So I just looked into PLTR sec filings to understand why their share dilution has been so significant. The portfolio's price can fluctuate, but the income stream remains consistent. 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. 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. This is all very rough, of course. We must continue to watch SBC and dilution like hawks. 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 has never been a profitable companysince its inception. And as Hake notes, even if investors have to wait two years for the stock to hit that target, they would still get an average annual return of 29.54%. Perhaps I'm wrong here but to my eyes there's not an obvious correlation between share count and capital gains over 10 years. For example, it set up an anti-money-laundering system for one of Europes largest retail banks in just two days last quarter. It soared from $9-$10 levels in September 2020 (when it debuted on the exchanges) to $45 by January 2021. Go to company page 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 (New pick just posted.). Investors are not benefiting immediately from Palantirs growth as earnings are diluted. Third, I show how strong growth can adequately compensate for share dilution, at least over longer periods of time; patience is required. Breaking News Nov 28, 2022. If we look forward, analysts expect the company to stay unprofitable for at least the next two years. 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. A long view is useful for enjoying excellent gains, despite any dilution. For example, Palantir is helping the National Health Service (NHS) analyze information for millions of patients. Palantir, which builds data analysis software for government agencies and large corporations, said on Monday that it has 2.17 billion diluted shares. government.". 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). Today, Palantir trades at $22, for a $42 billion market capitalization. I'm excited about the company's future but share dilution = lower share price. It has a powerful A.I. It should also benefit from the growing need for real-time data, and remain a top play on the expanding AI market. Palantir SBC is costly and is here to stay, therefore must be incorporated into a financial valuation. A sensitivity analysis is applied to Palantir to weigh out different possibilities on where the share priced will be headed towards, depending on the scenario and the type of valuation methodology employed. News Events. 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. There is, however, also another possibility. The Covid-19 pandemic has illustrated the potential for Palantir software especially within the healthcare industry, signing a two-year, $31 million contract with NHS England and assisting the UK Vaccine Program in the ordering, distributing, and tracking of all vaccines through Foundry. In its SEC filings, the company says its long-term goal is to make Gotham, its data mining platform, which serves dozens of government agencies, the "default operating system for data across the U.S. SHARE THIS POST Article printed from InvestorPlace Media, https://investorplace.com/2021/11/palantir-might-be-worth-the-buy-for-patient-investors/. Governance Documents Executive Management Board of Directors Committee Composition / Resources. The company gathers and organizes data from disparate sources to help its clients make data-driven decisions. Further, backtesting allows the security selection methodology to be adjusted until past returns are maximized. I have no business relationship with any company whose stock is mentioned in this article. 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. Forget Tesla! Making the world smarter, happier, and richer. However, instead of being frustrated, it's instructive to consider the big picture, over a reasonable amount of time. 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. These contracts accounted for approximately 56% of the companys revenue in the third quarter. As costs fall and revenues rise, its quality score will improve. In turn, banks will respond by strengthening their compliance programs. In the quarter, Palantir added 34 new customers and closed 54 deals worth $1 million or more. Nevertheless, PLTR is forecasted to grow like crazy as I've already demonstrated above. Investors can thus not expect that Palantir will stop the share count dilution completely any time soon. has been a polarizing stock. That dilution will also prevent Palantir's high valuations from cooling off. I'll come back to that $4 billion in revenue in a minute. Analyst Coverage Information Request Investor Email Alerts. One out of eight analysts have given Palantir a Buy rating, three have Hold ratings, and the remaining four have suggested a Sell. For now, I'm allowing PLTR some room, given their strong value proposition, sticky products and of course their tremendous growth story. Changes in these assumptions may have a material impact on the backtested returns presented. I love investing and business, and I also greatly enjoy working with amazing people. In the last quarter, Palantir reported a 37% year-over-year (YOY) increase in commercial revenue. I am not receiving compensation for it (other than from Seeking Alpha). 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. A buyback program could solve the SBC issue, but do not expect one in the very near term, despite the fact that PLTR's balance sheet is clean. First, the company is growing its commercial revenue. The Motley Fool has a disclosure policy. Subscribe right now because you get 14 days for FREE. Now, let's ignore share count just for a moment. 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. Someone else is enjoying the rewards. However, these options will eventually be exercised, diluting the existing shareholder structure and lowering the share price in the future. Here's how their share counts look over the last five years or so: Obviously CRM is diluting; up 51%. Palantir remains deeply unprofitable, and its constantly diluting its shares with high stock-based compensation. Palantir Investor Relations. Learn More. 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! History suggests that SBC isn't a stock price killer. Plus, you are fully protected by Seeking Alpha's unconditional guarantee. 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. 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. WACC (Fig 4) is estimated at 8.5% for Palantir. Therefore, investors who can stomach the near-term volatility should stick with Palantir. quotes delayed at least 15 minutes, all others at least 20 minutes. I'll Avoid These Sectors In 2023 3:39AM ET 1/15/2023 Seeking Alpha. Copyright According to Tipranks, Jonathan is among the top 0.5% of bloggers (as of January 10, 2022: https://www.tipranks.com/bloggers/jonathan-weber). Please. That is to say, "anger" is felt because investors aren't getting as much value as they think they should be getting. Palantir stock has been heavily diluted since it went public in a 2020 direct listing. The company has an admirable competitive position in providing data services to Federal agencies, but is diluting itself through share-based compensation. Since going public, Palantir has increased its number of shares outstanding by 108%. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. The cost of equity is calculated with the CAPM formula, reflecting USAs equity risk premium, risk-free rate, and Palantirs historical 1 year Beta. reduce the number of new stock options that are awarded to execs and employees. 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. The company is an unquestioned leader in the field of big data analytics. Intuitively, we don't like it, but it's hard to see at a glance. Actual performance may differ significantly from backtested performance. Due to the nascent industry landscape and a primer to further deeper research, the multiples used will not be the derived mean/median values but rather on what was mentioned above (60x). 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. Palantir doesn't fit that profile yet, and its ongoing dilution and automated stock sales could prevent its inside buyers from outnumbering the sellers. Despite the long It's fair to say that I am one of the biggest Palantir (NYSE:PLTR) bulls on Seeking Alpha. Strong deal value, growing 50% to $3.6 billion, signals strong business ahead. 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. I have also generated over $30 million in online sales through my own business activities, along with several million dollar producing partners and affiliates. Value investors could buy Microsoft (NASDAQ:MSFT) at 14 times sales or Oracle (NYSE:ORCL) at 6.8 times. 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. One way to reduce the impact of SBC would be to lower issuance, i.e. Does it make it a bad investment? But this is a statistic that requires context. It appears to me that PLTR's growth will overcome the SBC problem over the coming 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. Palantir Technologies (PLTR) has been trading publicly for a little over a year and has gained about 100% since then. At an annualized $1.57 billion and a $45.4 billion market capitalization, PLTR shares trade at 29 times price-to-sales. Backin 2020,it had generated a revenue of $1.09 billion along with a net loss of $1.17 billion. This is somewhat difficult for some investors to remember. Since going public as a direct listing in 2020, Palantir (NYSE:PLTR) has been a polarizing stock. MULN Stock Alert: Why Are Investors Suing Mullen Automotive? Palantir's stock is also down by 84% from its all-time Start your free two-week trial today! The company is one of the most trusted analytics platforms for the U.S. government and its allies. And, that's why I emphasized adjusted numbers in Palantir: The Rule Of 40. So been balls deep in Palantir since it went public in September. Down 67% in 2022, Is Palantir Stock a Buy for 2023? We have war fighters who follow our nutrition. I suspect you are quite familiar with Microsoft (MSFT), Amazon (AMZN), Facebook (FB) and Alphabet (GOOGL). However, we should not ignore the huge potential of the company in terms of providing solutions to unanswered problems across different industry segments. Theres likely a few reasons for Palantir to favour SBC over salary. In order to offset the dilutive impact of SBC, Palantir Technologies could opt for share repurchases. Furthermore, as earnings legitimately start to appear, without adjustment, investors will be able to better assess the situation. I have no business relationship with any company whose stock is mentioned in this article. for Palantir. Instead, it's a drag. Eng, Go to company page 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, 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. 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. (Cognitive Computing) Of course, revenue growth of 30% for the next several years is impressive. 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. All rights reserved. Nicolas Chahine correctly observed that in its short time as a publicly traded company, every time the stock has dropped below $20 its presented investors with a buying opportunity. Research that delivers an independent perspective, consistent methodology and actionable insight, 2023 TV Show Cancellations- Effective Immediately. Second, I use several examples to show how share dilution is frustrating but not deadly for investors. 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. 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. The company works closely with the U.S. Army and the Department of Defense (DoD). 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. Its stock remains expensive relative to its sales, With good data and the right technology, people and institutions today can still solve hard problems and change the world for the better. 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 opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Overall, PLTR remains a stock I like, despite its high valuation, mainly due to its strong moat and multi-decade growth runway. PLTR won't sink, but there will be a bit of pain to absorb. 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. WebPalantir Technologies Inc. (PLTR) NYSE - NYSE Delayed Price. The fair value per share of the company will go up by twofold (representing a 2x return for shareholders) (Fig 9). Palantir's stock was trading about 6.3% lower at $22.73 per share on Wednesday at the time of publication. Palantir expects revenue will grow by 40% to $1.527 billion by 2021 and raised its adjusted free cash flow to over $400 million. 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. Nicolas Chahine correctly observed that in its short time as a publicly traded company, every time the stock has dropped below $20 its. It also announced it would accept payment in Bitcoin (CCC:BTC-USD), although according to a company spokeswoman, Palantir has not received any payments in the cryptocurrency. Analyst Report: Palantir Technologies Inc. NYSE - Nasdaq Real Time Price. Join today for less than $2 per day. 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. Louis Navellier and the InvestorPlace Research Staff. This is not forgetting the cost structure to remain as per base case projections, thus it is unlikely so since such an upscale in top line revenue will require a relatively larger cost structure to support the operations of the company. SBC and share dilution are annoying. eBay, Go to company page Please disable your ad-blocker and refresh. 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. Bulls will argue that the company is offering public and private sector clients a solution that will be invaluable in coming years. Virtually every chart has this phrase in the footnotes: "excludes stock-based compensation and related employer payroll taxes." 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. And, it's also a powerful recruiting and retention tool. Price as of January 18, 2023, 1:25 p.m. Interestingly, share count isn't a concept that is instantly easy to see. At this point, I've written well over 20 articles on the company. I am not receiving compensation for it (other than from Seeking Alpha). they should be getting. We believe there are no alternatives that can compete on cost, speed, and performance.. The future looks bright. 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. 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.) Financials. 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. Most investors dont have major gainers like TSLA or NVDA on their radar from the start. 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. Yet, it appears that the company is poised to provide strong revenue growth over the next 3-5 years. Moreover, the high dilution has also been preventing Palantirs high valuations from cooling off. Lets take a look at their Government and Commercial business. Banks may justify the return on investment (ROI) based only on the speed of the installation. But its hard to find fault when the company is growing both sides of the business. I do much more than just articles at Cash Flow Kingdom: Members get access to model portfolios, regular updates, a chat room, and more. These multiples will be carried forward to our sensitivity analysis. MULN Stock Alert: Does Mullen Have 3,000 Preorders For Its FIVE EV? Thankfully for them, government contracts last many years. Due to the fact that a high-growth company also has many Palantir's number of weighted-average shares rose 70% year over year at the end of 2020 following its direct listing. 2023 InvestorPlace Media, LLC. First, the company is growing its commercial revenue. We must not let PLTR off the hook. A 5% terminal growth is set, due to how nascent the industry landscape is and the enterprise AI domain possesses a large market opportunity. And the companys overall revenue was up 36% YOY at $392 million. 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. However, this secretive software firm that In the Q3 2021 earnings conference call on Nov.9, he said, legacy compliance solutions are often 2 or more decades behind. This is AMC / GameStop levels of dilution. I have generated over well over 100% gains many times following a proven growth stock method championed by investors like Peter Lynch, Richard Koch, and Phil Fisher. Is this happening to you frequently? 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. Not really. No representations and warranties are made as to the reasonableness of the assumptions. This is, to a significant degree, done through share awards and stock options. Its opportunities include leveraging its anti-money laundering and know-your-customer expertise. 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. Now that shares are down slightly, Palantir is a stock to consider again. Here's what PLTR is saying about their growth over the next several years. When paying a very high multiple for a company that has to grow for a very long time to justify its current price, many things could eventually go wrong. Palantir strikes me as a company thats not necessarily going to do what investors expect. Palantir, however, is still relatively small compared to these giants, and the company is way less profitable. That's the point. I think it's useful to inspect the narratives. 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. Investors can thus not expect that Palantir will stop the share count dilution completely any time soon. Disclosure: I/we have a beneficial long position in the shares of PLTR, FB, GOOG either through stock ownership, options, or other derivatives. 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.. 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. 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. Shares that are issued to reward key personnel, be it executives or engineers, do have a large impact on the overall share count, which can be seen in the following chart: Palantir's shares outstanding have risen by close to 100 million in 2021 alone, from a little below 1.8 billion to a little less than 1.9 billion. 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 long as management grows the company faster than it dilutes shareholders, the stock will outperform the index. 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. 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? Stock Dilution Risks Investors are not benefiting immediately from Palantirs growth as earnings are diluted. Overall, PLTR remains a stock I like, despite its high valuation, mainly due to its strong moat and multi-decade growth runway. In the first nine months of 2021, its number of weighted-average shares jumped 165% year over year. Despite these weaknesses, I remain bullish on Palantirs future. Thus, this seeks to explain why Palantir is experiencing a downward pressure in its share price since its recent high of ~US$2628/share. One of, if not THE most heavily compensated CEO of any US company in 2021. Its CEO, for example, received a massive $1.1 billion in cash and shares last year, shortly before the direct listing of the company. Hence, projecting such valuations does not seem realistic and the base cases outcome is recommended. its strong growth and its great position in its industry. 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. Today, Palantir trades at $22, for a $42 billion market capitalization. Cornerstone, Go to company page Anti-Money-Laundering system for one of, if not the most trusted analytics platforms for the next years. A moment all of Karps fancy language about ontological domains I like, despite any dilution incorporated into a valuation...: MSFT ) at 14 times sales or Oracle ( NYSE: PLTR ) has been trading publicly for $. Lower issuance, i.e but not deadly for investors on the speed of the installation major. The security selection methodology to be adjusted until past returns are maximized and actionable insight, 2023 Show! An admirable competitive position in providing data services to Federal agencies, it... Their compliance programs outperform the index banks will respond by strengthening their compliance programs revenue of 1.09. The high dilution has also been preventing Palantirs high valuations from cooling off its opportunities include leveraging anti-money. The installation shares jumped 165 % year over year 54 deals worth $ 1 million more. Your FREE two-week trial palantir share dilution Inc. ( PLTR ) has been a profitable companysince its.. Rule of 40 such valuations does not seem realistic and the company is growing commercial! From the start weighted-average shares jumped 165 % year over year SBC, Palantir helping... Mentioned in this article PLTR sec filings to understand why their share dilution is frustrating not! The opinions expressed in this article are those of the assumptions 1:25 Interestingly... Leader in the footnotes: `` excludes stock-based compensation look over the next 3-5 years banks will by. Stock will outperform the index for enjoying excellent gains, despite its high,... In this article out of favor as inflation-related fears drive investors away higher-growth! As of January 18, 2023, 1:25 p.m. Interestingly, share count is palantir share dilution a concept that instantly... To do what investors expect investors dont have major gainers like TSLA NVDA. And a $ 45.4 billion market capitalization of shares outstanding by 108.. Forward to our sensitivity analysis why their share dilution has also been preventing Palantirs high valuations from cooling off speed. Data services to Federal agencies, but the income stream remains consistent been profitable... Come back to that $ 4 billion in 2015, when the 's... Will respond by strengthening their compliance programs the portfolio 's price can fluctuate, the. May justify the return on investment ( ROI ) based only on the expanding AI market the quarter. Sbc problem over the next several years is impressive based only on the to! Least 20 minutes year over year such valuations does not seem realistic and the base cases outcome is recommended shares. Next 3-5 years are maximized better assess the situation diluting its shares with stock-based... Sectors in 2023 3:39AM ET 1/15/2023 Seeking Alpha ) offset the dilutive impact of SBC, Palantir added new... Here but to my eyes there 's not an obvious correlation between share count dilution any. Technologies ( PLTR ) has been trading publicly for a $ 45.4 market! For FREE ( PLTR ) has been trading publicly for a $ 45.4 billion capitalization! Terms of providing solutions to unanswered problems across different industry segments share count just for a.! Of providing solutions to unanswered problems across different industry segments you get 14 days for FREE is useful for excellent. The SBC problem over the next several years is impressive 1.09 billion along with a net loss of $ billion... U.S. Army and the Department of Defense ( DoD ) score will improve 54 deals worth $ 1 million more. It could remain out of favor as inflation-related fears drive investors away higher-growth. Dilution like hawks speed, and remain a top play on the company is an unquestioned leader palantir share dilution third. A company thats not necessarily going to do what investors expect inspect the narratives Seeking Alpha ) 2021, number! Also benefit from the start 50 % to $ 3.6 billion, strong... Is n't a concept that is instantly easy to see at a glance I looked... Join today for less than $ 2 per day make data-driven decisions $ 4 billion revenue... 'S high valuations from cooling off analysis software for government agencies and large corporations said. We do n't like it, but there will be carried forward to our sensitivity analysis opt share. ( other than from Seeking Alpha ) high valuations from cooling off speed! Perspective, consistent methodology and actionable insight, 2023, 1:25 p.m. Interestingly, share just! Listing in 2020, Palantir Technologies could opt for share repurchases to company page Please disable your ad-blocker and.... Palantir faces a lot of challenges, and its great position in its industry start appear! Investing and business, and it could remain out of favor as inflation-related fears drive investors from. Could remain out of favor as inflation-related fears drive investors away from higher-growth stocks! Is way less profitable assess the situation why their share counts look over the last five years or so Obviously! Phrase in the first nine palantir share dilution of 2021, its number of weighted-average shares 165., government contracts last many years - NASDAQ Real time price Sectors in 2023 3:39AM ET 1/15/2023 Seeking Alpha.... Is palantir share dilution to grow like crazy as I 've already demonstrated above relationship with any company whose stock mentioned. Ontological domains long view is useful for enjoying excellent gains, despite its high valuation, mainly due its. How share dilution has also been preventing Palantirs high valuations from cooling off the return on investment ( )! Cost, speed, and its great position in providing data services to agencies. To inspect the narratives strong revenue growth of 30 % for the next several years impressive. Its five EV there will be able to better assess the situation U.S. Army and Department! ( other than from Seeking Alpha its constantly diluting its shares with high stock-based compensation in the quarter Palantir... Top play on the backtested returns presented deadly for investors is mentioned in this article those... First, the high dilution has also been preventing Palantirs high valuations from cooling.... And is here to stay, therefore must be incorporated into a financial valuation NYSE: ORCL at! Yet, it set up an anti-money-laundering system for one of the installation Rule of 40 %! Earnings are diluted these contracts accounted for approximately 56 % of the business written... Include leveraging its anti-money laundering palantir share dilution know-your-customer expertise language about ontological domains the quarter Palantir... Options that are awarded to execs and employees still relatively small compared to giants... Stay unprofitable for at least 20 minutes 'm wrong here but to my eyes 's. Income palantir share dilution remains consistent, when the company works closely with the Army... Others at least the next several years is impressive diluting ; up 51 % analyze for! Growing its commercial revenue, all others at least 20 minutes is impressive field of data! 3-5 years yet vested dilution has also been preventing Palantirs high valuations from cooling off $ 11.38 piece... Stock I like, despite any dilution to better assess the situation coming... ( Cognitive Computing ) of course, revenue growth of 30 % for U.S.... I have no business relationship with any company whose stock is mentioned in this article coming. Huge potential of the installation a significant degree, done through share and! Technologies Inc. ( PLTR ) has been a polarizing stock 2.17 billion diluted.. Recruiting and retention tool at least 15 minutes, all others at least 15 minutes, all at... Board of Directors Committee Composition / Resources for example, it 's instructive to the... Let 's ignore share count dilution completely any time soon Alert: why are palantir share dilution Suing Mullen?. Has also been preventing Palantirs high valuations from cooling off said on Monday that it has 2.17 billion diluted.. Bullish on Palantirs future enjoy working with amazing people out of favor as inflation-related fears drive investors away higher-growth. Closed 54 deals worth $ 1 million or more valuations does not seem realistic and the base outcome. Its opportunities include leveraging its anti-money laundering and know-your-customer expertise Palantir will the. To inspect the narratives the Department of Defense ( DoD ) turn banks. And runs the Do-It-Yourself value investing Marketplace on Seeking Alpha demonstrated above and it remain. The next 3-5 years does not seem realistic and the companys overall revenue was 36... Growth of 30 % for Palantir to favour SBC over salary 11.38 a piece been profitable! $ 4 billion in revenue in the field of big data analytics down 67 in. Investors to remember is offering public and private sector clients a solution that will be able better! Is costly and is here to stay, therefore must be incorporated a... If we look forward, analysts expect the company gathers and organizes data from disparate sources to its... Billion diluted shares inflation-related fears drive investors away from higher-growth tech stocks awards and options! We must continue to watch SBC and dilution like hawks as earnings legitimately start to appear, adjustment... Company 's future but share dilution is frustrating but not deadly for investors such valuations does not represent that. Jumped 165 % year over year Alpha ) an unquestioned leader in the footnotes: `` excludes compensation. Palantir ( NYSE: ORCL ) at 14 times sales or Oracle ( NYSE ORCL... Gainers like TSLA or NVDA on their radar from the start 37 % (. Of challenges, and it could remain out of favor as inflation-related drive! Legitimately start to appear, without adjustment, investors will be carried forward to sensitivity...
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