That's dangerous stuff!
Posted on 11/14/2023 9:12:46 AM PST by Miami Rebel
Palantir Technologies (PLTR.N) has cultivated a powerful mythos worthy of being named for a crystal ball from “The Lord of the Rings.” The data-analysis company co-founded by Peter Thiel and run by Alex Karp fetches a big premium to most of its peers. Financial realities, however, suggest the valuation is the stuff of science fiction. Demand is quickly rising for software using artificial intelligence that can make sense out of voluminous and disparate data to flag suspicious financial transactions or defend against military attacks. Yet Palantir’s top line is only expected to grow 16% this year, according to forecasts gathered by LSEG. Databricks, which similarly helps customers unpick facts and figures, said after a recent private funding round that it is expanding three times quicker. With an enterprise value of some $40 billion after a tripling of its stock price this year, Palantir trades at 14 times the revenue analysts anticipate over the next 12 months. Rival Snowflake (SNOW.N), whose sales are expected to increase 50% faster, is valued at the same multiple. Microsoft (MSFT.O) garners a 30% discount despite its AI progress and that it’s expected to grow only slightly slower than Palantir. Moreover, both Snowflake and Microsoft have been better at turning revenue into free cash flow. There’s also a risk that Palantir’s ability to secure government contracts, which account for more than half its top line, will be restrained by its politics. The company’s latest presentation to investors began with “Palantir stands with Israel.” Corporate clients look more promising, but wringing insights from data isn’t a one-size-fits-all proposition and the bespoke attention often needed eats into profit. Although Palantir has doubled the amount of revenue generated per employee over five years, slower growth also has led to higher operating margins.
(Excerpt) Read more at reuters.com ...
That's dangerous stuff!
P/E ratio 305.42, 25 cents under its 52 week high. Looks like fun. :^)
My brother is up almost 1/4 MM on nvda. On like 400 shs.
Maybe it will mimic the Icelandic volcano…
Right there with you. My largest holding. I paid too much in 2021 but have been averaging down in cost. They have to goods.
Guys, I believe that A LOT of the data-warehousing/searching stuff that Snowden revealed was developed by Palantir. I know that to become a software engineer there you need a TOP SECRET clearance.
“My brother is up almost 1/4 MM on nvda. On like 400 shs.”
Uh!
Nvda is at aboutt 500 right now, meaning 400 share is worth 200k.
How can your bro be UP a quarter mil?
Because he bought it in the 100’s and sold it about 350 and bought it back well under 200.
His basis is like $-240! He played it almost perfectly. Which is amazing because he despises the stock market!
“His basis is like $-240!”
You can’t have a negative basis.
I think he’s trying to make you jealous. 😊
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