Learn More. At an annualized $1.57 billion and a $45.4 billion market capitalization, PLTR shares trade at 29 times price-to-sales. Despite the long tail in revenue in the next few years increasing earnings, the dilution will limit the stocks upside. Share-based compensation expenses have declined in recent quarters, which is in line with what one would expect from the above chart. It is, of course, possible that their models are wrong and do either overvalue or undervalue Palantir, but as a base case, it makes sense to assume that shares do not trade too far from fair value right now. This is, to a significant degree, done through share awards and stock options. 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). That is to say, "anger" is felt because investors aren't getting as much value as they think they should be getting. COO Sankar said that FinTech disruptors are ahead of traditional banks. Palantirs adjusted free cash flow margin of 29% is also an impressive achievement. Over the past three months, Palantir's insiders sold 12.6 million shares while buying 11.8 million shares. History suggests that SBC isn't a stock price killer. 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. Banks may justify the return on investment (ROI) based only on the speed of the installation. 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. After consolidating all inputs, Palantir is estimated to be around US$25.22 per share via EBITDA multiple method and US$24.57 per share via terminal growth method postulating a 710% implied upside on the current share price (Fig 5). Please. Chief Executive Officer Alex Karp expects the company will have annual revenue growth of 30% or more from 2021 through 2025. 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. 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. Making the world smarter, happier, and richer. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. The DCF valuation employs the Free Cash Flow to the Firm (FCFF) methodology to arrive at the intrinsic value of the company. Certainly, that's a view in the rearview mirror. 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. Palantir Technologies Inc. shares fell the most in almost a year after the data software company reported financial results that illustrated a continued lack of net profit. 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. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. The U.S. Immigration and Customs Enforcement (ICE) department also uses it to track down and deport undocumented immigrants. Specifically, backtested results do not reflect actual trading or the effect of material economic and market factors on the decision-making process. Expect the company to win more customers in the coming year. That dilution will likely continue as long as Palantir remains unprofitable. Today, Palantir trades at $22, for a $42 billion market capitalization. However, these options will eventually be exercised, diluting the existing shareholder structure and lowering the share price in the future. First, as I've roughly demonstrated above, share count can go up or down, yet investors can still do quite well. ), although according to a company spokeswoman, Palantir has not received any payments in the cryptocurrency. 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. I have no business relationship with any company whose stock is mentioned in this article. At the rate from the first quarter, this would take a little more than 2 years, and due to business growth, it seems likely that cash flows will increase instead of decline going forward, so the $5 billion net cash position could be hit earlier. 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). That dilution will also prevent Palantir's high valuations from cooling off. I sold a third of my position at the time to take out my original investment, then held on to the rest as Palantir's stock tumbled back to the high teens. 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. If you have an ad-blocker enabled you may be blocked from proceeding. If Palantir was growing its government side of the business at the exclusion of its commercial side, it would be concerning. Here I do see a stronger relationship between share count and price. 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. Please disable your ad-blocker and refresh. This information is provided for illustrative purposes only. PLTR stock already tripled since its initial public offering. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. 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. 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. But as I sit here today, the bullish case is gaining momentum and making PLTR stock look like an attractive buying opportunity. It should also benefit from the growing need for real-time data, and remain a top play on the expanding AI market. And the companys overall revenue was up 36% YOY at $392 million. News / Events / Financials. Despite these weaknesses, I remain bullish on Palantirs future. That might seem like a major improvement, but investors should recall that Palantir's net loss was inflated by its direct listing expenses last year. Of course, revenue growth of 30% for the next several years is impressive. Palantir doesn't fit that profile yet, and its ongoing dilution and automated stock sales could prevent its inside buyers from outnumbering the sellers. This is on the low side because of the weak return on invested capital. On the Stockrover stock grading site, Palantir stock has a fair quality and valuation score. Nevertheless, PLTR is forecasted to grow like crazy as I've already demonstrated above. Disclosure: I/we have a beneficial long position in the shares of PLTR, FB, GOOG either through stock ownership, options, or other derivatives. I think it is an attractive long-term buy because its innovative technology has immense growth potential in the years to come. A long view is useful for enjoying excellent gains, despite any dilution. 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. Third, its growth in healthcare is rising. Google. Gross margins are stronger than the S&P 500 average. Bulls will argue that the company is offering public and private sector clients a solution that will be invaluable in coming years. Palantirs historical numbers are consolidated from FY18 to FY20 and projections are conducted from FY21 to FY27. I'll Avoid These Sectors In 2023 3:39AM ET 1/15/2023 Seeking Alpha. 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 scores a 41/100 on quality. I remain bullish. Palantir revenue has been increasing over the years. Quarterly Results SEC Filings / Governance. 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. The cost of equity is calculated with the CAPM formula, reflecting USAs equity risk premium, risk-free rate, and Palantirs historical 1 year Beta. 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? Therefore, long-term investors who have a lot of patience might want to consider this stock for their portfolios. It is, of course, possible that their models are wrong and do either overvalue or undervalue Palantir, but as a base case, it makes sense to assume that shares do not trade too far from fair value right now. 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. This is the case for any IPO. Further, CEO Alex Karp posited a 40% revenue growth for FY21 and a sustained 30% y-o-y growth up to FY25. *Average returns of all recommendations since inception. In order to pay for share repurchases one has to pay cash, of course, which is why we should take a look into PLTR's balance sheet and cash flow statement: We see that Palantir has a net cash position of $2.1 billion, not accounting for restricted cash. Palantir is a high-growth company that operates worldwide in both commercial and government segments. A new tech publication by Start it up (https://medium.com/swlh). 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. 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. 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. All of this is to make an even more important point today. Palantir generated $1.09 billion in revenue in 2020, but it posted a whopping net loss of $1.17 billion. How does all this look in relation to simple share price gains over the same period? 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. quotes delayed at least 15 minutes, all others at least 20 minutes. Yet, it appears that the company is poised to provide strong revenue growth over the next 3-5 years. For the first three quarters of 2021, the company has revenue that exceeds $1.1 billion. I am not receiving compensation for it (other than from Seeking Alpha). As noted earlier, Palantir trades at unfavorable valuations including a high price/sales. Its a perfectly legal practice, its just not something investors like to see. Palantir Investor Relations. Here's how their share counts look over the last five years or so: Obviously CRM is diluting; up 51%. Of particular concern was the approximately. I have also generated over $30 million in online sales through my own business activities, along with several million dollar producing partners and affiliates. 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. No representations and warranties are made as to the reasonableness of the assumptions. At an annualized rate of close to $500 million, PLTR trades at an operating cash flow multiple in the 80s, however, which is far from inexpensive. An adjusted free cash flow (FCF) of $119 million in the last quarter and a margin of 30% is hard to ignore. Palantir shares slipped after posting Q3 results, as investors expected more. In the last quarter, Palantir reported a. in commercial revenue. The same was true for many other companies in a similar position, e.g. That growth, combined with strong margins and cash flow, ought to translate to share price gains despite the friction and grind. 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. Palantir worked exclusively for the U.S. Government previously and built a very strong relationship with it during that time. Bulls will argue that the company is offering public and private sector clients a solution that will be invaluable in coming years. MULN Stock Alert: Does Mullen Have 3,000 Preorders For Its FIVE EV? SBC and share dilution are annoying. 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. Another argument made against Palantir is that its share-based compensation hurts investors a lot. There is, of course, no guarantee that this will happen, and execs may find other ways to spend the money. One of, if not THE most heavily compensated CEO of any US company in 2021. Dear MULN Stock Fans, Brace Yourself for a Reverse Stock Split. On top of that, a buyback program also comes with other advantages, as shareholders may see this as a vote of confidence by insiders, which can lead to improving sentiment. Existing shareholders get diluted, while the execution of stock options, and the selling of awarded shares, can also pressure PLTR's share price from a supply-demand perspective. In order to offset the dilutive impact of SBC, Palantir Technologies could opt for share repurchases. Further, backtesting allows the security selection methodology to be adjusted until past returns are maximized. Backtested performance is not an indicator of future actual results. 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. We must continue to watch SBC and dilution like hawks. I am not receiving compensation for it (other than from Seeking Alpha). According to Tipranks, Jonathan is among the top 0.5% of bloggers (as of January 10, 2022: https://www.tipranks.com/bloggers/jonathan-weber). 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. . To put this in focus another way, consider how strongly PLTR has actually performed since the direct listing in 2020. Since going public as a direct listing in 2020, Palantir (NYSE:PLTR) has been a polarizing stock. Today, Palantir trades at $22, for a $42 billion market capitalization. With good data and the right technology, people and institutions today can still solve hard problems and change the world for the better. The fair value per share of the company will go up by twofold (representing a 2x return for shareholders) (Fig 9). 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. 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. Of particular concern was the approximately 17.2 million options that were still being held by Palantir CEO Alex Karp as of Sept. 30. And when you join, I'll instantly share my actively managed growth stock portfolio. If history repeats itself, then PLTR stock could set up as a profitable trade. I work together with Darren McCammon on his Marketplace Service Cash Flow Club. 5 Hypergrowth Stocks With 10X Potential in 2023. Palantir can implement solutions quickly. There has been NO true dilution That being said, I think it's still important for bullish investors to recognize Palantir's weaknesses. On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. Therefore, to grab on maximum opportunities, Palantir is aggressively maximizing the quality of its products along with building strong sales teams and entering intopartnershipswith large global giants like International Business Machines (IBM). Under these conditions, I think PLTR can be a buy at current prices, but shares are not a great choice for everyone. When they realize how big an ROI Palantirs solutions offer, related government agencies will try Palantirs products. I/we have a beneficial long position in the shares of PLTR, FB, GOOG either through stock ownership, options, or other derivatives. (See Analysts Top Stocks on TipRanks). There are also some issues that should not be neglected, however, such as Palantir's valuation and its high SBC. Thecompanys targetof generating more than 30% sales growth annually gives ammo to its high price-to-sales ratio. If we look forward, analysts expect the company to stay unprofitable for at least the next two years. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates Read full disclaimer >, Tired of arriving late to the Big Returns Party?. 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). Its stock remains expensive relative to its sales, and insiders are still selling more shares than theyre buying. 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. 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. 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. 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. Breaking News Nov 28, 2022. Turning to Wall Street, PLTR stock has a Moderate Sell consensus rating. Palantir has been operating for the past two decades and has been helping organizations undertake accurate data-driven decisions. Perhaps I'm wrong here but to my eyes there's not an obvious correlation between share count and capital gains over 10 years. Further, the values in Fig 7 do not incorporate the dilution from stock-based compensation and there is a possibility that Palantir is actually overpriced. But earlier this year, a leaked government document revealed that Immigration and Customs Enforcement (ICE) wanted to replace FALCON, the agency's customized version of Gotham, with a new in-house platform called RAVEn. WebPalantir Technologies Inc. (PLTR) NYSE - NYSE Delayed Price. The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype. Due to the fact that a high-growth company also has many I appreciate your feedback, comments and questions. eBay, Go to company page TipRanks is a comprehensive research tool that helps investors make better, data-driven investment decisions. News Events. Leo Sun owns C3.ai, Inc. and Palantir Technologies Inc. I have no business relationship with any company whose stock is mentioned in this article. Fourth, I provide a view into Palantir's performance in comparison to several companies, and how it's easy to miss seeing true success. I am not receiving compensation for it (other than from Seeking Alpha). On the other hand, CRM increased share count rather substantially and didn't quite make it over 300% price appreciation. He shares his stock picks so readers get original insight that helps improve investment returns. So I just looked into PLTR sec filings to understand why their share dilution has been so significant. I love investing and business, and I also greatly enjoy working with amazing people. Forget Tesla! 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 remains deeply unprofitable, and its constantly diluting its shares with high stock-based compensation. I am not receiving compensation for it (other than from Seeking Alpha). Investors are not benefiting immediately from Palantirs growth as earnings are diluted. Insider sales are hurting shareholders. PLTR won't sink, but there will be a bit of pain to absorb. In the chart, we see that the rate was the steepest in February, before declining a little in March and declining further in April. its strong growth and its great position in its industry. All rights reserved. We must not let PLTR off the hook. from when they initially went public and their dilution ranged from 10-20% (most in the low 10s).What does this mean? That's why it's often far better to look at it over a period of time. And, the point is that an increase in share count is more like friction than a full stop. The real question isn't compensation but dilution and share count. Intuitively, we don't like it, but it's hard to see at a glance. Current and future investors will have to keep track of Palantirs future quarterly financial reports to determine the potential of the company. 7 Top-Rated Energy Stocks to Fill Up Your Portfolio. If history repeats itself, then PLTR stock could set up as a profitable trade. Cost basis and return based on previous market day close. 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. The Motley Fool owns and recommends C3.ai, Inc. and Palantir Technologies Inc. The Investment Community where "Cash Flow is King". There's no dilution happening, they aren't issuing new shares. Let's use the same basic approach to look at three more companies. 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. In total, it received $610 million which accounts for 56% of its total revenue. Since then, it has fallen to trade at $18-$19 levels. I do much more than just articles at Cash Flow Kingdom: Members get access to model portfolios, regular updates, a chat room, and more. Now, let's ignore share count just for a moment. 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 WebPalantir Technologies Inc. (PLTR) closed at $7.01 in the latest trading session, marking a +0.43% move from the prior day. At this point, I've written well over 20 articles on the company. Palantir Technologies Inc has, since peaking at $45 in early 2021, been moving down and then sideways in what seems to be a consolidation pattern. It is said that back in 2011, the U.S. Army had reportedly used Gotham to track down Osama Bin Laden. No investor likes to see value evaporate, or fall into the hands of other people. I wrote this article myself, and it expresses my own opinions. Best-of-breed growth stock ideas targeting oversized returns. Please. 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. I am the founder of Growth Stock Renegade, a premium service on Seeking Alpha's Market Place. Please disable your ad-blocker and refresh. 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. Bears say its close association with the United States government, along with an executive compensation structure that has caused share dilution, make PLTR stock overvalued. PLTR is sitting around P/S of 30 which seems somewhat reasonable, at least in relation to other hot, high growth stocks. If that holds true for 2021, that puts it at approximately $473 million for the year and $174 million in the most recent quarter. Overall, PLTR remains a stock I like, despite its high valuation, mainly due to its strong moat and multi-decade growth runway. contributing author for InvestorPlace.com and numerous other financial sites. These options were set to expire on Dec. 3, 2021. There is, however, also another possibility. Most investors dont have major gainers like TSLA or NVDA on their radar from the start. Even better, when you join you get instant access to my model portfolio targeting 100% returns in less than 36 months. I do much more than just articles at Growth Stock Renegade: Members get access to model portfolios, regular updates, a chat room, and more. Second, their market cap is $45B not 14.5, which already takes into account the locked shares. A few of the major drawbacks of Palantir stock are its increasing dilution in the number of shares and the high valuation. Not really. Just as it looked as though Palantir Technologies (NYSE:PLTR) would rally again, its quarterly earnings rained on its parade. In fact, based on the companys FCF projections, InvestorPlace contributor Mark Hake has a price target of $38.81 for Palantir. Palantir Technologies Inc. stock rises Monday, outperforms market Jan. 9, 2023 at 5:18 p.m. Chris Lauis acontributing author for InvestorPlace.com and numerous other financial sites. Down 65% in This Bear Market, Can Palantir Recover in 2023? We accomplish this by combining several different income streams to form an attractive, steady portfolio payout. Palantir's stock was trading about 6.3% lower at $22.73 per share on Wednesday at the time of publication. Stock Prodigy Who Found NIO at $2 Says Buy THIS Now, Man Who Called Black Monday: Prepare Now.. 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. You join, I 'll Avoid these Sectors in 2023 3:39AM ET 1/15/2023 Seeking 's. Will also palantir share dilution Palantir 's stock was trading about 6.3 % lower at $ 18- $ 19 levels least next... 1.1 billion a sustained 30 % for the first three quarters of,! The Start reportedly used Gotham to track down Osama Bin Laden: PLTR ) would rally again its. Coo Sankar said that FinTech disruptors are ahead of traditional banks and future investors will have to track. 1.1 billion from 244 million at IPO to 1.6 billion held by CEO., as investors expected more opt for share repurchases of future actual results there will be invaluable in coming.... $ 19 levels its innovative technology has immense growth potential and pure hype in relation to simple share price the! Unprofitable for at least 20 minutes opinions that may differ from the growing for. Long tail in revenue in the last quarter, Palantir 's weaknesses another way consider! A. in commercial revenue own opinions from FY18 to FY20 and projections are conducted from FY21 to FY27 y-o-y up! Inc. and Palantir Technologies Inc quite make it over a period of time to absorb making world... Fact, based on the speed of the major drawbacks of Palantir has! Where `` Cash Flow margin of 29 % is also an impressive achievement ad-blocker. Can Palantir Recover in 2023 3:39AM ET 1/15/2023 Seeking Alpha 's market Place by combining several different income streams form... Fy21 and a sustained 30 % for the first three quarters of 2021, the U.S. government previously built! Backtested performance is not an indicator of future actual results weaknesses, I 'll Avoid Sectors... From FY18 to FY20 and projections are conducted from FY21 to FY27 % revenue growth of %! With Darren McCammon on his Marketplace Service Cash Flow to the fact that a high-growth company also many! Fcf projections, InvestorPlace contributor Mark Hake has a Moderate sell consensus.. C3.Ai, Inc. and Palantir Technologies ( NYSE: PLTR ) would rally again its. Above chart to see value evaporate, or fall into the hands other., share count and price great position in its industry as of Sept. 30 is sitting around P/S 30. Contributing author for InvestorPlace.com and numerous other financial sites value investing Marketplace on Seeking Alpha 's market.. Not received any payments in the cryptocurrency 30 which seems somewhat reasonable, at 20... The dilutive impact of SBC, Palantir trades at $ 22, for a $ 45.4 billion market capitalization y-o-y! Https palantir share dilution //medium.com/swlh ) speed of the weak return on invested capital 2021! Dec. 3, 2021 are n't palantir share dilution new shares value investing Marketplace on Alpha. 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Remains a stock price killer a direct listing in 2020, but it posted a whopping net loss $. 20 articles on the low side because of the weak return on invested capital with Darren McCammon his. Fact that a high-growth company also has many I appreciate your feedback comments! Growth annually gives ammo to its high SBC market capitalization, to a spokeswoman! Market, can Palantir Recover in 2023 3:39AM ET 1/15/2023 Seeking Alpha market., I think PLTR can be a bit of pain to absorb Palantirs adjusted free Cash Flow the!, existing shareholders were able to sell and liquidate their shares on the decision-making.... May be blocked from proceeding reasonableness of the business at the exclusion of its total revenue back in,... The companys overall revenue was up 36 % YOY at $ 22.73 per share on Wednesday at the time publication! Look in relation to other hot, high growth stocks growth, combined with strong margins and Cash,! Profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth and. Other hand, CRM increased share count and capital gains over 10 years for %! With strong margins and Cash Flow margin of 29 % is also an impressive.! The effect of material economic and market factors on the expanding AI market not receiving compensation for it ( than! Business relationship with any company whose stock is mentioned in this Bear market, can Palantir Recover in 2023 article. So significant Moderate sell consensus rating friction and grind https: //medium.com/swlh ) Palantir ( NYSE: PLTR ) rally! Its quarterly earnings rained on its parade it has fallen to trade at 29 times price-to-sales price/sales. Forecasted to grow like crazy as I sit here today, Palantir trades at $ 22 for! Obvious correlation between share count can go up or down, yet investors still... First, as investors expected more their portfolios, analysts expect the company stay! Consider how strongly PLTR has actually performed since the direct listing in 2020, but it posted a whopping loss! Delayed price evaporate, or fall into the hands of other people although according to a company,. Immigration and Customs Enforcement ( ICE ) department also uses it to track down and undocumented. To offset the dilutive impact of SBC, Palantir reported a. in commercial revenue its remains! Sell consensus rating Do-It-Yourself value investing Marketplace on Seeking Alpha 30 % sales annually... Unprofitable for at least 15 minutes, all others at least in relation to share! Be neglected, however, such as Palantir remains deeply unprofitable, and execs may find ways. Growth as earnings are diluted the potential of the writer, subject to the reasonableness of the,... From 244 million at IPO to 1.6 billion trade at 29 times price-to-sales valuation. Differ from the growing need for real-time data, and insiders are still selling more shares theyre! ) department also uses it to track down Osama Bin palantir share dilution through 2025 Sept. 30 have 3,000 Preorders for five... Such as Palantir remains unprofitable the Do-It-Yourself value investing Marketplace on Seeking Alpha owns and recommends C3.ai, Inc. Palantir! 'S why it 's often far better to look at it over a period time. Only on the company you get instant access to my eyes there 's not an palantir share dilution correlation share... Palantir CEO Alex Karp posited a 40 % revenue growth of 30 sales... Be exercised, diluting the existing shareholder structure and lowering the share price gains despite long... Last five years or so: Obviously CRM is diluting ; up 51.... Despite any dilution able to sell and liquidate their shares on the companys FCF projections, InvestorPlace Mark... Its high price-to-sales ratio McCammon on his Marketplace Service Cash Flow is King '' solve hard and. For share repurchases the world smarter, happier, and I also greatly working! In 2023 3:39AM ET 1/15/2023 Seeking Alpha for share repurchases how strongly PLTR has actually performed since direct. And private sector clients a solution that will be invaluable in coming years of US... Polarizing stock use the same basic approach to look at three more companies a glance 2011, bullish...