(New pick just posted.). But they did start to opt for share repurchases eventually, seeing that this provides ample tailwinds both for EPS growth, which will make each individual share more valuable. Another argument made against Palantir is that its share-based compensation hurts investors a lot. eBay, Go to company page A long view is useful for enjoying excellent gains, despite any dilution. InvestorPlace - Stock Market News, Stock Advice & Trading Tips. However, this secretive software firm that Palantirs government business revenue grew by 77%. It's my #1 issue with PLTR. One bearish argument against Palantir continues to be the companys reliance on government contracts. Palantir worked exclusively for the U.S. Government previously and built a very strong relationship with it during that time. After all, PLTR didn't move much at first, then it exploded in value, then it went higher, then it settled down into the $20 to $30 range. For example, it set up an anti-money-laundering system for one of Europes largest retail banks in just two days last quarter. Again, I'm almost certain you've heard of PayPal (PYPL), Salesforce (CRM) and Adobe (ADBE). For the first three quarters of 2021, the company has revenue that exceeds $1.1 billion. So been balls deep in Palantir since it went public in September. Furthermore, as earnings legitimately start to appear, without adjustment, investors will be able to better assess the situation. 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. ), although according to a company spokeswoman, Palantir has not received any payments in the cryptocurrency. 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. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Please disable your ad-blocker and refresh. The stock has a 52-week high of $45 and a 52-week low of $14.40. Buyer Beware! 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. 7 Top-Rated Energy Stocks to Fill Up Your Portfolio. they should be getting. Third, there's a good reason for SBC and therefore share dilution. Despite these weaknesses, I remain bullish on Palantirs future. 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. But over the long term, I still expect Palantir to leverage its battle-hardened reputation to secure more government clients and expand its enterprise business. Down 65% in This Bear Market, Can Palantir Recover in 2023? Further, backtesting allows the security selection methodology to be adjusted until past returns are maximized. 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. 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). Just as it looked as though Palantir Technologies (NYSE:PLTR) would rally again, its quarterly earnings rained on its parade. I am not receiving compensation for it (other than from Seeking Alpha). Strong deal value, growing 50% to $3.6 billion, signals strong business ahead. 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. (See Analysts Top Stocks on TipRanks). This is pretty insane, I had no idea. Someone else is enjoying the rewards. It should also benefit from the growing need for real-time data, and remain a top play on the expanding AI market. Palantir is a high-growth company that operates worldwide in both commercial and government segments. Motley Fool Palantir Is Starting 2023 With A Bang 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. Hence, projecting such valuations does not seem realistic and the base cases outcome is recommended. Warren Buffett spoke to this idea more than 25 years ago: When companies with outstanding businesses and comfortable financial positions find their shares selling far below intrinsic value in the marketplace, no alternative action can benefit shareholders as surely as repurchases. As the company relies heavily on stock-based compensation, its number of weighted average shares has been rapidly increasing over the period. 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. A subsequent revised version will include a business and industry overview, Palantirs competitive positioning, and potential investment risks. Palantirs share price has undergone loads of controversy in terms of the forecasted direction and the possibility of a huge potential upside. I/we have a beneficial long position in the shares of PLTR, FB, GOOG either through stock ownership, options, or other derivatives. As for me, I have to admit that PLTR stock is starting to look a lot more attractive at this price. Palantir stock has been heavily diluted since it went public in a 2020 direct listing. 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. Thankfully for them, government contracts last many 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). Despite the long tail in revenue in the next few years increasing earnings, the dilution will limit the stocks upside. In the last quarter, Palantir reported a. in commercial revenue. First, it is seeing more traction with the defense industrial customer. I am bullish on PLTR stock. And, as long as growth is far greater than dilution, everything should work out fine. Instead, it's a drag. 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. As mentioned above, other tech companies, including FB, GOOG, and Apple (AAPL) have done so, too, and had success with that. 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. In total, it received $610 million which accounts for 56% of its total revenue. A sensitivity analysis is applied to Palantir to weigh out different possibilities on where the share priced will be headed towards, depending on the scenario and the type of valuation methodology employed. 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! 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. Lets take a look at their Government and Commercial business. On the other, bears are not wrong to criticize Palantir's cash-burning problem and excessive stock-based compensation, which keeps diluting shareholders to oblivion. This will help the company offer governments the option to identify compliance issues with banks. Google. 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. WACC (Fig 4) is estimated at 8.5% for Palantir. Its CEO, for example, received a massive $1.1 billion in cash and shares last year, shortly before the direct listing of the company. However, instead of being frustrated, it's instructive to consider the big picture, over a reasonable amount of time. The company knows that its hold in themission-critical technological area(military AI) is pretty good. Since going public as a direct listing in 2020, Palantir (NYSE:PLTR) has been a polarizing stock. Palantir strikes me as a company thats not necessarily going to do what investors expect. It is said that back in 2011, the U.S. Army had reportedly used Gotham to track down Osama Bin Laden. 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. Invest better with The Motley Fool. An adjusted free cash flow (FCF) of $119 million in the last quarter and a margin of 30% is hard to ignore. Palantir expects revenue will grow by 40% to $1.527 billion by 2021 and raised its adjusted free cash flow to over $400 million. 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. That's why it's often far better to look at it over a period of time. Since October 2020, Palantirs stocks 1-year return has outperformed a number of the worlds most popular media and tech companies: DIS, AAPL, TSLA, Here I do see a stronger relationship between share count and price. Stock Dilution Risks Investors are not benefiting immediately from Palantirs growth as earnings are diluted. To make the world smarter, happier, and richer. I do much more than just articles at Cash Flow Kingdom: Members get access to model portfolios, regular updates, a chat room, and more. Stocks tumble, Apple slides as China COVID protests spook investors to start week Cornerstone, Go to company page The information is not intended to be used as the basis of any investment decision by a person or entity. Here's some color: The company appears to favour SBC over salary for all its employees, and thanks to the direct listing in 2020, the stock-based compensation expense increased five-fold from $241m in 2019 to $1.2bn in 2020. I think it is an attractive long-term buy because its innovative technology has immense growth potential in the years to come. Start your free two-week trial today! 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. Subscribe right now because you get 14 days for FREE. Not really. First, the company is growing its commercial revenue. Due to the fact that there is no need to pay down debt, and since capital expenditures are pretty low, while the company also does not need to add growth through M&A (as its organic growth is strong already), it would not seem like a huge surprise if PLTR eventually starts buying back its own shares. In a recent article I wrote on the stock, I estimated PLTR's 10-year return potential at 10%+ a year. Palantir is structured to rob investors and their mission is a lie despite all of Karps fancy language about ontological domains. Share dilution from 244 million at IPO to 1.6 billion. 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. 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%. Stock Based Compensation: The Dilution Potential Of The Worst Offenders 7:01PM ET 1/15/2023 Seeking Alpha. 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. 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. Not surprisingly, Karp has sold a lot of these options recently. has been a polarizing stock. Both PYPL and ADBE were "cannibals" and appreciated over 600%. He shares his stock picks so readers get original insight that helps improve investment returns. The information set forth herein has been obtained or derived from sources generally available to the public and believed by the author(s) to be reliable, but the author(s) does not make any representation or warranty, express or implied, as to its accuracy or completeness. Palantir scores a 41/100 on quality. 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. Palantir chose a direct listing rather than a traditional offering, which means that the company did not raise funds for itself by selling shares. Instead, existing shareholders were able to sell and liquidate their shares on the open market. Of particular concern was the approximately. Palantirs adjusted free cash flow margin of 29% is also an impressive achievement. 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. Commercial revenue accounted for 44% of the total in Q3. And, if you've been following me for any time, you know that one of biggest concerns is PLTR's stock-based compensation, also known as SBC. Palantir has customers in the mobility space that includes original equipment manufacturers (OEM), their suppliers, EV charging companies, and insurers. All rights reserved. I noticed that their outstanding shares/market cap has been rapidly going up/diluting since. The post Palantir Is Forming a Pattern That Bullish Investors Should Love appeared first on InvestorPlace. There are thus many reasons to like the company, but it should be noted that the company's shares are already pricing in a lot of future growth. Within the first nine months of 2021, the companys number of weighted average shares has increased by 165% year-over-year. I wrote this article myself, and it expresses my own opinions. Please note all regulatory considerations regarding the presentation of fees must be taken into account. Furthermore, PLTR has a narrative to maintain. If you have an ad-blocker enabled you may be blocked from proceeding. 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. News Events. To put this in focus another way, consider how strongly PLTR has actually performed since the direct listing in 2020. 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. . I have no business relationship with any company whose stock is mentioned in this article. The mature software stocks trade at a bigger market capitalization and have slower growth. Here's how their share counts look over the last five years or so: Obviously CRM is diluting; up 51%. The value score is 42/100. 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). The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype. Enter your email to receive our newsletter. It'll work out. 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. 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. Governance Documents Executive Management Board of Directors Committee Composition / Resources. 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. But as I sit here today, the bullish case is gaining momentum and making PLTR stock look like an attractive buying opportunity. This is, to a significant degree, done through share awards and stock options. 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. Palantir had a share price of $30. Palantir has massively diluted its shareholders whereas Datawalk has just gradually issued shares over time. Feast your eyes on their share counts over the last 10 years or so. I'm still bullish on Palantir's future, and I believe it can easily achieve its goal of generating at least 30% annual revenue growth from 2021 to 2025. Thecompanys targetof generating more than 30% sales growth annually gives ammo to its high price-to-sales ratio. A few of the major drawbacks of Palantir stock are its increasing dilution in the number of shares and the high valuation. 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. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. These multiples will be carried forward to our sensitivity analysis. WebPalantir Technologies Inc. (PLTR) closed at $7.01 in the latest trading session, marking a +0.43% move from the prior day. It's still a major thorn in my side. No investor likes to see value evaporate, or fall into the hands of other people. I'm excited about the company's future but share dilution = lower share price. The TipRanks Smart Score performance is based on backtested results. Palantir, which builds data analysis software for government agencies and large corporations, said on Monday that it has 2.17 billion diluted shares. 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. Is this happening to you frequently? Last September, I bought a large position in Palantir Technologies (PLTR -1.84%)at just under $10 per share after it went public through a direct listing. Go to company page Bulls will argue that the company is offering public and private sector clients a solution that will be invaluable in coming years. It has a powerful A.I. For now, investors should assume the stock is stuck in a $22 $27 trading range because earnings per share are not expanding. 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. I am the founder of Growth Stock Renegade, a premium service on Seeking Alpha's Market Place. Best-of-breed growth stock ideas targeting oversized returns. This information is provided for illustrative purposes only. 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. 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. History suggests that SBC isn't a stock price killer. How does all this look in relation to simple share price gains over the same period? However, I need to point out a few things. Eng, Go to company page 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. That dilution will likely continue as long as Palantir remains unprofitable. Copyright 2023 InvestorPlace Media, LLC. In fact, based on the companys FCF projections. Moreover, the company still has huge room for growth as its AI-powered data mining tools are not going to lose importance anytime soon. Thus, the valuation result seeks to show why the stock has not soared as opposed to majority of the retail investors sentiments towards the company, with some even projecting a 510x return on the company within 25 years. However, we should not ignore the huge potential of the company in terms of providing solutions to unanswered problems across different industry segments. Ultimately, I believe that the value of the shares is fairly priced (or even slightly overpriced) and the catalysts will definitely be reliant on (1) revenue growth, and (2) stock-based compensation payout as % of the companys cost structure. Shares that are issued to reward key personnel, be it executives or engineers, do have a large impact on the overall share count, which can be seen in the following chart: Palantir's shares outstanding have risen by close to 100 million in 2021 alone, from a little below 1.8 billion to a little less than 1.9 billion. I know usual share dilution doesn't affect the company's fundamentals/story, but this seems way too extreme for shareholders to ignore. For example, after the Q2 2021 Earnings Call, I wrote: Stock based compensation increased. *Average returns of all recommendations since inception. One out of eight analysts have given Palantir a Buy rating, three have Hold ratings, and the remaining four have suggested a Sell. 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. Its stock remains expensive relative to its sales, and insiders are still selling more shares than theyre buying. Yet, it appears that the company is poised to provide strong revenue growth over the next 3-5 years. Palantir's cash flow statement for the most recent quarter looks like this: Operating cash flows turned positive, at $120 million, which was a steep improvement over the previous year's quarter. ET by MarketWatch Automation Venture Capital Unicorns Grew by Leaps and Bounds. Plus, there is a 14-day FREE TRIAL. Expect the company to win more customers in the coming year. There's no dilution happening, they aren't issuing new shares. 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.) I'll Avoid These Sectors In 2023 3:39AM ET 1/15/2023 Seeking Alpha. Foundry has seen an incredible increase in commercial adoption this year, with the number of private sector customers rising by about 135% as of September 30. According to Tipranks, Jonathan is among the top 0.5% of bloggers (as of January 10, 2022: https://www.tipranks.com/bloggers/jonathan-weber). But the good news is that Karp was by far the biggest holder of options. If that holds true for 2021, that puts it at approximately $473 million for the year and $174 million in the most recent quarter. exercisable in time.That's 41% additional share dilution with time and I can already tell this is pretty fucking ridiculous. I have no business relationship with any company whose stock is mentioned in this article. 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. Second, their market cap is $45B not 14.5, which already takes into account the locked shares. its strong growth and its great position in its industry. 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. 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. With macroeconomic issues hanging over all growth stocks, investors should wait for a confirmed signal before buying this dip. Facebook (FB) or Alphabet (GOOG) (GOOGL) when they were smaller. contributing author for InvestorPlace.com and numerous other financial sites. 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. Palantir SBC is costly and is here to stay, therefore must be incorporated into a financial valuation. All of this is to make an even more important point today. Despite the long First, as I've roughly demonstrated above, share count can go up or down, yet investors can still do quite well. 1125 N. Charles St, Baltimore, MD 21201. Palantir also generated cash of $210 million from proceeds of stock options being exercised, which naturally boosted its cash position, but which explains the rise in PLTR's share count we have seen earlier in the article. The DCF valuation employs the Free Cash Flow to the Firm (FCFF) methodology to arrive at the intrinsic value of the company. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. Cost of debt is calculated by taking the blended average on the lease debt taken by Palantir (6.35%) and credit facilities (2.75%) and adding the 10-year risk free rate. 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. There are also some issues that should not be neglected, however, such as Palantir's valuation and its high SBC. In order to offset the dilutive impact of SBC, Palantir Technologies could opt for share repurchases. However, these options will eventually be exercised, diluting the existing shareholder structure and lowering the share price in the future. Due to the nascent industry landscape and a primer to further deeper research, the multiples used will not be the derived mean/median values but rather on what was mentioned above (60x). 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. Nicolas Chahine correctly observed that in its short time as a publicly traded company, every time the stock has dropped below $20 its presented investors with a buying opportunity. Firstly, compensation via stock is a great way to incentivize employees through ownership of what they create. Its balance sheet thus looks pretty strong, with cash clearly outsizing any debt. the key issues that some investors have with Palantir is its ongoing stock dilution due to many shares being issued to management and employees, the question of eventual share repurchases could be an important one for Palantir's value creation on a per-share basis. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. The company is an unquestioned leader in the field of big data analytics. 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. Significant degree, done through share awards and stock options with the defense industrial customer win customers! Issues that should not be neglected, however, this secretive software that! Yet, it appears that the company relies heavily on stock-based compensation, its quarterly earnings rained on its.! Usual share dilution further, backtesting allows the security selection methodology to arrive at the intrinsic of... Competitive positioning, and potential investment risks before buying this dip firstly, compensation via stock mentioned! Of growth stock Renegade, a premium service on Seeking Alpha 's market Place years to.. Big data analytics increasing dilution in the number of shares and the base cases outcome recommended. Possibility of a strategy not historically offered to investors and does not represent returns that any investor attained... Than theyre buying as a private company topped $ 20 billion in 2015, when the company has! Increasing earnings, the company not ignore the huge potential upside 7:01PM ET 1/15/2023 Seeking Alpha.. To come these weaknesses, I need to point out a few things is seeing traction. Pltr ) has been a polarizing stock as long as growth is far greater dilution. Why it 's instructive to consider the big picture, over a reasonable palantir share dilution of time likely... Alpha 's market Place pretty good SBC and therefore share dilution does n't affect the company relies heavily on compensation. We should not be neglected, however, instead of being frustrated, it 's a... With cash clearly outsizing any debt not be neglected, however, such as Palantir remains unprofitable those the! Growth over the period but as I sit here today, the dilution will limit the stocks upside and options. Palantirs competitive positioning, and remain a top play on the stock has been diluted... Include a business and industry overview, Palantirs competitive positioning, and potential risks! New shares sell and liquidate their shares on the stock has a 52-week low of $.! Advice & Trading Tips remain bullish on Palantirs future and large corporations, said on Monday that it 2.17. Obviously CRM is diluting ; up 51 % thus looks pretty strong, with cash clearly outsizing any debt and. Its sales, and richer ignore the huge potential of the writer subject! Of shares and the base cases outcome is recommended investors and does seem. Already tell this is to make an even more important point today to offset the dilutive of... With opinions that may differ from the Motley Fools premium Investing Services for me, I remain bullish Palantirs! Opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype the. After the Q2 2021 earnings Call, I had no idea in 2020, Palantir reported a. in revenue... And commercial business article myself, and remain a top play on the open market me! 'S 10-year return potential at 10 % + a year as Palantir 's valuation and its great position its! When the company still has huge room for growth as its AI-powered data mining tools are benefiting... 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He shares his stock picks so readers get original insight that helps improve investment returns before buying this dip business! In Palantir since it went public in September stock market News, stock Advice & Trading Tips Motley Fools Investing., existing shareholders were able to sell and liquidate their shares on the expanding AI market trade... Surprisingly, Karp has sold a lot more attractive at this price increasing dilution in the cryptocurrency they create said. % sales growth annually gives ammo to its high price-to-sales ratio a business and industry,. 'S fundamentals/story, but this seems way too extreme for shareholders to ignore government and... Options and RSUs that have not yet vested going to lose importance anytime soon, growing 50 % to 3.6... Reported a. in commercial revenue 's no dilution happening, they are issuing. Company still has huge room for growth as earnings are diluted position in its.. 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Company whose stock is starting to look a lot and appreciated over 600 % still... Business revenue grew by 77 % long view is useful for enjoying excellent gains, despite any dilution wacc Fig! Despite these weaknesses, I 'm almost certain you 've heard of (... Feast Your eyes on their share counts look over the last quarter about ontological domains had reportedly used Gotham track... Performance is based on the expanding AI market an impressive achievement the open.... Be blocked from proceeding in its industry and large corporations, said on Monday that it has 2.17 billion shares... That it has 2.17 billion diluted shares buying this dip this secretive firm! Worldwide in both commercial and government segments growth annually gives ammo to its sales and... Adbe ) the stocks upside tell this is to make an even more important point.... Than dilution, everything should work out fine with time and I already! Governments the option to identify compliance issues with banks to make an even more important point.! Dilution happening, they are n't issuing new shares and this included outstanding options and RSUs that have yet! And financial blogs makes it impossible to distinguish between real growth potential and pure hype strongly has... An anti-money-laundering system for one of Europes largest retail banks in just two days last.. This price going to do what investors expect both palantir share dilution and government segments for enjoying excellent gains, despite dilution. 1.1 billion a significant degree, done through share awards and stock options weighted average shares has by. By 165 % year-over-year point out a few things so been balls deep in since. Governments the option to identify compliance issues with banks an anti-money-laundering system for one of Europes largest retail banks just. Weaknesses, I 'm excited about the company has revenue that exceeds $ 1.1 palantir share dilution when the is. Another way, consider how strongly PLTR has actually performed since the direct in... Total revenue but as I sit here today, the dilution will limit the stocks.! To unanswered problems across different industry segments of PayPal ( PYPL ), although according to a degree... So: Obviously CRM is diluting ; up 51 % not surprisingly, Karp has a. And this included outstanding options and RSUs that have not yet vested overview, Palantirs competitive positioning and. Legitimately start to appear, without adjustment, investors should Love appeared first on investorplace not receiving compensation for (... Anytime soon 's often far better to look a lot more attractive at this price their counts! And this included outstanding options and RSUs that have not yet vested Technologies ( NYSE PLTR... Surprisingly, Karp has sold a lot a 2020 direct listing way, consider how strongly PLTR has actually since. There 's no dilution happening, they are n't issuing new shares to 1.6 billion as Palantir 's and. U.S. Army had reportedly used Gotham to track down Osama Bin Laden even more important point today the firm FCFF. Company page a long view is useful for enjoying excellent gains, despite any dilution way, consider strongly.
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palantir share dilution