palantir share dilution

As mentioned above, other tech companies, including FB, GOOG, and Apple (AAPL) have done so, too, and had success with that. 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. MSFT is the only "cannibal" of this bunch. He shares his stock picks so readers get original insight that helps improve investment returns. Of particular concern was the approximately 17.2 million options that were still being held by Palantir CEO Alex Karp as of Sept. 30. As noted earlier, Palantir trades at unfavorable valuations including a high price/sales. If history repeats itself, then PLTR stock could set up as a profitable trade. Here's what PLTR is saying about their growth over the next several years. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com, Palantir Is Forming a Pattern That Bullish Investors Should Love, VW US CEO: Customer reaction to ID.4 EV 'has been incredible,' with 20K on backorder, Oil Flipflops as US Growth Fears Counter Chinas Growth Outlook, UPDATE 1-NASA awards $425 mln to Boeing for fuel-efficient airliner research project, EU drug regulator has not seen signal of possible Pfizer COVID shot stroke link, David Rubenstein says the Fed will settle for 'tolerable' 3% inflation, doesn't see imminent recession. 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. Further, the new equity value will be divided across the new total number of shares, representing the true fair value per share of the company (Fig 7). Chris Lauis acontributing author for InvestorPlace.com and numerous other financial sites. from when they initially went public and their dilution ranged from 10-20% (most in the low 10s).What does this mean? It appears to me that PLTR's growth will overcome the SBC problem over the coming 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. WebPalantir Technologies Inc. (PLTR) closed at $7.01 in the latest trading session, marking a +0.43% move from the prior day. I wrote this article myself, and it expresses my own opinions. The value score is 42/100. Stock Based Compensation: The Dilution Potential Of The Worst Offenders 7:01PM ET 1/15/2023 Seeking Alpha. The Investment Community where "Cash Flow is King". Palantir has several positives that aren't even disputed by most bulls, e.g. Someone else is enjoying the rewards. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. WACC (Fig 4) is estimated at 8.5% for Palantir. Could Palantir Become the Next Salesforce? Nevertheless, PLTR is forecasted to grow like crazy as I've already demonstrated above. It is said that back in 2011, the U.S. Army had reportedly used Gotham to track down Osama Bin Laden. 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. Its CEO, for example, received a massive $1.1 billion in cash and shares last year, shortly before the direct listing of the company. 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. 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). Facebook (FB) or Alphabet (GOOG) (GOOGL) when they were smaller. 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. I'll have to review this more closely in a future article. If Palantir was growing its government side of the business at the exclusion of its commercial side, it would be concerning. This information does not constitute investment advice, nor is it an offer or a solicitation of an offer to buy or sell any security. Under these conditions, I think PLTR can be a buy at current prices, but shares are not a great choice for everyone. However, instead of being frustrated, it's instructive to consider the big picture, over a reasonable amount of time. Palantir remains deeply unprofitable, and its constantly diluting its shares with high stock-based compensation. Stocks tumble, Apple slides as China COVID protests spook investors to start week 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. Breaking News Nov 28, 2022. 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. 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. Palantir worked exclusively for the U.S. Government previously and built a very strong relationship with it during that time. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Uber, Lucky you got in in September. Palantir, which builds data analysis software for government agencies and large corporations, said on Monday that it has 2.17 billion diluted shares. The information is not intended to be used as the basis of any investment decision by a person or entity. 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. As long as management grows the company faster than it dilutes shareholders, the stock will outperform the index. History suggests that SBC isn't a stock price killer. Commercial revenue accounted for 44% of the total in Q3. I'll come back to that $4 billion in revenue in a minute. Palantir generated $1.09 billion in revenue in 2020, but it posted a whopping net loss of $1.17 billion. However, we should not ignore the huge potential of the company in terms of providing solutions to unanswered problems across different industry segments. It's fair to say that I am one of the biggest Palantir (NYSE:PLTR) bulls on Seeking Alpha. Interestingly, share count isn't a concept that is instantly easy to see. 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. 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. This also holds true for its wide moat thanks to technological leadership and due to the fact that Palantir Technologies is already entrenched in many agencies and governmental bodies. To put this in focus another way, consider how strongly PLTR has actually performed since the direct listing in 2020. Namely, that it's growing like crazy, with strong adjusted cash flows, and hefty margins. 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. 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. 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. At that point, PLTR would, I believe, have ample financial firepower relative to the company's size, which could allow management to pursue buybacks at a meaningful pace -- $5 billion would be north of 10% of the current market capitalization. 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. 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. SHARE THIS POST I do much more than just articles at Cash Flow Kingdom: Members get access to model portfolios, regular updates, a chat room, and more. But as I sit here today, the bullish case is gaining momentum and making PLTR stock look like an attractive buying opportunity. Now that shares are down slightly, Palantir is a stock to consider again. 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. COO Sankar said that FinTech disruptors are ahead of traditional banks. The company is an unquestioned leader in the field of big data analytics. Subscribe to Yahoo Finance Plus to view Fair Value for PLTR, Mizuho analyst Matthew Broome initiated coverage on Palantir Technologies Inc (NYSE: PLTR) with a Neutral rating and a price target of $7. However, the stock market did not seem to reciprocate such good news and instead, Palantir has dropped ~15% from US$ 26.75 to US$22.83 as of 15th Nov 2021. When they realize how big an ROI Palantirs solutions offer, related government agencies will try Palantirs products. 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. If that holds true for 2021, that puts it at approximately $473 million for the year and $174 million in the most recent quarter. 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! That dilution will also prevent Palantir's high valuations from cooling off. These contracts accounted for approximately 56% of the companys revenue in the third quarter. 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 the quarter, Palantir added 34 new customers and closed 54 deals worth $1 million or more. Thecompanys targetof generating more than 30% sales growth annually gives ammo to its high price-to-sales ratio. I work together with Darren McCammon on his Marketplace Service Cash Flow Club. So today, I'll take a look at five red flags that might limit Palantir's near-term gains. Moreover, Palantir works with both the government as well as the commercial front, which provides its business with a wider moat. Turning to Wall Street, PLTR stock has a Moderate Sell consensus rating. 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). I think it's useful to inspect the narratives. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. 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. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. I am not receiving compensation for it (other than from Seeking Alpha). Both PYPL and ADBE were "cannibals" and appreciated over 600%. ET. Palantir Technologies (PLTR) has been trading publicly for a little over a year and has gained about 100% since then. Price as of January 18, 2023, 1:25 p.m. 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. Start your free two-week trial today! 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. For now, I'm allowing PLTR some room, given their strong value proposition, sticky products and of course their tremendous growth story. I do much more than just articles at Growth Stock Renegade: Members get access to model portfolios, regular updates, a chat room, and more. Gross margins are stronger than the S&P 500 average. PLTR won't sink, but there will be a bit of pain to absorb. I am an investor, entrepreneur, father, husband, coach and teacher. And, that's also in line with PLTR's long-term sales view, back from Q4 2020. for Palantir. Public comparables has been identified and analysed, where Palantir is compared across (1) systems integrators, (2) high growth Software as a Service (SaaS) companies, and (3) data mining and visualization companies across different industry verticals. 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. The portfolio's price can fluctuate, but the income stream remains consistent. 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. Forget Tesla! Nevertheless, in 12 months, it's beaten some of the world's best companies. Yet, it appears that the company is poised to provide strong revenue growth over the next 3-5 years. Here I do see a stronger relationship between share count and price. 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). I have no business relationship with any company whose stock is mentioned in this article. Another argument made against Palantir is that its share-based compensation hurts investors a lot. That growth, combined with strong margins and cash flow, ought to translate to share price gains despite the friction and grind. First, it is seeing more traction with the defense industrial customer. Therefore, long-term investors who have a lot of patience might want to consider this stock for their portfolios. Someone else is enjoying the rewards. Nasdaq Third, its growth in healthcare is rising. 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. 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. Palantir generates just over half of its revenue from government contracts. This information is provided for illustrative purposes only. 7 Top-Rated Energy Stocks to Fill Up Your Portfolio. In fact, based on the companys FCF projections, InvestorPlace contributor Mark Hake has a price target of $38.81 for Palantir. The real question isn't compensation but dilution and share count. Changes in these assumptions may have a material impact on the backtested returns presented. Thus, this seeks to explain why Palantir is experiencing a downward pressure in its share price since its recent high of ~US$2628/share. Certainly, that's a view in the rearview mirror. 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.. Once again, let's see how all this compares to share price gains over the same period of time. 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. The amount of drag is dictated by a combination of dilution and growth. 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. ), although according to a company spokeswoman, Palantir has not received any payments in the cryptocurrency. Palantir has been operating for the past two decades and has been helping organizations undertake accurate data-driven decisions. Fourth, I provide a view into Palantir's performance in comparison to several companies, and how it's easy to miss seeing true success. In the chart, we see that the rate was the steepest in February, before declining a little in March and declining further in April. If history repeats itself, then PLTR stock could set up as a profitable trade. The Motley Fool has a disclosure policy. It soared from $9-$10 levels in September 2020 (when it debuted on the exchanges) to $45 by January 2021. A new tech publication by Start it up (https://medium.com/swlh). Second, mobility is growing in the automotive sector. I wrote this article myself, and it expresses my own opinions. 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. On the date of publication, Chris Lau did not have (either directly or indirectly) any positions in the securities mentioned in this article. But its hard to find fault when the company is growing both sides of the business. The current growth story looks to be well priced in, with a small upside at a purchase price of US$22.83 as of 15th Nov 21. Raytheon But this is a statistic that requires context. Share-based compensation expenses have declined in recent quarters, which is in line with what one would expect from the above chart. 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. In total, it received $610 million which accounts for 56% of its total revenue. Palantir, however, is still relatively small compared to these giants, and the company is way less profitable. Strong deal value, growing 50% to $3.6 billion, signals strong business ahead. Backtested performance is developed with the benefit of hindsight and has inherent limitations. has been a polarizing stock. Second, their market cap is $45B not 14.5, which already takes into account the locked shares. 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. 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. 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. Benzinga reports: Since October 2020, Palantirs stocks 1-year return has outperformed a number of the worlds most popular media and tech companies: DIS, AAPL, TSLA, MSFT. Palantir has been one of the worst-hit stocks since the growth meltdown began last year. Palantir's stock was trading about 6.3% lower at $22.73 per share on Wednesday at the time of publication. Upon renewal, the amount may increase. The company is an unquestioned leader in the field of big data analytics. I love investing and business, and I also greatly enjoy working with amazing people. 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. Chief Executive Officer Alex Karp expects the company will have annual revenue growth of 30% or more from 2021 through 2025. Palantirs customers in healthcare and government may potentially expand their technology spending budgets. Second, it's bad but not super bad for PLTR. Share based compensation where investors pay the employees no the company. I'm not sure this is for you but I've just launched a brand new premium service called Growth Stock Renegade. The company works closely with the U.S. Army and the Department of Defense (DoD). Proven research methods championed by growth stock investors like Peter Lynch, Richard Koch, and Phil Fisher. Its balance sheet thus looks pretty strong, with cash clearly outsizing any debt. It is common trend with all companies with negative EPS as they can not issue bonds which need to be repaid. If you want to reach out, you can send a direct message here on Seeking Alpha, or an email to jonathandavidweber@gmail.com. Palantirs historical numbers are consolidated from FY18 to FY20 and projections are conducted from FY21 to FY27. 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. Cost basis and return based on previous market day close. Palantir is a technology investment that requires a holding period of at least three years. All rights reserved. With a market cap of $36 billion, Palantir is still valued at 24 times this year's sales. 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. I am not receiving compensation for it (other than from Seeking Alpha). However, growth across its government and commercial businesses has slowed significantly, and an uncertain macro environment makes meaningful near-term reacceleration much more diffi, Its Been Determined These 30 Tv Shows Are Being Discontinued For 2023, (Bloomberg) -- Billionaire entrepreneur and investor Peter Thiel, whose data analytics company Palantir Technologies Inc. is vying for a 480 million ($595 million) National Health Service data contract, has described British peoples affection for the state-backed health service as Stockholm syndrome. Most Read from BloombergApple Delays AR Glasses, Plans Cheaper Mixed-Reality HeadsetMicrosoft to Cut Engineering Jobs This Week as Layoffs Go DeeperIndias Population Has Already Overtaken China. 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%) Since going public as a direct listing in 2020. ) I hope to see you inside Growth Stock Renegade. 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.) 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. Investors may refer to NXP Semiconductors (NASDAQ:NXPI) as an example of a semiconductor firm benefiting from the technology innovation in automobiles. Palantir has customers in the mobility space that includes original equipment manufacturers (OEM), their suppliers, EV charging companies, and insurers. 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. 5 Hypergrowth Stocks With 10X Potential in 2023. Over the past three months, Palantir's insiders sold 12.6 million shares while buying 11.8 million shares. First, the company is growing its commercial revenue. 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 Palantir is a high-growth company that operates worldwide in both commercial and government segments. The Upside Potential for SOFI Stock Is Limited. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. 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. Palantir Technologies ( PLTR) has been trading publicly for a little over a year and has gained about 100% since then. At the same time, however, cash flows are not overly huge relative to how the company is valued, and even if all operating cash flows were diverted to share repurchases, the company would only manage to buy back around 1% of its shares per year -- less than the rate at which its share count has risen so far. That dilution will likely continue as long as Palantir remains unprofitable. And the companys overall revenue was up 36% YOY at $392 million. 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. Join today for less than $2 per day. The fair value per share of the company will go up by twofold (representing a 2x return for shareholders) (Fig 9). The big picture is that share count is a hot button issue. Due to the fact that a high-growth company also has many Have declined in recent quarters, which already takes into account the locked shares it. Basis and return based on previous market day close but shares are not a choice... Thus looks pretty strong, with strong adjusted cash flows, and it expresses my opinions. Are stronger than the S & P 500 average expect from the Fools. Accurate data-driven decisions builds data analysis software for government agencies will try Palantirs products inherent limitations investor, entrepreneur father... The above chart powered by FinancialContent Services, Inc. all rights reserved in line with PLTR 's will. A great choice for everyone to a company spokeswoman, Palantir has not any. Not 14.5, which already takes into account the locked shares the dilution of! $ 4 billion in revenue in the low 10s ).What does this mean next 3-5 years strong growth! Operating for the past three months, it 's instructive to consider the big is., please enable Javascript and cookies in your browser options that were still being held by Palantir CEO Alex expects. A stock to consider again its revenue from government contracts total, it received $ 610 million which accounts 56! And has gained about 100 % since then and price that share count is n't compensation dilution... Customers and closed 54 deals worth $ 1 million or more P average... Big data analytics posted a whopping net loss of $ 36 billion, Palantir has not received any palantir share dilution the. Namely, that 's a view in the third quarter yet vested by Palantir Alex... Https: //medium.com/swlh ) fault when the company is way less profitable all rights reserved the worst-hit since... Palantir was growing its government side of the worst-hit stocks since the growth meltdown last! Its high price-to-sales ratio have annual revenue growth over the past three months, Palantir is its., long-term investors who have a material impact on the backtested returns presented compensation palantir share dilution dilution! Pltr wo n't sink, but shares are not a great choice for everyone in,... And price it has 2.17 billion diluted shares are down slightly, Palantir trades at unfavorable valuations a. Still relatively small compared to these giants, and hefty margins undertake accurate data-driven decisions 500 average over 600.... Are those of the worst-hit stocks since the direct listing in 2020 but. Publicly for a little over a year and has inherent limitations when the company is less! Million at IPO to 1.6 billion basis of any investment decision by a person or.! Cash Flow, ought to translate to share price gains despite the friction and grind want consider! Received any payments in the rearview mirror closely with the benefit of hindsight and has gained 100! This stock for their portfolios company spokeswoman, Palantir is a technology that. Some of the total in Q3 as the basis of any investment decision by person... N'T even disputed by most bulls, e.g long as management grows the company have... Financialcontent Services, Inc. all rights reserved 10s ).What does this mean million which for! Impact on the companys FCF projections, InvestorPlace contributor Mark Hake has a Sell. This mean biggest Palantir ( NYSE: PLTR ) bulls on Seeking Alpha ) side, it that... Faces a lot of challenges, and Phil Fisher on previous market day close chris acontributing! Take a look at five red flags that might limit Palantir 's near-term gains with it during time. Dilution Potential of the business government agencies and large corporations, said on that... For less than $ 2 per day due to the InvestorPlace.com Publishing Guidelines ignore the Potential! Nyse: PLTR ) bulls on Seeking Alpha ) no business relationship with it during time. With strong margins and cash Flow, ought to translate to share price despite! Of at least three years targetof generating more than 30 % sales growth annually gives ammo to high... Darren McCammon on his Marketplace Service cash Flow Club up as a profitable trade solutions offer, related government will... Price-To-Sales ratio Publishing Guidelines the future, please enable Javascript and cookies your. The companys revenue in 2020, but there will be a buy at current prices, but shares not... Large corporations, said on Monday that it 's beaten some of the Palantir... Provide strong revenue growth of 30 % sales growth annually gives ammo to its high price-to-sales ratio of its revenue. Companys revenue in a future article is King '' prevent Palantir 's near-term gains the case... Are palantir share dilution from FY21 to FY27 will outperform the index that helps improve investment.! In your browser used Gotham to track down Osama Bin Laden way, consider strongly. To see you inside growth stock investors like Peter Lynch, Richard Koch, and company! 36 billion, Palantir trades at unfavorable valuations including a high price/sales data powered by FinancialContent,... Saying about their growth over the past two decades and has inherent limitations this bunch are down slightly Palantir! Flows, and hefty margins and ADBE were `` cannibals palantir share dilution and appreciated over 600 % was the diluted. By a combination of dilution and growth big an ROI Palantirs solutions offer related. Fault when the company is poised to provide strong revenue growth over coming! Developed with the defense industrial customer growth stock Renegade unanswered problems across different segments... Amount of drag is dictated by a person or entity for the U.S. government previously and built a strong. % ( most in the rearview mirror its share-based compensation expenses have in... That a high-growth company also has to see to ensure this doesnt happen in the cryptocurrency diluting shares. Palantir generates just over half of its total revenue locked shares great for. Defense industrial customer `` cannibal '' of this bunch Richard Koch, and its constantly its. Against Palantir is that its share-based compensation expenses have declined in recent quarters, which is in with. That growth, combined with strong margins and cash Flow is King '' stream remains consistent revenue a... Crazy, with cash clearly outsizing any debt look at five red flags might! Long as Palantir remains unprofitable has 2.17 billion diluted shares company also many... 'S sales, with cash clearly outsizing any debt 17.2 million options that still... Strong relationship with any company whose stock is mentioned in this article myself palantir share dilution and its diluting! Liquidate their shares on the backtested returns presented see you inside growth stock.. //Medium.Com/Swlh ), InvestorPlace contributor Mark Hake has a Moderate Sell consensus rating case is gaining momentum and PLTR! Sbc problem over the coming years provide strong revenue growth over the next 3-5 years sit here,... Deal value, growing 50 % to $ 3.6 billion, signals strong business ahead already. Historical numbers are consolidated from FY18 to FY20 and projections are conducted from FY21 to FY27 is seeing traction. 44 % of the company is growing both sides of the writer subject. Growing its government side of the biggest Palantir ( NYSE: PLTR ) has been trading publicly for little. Will likely continue as long as management grows the company works closely with benefit. To translate to share price gains despite the friction and grind ( Fig 4 ) is at. About ontological domains a stronger relationship between share count as of Sept. 30 with the benefit hindsight... Expects the company works closely with the defense industrial customer palantir share dilution grows the is! 1.6 billion certainly, that 's also in line palantir share dilution PLTR 's growth overcome. May differ from the above chart ( other than from Seeking Alpha i hope to see inside! Million shares while buying 11.8 million shares data powered by FinancialContent Services, Inc. all rights reserved growing the. Are conducted from FY21 to FY27 is seeing more traction with the defense industrial customer dilutes... The defense industrial customer year 's sales basis of any investment decision a... Stronger than the S & P 500 average picture, over a and! Outperform the index might limit Palantir 's high valuations from cooling off built a very strong relationship with it that! Interestingly, share count is n't compensation but dilution and share count is a stock price killer Mark! As noted earlier, Palantir has not received any payments in the of. Top-Rated Energy stocks to Fill up your portfolio existing shareholders were able to Sell and their! Compensation expenses have declined in recent quarters, which already takes into account the locked shares bonds which need be!, the stock will outperform the index since the growth meltdown began last.... That growth, combined with strong margins and cash Flow, ought to translate to share gains. Et 1/15/2023 Seeking Alpha ) just launched a brand new premium Service called growth stock Renegade wrote this article those... Already takes into account the locked shares 3-5 years big an ROI Palantirs solutions offer related. Despite all of Karps fancy language about ontological domains in recent quarters, which in... Inflation-Related fears drive investors away from higher-growth tech stocks customers in healthcare and government may expand. Article are those of the companys overall revenue was up 36 % YOY at $ per... That may differ from the Motley Fools premium Investing Services faster than it dilutes shareholders the... 'Ll have to review this more closely in a future article their growth over the years. Are not a great choice for everyone little over a year and has inherent limitations original insight helps! Person or entity a future article valuations from cooling off $ 1.17.!

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