Breaking News Nov 28, 2022. The truth probably lies somewhere in between. following me for any time, you know that one of biggest concerns is PLTR's stock-based compensation, also known as SBC. Financials. As such, the fair value per share as mentioned above may not represent the true value since we have yet to account for the potential dilution of RSUs. Not surprisingly, Karp has sold a lot of these options recently. Its CEO, for example, received a massive $1.1 billion in cash and shares last year, shortly before the direct listing of the company. There has been NO true dilution I have no business relationship with any company whose stock is mentioned in this article. 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. Chief Executive Officer Alex Karp expects the company will have annual revenue growth of 30% or more from 2021 through 2025. Cost basis and return based on previous market day close. That growth, combined with strong margins and cash flow, ought to translate to share price gains despite the friction and grind. Since going public as a direct listing in 2020, Palantir (NYSE:PLTR) has been a polarizing stock. I'll have to review this more closely in a future article. This model fits Palantirs profile, allowing to account for future growth prospects and the generation of cash flow regardless of the capital structure. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. 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. Due to the fact that there is no need to pay down debt, and since capital expenditures are pretty low, while the company also does not need to add growth through M&A (as its organic growth is strong already), it would not seem like a huge surprise if PLTR eventually starts buying back its own shares. I know usual share dilution doesn't affect the company's fundamentals/story, but this seems way too extreme for shareholders to ignore. Therefore, long-term investors who have a lot of patience might want to consider this stock for their portfolios. Thankfully for them, government contracts last many years. Another argument made against Palantir is that its share-based compensation hurts investors a lot. Nevertheless, in 12 months, it's beaten some of the world's best companies. This is pretty insane, I had no idea. 18 of those deals were valued at $10 million or more. As the company relies heavily on stock-based compensation, its number of weighted average shares has been rapidly increasing over the period. I have no business relationship with any company whose stock is mentioned in this article. History suggests that SBC isn't a stock price killer. Someone else is enjoying the rewards. 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. Its stock remains expensive relative to its sales, I wrote this article myself, and it expresses my own opinions. Gross margins are stronger than the S&P 500 average. But as I sit here today, the bullish case is gaining momentum and making PLTR stock look like an attractive buying opportunity. Palantir had a share price of $30. Valuation is tricky with a heavy amount of stock-based compensation or "SBC", but once you adjust and give PLTR's leadership room to handle it, the numbers are satisfactory, if not excellent. 1125 N. Charles St, Baltimore, MD 21201. Let's use the same basic approach to look at three more companies. For example, Palantir is helping the National Health Service (NHS) analyze information for millions of patients. 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. 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. Palantir is, I believe, very well positioned from a tech perspective, the company has a wide moat, is well-connected to customers in both the government sector and the private sector, and PLTR is active in an absolute growth market. 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. Palantirs customers in healthcare and government may potentially expand their technology spending budgets. With a market cap of $36 billion, Palantir is still valued at 24 times this year's sales. I'm excited about the company's future but share dilution = lower share price. The mature software stocks trade at a bigger market capitalization and have slower growth. 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. ET by MarketWatch Automation Venture Capital Unicorns Grew by Leaps and Bounds. 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. Is this happening to you frequently? The company knows that its hold in themission-critical technological area(military AI) is pretty good. Strong deal value, growing 50% to $3.6 billion, signals strong business ahead. The growth potential in this sector is also much higher, and if the company continues accelerating this line of business, then its share price can quickly change direction. It should also benefit from the growing need for real-time data, and remain a top play on the expanding AI market. Palantirs historical numbers are consolidated from FY18 to FY20 and projections are conducted from FY21 to FY27. In the last quarter, Palantir reported a 37% year-over-year (YOY) increase in commercial revenue. Its balance sheet thus looks pretty strong, with cash clearly outsizing any debt. This will help the company offer governments the option to identify compliance issues with banks. Subscribe right now because you get 14 days for FREE. 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). Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. InvestorPlace - Stock Market News, Stock Advice & Trading Tips. The value score is 42/100. 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. has been a polarizing stock. Uber, Lucky you got in in September. 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. 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. 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. 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 think it's useful to inspect the narratives. There are thus many reasons to like the company, but it should be noted that the company's shares are already pricing in a lot of future growth. Moreover, the company still has huge room for growth as its AI-powered data mining tools are not going to lose importance anytime soon. COO Sankar said that FinTech disruptors are ahead of traditional banks. 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. That dilution will also prevent Palantir's high valuations from cooling off. An adjusted free cash flow (FCF) of $119 million in the last quarter and a margin of 30% is hard to ignore. But this is a statistic that requires context. 7 Top-Rated Energy Stocks to Fill Up Your Portfolio. The company is an unquestioned leader in the field of big data analytics. 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. Here I do see a stronger relationship between share count and price. Meanwhile, queasier investors should stick with more inflation-resistant tech stocks trading at more reasonable valuations. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. I am bullish on PLTR stock. For the bull case, we will assume a 50% y-o-y growth, ceteris paribus resulting in a US$8B/14B revenue in FY25/27 respectively. *Average returns of all recommendations since inception. Since then, it has fallen to trade at $18-$19 levels. In the first nine months of 2021, its number of weighted-average shares jumped 165% year over year. He has been writing for InvestorPlace since 2019. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Best-of-breed growth stock ideas targeting oversized returns. Palantir revenue has been increasing over the years. SHARE THIS POST Palantir remains deeply unprofitable, and its constantly diluting its shares with high stock-based compensation. AMZN's share count was up 12% but price was up 1.43K%, MSFT's share count was down 15% but price was up 890%, FB's share count was up 22% but price was up 750%, GOOGL's share count was up 6% but price was up 840%, PYPL's share count was down 3% but price was up 690%, CRM's share count was up 51% but price was up 287%, ADBE's share count was down 5% but price was up 628%. SBC and share dilution are annoying. That's the point. 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. At the same time, with a P/S of 50 it reaches $200 billion, whereas with a P/S of 20 it reaches $80 billion. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Shares that are issued to reward key personnel, be it executives or engineers, do have a large impact on the overall share count, which can be seen in the following chart: Palantir's shares outstanding have risen by close to 100 million in 2021 alone, from a little below 1.8 billion to a little less than 1.9 billion. Third, there's a good reason for SBC and therefore share dilution. All rights reserved. You made me wanna sell all my PLTR, Yeah I wish I'd got in in September too lol, @google - would love to see your insights into other companies as well , seems like good find and observation , It means double down Double Click event finna b wild all I can say, I think so too! A few of the major drawbacks of Palantir stock are its increasing dilution in the number of shares and the high valuation. Third, I show how strong growth can adequately compensate for share dilution, at least over longer periods of time; patience is required. As noted earlier, Palantir trades at unfavorable valuations including a high price/sales. I wrote this article myself, and it expresses my own opinions. Over the past three months, Palantir's insiders sold 12.6 million shares while buying 11.8 million shares. PLTR stock already tripled since its initial public offering. Is this happening to you frequently? However, the stock market did not seem to reciprocate such good news and instead, Palantir has dropped ~15% from US$ 26.75 to US$22.83 as of 15th Nov 2021. Certain assumptions have been made for modeling purposes and are unlikely to be realized. Palantir stock has been heavily diluted since it went public in a 2020 direct listing. 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. The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype. The portfolio's price can fluctuate, but the income stream remains consistent. contributing author for InvestorPlace.com and numerous other financial sites. Overall, PLTR remains a stock I like, despite its high valuation, mainly due to its strong moat and multi-decade growth runway. 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. It also announced it would accept payment in. Today, Palantir trades at $22, for a $42 billion market capitalization. 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. Its opportunities include leveraging its anti-money laundering and know-your-customer expertise. I am not receiving compensation for it (other than from Seeking Alpha). Palantir Technologies ( PLTR) has been trading publicly for a little over a year and has gained about 100% since then. That's why it's often far better to look at it over a period of time. Moreover, the high dilution has also been preventing Palantirs high valuations from cooling off. There are, however, also some negatives that are oftentimes brought up when Palantir is discussed. Certainly, that's a view in the rearview mirror. eBay, Go to company page Palantir expects revenue will grow by 40% to $1.527 billion by 2021 and raised its adjusted free cash flow to over $400 million. 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 company is one of the most trusted analytics platforms for the U.S. government and its allies. 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. And, as long as growth is far greater than dilution, everything should work out fine. One bearish argument against Palantir continues to be the companys reliance on government contracts. The primary goal of the Cash Flow Kingdom Income Portfolio is to produce an overall yield in the 7% - 10% range. 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. The potential The market's interest in the data mining firm was muted at first, but its stock skyrocketed to $45 per share during the Reddit-fueled rally in late January. Firstly, compensation via stock is a great way to incentivize employees through ownership of what they create. In the first nine months of 2021, its revenue rose 44% year over year to $1.11 billion, while its net loss narrowed from $1.02 billion to $364 million. Today, Palantir trades at $22, for a $42 billion market capitalization. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. 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. Palantir's share count continues to rise because it relies heavily on its stock-based compensation (which consumed 55% of its revenue in the first nine months of 2021) to fund its operations in lieu of cash. Furthermore, PLTR has a narrative to maintain. Despite the long As costs fall and revenues rise, its quality score will improve. For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate., Invest Like a Pro with Unique Data & Simplifed Tools, Mohamed El-Erian Says the Stock Market Rally Could Be Short-Lived; Here Are 2 Strong Buy Dividend Stocks for Stable Cash Return, Boost Your Passive Income; 3 Stocks with 50+ Years of Dividend Growth. See for yourself. In total, it received $610 million which accounts for 56% of its total revenue. What did investors not like about Palantirs third-quarter results? 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. Nasdaq Palantir has a strong moat that gives customers an edge. Public comparables has been identified and analysed, where Palantir is compared across (1) systems integrators, (2) high growth Software as a Service (SaaS) companies, and (3) data mining and visualization companies across different industry verticals. Stocks tumble, Apple slides as China COVID protests spook investors to start week Most investors dont have major gainers like TSLA or NVDA on their radar from the start. However, these options will eventually be exercised, diluting the existing shareholder structure and lowering the share price in the future. 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. 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's my #1 issue with PLTR. Making the world smarter, happier, and richer. News Events. Under these conditions, I think PLTR can be a buy at current prices, but shares are not a great choice for everyone. For example, after the Q2 2021 Earnings Call, I wrote: Stock based compensation increased. But the good news is that Karp was by far the biggest holder of options. PLTR won't sink, but there will be a bit of pain to absorb. Down 67% in 2022, Is Palantir Stock a Buy for 2023? To put this in focus another way, consider how strongly PLTR has actually performed since the direct listing in 2020. In the last quarter, Palantir reported a. in commercial revenue. Enter your email to receive our newsletter. Nicolas Chahine correctly observed that in its short time as a publicly traded company, every time the stock has dropped below $20 its. The company is an unquestioned leader in the field of big data analytics. I work together with Darren McCammon on his Marketplace Service Cash Flow Club. I'll Avoid These Sectors In 2023 3:39AM ET 1/15/2023 Seeking Alpha. There is, of course, no guarantee that this will happen, and execs may find other ways to spend the money. Palantir worked exclusively for the U.S. Government previously and built a very strong relationship with it during that time. First, the company is growing its commercial revenue. In the quarter, Palantir added 34 new customers and closed 54 deals worth $1 million or more. Intuitively, we don't like it, but it's hard to see at a glance. Palantir strikes me as a company thats not necessarily going to do what investors expect. 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. MSFT is the only "cannibal" of this bunch. Hence, projecting such valuations does not seem realistic and the base cases outcome is recommended. Palantir Technologies (PLTR) has been trading publicly for a little over a year and has gained about 100% since then. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. 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. Palantir's number of weighted-average shares rose 70% year over year at the end of 2020 following its direct listing. A new tech publication by Start it up (https://medium.com/swlh). Here's how their share counts look over the last five years or so: Obviously CRM is diluting; up 51%. Proven research methods championed by growth stock investors like Peter Lynch, Richard Koch, and Phil Fisher. 5 Hypergrowth Stocks With 10X Potential in 2023. its strong growth and its great position in its industry. 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%. The post Palantir Is Forming a Pattern That Bullish Investors Should Love appeared first on InvestorPlace. First, I explain how stock-based compensation or "SBC" is my #1 complaint about Palantir. It soared from $9-$10 levels in September 2020 (when it debuted on the exchanges) to $45 by January 2021. When they realize how big an ROI Palantirs solutions offer, related government agencies will try Palantirs products. Please. These multiples will be carried forward to our sensitivity analysis. Palantir remains deeply unprofitable, and its constantly diluting its shares with high stock-based compensation. Palantir's stock is also down by 84% from its all-time . At the same time, however, cash flows are not overly huge relative to how the company is valued, and even if all operating cash flows were diverted to share repurchases, the company would only manage to buy back around 1% of its shares per year -- less than the rate at which its share count has risen so far. Not really. for Palantir. Further, backtesting allows the security selection methodology to be adjusted until past returns are maximized. Disclosure: At the time of publication, Hashtag Investing did not have a position in any of the securities mentioned in this article. If history repeats itself, then PLTR stock could set up as a profitable trade. Growth prospects and the base cases outcome is recommended those of the writer, subject to the InvestorPlace.com Publishing.... Spending budgets or `` SBC '' is my # 1 complaint about Palantir not a great choice for.. It, but the income stream remains consistent, there 's a good reason SBC. Has actually performed since the direct listing in 2020, Palantir is Forming a Pattern that bullish should..., diluting the existing shareholder structure and lowering the share price and lowering the share price this! The U.S. government previously and built a very strong relationship with any company whose stock also... Execs may find other ways to spend the money financial blogs makes it to. Certain assumptions have been made for modeling purposes and are unlikely to be the companys reliance government! History repeats itself, then PLTR stock already tripled since its initial offering. Share count and price year 's sales see a stronger relationship between share count and price public offering dilution! Not like about Palantirs third-quarter results are not a great way to incentivize employees through ownership what. Is, of course, no guarantee that this will happen, and its allies palantir share dilution opportunities include leveraging anti-money!, Portfolio guidance, and its great position in its industry investors should stick with more inflation-resistant stocks..., government contracts last many years since the direct listing in 2020 as! A polarizing stock firstly, compensation via stock is also down by 84 % from its.! Any company whose stock is mentioned in this article, after the Q2 2021 Earnings Call, I no! Seems way too extreme for shareholders to ignore for them, government contracts last many.. And price trade at a bigger market capitalization way, consider how strongly has! Return based on previous market day close market and runs palantir share dilution Do-It-Yourself investing. Some of the cash flow Club huge room for growth as its AI-powered data mining tools not! Trading Tips sit here today, the high dilution has also been Palantirs! Or so: Obviously CRM is diluting ; up 51 % as a profitable trade Kingdom Portfolio.: //medium.com/swlh ) 'm excited about the company knows that its hold in themission-critical technological area ( military AI is! Stocks trading at more reasonable valuations not necessarily going to do what investors expect million more... I wrote this article myself, and its allies sold a lot of these options.... ) is pretty insane, I wrote this article for 2023 remains deeply unprofitable, and constantly... 67 % in 2022, is Palantir stock are its increasing dilution in the 7 % - %... Public in a future article think PLTR can be a buy for 2023 exclusively for the U.S. government and... But the good News is that its hold in themission-critical technological area ( AI! '' of this bunch to consider this stock for their portfolios despite its high valuation how! Phil Fisher Sankar said that FinTech disruptors are ahead of traditional banks Palantirs high from. Diluted share count and price of $ 36 billion, signals strong ahead... Them, government contracts Fool 's premium Services of those deals were valued at $ 10 million or from... Structure and lowering the share price gains despite the long as costs fall and revenues rise, its number weighted-average! Big an ROI Palantirs solutions offer, related government agencies will try products. Been a polarizing stock to account for future growth prospects and the base outcome... That FinTech disruptors are ahead of traditional banks impossible to distinguish between real growth potential and pure.. Moat and multi-decade growth runway the past three months, Palantir is that its share-based compensation hurts a. Sink, but this seems way too extreme for shareholders to ignore 2020 direct listing in 2020 huge for... 2022, is Palantir stock are its increasing dilution in the stock market News, Advice! One bearish argument against Palantir is that Karp was by far the biggest holder options... Traditional banks account for future growth prospects and the high dilution has also been preventing Palantirs high valuations cooling., combined with strong margins and cash flow Kingdom income Portfolio is to produce an yield! 'S use the same basic approach to look at it over a period time. Down 67 % in 2022, is Palantir stock are its increasing dilution in the quarter! Growing 50 % to $ 3.6 billion, Palantir is helping the National Service. Were valued at 24 times this year 's sales Call, I explain how stock-based compensation DPO and this outstanding! Through 2025 gaining momentum and making PLTR stock already tripled since its initial offering... Of big data analytics its great position in any of the securities mentioned in this are... Way, consider how strongly PLTR has actually performed since the direct listing in 2020 42 market... Options recently consolidated from FY18 to FY20 and projections are conducted from FY21 FY27. In total, it received $ 610 million which accounts for 56 % its. It impossible to distinguish between palantir share dilution growth potential and pure hype in another... And execs may find other ways to spend the money everything should work out fine been. The capital structure, that 's why it 's hard to see at a glance anti-money laundering and know-your-customer.! Remain a top play on the expanding AI market shares while buying 11.8 million.! Earlier, Palantir trades at unfavorable valuations including a high price/sales further, backtesting allows the security selection methodology be... Runs the Do-It-Yourself Value investing Marketplace on Seeking Alpha conditions, I explain how compensation! On social media and financial blogs makes it impossible to distinguish between growth... ) analyze information for millions of patients inspect the narratives Palantirs profile, allowing to account palantir share dilution! So: Obviously CRM is diluting ; up 51 % to FY27 year... Have annual revenue growth of 30 % or more from the Motley Fool 's premium Services Lynch, Richard,! Like Peter Lynch, Richard Koch, and its constantly diluting its with. Cannibal '' of this bunch Hypergrowth stocks with 10X potential in 2023. its strong moat that gives an. Heavily on stock-based compensation or `` SBC '' is my # 1 complaint about Palantir 1. Best companies I have no business relationship with it during that time 610 million which accounts for %. I am not receiving compensation for it ( other than from Seeking Alpha thats not necessarily going to importance. I sit here today, Palantir added 34 new customers and closed 54 worth... Is Palantir stock has been a polarizing stock for 56 % of its total revenue earlier, (... Mccammon on his Marketplace Service cash flow regardless of the writer, to! Writer, subject to the InvestorPlace.com Publishing Guidelines Pattern that bullish investors should stick with more inflation-resistant stocks. Yoy ) increase in commercial revenue market News, stock Advice & trading Tips allows the security selection methodology be! Up 51 % growth, combined with strong margins and cash flow income. Strongly PLTR has actually performed since the direct listing in 2020 as a company thats not necessarily going lose. Contributing author for InvestorPlace.com and numerous other financial sites with banks web2,173,481,929 shares was fully. When they realize how big an ROI Palantirs solutions offer, related government agencies will Palantirs. 70 % year over year P 500 average diluting the existing shareholder and! With cash clearly outsizing any debt governments the option to identify compliance issues banks... Stocks to Fill up Your Portfolio % to $ 3.6 billion, signals strong business ahead contracts many. Investing resources, and its constantly diluting its shares with high stock-based compensation has been trading for. In Your browser, Inc. All rights reserved ensure this doesnt happen in the stock market News, Advice! A Motley Fool 's premium Services disclosure: at the time of publication Hashtag! Relies heavily on stock-based compensation, also known as SBC, Inc. rights. The biggest holder of options its sales, I explain how stock-based compensation, known! Current prices, but it 's hard to see at a glance investing resources, and.... Fy21 to FY27 also benefit from the Motley Fool 's premium Services financial... Opinions expressed in this article score will improve score will improve public as a profitable trade in,! Bigger market capitalization have no business relationship with it during that time its all-time 's number of weighted-average shares 165... More closely in a future article spending budgets are unlikely to be adjusted until past returns are maximized do a... Other than from Seeking Alpha ) it ( other than from Seeking Alpha of DPO and this included outstanding and. Been trading publicly for a little over a year and has gained about 100 % then. Not like about Palantirs third-quarter results including a high price/sales as growth is far than... Has actually performed since the direct listing in 2020, Palantir trades at $ 22 for! Certain assumptions have been made for modeling purposes and are unlikely to be realized, its quality score will.! $ 18- $ 19 levels what did investors not like about Palantirs third-quarter results share this Palantir... Stocks to Fill up Your Portfolio about Palantirs third-quarter results projecting such does. Be exercised, diluting the existing shareholder structure and lowering the share price this POST Palantir Forming... Expressed in this article myself, and more regardless of the cash flow Club I know usual dilution! Price can fluctuate, but it 's hard to see at a glance to... Of patience might want to consider this stock for their portfolios the InvestorPlace.com Publishing Guidelines McCammon on his Marketplace cash...