How is Palantir not at $85 ?

[proforma50]

A lot of their profit comes from interest income, it’s not impressive and expensive as you say.

I have to disagree. Sure, the interest income is nice to have on top of everything else, but strong growth in their core businesses is real: Last quarter Palantir put up strong top-line results. Sales grew 21% year over year to $634 million, driven by U.S. commercial revenue growing 40% year over year. The company also grew its customer count by 40% year over year, which is a good indicator of future revenue growth.

 

[d08]

Actually, what they do is not easily replicated by most corporations, i.e. finding patterns in internal data that allow for cost cutting, increasing profits, finding new profit niches, exploiting existing data assets. That is why Palantir will do around $2.5 billion in revenue this year. Also, their growth is extremely strong: last quarter Palantir put up strong top-line results. Sales grew 21% year over year to $634 million, driven by U.S. commercial revenue growing 40% year over year. The company also grew its customer count by 40% year over year, which is a good indicator of future revenue growth. A stock's price of course is always debatable, but to me this stock should not be in the low 20s. I would think it would be climbing through the 30s and 40s on its way higher.

If it's such a clear case, why isn't everyone using them? The answer is quite obvious. I thought most of Palantir revenue is from US gov't, if I'm wrong let me know. How do you know in detail what their software can and can't do? AFAIK that information isn't public. Even small companies that rely on data have their own highly experienced data science teams, they don't need Palantir. This idea that Palantir can come in and process any and all forms of data is simply science fiction. You can't be in the tech sector yourself and possibly believe that?

As I stated earlier, 21% revenue growth is below what is expected of them. If you're expecting 100% growth rate then 21% is a massive disappointment and price trades on that.

 

[VicBee]

Every fund is allowed one right wing libertarian nut case and Elon Musk's Tesla beat Peter Thiel's Palantir to it.

 

[vanzandt]

Stoney here's the thing...
These are good companies, but what you have consistently missed, is they are overpriced af.
How many times have I given you my lemonaide stand lecture?!!!!

If lemonaide stand makes $800/year in profit, would you buy it for $80,000?!!!!
You break even in a 100 years.

Water seeks its level Stoney.
So many of these stocks are chased by idiots and the only people who make any money are the ones gaming the idiots.

.

~case closed.

That said... when AI became all the buzz... I did in fact see what PLTR had, and I knew where the herd was heading with AI intense companies, especially the ones already in deep with real product. Had you bought in then, you'd have had a three-bagger at the top.

Stoney....
As these things go, there is only one stock for 2023.
PLTR
$8.20
Now I know you've called a bottom on this one, erroneously, about a half dozen times. And out of respect I have remained mum.... but... it's time has come.

PLTR is a HUGE buy.
$8.20 is a low, or damn close, going forward.
Ignore the noise, ignore the herd.

Just buy and forget.
Multi-year time-frame.
Assuming the entire tide doesn't pull out if the sh*t really hits the fan.
Which of course could happen. Putin, Iran, Xi, ... all black swan wannabe's.
Other than than that----> YOU'RE WELCOME.
Call Big Pete and tell him VZ said "buy PLTR."
$8.20

But $85?!!!
Can you give us some #'s behind that figure and how it was derived? Or was it just easy to hit the 8 and the 5 while you were typing?

At $85 it would be over 100X sales. At a 12.8% net margin.... if you bought the company, even giving it the benefit of the doubt and 20% yoy sales growth for the next 5 years.... it would take you well over 150 years to see a return on your investment, and that's just doing the math in my head. Probably more like 250 years. Because the top line will flatten out soon enough, I don't care how good they are.

EDIT:
Buying a stock is buying a piece of the business. Go back to school. Study fundamentals.... and if not, you can buy my $1000/year profit lemonaide stand (growing profit at 20% x .128) for $3.67M. Your great great great grandkids will finally break even.

 

[Pricechange]

If Alex Karp demanded $56 Billion pay package. Then I would prolly fawn over the radical genius of it all. I mean...if Alex put an ultimatum before shareholders. And then threated to buy TikTok in cash...then I would be FORCED to become FanBoy. I would wear the Shirt and eveything.

 

[TrailerParkTed]

Every fund is allowed one right wing libertarian nut case and Elon Musk's Tesla beat Peter Thiel's Palantir to it.

Why would Peter sell $300 million in stock in May if it’s about the go to the Moon like the PLTR Apes are saying on Reddit? Peter has plenty of money or are there better investments than PLTR? I know it’s just 1/10th of his stake.

 

[vanzandt]

Why would Peter sell $300 million in stock in May if it’s about the go to the Moon like the PLTR Apes are saying on Reddit? Peter has plenty of money or are there better investments than PLTR? I know it’s just 1/10th of his stake.

...I had a feeling that's where this $85 price target originated. That's why I was so harsh on the young man... sometimes you just have to knock some sense into them.

 

[mervyn]

...I had a feeling that's where this $85 price target originated. That's why I was so harsh on the young man... sometimes you just have to knock some sense into them.

in 2021, it was a meme trend to the 30-40 range, among sofi gme amc bbby. lot of wallstreetbet kids yolo “traders”.

 

[TrailerParkTed]

in 2021, it was a meme trend to the 30-40 range, among sofi gme amc bbby. lot of wallstreetbet kids yolo “traders”.

I remember Van and myself bought shortly after the IPO on its drop to $8.4-$9.50 and sold in to the upward fury. The float was a lot lighter, I still remember seeing a 5,000,000 offer at $10 on the NBBO. Good times!

 

[murray t turtle]

I've owned Palantir for a while and it can't seem to reach $30 share which is confusing. It is a veteran player in the AI space, has solid profit and operating margins, lots of government contracts, lots of (and growing) commercial contracts, a partnership with Oracle Software, a backlog of AI bootcamps that they can't keep up with, yet the stock continues to languish.

Anytime Palantir does something good, like increase profit or revenue, an analyst will find a minor point to quibble about like: "Yes Palantir increased earnings and revenue, but we thought it'd be slightly more". Then the market seems to listen to the minor quibble rather than recognize literally huge increases in revenue and profitability.

Within the last month, all of the so called Magnificent 7 stocks have guided toward vastly increasing their investments in AI. While this is great, companies can't take advantage of AI if they don't know how to deploy it. Palantir, among other things, specializes in teaching companies how to use AI to transform their businesses. So shouldn't Palantir be much higher? What am I missing?

%%
Good news + bad news,pro50.
1] Good news =tech sector is one of the very best for valley to peak trends \
but PLTR has a LOT AGAINST It, off 2024 week Hi +off all time hi by a lot\
especially 50dma badly+ underperforming QQQ benchmark.
2] ''Market seems to listen to minor quibble '' \
oops \ frankly that'$ more than a ''minor quibble \persistent closes below50dma,Pro50 .
777 ] \ Oops \did you have a selling plan in case you were wrong + market is right??
{-80} QQQ has had some great runs but its already done a > 80 % drawdowns;
\so many single stocks went to zero.
Hope this helps/ its helped me