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. (Cognitive Computing) ET by MarketWatch Automation Venture Capital Unicorns Grew by Leaps and Bounds. MULN Stock Alert: Why Are Investors Suing Mullen Automotive? So been balls deep in Palantir since it went public in September. Palantirs customers in healthcare and government may potentially expand their technology spending budgets. And the companys overall revenue was up 36% YOY at $392 million. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. This information does not constitute investment advice, nor is it an offer or a solicitation of an offer to buy or sell any security. Here's how their share counts look over the last five years or so: Obviously CRM is diluting; up 51%. A new tech publication by Start it up (https://medium.com/swlh). Luke Lango will reveal how you could start collecting cash payouts like $4,600 in 48 days or $12,000 in 21 days, without touching risky options or any other confusing investments. It's still a major thorn in my side. On the Stockrover stock grading site, Palantir stock has a fair quality and valuation score. 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. 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. 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). Palantir has customers in the mobility space that includes original equipment manufacturers (OEM), their suppliers, EV charging companies, and insurers. Really, the point is that PLTR's racing toward at least $4 billion in revenue by 2025 and various multiples make it clear to me that PLTR will continue to appreciate in price as a result. has been a polarizing stock. Buyer Beware! This will help the company offer governments the option to identify compliance issues with banks. 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. If the management allocates corporate capital to the repurchase of over priced stock to offset dilution, then this amounts to a misallocation of corporate capital because there is a significant reduction in corporate capital to be reinvested in OPEX and CAPEX in order to stimulate growth. 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.. For example, Palantir is helping the National Health Service (NHS) analyze information for millions of patients. Since going public as a direct listing in 2020, Palantir (NYSE:PLTR) has been a polarizing stock. And, it's also a powerful recruiting and retention tool. Dear MULN Stock Fans, Brace Yourself for a Reverse Stock Split. As the company relies heavily on stock-based compensation, its number of weighted average shares has been rapidly increasing over the period. The Motley Fool has a disclosure policy. Second, it's bad but not super bad for PLTR. Uber, Lucky you got in in September. Palantir Might Be Worth the Buy for Patient Investors. Secondly, its a non-cash expense, so Palantir doesnt technically have to outlay any cash to pay for these expenses, so its ability to generate cash flow from operations is not hindered and this would help the company to reinvest in itself. 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. Of course, revenue growth of 30% for the next several years is impressive. Palantir worked exclusively for the U.S. Government previously and built a very strong relationship with it during that time. Governance Documents Executive Management Board of Directors Committee Composition / Resources. (3)A quick transition into selling modular solution so that they are able to stack SaaS pricing and onboard more customers that arent willing to fork out a huge initial amount for the companys solutions. 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. 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.) Within the first nine months of 2021, the companys number of weighted average shares has increased by 165% year-over-year. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. So been balls deep in Palantir since it went public in September. First, the company is growing its commercial revenue. One way to reduce the impact of SBC would be to lower issuance, i.e. Once again, let's see how all this compares to share price gains over the same period of time. On the date of publication, Chris Lau did not have (either directly or indirectly) any positions in the securities mentioned in this article. No investor likes to see value evaporate, or fall into the hands of other people. That's the point. The U.S. Immigration and Customs Enforcement (ICE) department also uses it to track down and deport undocumented immigrants. 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. Firstly, compensation via stock is a great way to incentivize employees through ownership of what they create. The Motley Fool owns and recommends C3.ai, Inc. and Palantir Technologies Inc. Thankfully for them, government contracts last many years. 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?. Thanks for pointing this out. But this is a statistic that requires context. This represents a further downside from both current share price and the initial fair value per share of the company and thus, Palantir is possibly overvalued at its current share price. This information is provided for illustrative purposes only. I have no business relationship with any company whose stock is mentioned in this article. The amount of drag is dictated by a combination of dilution and growth. PLTR's unique software can create significant operational value for its customers, and ongoing global disruptions like the pandemic and war can help to catalyze adoption further. Stocks tumble, Apple slides as China COVID protests spook investors to start week Both PYPL and ADBE were "cannibals" and appreciated over 600%. Palantir had a share price of $30. The mature software stocks trade at a bigger market capitalization and have slower growth. 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. PLTR is sitting around P/S of 30 which seems somewhat reasonable, at least in relation to other hot, high growth stocks. Perhaps surprisingly, both PYPL and ADBE have fewer shares outstanding now than earlier, and that's despite being high growth companies. 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. The potential In the quarter, Palantir added 34 new customers and closed 54 deals worth $1 million or more. I am not receiving compensation for it (other than from Seeking Alpha). Does it make it a bad investment? 2023 InvestorPlace Media, LLC. 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%) Nevertheless, 287% is still quite robust. Cost basis and return based on previous market day close. Third, there's a good reason for SBC and therefore share dilution. Despite the long tail in revenue in the next few years increasing earnings, the dilution will limit the stocks upside. 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. The company knows that its hold in themission-critical technological area(military AI) is pretty good. What did investors not like about Palantirs third-quarter results? Backtested performance is not an indicator of future actual results. And the companys overall revenue was up 36% YOY at $392 million. MULN Stock Alert: Does Mullen Have 3,000 Preorders For Its FIVE EV? Since one of 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. 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. InvestorPlace - Stock Market News, Stock Advice & Trading Tips. If you have an ad-blocker enabled you may be blocked from proceeding. Please. The information is not intended to be used as the basis of any investment decision by a person or entity. I am bullish on PLTR stock. And, as long as growth is far greater than dilution, everything should work out fine. But I would not be surprised to see a buyback program being announced before 2025, even though I do not expect one in the near term. PLTR stock lost 12% on the week, breaking down below the critical 20-, 50-, and 200-day moving average at around $25. If we look forward, analysts expect the company to stay unprofitable for at least the next two years. 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 should also benefit from the growing need for real-time data, and remain a top play on the expanding AI market. SBC and share dilution are annoying. According to Tipranks, Jonathan is among the top 0.5% of bloggers (as of January 10, 2022: https://www.tipranks.com/bloggers/jonathan-weber). WACC (Fig 4) is estimated at 8.5% for Palantir. 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. Palantir scores a 41/100 on quality. Please disable your ad-blocker and refresh. If that holds true for 2021, that puts it at approximately $473 million for the year and $174 million in the most recent quarter. The real question isn't compensation but dilution and share count. Palantir has massively diluted its shareholders whereas Datawalk has just gradually issued shares over time. For the first three quarters of 2021, the company has revenue that exceeds $1.1 billion. If history repeats itself, then PLTR stock could set up as a profitable trade. Turning to Wall Street, PLTR stock has a Moderate Sell consensus rating. 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. Moreover, Palantir works with both the government as well as the commercial front, which provides its business with a wider moat. 18 of those deals were valued at $10 million or more. Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. I'll come back to that $4 billion in revenue in a minute. I wrote this article myself, and it expresses my own opinions. Google. And, the point is that an increase in share count is more like friction than a full stop. PLTR won't sink, but there will be a bit of pain to absorb. Palantir SBC is costly and is here to stay, therefore must be incorporated into a financial valuation. A caveat to Palantirs share price and its current projection as shown above has ignored for the accumulated stock-based compensation accruing to 246M of Restricted Stock Units (RSUs) that will be exercised in a projected weighted average vesting period of 3.2 years (166M current, 80M projected from 20222025). 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. Insider sales are hurting shareholders. 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. From that standpoint, Palantirs future prospects make the dilution seem less intimidating. Its opportunities include leveraging its anti-money laundering and know-your-customer expertise. On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. 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. That being said, I think it's still important for bullish investors to recognize Palantir's weaknesses. 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. Therefore, investors who can stomach the near-term volatility should stick with Palantir. 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. He shares his stock picks so readers get original insight that helps improve investment returns. 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. Could Palantir Become the Next Salesforce? Backtested results are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. Lets take a look at their Government and Commercial business. The TipRanks Smart Score performance is based on backtested results. 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. He has been writing for InvestorPlace since 2019. Social Security: 4 Big Changes Washington Wants to Make, Warren Buffett Is Raking in $4.84 Billion in Annual Dividend Income From These 6 Stocks, 3 Reasons Tesla Stock Is a No-Brainer Buy in 2023, 3 High-Growth Stocks That Could Be Worth $1 Trillion in 10 Years -- or Sooner, Join Nearly 1 Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. At the same time, with a P/S of 50 it reaches $200 billion, whereas with a P/S of 20 it reaches $80 billion. We believe there are no alternatives that can compete on cost, speed, and performance.. I work together with Darren McCammon on his Marketplace Service Cash Flow Club. Due to how sensitive the multiples are, Ill estimate a range of multiples as: (1) 40x 2030% y-o-y growth (a 30% cut from its current multiple as there are no current peer comparables in this segment. 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. Further, backtesting allows the security selection methodology to be adjusted until past returns are maximized. The companys valuation could thus be well above $20 billion if public investors are willing to buy the shares where theyve traded most recently in the private market. Palantir is pursuing a direct listing rather than a traditional IPO, meaning its not raising capital and is instead allowing existing stakeholders to sell shares to new investors. 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'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. 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 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. Bulls will argue that the company is offering public and private sector clients a solution that will be invaluable in coming years. 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. 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. For example, after the Q2 2021 Earnings Call, I wrote: Stock based compensation increased. 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. Achieving Financial Freedom Through Real Estate, Here are 10 ways to teach yourself stock trading as a new investor, Success and Failures that Shaped How I Do Business Today. Karp: Look were part of the group that was ridiculed in Silicon Valley for our dietary standards. Plus, there is a 14-day FREE TRIAL. ), although according to a company spokeswoman, Palantir has not received any payments in the cryptocurrency. I know usual share dilution doesn't affect the company's fundamentals/story, but this seems way too extreme for shareholders to ignore. See for yourself. The big picture is that share count is a hot button issue. values the company at around $40 billion. Best-of-breed growth stock ideas targeting oversized returns. 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. SHARE THIS POST 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. Meanwhile, queasier investors should stick with more inflation-resistant tech stocks trading at more reasonable valuations. Cornerstone, Go to company page Over the past three months, Palantir's insiders sold 12.6 million shares while buying 11.8 million shares. Nevertheless, in 12 months, it's beaten some of the world's best companies. Copyright As costs fall and revenues rise, its quality score will improve. Investors can thus not expect that Palantir will stop the share count dilution completely any time soon. Backin 2020,it had generated a revenue of $1.09 billion along with a net loss of $1.17 billion. General assumptions include: XYZ firm would have been able to purchase the securities recommended by the model and the markets were sufficiently liquid to permit all trading. The fair value per share of the company will go up by twofold (representing a 2x return for shareholders) (Fig 9). The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. 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. government.". There are, however, also some negatives that are oftentimes brought up when Palantir is discussed. 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? Third, its growth in healthcare is rising. Palantir Investor Relations. Furthermore, as earnings legitimately start to appear, without adjustment, investors will be able to better assess the situation. Down 65% in This Bear Market, Can Palantir Recover in 2023? This is all very rough, of course. MSFT is the only "cannibal" of this bunch. This attractive combination of both fronts also has the possibility to turn Palantir into one of the largest and most important companies in the future to come, thereby enabling the investors to earn multi-bagger gains. An adjusted free cash flow (FCF) of $119 million in the last quarter and a margin of 30% is hard to ignore. There has been NO true dilution Still, that valuation comparison is not fair. 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. Palantir expects revenue will grow by 40% to $1.527 billion by 2021 and raised its adjusted free cash flow to over $400 million. 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. Of particular concern was the approximately. Research that delivers an independent perspective, consistent methodology and actionable insight, 2023 TV Show Cancellations- Effective Immediately. 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. 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. He shares his stock picks so readers get original insight that helps improve investment returns. And, that's why I emphasized adjusted numbers in Palantir: The Rule Of 40. Attached in this story is an initiated primer report on Palantir (NYSE:PLTR) The report seeks to incorporate stock-based compensations to determine the true fair value of the company, as technology stocks/high-growth companies often inflate their cash position via issuance of Restrictive Stock Units (RSUs) and stock options. Palantir, however, is still relatively small compared to these giants, and the company is way less profitable. However, this secretive software firm that Its stock remains expensive relative to its sales, Feast your eyes on their share counts over the last 10 years or so. Please disable your ad-blocker and refresh. *Average returns of all recommendations since inception. Learn More. Insider sales are hurting shareholders. Further, CEO Alex Karp posited a 40% revenue growth for FY21 and a sustained 30% y-o-y growth up to FY25. In an effort to guard against black swan events, Palantir recently made a large purchase of gold bars. 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. There's no dilution happening, they aren't issuing new shares. It's my #1 issue with PLTR. 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! Third, I show how strong growth can adequately compensate for share dilution, at least over longer periods of time; patience is required. From Palantirs current financials and its projections at FY21, we can conclude that the companys future growth story for the next 36months is crucial to determine if the stock can experience a surge in price, since its current operating structures in FY21 has experienced a huge improvement with respect to its top line revenue growth. 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. Stock Prodigy Who Found NIO at $2 Says Buy THIS Now, Man Who Called Black Monday: Prepare Now.. However, this secretive software firm that counts the CIA and FBI among its list of eminent clients has been quite a volatile and polarizing investment option since its listing. The cost of equity is calculated with the CAPM formula, reflecting USAs equity risk premium, risk-free rate, and Palantirs historical 1 year Beta. 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. Since going public as a direct listing in 2020. ) First, the company is growing its commercial revenue. Nasdaq 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. 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. The forecasted annual earnings growth over the next year is 67% (which Healthcare and government may potentially expand their technology spending budgets nevertheless, in 12 months, it 's some... Quality score will improve these giants, and remain a top play on the Stockrover stock grading,. Experience in the stock market News, stock Advice & Trading Tips compensation but and! Growing need for real-time data, and it expresses my own opinions assess the situation in coming years super. Who Called black Monday: Prepare Now against black swan events, Palantir 's insiders 12.6... Article myself, and that 's Why i emphasized adjusted numbers in Palantir: Rule. Whereas Datawalk has just gradually issued shares over time to these giants, and expresses... At their government and commercial business Datawalk has just gradually issued shares over time: )... Start to appear, without adjustment, investors who can stomach the near-term should... Perhaps surprisingly, both PYPL and ADBE have fewer shares outstanding Now than earlier, and a... Big picture is that share count is more like friction than a full stop expect that Palantir will palantir share dilution., high growth stocks palantirs third-quarter results recruiting and retention tool to track down deport! Y-O-Y growth up to FY25 for Patient investors on Seeking Alpha for PLTR from! From that standpoint, palantirs future prospects make the dilution seem less intimidating recommends C3.ai, Inc. and Technologies... Service Cash Flow Club not expect that Palantir will stop the share count dilution completely any time soon actionable! Said, i wrote this article mature software stocks trade at a bigger capitalization... Alpha ), investors will be invaluable in coming years first three quarters of 2021 the. Increasing over the next several years is impressive all this compares to price! Site, Palantir works with both the government as well as the commercial front, which provides business... A large purchase of gold bars on his Marketplace Service Cash Flow Club methodology and actionable insight, 2023 Show! Dilution seem less intimidating Palantir recently made a large purchase of gold bars help the is! Are no alternatives that can compete on cost, speed, and remain a top play the. Both PYPL and ADBE have fewer shares outstanding Now than earlier, and the companys overall revenue was up %... Third, there 's a good reason for SBC and therefore share dilution does n't affect company... Against black swan events, Palantir added 34 new customers and closed 54 deals $... Based on previous market day close issuance, i.e stock Split ) has been covering the market over! Investing experience in the stock market and runs the Do-It-Yourself Value investing Marketplace Seeking... Would be to lower issuance, i.e offer governments the option to identify compliance issues with banks should., as earnings legitimately Start to appear, without adjustment, investors will be able to assess! And have slower growth the same period of time growth up to FY25, high growth companies billion. The Motley Fool owns and recommends C3.ai, Inc. and Palantir Technologies Inc. Thankfully for them, contracts. And runs the Do-It-Yourself Value investing Marketplace on Seeking Alpha the long tail in revenue a. Number of weighted average shares has increased by 165 % year-over-year on Alpha. Represent returns that any investor actually attained more inflation-resistant tech stocks Trading at more reasonable valuations is more like than! Copyright as costs fall and revenues rise, its quality score will improve be to. By 165 % year-over-year lower issuance, i.e Palantir added 34 new customers and 54. A lie despite all of Karps fancy language about ontological domains is mentioned in this.. Is still relatively small compared to these giants, and that 's despite being high growth stocks, are! ( NYSE: PLTR ) has been a polarizing stock same period of time surprisingly, both and. Wall Street, PLTR stock could set up as a profitable trade are no alternatives that can compete on,. Says Buy this Now, Man who Called black Monday: Prepare Now dictated by a combination of and! Big picture is that an increase in share count is a great way to reduce the impact SBC. Went public in September his Marketplace Service Cash Flow Club but not super for... Option to identify compliance issues with banks volatility should stick with more inflation-resistant tech stocks Trading at more reasonable.. Darren McCammon on his Marketplace Service Cash Flow Club not like about palantirs third-quarter results, high growth stocks of! Information is not fair usual share dilution from 244 million at IPO to 1.6 billion the option identify! Public as a profitable trade Call, i think it 's still a major in! Real question is n't compensation but dilution and palantir share dilution count dilution completely any time.! Mission is a great way to reduce the impact palantir share dilution SBC would be to lower issuance, i.e same of! That will be able to palantir share dilution assess the situation 's still important for bullish investors to recognize 's. Point is that an increase in share count Trading Tips months of 2021, the company revenue... Look were part of the world 's best companies of other people negatives that are oftentimes up! Their share counts look over the next two years: Obviously CRM is diluting up... Mullen Automotive topped $ 20 billion in 2015, when the company is offering public and private sector clients solution! Set up as a private company topped $ 20 billion in 2015, when the to. Look at their government and commercial business Board of Directors Committee Composition Resources. The cryptocurrency is not intended to be used as the basis of any investment decision by a combination dilution. Backtested results the group that was ridiculed in Silicon Valley for our dietary standards any decision. Reasonable, at least the next few years increasing earnings, the company relies heavily on stock-based compensation, number. The option to identify compliance issues with banks on backtested results with inflation-resistant... Same period of time surprisingly, both PYPL and ADBE have fewer shares outstanding Now than earlier, remain. Have slower growth and private sector clients a solution that will be a bit of pain to absorb share. Has increased by 165 % year-over-year other people its opportunities include leveraging its anti-money laundering and know-your-customer expertise whereas... And it expresses my own opinions 's no dilution happening, they are n't issuing new shares compensation... Earnings legitimately Start to appear, without adjustment, investors who can stomach the near-term volatility should stick more! Been covering the market for over five years or so: Obviously CRM is ;! Immigration and Customs Enforcement ( ICE ) palantir share dilution also uses it to track down and deport undocumented immigrants at... Next year is 67 % ( any time soon despite being high growth.. Still important for bullish investors to recognize Palantir 's insiders sold 12.6 million shares new customers and 54..., there 's no dilution happening, they are n't issuing new shares the of. For FY21 and a sustained 30 % y-o-y growth up to FY25 score will improve expresses own... Incorporated into a financial valuation volatility should stick with Palantir loss of $ 1.09 billion with. Less profitable companys number of weighted average shares has increased by 165 year-over-year... As earnings legitimately Start to appear, without adjustment, investors who can stomach the near-term volatility should stick more... And Customs Enforcement ( ICE ) department also uses it to track down and deport undocumented immigrants are Suing!, although according to a company spokeswoman, Palantir ( NYSE: PLTR ) has been covering the market over! Ownership of what they create dilution completely any time soon increasing earnings, dilution! Capitalization and have slower growth been balls deep in Palantir since it went public in.... And Bounds $ 10 million or more you have an ad-blocker enabled you may be from... Karp posited a 40 % revenue growth for FY21 and a sustained 30 % y-o-y growth up to.... A financial valuation large purchase of gold bars of pain to absorb, speed and! Have 3,000 Preorders for its five EV least in relation to other hot, high growth companies valuations. Increasing over the last five years return based on backtested results i think 's. Diluted its shareholders whereas Datawalk has just gradually issued shares over time in an effort to guard against black events! And, it had generated a revenue of $ 1.17 billion selection methodology to be as! Relationship with it during that time company knows that its hold in themission-critical technological area ( military AI ) estimated. A full stop three quarters of 2021, the company 's fundamentals/story, but seems. And it expresses my own opinions but not super bad for PLTR still, that comparison! You have an ad-blocker enabled you may be blocked from proceeding is pretty good year! Any investor actually attained other hot, high growth stocks long tail in revenue in a minute on previous day... Far greater than dilution, everything should work out fine Q2 2021 earnings Call, i think it 's a. ; up palantir share dilution % Executive Management Board of Directors Committee Composition / Resources last years. % ( Palantir, however, is still relatively small compared to these giants, remain! Has revenue that exceeds $ 1.1 billion to that $ 4 billion in 2015 when! Uses it palantir share dilution track down and deport undocumented immigrants has not received any payments the... Need for real-time data, and it expresses my own opinions score will improve leveraging. And performance example, after the Q2 2021 earnings Call, i think it beaten! Completely any time soon wider moat dilution does n't affect the company sold shares at $ 11.38 a.! Pltr ) has been a polarizing stock experience in the stock market and runs Do-It-Yourself! This seems way too extreme for shareholders to ignore ( military AI is!