come. At an annualized $1.57 billion and a $45.4 billion market capitalization, PLTR shares trade at 29 times price-to-sales. Commercial revenue accounted for 44% of the total in Q3. The primary goal of the Cash Flow Kingdom Income Portfolio is to produce an overall yield in the 7% - 10% range. I'll have to review this more closely in a future article. In turn, banks will respond by strengthening their compliance programs. Bulls will argue that the company is offering public and private sector clients a solution that will be invaluable in coming years. This is AMC / GameStop levels of dilution. Palantir Technologies Inc. stock rises Monday, outperforms market Jan. 9, 2023 at 5:18 p.m. Palantir doesn't fit that profile yet, and its ongoing dilution and automated stock sales could prevent its inside buyers from outnumbering the sellers. Palantir Technologies (PLTR) has an average rating of hold and price targets ranging from $4.50 to $15, according to analysts polled by Capital IQ. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. The company gathers and organizes data from disparate sources to help its clients make data-driven decisions. 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). Still, that valuation comparison is not fair. 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. Palantirs government business revenue grew by 77%. I have also generated over $30 million in online sales through my own business activities, along with several million dollar producing partners and affiliates. Of particular concern was the approximately. Among them is Palantir's pretty high valuation, at around 150x 2021's expected net profits. The potential I have generated over well over 100% gains many times following a proven growth stock method championed by investors like Peter Lynch, Richard Koch, and Phil Fisher. As costs fall and revenues rise, its quality score will improve. I believe that an investment at current prices could still pay off in the long run, however, as PLTR could be in a position to grow its business for decades, but that is far from certain. The information is not intended to be used as the basis of any investment decision by a person or entity. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. I am bullish on PLTR stock. However, the stock market did not seem to reciprocate such good news and instead, Palantir has dropped ~15% from US$ 26.75 to US$22.83 as of 15th Nov 2021. We accomplish this by combining several different income streams to form an attractive, steady portfolio payout. 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. Of particular concern was the approximately 17.2 million options that were still being held by Palantir CEO Alex Karp as of Sept. 30. I'm not sure this is for you but I've just launched a brand new premium service called Growth Stock Renegade. Palantir SBC is costly and is here to stay, therefore must be incorporated into a financial valuation. The same was true for many other companies in a similar position, e.g. If you have an ad-blocker enabled you may be blocked from proceeding. News / Events / Financials. Lastly, the total addressable market of the company is $120 billion, and it is expected that the global big data market could grow at aCAGR of 22.4%through 2030. Palantir is a high-growth company that operates worldwide in both commercial and government segments. Enter your email to receive our newsletter. MULN Stock Alert: Why Are Investors Suing Mullen Automotive? 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. First, the company is growing its commercial revenue. There has been NO true dilution At this point, I've written well over 20 articles on the company. Within the first nine months of 2021, the companys number of weighted average shares has increased by 165% year-over-year. quotes delayed at least 15 minutes, all others at least 20 minutes. Despite the long tail in revenue in the next few years increasing earnings, the dilution will limit the stocks upside. Buyer Beware! Since then, it has fallen to trade at $18-$19 levels. But as I sit here today, the bullish case is gaining momentum and making PLTR stock look like an attractive buying opportunity. In this report, we look to uncover Palantirs financial growth story and assume a 30% y-o-y growth to determine if the projections stay feasible, then Palantir has indeed been mispriced and is currently undervalued. Dear MULN Stock Fans, Brace Yourself for a Reverse Stock Split. 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. Someone else is enjoying the rewards. This is pretty insane, I had no idea. The Upside Potential for SOFI Stock Is Limited. I have no business relationship with any company whose stock is mentioned in this article. 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. Another argument made against Palantir is that its share-based compensation hurts investors a lot. And, that's why I emphasized adjusted numbers in Palantir: The Rule Of 40. An adjusted free cash flow (FCF) of $119 million in the last quarter and a margin of 30% is hard to ignore. The mature software stocks trade at a bigger market capitalization and have slower growth. From that standpoint, Palantirs future prospects make the dilution seem less intimidating. And, as long as growth is far greater than dilution, everything should work out fine. Disclosure: I/we have a beneficial long position in the shares of PLTR, FB, GOOG either through stock ownership, options, or other derivatives. 1125 N. Charles St, Baltimore, MD 21201. Palantir, which builds data analysis software for government agencies and large corporations, said on Monday that it has 2.17 billion diluted shares. Investors are not benefiting immediately from Palantirs growth as earnings are diluted. The growth potential in this sector is also much higher, and if the company continues accelerating this line of business, then its share price can quickly change direction. The forecasted annual earnings growth over the next year is 67% (which 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). If history repeats itself, then PLTR stock could set up as a profitable trade. And the companys overall revenue was up 36% YOY at $392 million. *Average returns of all recommendations since inception. General assumptions include: XYZ firm would have been able to purchase the securities recommended by the model and the markets were sufficiently liquid to permit all trading. Palantir has customers in the mobility space that includes original equipment manufacturers (OEM), their suppliers, EV charging companies, and insurers. Palantir is a technology investment that requires a holding period of at least three years. 7 Top-Rated Energy Stocks to Fill Up Your Portfolio. Palantir Might Be Worth the Buy for Patient Investors. Backtested performance is developed with the benefit of hindsight and has inherent limitations. For now, investors should assume the stock is stuck in a $22 $27 trading range because earnings per share are not expanding. Subscribe right now because you get 14 days for FREE. The cost of equity is calculated with the CAPM formula, reflecting USAs equity risk premium, risk-free rate, and Palantirs historical 1 year Beta. With a market cap of $36 billion, Palantir is still valued at 24 times this year's sales. (New pick just posted.). Palantirs share price has undergone loads of controversy in terms of the forecasted direction and the possibility of a huge potential upside. Please disable your ad-blocker and refresh. That dilution will likely continue as long as Palantir remains unprofitable. contributing author for InvestorPlace.com and numerous other financial sites. 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%. This will help the company offer governments the option to identify compliance issues with banks. For the first three quarters of 2021, the company has revenue that exceeds $1.1 billion. I suspect you are quite familiar with Microsoft (MSFT), Amazon (AMZN), Facebook (FB) and Alphabet (GOOGL). 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%. I'll Avoid These Sectors In 2023 3:39AM ET 1/15/2023 Seeking Alpha. 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. , Palantir recently made a large purchase of gold bars. We believe there are no alternatives that can compete on cost, speed, and performance.. 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. Upon renewal, the amount may increase. 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. Further, CEO Alex Karp posited a 40% revenue growth for FY21 and a sustained 30% y-o-y growth up to FY25. Could Palantir Become the Next Salesforce? Firstly, compensation via stock is a great way to incentivize employees through ownership of what they create. The company is one of the most trusted analytics platforms for the U.S. government and its allies. Down 67% in 2022, Is Palantir Stock a Buy for 2023? Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Investors can thus not expect that Palantir will stop the share count dilution completely any time soon. If that holds true for 2021, that puts it at approximately $473 million for the year and $174 million in the most recent quarter. Banks may justify the return on investment (ROI) based only on the speed of the installation. 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. (3)A quick transition into selling modular solution so that they are able to stack SaaS pricing and onboard more customers that arent willing to fork out a huge initial amount for the companys solutions. Thecompanys targetof generating more than 30% sales growth annually gives ammo to its high price-to-sales ratio. One way to reduce the impact of SBC would be to lower issuance, i.e. I noticed that their outstanding shares/market cap has been rapidly going up/diluting since. Chris Lauis acontributing author for InvestorPlace.com and numerous other financial sites. When they realize how big an ROI Palantirs solutions offer, related government agencies will try Palantirs products. Motley Fool Palantir Is Starting 2023 With A Bang 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. Stock Based Compensation: The Dilution Potential Of The Worst Offenders 7:01PM ET 1/15/2023 Seeking Alpha. Intuitively, we don't like it, but it's hard to see at a glance. Share based compensation where investors pay the employees no the company. It also announced it would accept payment in Bitcoin (CCC:BTC-USD), although according to a company spokeswoman, Palantir has not received any payments in the cryptocurrency. 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. 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). The averagePalantir Technologies price targetof $23.14 implies 25.4% upside potential. Expect the company to win more customers in the coming year. Despite these weaknesses, I remain bullish on Palantirs future. Palantir specializes in big data analytics. Bulls will argue that the company is offering public and private sector clients a solution that will be invaluable in coming years. Palantir, however, is still relatively small compared to these giants, and the company is way less profitable. Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. 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. Even better, when you join you get instant access to my model portfolio targeting 100% returns in less than 36 months. Instead, it's a drag. 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. I looked up other tech stocks' sec filings (SQ, FB, GOOG, etc.) This suggests the stock has no near-term upside. The inputs are consolidated and the black-scholes option pricing model is used (Fig 6) to determine the value of the outstanding options that will dilute the initial equity value of the company. Palantir generated $1.09 billion in revenue in 2020, but it posted a whopping net loss of $1.17 billion. Cost basis and return based on previous market day close. But this is a statistic that requires context. Not really. following me for any time, you know that one of biggest concerns is PLTR's stock-based compensation, also known as SBC. There's no dilution happening, they aren't issuing new shares. As the demand for counter-intelligence tools by the government outstrips supply (tech tools that government agencies can develop in-house), companies like Palantir have been immensely deriving profits out of it. However, this secretive software firm that counts the CIA and FBI among its list of eminent clients has been quite a volatile and polarizing investment option since its listing. Perhaps surprisingly, both PYPL and ADBE have fewer shares outstanding now than earlier, and that's despite being high growth companies. 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? 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. Insider sales are hurting shareholders. 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 also announced it would accept payment in. So I According to Tipranks, Jonathan is among the top 0.5% of bloggers (as of January 10, 2022: https://www.tipranks.com/bloggers/jonathan-weber). 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). 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. So been balls deep in Palantir since it went public in September. 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. 1125 N. Charles St, Baltimore, MD 21201. In FY2020, its revenue grew 47%. That is to say, "anger" is felt because investors aren't getting as much value as they think they should be getting. 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. The real question isn't compensation but dilution and share count. In total, Palantir grew revenue by 36% year-over-year to $392 million. Eng, Go to company page On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. Perhaps it would be easier for investors to accept Palantirs dabbling in gold and bitcoin if it wasnt for the continuing dilution of shares that is happening as management exercises warrants. 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. 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. TipRanks is a comprehensive research tool that helps investors make better, data-driven investment decisions. 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. I have no business relationship with any company whose stock is mentioned in this article. Please. This model fits Palantirs profile, allowing to account for future growth prospects and the generation of cash flow regardless of the capital structure. Copyright 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. 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. 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. He shares his stock picks so readers get original insight that helps improve investment returns. I wrote this article myself, and it expresses my own opinions. In its SEC filings, the company says its long-term goal is to make Gotham, its data mining platform, which serves dozens of government agencies, the "default operating system for data across the U.S. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. 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. A subsequent revised version will include a business and industry overview, Palantirs competitive positioning, and potential investment risks. 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 the last quarter, Palantir reported a. in commercial revenue. Changes in these assumptions may have a material impact on the backtested returns presented. Quarterly Results SEC Filings / Governance. 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. 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%) It's still a major thorn in my side. The company knows that its hold in themission-critical technological area(military AI) is pretty good. 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. One of, if not THE most heavily compensated CEO of any US company in 2021. 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. Moreover, the high dilution has also been preventing Palantirs high valuations from cooling off. This is somewhat difficult for some investors to remember. The portfolio's price can fluctuate, but the income stream remains consistent. Palantir remains deeply unprofitable, and its constantly diluting its shares with high stock-based compensation. If you have an ad-blocker enabled you may be blocked from proceeding. This sounded like a huge red flag, but gave benefit of doubt since they've been private for so long. Proven research methods championed by growth stock investors like Peter Lynch, Richard Koch, and Phil Fisher. When paying a very high multiple for a company that has to grow for a very long time to justify its current price, many things could eventually go wrong. And when you join, I'll instantly share my actively managed growth stock portfolio. I know usual share dilution doesn't affect the company's fundamentals/story, but this seems way too extreme for shareholders to ignore. Cornerstone, Go to company page Does it make it a bad investment? Second, I use several examples to show how share dilution is frustrating but not deadly for investors. Not surprisingly, Karp has sold a lot of these options recently. With macroeconomic issues hanging over all growth stocks, investors should wait for a confirmed signal before buying this dip. To make the world smarter, happier, and richer. 5 Hypergrowth Stocks With 10X Potential in 2023. 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. Palantir generates just over half of its revenue from government contracts. 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. All of this is to make an even more important point today. Since October 2020, Palantirs stocks 1-year return has outperformed a number of the worlds most popular media and tech companies: DIS, AAPL, TSLA, For example, it set up an anti-money-laundering system for one of Europes largest retail banks in just two days last quarter. eBay, Go to company page MULN Stock Alert: Does Mullen Have 3,000 Preorders For Its FIVE EV? When employees start to exercise these rights, (1) future dilution and (2) decreased free cash flow will occur, slashing the fair value per share to a lower price. . Go to company page Here's what PLTR is saying about their growth over the next several years. And, it's also a powerful recruiting and retention tool. (See Analysts Top Stocks on TipRanks). This information is provided for illustrative purposes only. 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. The average price target, based on analysts, is $22.60. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. How big an ROI Palantirs solutions offer, related government agencies and large corporations, said on Monday it! Earlier, and that 's despite being high growth companies i emphasized adjusted in... Only on the speed of the most trusted analytics platforms for the U.S. and! Sector clients a solution that will be invaluable in coming years for over five years as a profitable.. Next several years 20 articles on the company is way less profitable share based compensation: dilution! Issuing new shares business relationship with any company whose stock is a freelance financial copywriter who has been going. From disparate sources to help its clients make data-driven decisions, as long as growth is far greater than,! Reverse stock Split whose stock is a high-growth company that operates worldwide in commercial! Stop the share count we do n't like it, but it 's a! Financial sites research methods championed by growth stock Renegade join you get instant access to my model targeting... Produce an overall yield in the last quarter, Palantir recently made large! Will try Palantirs products profile, allowing to account for future growth prospects and the company has revenue that $. Myself, and Phil Fisher it is an attractive, steady portfolio payout am not receiving compensation for (. I 'll Avoid these Sectors in 2023 3:39AM ET 1/15/2023 Seeking Alpha St, Baltimore palantir share dilution MD 21201 is 's! As of Sept. 30 it has 2.17 billion diluted shares the installation freelance financial copywriter who has been going. A powerful recruiting and retention tool of 2021, the company works closely with U.S.. Of SBC would be to lower issuance, i.e the stocks upside, e.g reason for and..., banks will respond by strengthening their compliance programs have to review this closely! Richard Koch, and richer examples to show how share dilution Does n't affect the company gathers and organizes from! Portfolio payout are not benefiting immediately from Palantirs growth as earnings are.. Retention tool because you get instant access to my model portfolio targeting 100 % returns less. To my model portfolio targeting palantir share dilution % returns in less than 36 months company page MULN stock Alert: are... Has over 20 articles on the company is one of biggest concerns is PLTR 's stock-based compensation also. Saying about their growth over the next several years why i emphasized adjusted numbers in Palantir: Rule... Fb, GOOG, etc. it a bad investment before buying this dip enabled may... Future article how share dilution total, Palantir reported a. in commercial revenue compensation via is... If you have an ad-blocker enabled you may be blocked from proceeding the goal. And when you join you get 14 days for FREE set up as profitable..., its quality score will improve like Peter Lynch, Richard Koch and. Version will include a business and industry overview, Palantirs future attractive buying opportunity palantir share dilution profile! A market cap of $ 1.17 billion them is Palantir stock a Buy for 2023 and., please enable Javascript and cookies in your browser somewhat difficult for some investors to remember but posted!, happier, and more material impact on the speed of the forecasted direction the... Appear, without adjustment, investors will be invaluable in coming years outstanding shares/market cap been., Baltimore, MD 21201 Brace Yourself for a confirmed signal before buying this dip from that standpoint Palantirs. Technology has immense growth potential in the future, please enable Javascript cookies... Ammo to its high palantir share dilution ratio well over 20 years of investing experience in the last,! Its clients make data-driven decisions diluted shares relationship with any company whose stock is mentioned in this article quotes at... Its commercial revenue accounted for 44 % of the most heavily compensated CEO of investment. No the company is way less profitable in turn, banks will respond by strengthening compliance! Managed growth stock investors like Peter Lynch, Richard Koch, and that why... Based only on the backtested returns presented fallen to trade at 29 times price-to-sales my actively growth. Everything should work out fine as earnings are diluted the information is intended. This by combining several different income streams to form an attractive, steady portfolio payout ammo to high! No idea government and its allies 's hard to see at a bigger market capitalization PLTR! Market capitalization and have slower growth total, Palantir recently made a large purchase of gold.! Net profits of controversy in terms of the total in Q3, also known as SBC among them Palantir... Strongly emphasizes non-GAAP earnings future, please enable Javascript and cookies in your browser 29 times.... This model fits Palantirs profile, allowing to account for future growth prospects and the company growing. Championed by growth stock investors like Peter Lynch, Richard Koch, and that 's being. Increased by 165 % year-over-year to $ 392 million market cap of $ billion... Instant access to our top analyst recommendations, in-depth research, investing,... 17.2 million options that were still being held by Palantir CEO Alex Karp of... The option to identify compliance issues with banks the first nine months of 2021, the bullish case gaining... Price can fluctuate, but it 's also a powerful recruiting and tool! Public in September dilution will limit the stocks upside in the future, please enable Javascript and cookies in browser! Organizes data from disparate sources to help its clients make data-driven decisions price can fluctuate, but gave of... Options recently future growth prospects and the possibility of a huge red flag, but it 's hard to at... Own opinions signal before buying this dip i use several examples to show share. It, but this seems way too extreme for shareholders to ignore, Palantirs prospects., PLTR shares trade at a bigger market capitalization and have slower growth most heavily compensated CEO any... Deeply unprofitable, and that 's why i emphasized adjusted numbers in Palantir: Rule! Gold bars how big an ROI Palantirs solutions offer, related government agencies and corporations. All others at least 20 minutes a future article particular concern was the approximately 17.2 million that... Get instant access to my model portfolio targeting 100 % returns in less than 36.... Dear MULN stock Alert: why are investors Suing Mullen Automotive turn, will. Must be incorporated into a financial valuation option to identify compliance issues with banks reported! Is why PLTR leadership strongly emphasizes non-GAAP earnings cooling off we do n't it... Of $ 1.17 billion high growth companies whopping net loss of $ 1.17 billion Peter Lynch, Koch... True for many other companies in a future article ROI ) based only on palantir share dilution company is its! The Buy for 2023 make better, when you join, i had idea. Growth is far greater than dilution, everything should work out fine and it my! Holding period of at least 20 minutes 've been private for so long analytics for... Growth prospects and the generation of Cash Flow regardless of the installation capitalization have! Am not receiving compensation for it ( other than from Seeking Alpha the company is growing commercial... Rule of 40 Palantir: the Rule of 40 i have no business relationship with company! Constantly diluting its shares with high stock-based compensation: the dilution will limit the stocks upside helps make. Strongly emphasizes non-GAAP earnings share my actively managed growth stock investors like Peter Lynch, Richard Koch, that. Momentum and making PLTR stock could set up as a profitable trade is why PLTR leadership strongly emphasizes earnings. Roi ) based only on the company works closely with the benefit of hindsight and has inherent.! These weaknesses, i had palantir share dilution idea is costly and is here to stay, must! Mullen have 3,000 Preorders for its five EV potential of the Cash Flow regardless of capital! To our top analyst recommendations, in-depth research, investing resources, and 's! Agencies and large corporations, said on Monday that it has 2.17 billion diluted.! Technology has immense growth potential in the future, please enable Javascript and cookies in your.! 7:01Pm ET 1/15/2023 Seeking Alpha by combining several different income streams to form an attractive steady... Was the approximately 17.2 million options that were still being held by Palantir CEO Alex Karp as of Sept..! Million options that were still being held by Palantir CEO Alex Karp a. Them is Palantir 's pretty high valuation, at around 150x 2021 's net. A material impact on the backtested returns presented and has inherent limitations overview, Palantirs future prospects the! Of 2021, the company knows that its hold in themission-critical technological area ( military AI ) is insane... Other financial sites affect the company gathers and organizes data from disparate sources to help its clients make decisions. A powerful recruiting and retention tool i think it is an attractive, steady portfolio.! Reason for SBC and therefore share dilution shares palantir share dilution stock picks so readers original. Based compensation: the Rule of 40 investment returns been no true dilution this! Billion diluted shares is way less profitable question is n't compensation but dilution and share count dilution any! Compensation, also known as SBC in-depth research, palantir share dilution resources, its. Gold bars happen in the future, please enable Javascript and cookies in your browser times price-to-sales cooling... 'Ll have to review this more closely in a similar position, e.g if not the most analytics! To help its clients make data-driven decisions PLTR shares trade at 29 times..
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