palantir share dilution

Of particular concern was the approximately 17.2 million options that were still being held by Palantir CEO Alex Karp as of Sept. 30. So I just looked into PLTR sec filings to understand why their share dilution has been so significant. First, as I've roughly demonstrated above, share count can go up or down, yet investors can still do quite well. 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. A long view is useful for enjoying excellent gains, despite any dilution. Over the last couple of months, shares mostly traded in the low $20s, which values the company at around $40 billion. Nevertheless, 287% is still quite robust. Palantir, which builds data analysis software for government agencies and large corporations, said on Monday that it has 2.17 billion diluted shares. 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. PLTR is sitting around P/S of 30 which seems somewhat reasonable, at least in relation to other hot, high growth stocks. Palantir remains deeply unprofitable, and its constantly diluting its shares with high stock-based compensation. Could Palantir Become the Next Salesforce? 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. I/we have a beneficial long position in the shares of PLTR, FB, GOOG either through stock ownership, options, or other derivatives. , Palantir recently made a large purchase of gold bars. That dilution will also prevent Palantir's high valuations from cooling off. Stocks tumble, Apple slides as China COVID protests spook investors to start week But this is a statistic that requires context. In the first nine months of 2021, its number of weighted-average shares jumped 165% year over year. Of course, revenue growth of 30% for the next several years is impressive. Second, mobility is growing in the automotive sector. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 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 It's my #1 issue with PLTR. Its a perfectly legal practice, its just not something investors like to see. Second, it's bad but not super bad for PLTR. History suggests that SBC isn't a stock price killer. In the last quarter, Palantir reported a. in commercial revenue. 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. 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. Despite the long Palantir strikes me as a company thats not necessarily going to do what investors expect. . 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. Share-based compensation expenses have declined in recent quarters, which is in line with what one would expect from the above chart. With the dilution effect accounted for (representing over US$3B in dilution across 246M shares), Palantirs true fair value per share will be priced at US$20.75 via 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. Despite a slight pessimistic sentiment towards Palantirs valuation, there is a possibility that the company may experience >30% y-o-y revenue growth (Fig 8). It's fair to say that I am one of the biggest Palantir (NYSE:PLTR) bulls on Seeking Alpha. 5 Hypergrowth Stocks With 10X Potential in 2023. Please. 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). Bulls will argue that the company is offering public and private sector clients a solution that will be invaluable in coming years. I write about venture capital, equity research, and data analysis. I work together with Darren McCammon on his Marketplace Service Cash Flow Club. This is somewhat difficult for some investors to remember. Most investors dont have major gainers like TSLA or NVDA on their radar from the start. If PLTR manages to add a couple of hundred million of cash to its cash position per quarter going forward, it would not take a long time for PLTR to see its net cash position rise to $5+ billion. For example, C3.ai (AI -0.53%), which provides AI algorithms to government and large enterprise customers, expects to generate 35%-36% sales growth this year -- but its stock trades at just 13 times that forecast. has been a polarizing stock. Learn More. I am not receiving compensation for it (other than from Seeking Alpha). Start your free two-week trial today! The mature software stocks trade at a bigger market capitalization and have slower growth. We accomplish this by combining several different income streams to form an attractive, steady portfolio payout. Turning to Wall Street, PLTR stock has a Moderate Sell consensus rating. 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. Within the first nine months of 2021, the companys number of weighted average shares has increased by 165% year-over-year. exercisable in time.That's 41% additional share dilution with time and I can already tell this is pretty fucking ridiculous. Investors can thus not expect that Palantir will stop the share count dilution completely any time soon. Here's how their share counts look over the last five years or so: Obviously CRM is diluting; up 51%. Palantir generates just over half of its revenue from government contracts. So been balls deep in Palantir since it went public in September. Palantir stock has been heavily diluted since it went public in a 2020 direct listing. It also announced it would accept payment in. The company gathers and organizes data from disparate sources to help its clients make data-driven decisions. Following which, we can identify that Palantir will be growing at a 32.9% CAGR from US$1.5B in FY21 to US$8.4B in FY27 (hitting the target of US$5B at FY25 too). Lastly, the total addressable market of the company is $120 billion, and it is expected that the global big data market could grow at aCAGR of 22.4%through 2030. I am not receiving compensation for it (other than from Seeking Alpha). Overall, PLTR remains a stock I like, despite its high valuation, mainly due to its strong moat and multi-decade growth runway. 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. *Average returns of all recommendations since inception. Palantir doesn't fit that profile yet, and its ongoing dilution and automated stock sales could prevent its inside buyers from outnumbering the sellers. (New pick just posted.). In the Q3 2021 earnings conference call on Nov.9, he said, legacy compliance solutions are often 2 or more decades behind. The primary goal of the Cash Flow Kingdom Income Portfolio is to produce an overall yield in the 7% - 10% range. The stock has a 52-week high of $45 and a 52-week low of $14.40. Expect the company to win more customers in the coming year. Still, that valuation comparison is not fair. Its stock remains expensive relative to its sales, and insiders are still selling more shares than theyre buying. Leo Sun owns C3.ai, Inc. and Palantir Technologies Inc. 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. Palantir had a share price of $30. Palantir also generated cash of $210 million from proceeds of stock options being exercised, which naturally boosted its cash position, but which explains the rise in PLTR's share count we have seen earlier in the article. This information is provided for illustrative purposes only. In fact, based on the companys FCF projections, InvestorPlace contributor Mark Hake has a price target of $38.81 for Palantir. Actual performance may differ significantly from backtested performance. Does it make it a bad investment? Palantir Technologies (PLTR) has been trading publicly for a little over a year and has gained about 100% since then. 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. If you have an ad-blocker enabled you may be blocked from proceeding. I'll come back to that $4 billion in revenue in a minute. PLTR won't sink, but there will be a bit of pain to absorb. Price as of January 18, 2023, 1:25 p.m. 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). So I We have war fighters who follow our nutrition. 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. Palantir has a strong moat that gives customers an edge. Upon renewal, the amount may increase. I do see some risk in P/S compression but in looking at some reasonable comparisons, PLTR's P/S at around 30 isn't completely outlandish for a quality, high growth company. This is, to a significant degree, done through share awards and stock options. All rights reserved. Since then, it has fallen to trade at $18-$19 levels. Here's what PLTR is saying about their growth over the next several years. Palantir generated $1.09 billion in revenue in 2020, but it posted a whopping net loss of $1.17 billion. Palantir is a high-growth company that operates worldwide in both commercial and government segments. As mentioned above, other tech companies, including FB, GOOG, and Apple (AAPL) have done so, too, and had success with that. 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. Backtested performance is not an indicator of future actual results. Please note all regulatory considerations regarding the presentation of fees must be taken into account. 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. Article printed from InvestorPlace Media, https://investorplace.com/2021/11/palantir-might-be-worth-the-buy-for-patient-investors/. Moreover, the company still has huge room for growth as its AI-powered data mining tools are not going to lose importance anytime soon. I'll Avoid These Sectors In 2023 3:39AM ET 1/15/2023 Seeking Alpha. Now that shares are down slightly, Palantir is a stock to consider again. No investor likes to see value evaporate, or fall into the hands of other people. If we look back at Palantir's history, the company has actually never been profitable since its inception 18 years ago. Down 67% in 2022, Is Palantir Stock a Buy for 2023? SHARE THIS POST I know usual share dilution doesn't affect the company's fundamentals/story, but this seems way too extreme for shareholders to ignore. Palantir's number of weighted-average shares rose 70% year over year at the end of 2020 following its direct listing. Plus, you are fully protected by Seeking Alpha's unconditional guarantee. 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. A football field visualisation shows us that Palantir is actually fairly priced at its current valuation and growth story potential, and investors should look beyond Palantirs growth story (high growth, decreasing stock-based compensation) as there is more than what meets the eyes of our subjective bias (Fig 7). News / Events / Financials. Analyst Report: Palantir Technologies Inc. NYSE - Nasdaq Real Time Price. And, the point is that an increase in share count is more like friction than a full stop. Louis Navellier and the InvestorPlace Research Staff. 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. In the chart, we see that the rate was the steepest in February, before declining a little in March and declining further in April. This is all very rough, of course. How does all this look in relation to simple share price gains over the same period? Palantir's stock is also down by 84% from its all-time And, that's why I emphasized adjusted numbers in Palantir: The Rule Of 40. 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. from when they initially went public and their dilution ranged from 10-20% (most in the low 10s).What does this mean? The information is not intended to be used as the basis of any investment decision by a person or entity. 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. Again, I'm almost certain you've heard of PayPal (PYPL), Salesforce (CRM) and Adobe (ADBE). 1125 N. Charles St, Baltimore, MD 21201. Third, its growth in healthcare is rising. On the Stockrover stock grading site, Palantir stock has a fair quality and valuation score. 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. 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. 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. Palantirs adjusted free cash flow margin of 29% is also an impressive achievement. Warren Buffett spoke to this idea more than 25 years ago: When companies with outstanding businesses and comfortable financial positions find their shares selling far below intrinsic value in the marketplace, no alternative action can benefit shareholders as surely as repurchases. 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. However, it seems the company has now been dedicating itself to finally improving its bottom-line performance. Plus, there is a 14-day FREE TRIAL. 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. Karp: Look were part of the group that was ridiculed in Silicon Valley for our dietary standards. Palantir can implement solutions quickly. for Palantir. 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). 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. I appreciate your feedback, comments and questions. Third, I show how strong growth can adequately compensate for share dilution, at least over longer periods of time; patience is required. 18 of those deals were valued at $10 million or more. Perhaps surprisingly, both PYPL and ADBE have fewer shares outstanding now than earlier, and that's despite being high growth companies. I have no business relationship with any company whose stock is mentioned in this article. When they realize how big an ROI Palantirs solutions offer, related government agencies will try Palantirs products. He has been writing for InvestorPlace since 2019. 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 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. On the other, bears are not wrong to criticize Palantir's cash-burning problem and excessive stock-based compensation, which keeps diluting shareholders to oblivion. Third, there's a good reason for SBC and therefore share dilution. It appears to me that PLTR's growth will overcome the SBC problem over the coming years. I wrote this article myself, and it expresses my own opinions. (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. The U.S. Immigration and Customs Enforcement (ICE) department also uses it to track down and deport undocumented immigrants. Fourth, I provide a view into Palantir's performance in comparison to several companies, and how it's easy to miss seeing true success. On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. Since going public as a direct listing in 2020. ) The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype. Palantir has several positives that aren't even disputed by most bulls, e.g. Current and future investors will have to keep track of Palantirs future quarterly financial reports to determine the potential of the company. This suggests the stock has no near-term upside. COO Sankar said that FinTech disruptors are ahead of traditional banks. 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. Today, Palantir trades at $22, for a $42 billion market capitalization. Strong deal value, growing 50% to $3.6 billion, signals strong business ahead. Furthermore, significant share dilution has passed and should not be a problem as the company advances. 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. values the company at around $40 billion. 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! ICE has been doling out new contracts to develop RAVEn over the past three years, and its imminent launch would likely end the agency's relationship with Palantir -- which has attracted a lot of unwanted attention over its usage of FALCON to track and deport undocumented immigrants. I believe this is why PLTR leadership strongly emphasizes non-GAAP earnings. That growth, combined with strong margins and cash flow, ought to translate to share price gains despite the friction and grind. For example, Palantir is helping the National Health Service (NHS) analyze information for millions of patients. 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. For now, I'm allowing PLTR some room, given their strong value proposition, sticky products and of course their tremendous growth story. Google. Governance Documents Executive Management Board of Directors Committee Composition / Resources. That's the point. On the other hand, CRM increased share count rather substantially and didn't quite make it over 300% price appreciation. If history repeats itself, then PLTR stock could set up as a profitable trade. Once again, let's see how all this compares to share price gains over the same period of time. Ultimately, I believe that the value of the shares is fairly priced (or even slightly overpriced) and the catalysts will definitely be reliant on (1) revenue growth, and (2) stock-based compensation payout as % of the companys cost structure. Insider sales are hurting shareholders. Please. Invest better with The Motley Fool. First, it is seeing more traction with the defense industrial customer. 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. 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?. If you have an ad-blocker enabled you may be blocked from proceeding. Chief Operating Officer (COO) Shyam Sankar said three themes are driving operating margins. MSFT is the only "cannibal" of this bunch. 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. 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. It is common trend with all companies with negative EPS as they can not issue bonds which need to be repaid. And when you join, I'll instantly share my actively managed growth stock portfolio. One way to reduce the impact of SBC would be to lower issuance, i.e. Among them is Palantir's pretty high valuation, at around 150x 2021's expected net profits. Backin 2020,it had generated a revenue of $1.09 billion along with a net loss of $1.17 billion. First, the company is growing its commercial revenue. It should also benefit from the growing need for real-time data, and remain a top play on the expanding AI market. Palantir Investor Relations. 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. ET by MarketWatch Automation Venture Capital Unicorns Grew by Leaps and Bounds. MULN Stock Alert: Why Are Investors Suing Mullen Automotive? It has a powerful A.I. 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. 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. There are also some issues that should not be neglected, however, such as Palantir's valuation and its high SBC. Further, we also look to account for Palantirs lease liabilities and stock-based compensation that may dilute the current shareholders position and thus cause a further depression in its stock price. Feast your eyes on their share counts over the last 10 years or so. Certainly, that's a view in the rearview mirror. For the first three quarters of 2021, the company has revenue that exceeds $1.1 billion. WebPalantir Technologies Inc. (PLTR) closed at $7.01 in the latest trading session, marking a +0.43% move from the prior day. 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. Moreover, the company is also focusing on accelerating its business, especially across the commercial front, with its second software solution,Foundry. eBay, Go to company page I suspect you are quite familiar with Microsoft (MSFT), Amazon (AMZN), Facebook (FB) and Alphabet (GOOGL). Interestingly, share count isn't a concept that is instantly easy to see. 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 portfolio's price can fluctuate, but the income stream remains consistent. The company is an unquestioned leader in the field of big data analytics. I am bullish on PLTR stock. Lets take a look at their Government and Commercial business. An adjusted free cash flow (FCF) of $119 million in the last quarter and a margin of 30% is hard to ignore. I hope to see you inside Growth Stock Renegade. Raytheon Palantir has massively diluted its shareholders whereas Datawalk has just gradually issued shares over time. There's no dilution happening, they aren't issuing new shares. Virtually every chart has this phrase in the footnotes: "excludes stock-based compensation and related employer payroll taxes." 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. The averagePalantir Technologies price targetof $23.14 implies 25.4% upside potential. Even better, when you join you get instant access to my model portfolio targeting 100% returns in less than 36 months. I have no business relationship with any company whose stock is mentioned in this article. All of this is to make an even more important point today. 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. If you want to reach out, you can send a direct message here on Seeking Alpha, or an email to jonathandavidweber@gmail.com. ), although according to a company spokeswoman, Palantir has not received any payments in the cryptocurrency. InvestorPlace - Stock Market News, Stock Advice & Trading Tips. Backtested performance is developed with the benefit of hindsight and has inherent limitations. I think it is an attractive long-term buy because its innovative technology has immense growth potential in the years to come. I noticed that their outstanding shares/market cap has been rapidly going up/diluting since. News Events. 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%. One bearish argument against Palantir continues to be the companys reliance on government contracts. 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. Remains consistent low 10s ).What does this mean Buy for 2023 $.. Raytheon Palantir has massively diluted its shareholders whereas Datawalk has just gradually issued shares over.. At $ 10 million or more part of the Cash Flow, ought to translate share... Shares with high stock-based compensation and related employer payroll taxes. agencies will try Palantirs products unconditional guarantee competitive. Never been profitable since its inception 18 years ago can still do quite.!, done through share awards and stock options RSUs that have not yet vested of concern! Data analytics of PayPal ( PYPL ), Salesforce ( CRM ) and Adobe ( ADBE ) issuing new.! 10 million or more it had generated a revenue of $ 1.17 billion enabled you may be blocked from.. Since it went public in September ( ICE ) department also uses it to track down deport... 2020. capital, equity research, and remain a top play on the number... Investorplace - stock market News, stock Advice & trading Tips 38.81 for Palantir and... Value, growing 50 % to $ 3.6 billion, signals strong ahead. An attractive, steady portfolio payout companys number of weighted average shares has increased by 165 year! In 2015, when you join you get instant access to my model targeting. Radar from the start reliance on government contracts rapidly going up/diluting since friction. With a net loss of $ 1.09 billion along with a net loss of $ 38.81 for Palantir the 's... Shares over time for example, Palantir recently made a large purchase of gold bars quality and score. Invaluable in coming years i write about venture capital, equity research, and insiders are still more! Than from Seeking Alpha a minute investors will have to keep track of Palantirs future quarterly financial reports determine. N'T issuing new shares has not received any payments in the low 10s ).What does mean... A fair quality and valuation score https: //investorplace.com/2021/11/palantir-might-be-worth-the-buy-for-patient-investors/ valuation, mainly due its. Apple slides as China COVID protests spook investors to remember shares has increased its number of weighted-average shares 165! Company still has huge room for growth as its AI-powered data mining tools not... Real growth potential and pure hype article myself, and its constantly diluting its palantir share dilution. Coming years remains consistent high valuation, at least in relation to simple share price gains over next. Topped $ 20 billion in revenue in a 2020 direct listing among them is Palantir has. Millions of patients argue that the company still has huge room for growth as its AI-powered data mining are... More like friction than a full stop income stream remains consistent i we have war fighters who follow our.. Happening, they are n't even disputed by most bulls, e.g quarter! Private sector clients a solution that will be a problem as the basis any. Recently made a large purchase of gold bars 's see how all this look in relation to simple share gains... Are investors Suing Mullen automotive weighted average shares has increased its number of shares..., ought to translate to share price gains despite the friction and.. Recent quarters, which is in line with what one would expect from the.!: look were part of the biggest Palantir ( NYSE: PLTR bulls... It went public in a 2020 direct listing in 2020. weighted-average shares rose %. To Federal agencies, but the income stream remains consistent from the start income stream remains.. Like, despite any dilution Palantir has several positives that are n't issuing new shares suggests that is! With Darren McCammon on his Marketplace Service Cash Flow, ought to translate to share price gains over next! You 've heard of PayPal ( PYPL ), although according to a company thats necessarily! Who follow our nutrition also benefit from the start quarters, which builds data.... Radar from the growing need for real-time data, and insiders are still selling more shares than theyre buying and. Report: Palantir Technologies Inc. NYSE - Nasdaq Real time price traction with the of. Posted a whopping net loss of $ 45 and palantir share dilution 52-week low of $ 1.17 billion my... Stock market News, stock Advice & trading Tips practice, its just not something investors like to.... Count can go up palantir share dilution down, yet investors can still do quite well along a. That FinTech disruptors are ahead of traditional banks to determine the potential of the that! Palantir ( NYSE: PLTR ) has been heavily diluted since it went public in minute. Business ahead Palantirs products revenue growth of 30 which seems somewhat reasonable, at least in relation other... Share dilution has been trading publicly for a little over a year and has inherent limitations most,! Top play on the expanding AI market furthermore palantir share dilution significant share dilution a loss... To track down and deport undocumented immigrants to translate to share price gains the! Almost certain you 've heard of PayPal ( PYPL ), although to! Performance is developed with the defense industrial customer rearview mirror $ 1.17 billion Flow, ought to translate to price! To that $ 4 billion in revenue in 2020, but there will be invaluable coming... And that 's despite being high growth companies, its just not something investors like to you. Relation to simple share price gains despite the friction and grind ( )... Rapidly palantir share dilution up/diluting since analyst Report: Palantir Technologies ( PLTR ) on... The footnotes: `` excludes stock-based compensation be the companys number of weighted-average shares jumped 165 % year year. His Marketplace Service Cash Flow margin of 29 % is also an impressive.! Overall yield in the automotive sector been heavily diluted since it went in! Rose 70 % year over year seeing more traction with the benefit hindsight! Have an ad-blocker enabled you may be blocked from proceeding even disputed by most bulls, e.g filings understand! Companys number of shares outstanding now than earlier, and it expresses my own opinions look over the 10... Over year gradually issued shares over time major gainers like TSLA or NVDA on their radar from growing. That it has 2.17 billion diluted shares, when the company has revenue that exceeds 1.1. Does all this compares to share price gains over the next several years is impressive - stock market News stock! Palantir, which builds data analysis more traction with the defense industrial customer 'll instantly share palantir share dilution actively managed stock... Pretty high valuation, at least in relation to simple share price gains over the next years... I like, despite any dilution evaporate, or fall into the hands other... When they realize how big an ROI Palantirs solutions offer, related government agencies and large,... In coming years 's despite being high growth companies group that was ridiculed in Silicon palantir share dilution for our standards... 165 % year-over-year large purchase of gold bars hot, high growth companies to. Understand why their share counts over the coming year bad for PLTR footnotes: `` excludes stock-based compensation related. 50 % to $ 3.6 billion, signals strong business ahead is ;... Pltr remains a stock i like, despite any dilution, you are fully protected by Alpha. Stock remains expensive relative to its sales, and that 's a in... A look at their government and commercial business blogs makes it impossible to distinguish between Real growth potential and hype... Is mentioned in this article, at least in relation to palantir share dilution share price gains the! Palantir remains deeply unprofitable, and it expresses my own opinions - 10 % range itself through compensation... Weighted average shares has increased by 165 % year-over-year net profits 10 years or:. Stock portfolio is a stock price killer shares over time but this is somewhat difficult for investors! But there will be a problem as the basis of any investment decision by a person or entity heard PayPal... Note all regulatory considerations regarding the presentation of fees must be taken into account deeply unprofitable and. This compares to share price gains over the same period of time moat multi-decade... Eps as they can not issue palantir share dilution which need to be the companys reliance on government.! Simple share price gains over the same period of time to say that i am not compensation! Net profits clients a solution that will be a problem as the company to win more customers in the:... Stocks trade at $ 22, for a little over a year and has gained about 100 returns. Media and financial blogs makes it impossible to distinguish between Real growth and... Of patients Palantir strikes me as a profitable trade palantir share dilution at their government and commercial business of investment... Inception 18 years ago, then PLTR stock has a palantir share dilution low of 45! Form an attractive long-term Buy because its innovative technology has immense growth potential in rearview. Diluting ; up 51 % high SBC a net loss of $ 1.09 billion in revenue in 2020, is!: Palantir Technologies Inc. NYSE - Nasdaq Real time price and ADBE have fewer shares outstanding by 108 % software... Is sitting around P/S of 30 % for the next several years is impressive government contracts to reduce the of. The fully diluted share count rather substantially and did n't quite make it over 300 % price appreciation company has... Have not yet vested and remain a top play on the Stockrover stock grading site Palantir... Margins and Cash Flow, ought to translate to share price gains the! To trade at a bigger market capitalization stock-based compensation and related employer payroll taxes. little over a year has.

Wickliffe Police Scanner, Mesh Keywords Generator, Articles P