Palantir Technologies Wikipedia

Shareholders are demanding more profitable growth, with a rotation away from growth stocks hammering tech firms across the market. Palantir is now notably trading at lows not seen since its IPO. The increase in cash has allowed Palantir a level of financial flexibility superior to its peers. For example, the company has made a number of interesting strategic investments in SPACs and is in the early stages of investing heavily in a larger sales force. Earnings season is here in full force, but continued sell-offs in the stock market have some investors doubting their portfolios and scratching their heads. Big data analytics company Palantir Technologies (PLTR 2.32%) reported strong earnings this week, yet the stock is down a whopping 16% over the last five trading days.

1. Decelerating growth isn’t a death sentence, especially when a company is posting high top-line gains that are seemingly unsustainable.
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4. The Motley Fool has positions in and recommends Palantir Technologies.
5. In addition to the commercial business’ strong ratio, the company’s government business reported net dollar retention of 146%.

One thing that has troubled us about Palantir now and in the past is the company’s accounts receivables balance. This represents cash from customers booked as revenue but not yet actually received by Palantir. Now, if this is the only way that Palantir can do business, then that’s fine. For these reasons, investors should exercise some patience with Palantir.

Last year was one to remember for Palantir Technologies (PLTR 2.32%). Shares of the software builder for the intelligence community more than doubled, soaring 167% in 2023. Investors who bought $1,000 worth of Palantir’s shares at the IPO in September 2020 would now be looking at an investment fusion markets review worth $2,260. By not selling to countries or companies that are antithetical to its mission and cultural values, Palantir has self-restricted its growth opportunities. The company is scheduled to release its next quarterly earnings announcement on Monday, February 5th 2024.

AI has helped Palantir skyrocket 141% over the last year. Can investors still score wins with this controversial growth stock?

Palantir Apollo is an operating system designed to give continuous delivery and deployment of safe, secure Internet access across all operating environments. The system is 1 of 5 recognized by the Department of Defense as a Mission Critical National Security System and used by businesses and organizations for autonomous software deployment. Among its advantages, the system can speed up the development of new software by as much as 50% simply by securing access to sensitive information and networks.

In addition to the commercial business’ strong ratio, the company’s government business reported net dollar retention of 146%. This is particularly encouraging for investors because it implies that the company’s revenue growth is far exceeding any churn it may be experiencing. The importance of net retention can be seen more directly when analyzing Palantir’s cash flow and balance sheet. The previous big move we wrote about was 18 days ago, when the stock gained 5.7% on the news that the company reported an impressive “beat and raise” quarter. In addition, gross margin improved, and the company continued to generate positive free cash flow.

Down 23% From Its 52-Week High, Is Now the Time to Buy Palantir Technologies Stock?

The company was founded by Stephen Cohen, Nathan Dale Gettings, Joseph Lonsdale, Alexander C. Karp, and Peter Andreas Thiel in 2003 and is headquartered in Denver, CO. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. Following the company’s Q4 results, the stock price hit a fresh 52-week low. It’s clear that Palantir is making a big push into the commercial sector to fuel more growth, which will come at a cost in the short term.

Palantir’s Business Model

Palantir continues to improve on its platform; its Titan release of Gotham offers improved performance, more customized views, and AI integration. Upon its inception, the company didn’t really have a sales team as its products were priced at a level where its leaders assumed a CEO would need to pitch. This view has changed recently as Palantir now has a sales team, which has led to more efficient data management and sales output. Although the company grew its top line over 40% in 2021 and has committed to 30% growth or more over the next four years, its revenue stream is fairly difficult to predict. Wall Street’s concerns over Palantir’s reliance on large deals with a finite number of customers, with particular dependence on government contracts, can make its revenue flow somewhat unpredictable. For the fiscal year 2021, Palantir generated $1.5 billion in total revenue.

PLTR Overview

Revenue growth is accelerating from 2019, when the company reported a 25% increase to $742.6 million. For 2021, Palantir said it expects revenue growth of greater than 30%. Palantir is recording encouraging momentum on some fronts and has exciting opportunities ahead, but its outlook remains highly speculative. Because of its growth-dependent valuation and elevated risk profile, the stock won’t be a good portfolio fit for some investors. On the other hand, Palantir stock could wind up delivering market-crushing returns for investors if the company continues to strengthen its advantages in AI and maintains its upward earnings trajectory. Sales to private sector customers are growing at a much faster rate and will soon come to account for the majority of overall sales.

In fact, it’s estimated that 90% of the world’s data was created in the past two years because the growth of data is exponential. There are constantly more data points being recorded, more things producing data points, and more uses for that data. Palantir has clearly rewarded investors over the last year, but is the stock still a buy?

The stock receives much attention from Wall Street, but don’t let that alone push you to consider Palantir for your portfolio. Here are three reasons Palantir is a great investment idea for long-term investors. Management described the growth of AIP as “nothing short of remarkable” and has sped up its delivery of workflows from one to three months to just five days. It also noted “vast improvements on our unit economics,” which have been borne out by the company’s recent results. The company achieved these gains by cutting its share-based compensation and holding its other costs basically flat even as its revenue was up 17%. Add them to your StockStory watchlist and every time a stock we cover moves more than 5%, we provide you with a timely explanation straight to your inbox.

MarketWatch

Palantir Technologies’ stock was trading at $17.17 at the beginning of 2024. Since then, PLTR shares have decreased by 2.3% and is now trading at $16.78. Palantir has been investing in creating a product that’s easier to sell and deploy. It wants investors to concentrate on what the company calls its contribution margin, or the revenue left after subtracting the costs it bears to generate sales.

But in the nearly two decades since its founding, its offerings have become much wider. Part of the reason for the wild ride might be that it’s really difficult to discern how this technology is applied. Today the company builds and deploys solutions for its clients based on three primary offerings. These are Palantir Gotham, Palantir Apollo, Palantir Foundry, and Palantir Metropolis. The goal is to generate alpha, or a competitive advantage, for its clients so they can succeed in a rapidly changing environment. Originally intended as a tool for the Federal Government, the company has since expanded to serve state and local governments as well as private corporations.

British National Health Service (NHS)

These high-quality, small-cap growth stocks can help generate robust returns in the coming years. Get this delivered to your inbox, and more info about our products and services. We remain committed to driving profitable growth and we reaffirm our expectation of GAAP profitability in each quarter of this year, which would make us eligible for inclusion in the S&P https://broker-review.org/ 500 following our Q3 results. Artificial intelligence (AI) stocks were all the rage in 2023 as the boom set off by ChatGPT was a major reason why the Nasdaq Composite jumped 43% last year. Revenue growth has been in the teens for the last four quarters. There are worse things than consistent double-digit growth, and things should get slightly better this year.

15 Wall Street analysts have issued “buy,” “hold,” and “sell” ratings for Palantir Technologies in the last year. There are currently 7 sell ratings, 5 hold ratings and 3 buy ratings for the stock. The consensus among Wall Street analysts is that investors should “reduce” PLTR shares.