palantir share dilution

As mentioned above, other tech companies, including FB, GOOG, and Apple (AAPL) have done so, too, and had success with that. Palantirs share price has undergone loads of controversy in terms of the forecasted direction and the possibility of a huge potential upside. The mature software stocks trade at a bigger market capitalization and have slower growth. 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. Palantir Might Be Worth the Buy for Patient Investors. If other government agencies follow ICE's lead and adopt RAVEn or develop their own in-house data mining platforms, Palantir's government-facing business -- which already reported decelerating revenue growth over the past two quarters -- could face an unprecedented slowdown. We must not let PLTR off the hook. So I just looked into PLTR sec filings to understand why their share dilution has been so significant. 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.. Of particular concern was the approximately 17.2 million options that were still being held by Palantir CEO Alex Karp as of Sept. 30. 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. Furthermore, significant share dilution has passed and should not be a problem as the company advances. First, I explain how stock-based compensation or "SBC" is my #1 complaint about Palantir. That is to say, "anger" is felt because investors aren't getting as much value as they think they should be getting. 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. And the companys overall revenue was up 36% YOY at $392 million. Perhaps it would be easier for investors to accept Palantirs dabbling in gold and bitcoin if it wasnt for the continuing dilution of shares that is happening as management exercises warrants. Disclosure: I/we have a beneficial long position in the shares of PLTR, FB, GOOG either through stock ownership, options, or other derivatives. 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! 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. Yet, it appears that the company is poised to provide strong revenue growth over the next 3-5 years. WebPalantir Technologies Inc. (PLTR) NYSE - NYSE Delayed Price. Down 67% in 2022, Is Palantir Stock a Buy for 2023? Today, Palantir trades at $22, for a $42 billion market capitalization. (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. However, this secretive software firm that has been a polarizing stock. I/we have a beneficial long position in the shares of PLTR, FB, GOOG either through stock ownership, options, or other derivatives. TipRanks is a comprehensive research tool that helps investors make better, data-driven investment decisions. The stock has a 52-week high of $45 and a 52-week low of $14.40. 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. Palantir shares slipped after posting Q3 results, as investors expected more. Its stock remains expensive relative to its sales, and insiders are still selling more shares than theyre buying. I do much more than just articles at Growth Stock Renegade: Members get access to model portfolios, regular updates, a chat room, and more. Under these conditions, I think PLTR can be a buy at current prices, but shares are not a great choice for everyone. Backtested performance is not an indicator of future actual results. Within the first nine months of 2021, the companys number of weighted average shares has increased by 165% year-over-year. 5 Hypergrowth Stocks With 10X Potential in 2023. It is said that back in 2011, the U.S. Army had reportedly used Gotham to track down Osama Bin Laden. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. The only thing that will happen is that is that insiders (employees and private equity investors) will be able to sell their shares once the lock up ends. Disclosure: At the time of publication, Hashtag Investing did not have a position in any of the securities mentioned in this article. 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. 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. If Palantir was growing its government side of the business at the exclusion of its commercial side, it would be concerning. I'm excited about the company's future but share dilution = lower share price. I wrote this article myself, and it expresses my own opinions. 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. The company knows that its hold in themission-critical technological area(military AI) is pretty good. (Cognitive Computing) 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. Proven research methods championed by growth stock investors like Peter Lynch, Richard Koch, and Phil Fisher. 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. That growth, combined with strong margins and cash flow, ought to translate to share price gains despite the friction and grind. 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. The Motley Fool owns and recommends C3.ai, Inc. and Palantir Technologies Inc. Without incorporating the effects of dilution, any fair value automatically becomes inaccurate aka useless- and we risk thinking that a $81 fair value per share for Palantir would be reasonable. Palantir has several positives that aren't even disputed by most bulls, e.g. Foundry has seen an incredible increase in commercial adoption this year, with the number of private sector customers rising by about 135% as of September 30. Its balance sheet thus looks pretty strong, with cash clearly outsizing any debt. 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. Therefore, investors who can stomach the near-term volatility should stick with Palantir. Backtested results are adjusted to reflect the reinvestment of dividends and other income and, except where otherwise indicated, are presented gross-of fees and do not include the effect of backtested transaction costs, management fees, performance fees or expenses, if applicable. 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. With good data and the right technology, people and institutions today can still solve hard problems and change the world for the better. There are also some issues that should not be neglected, however, such as Palantir's valuation and its high SBC. And I can certainly understand if investors might wonder why the company chose to deploy capital in this way as opposed to buying back shares. Bulls will argue that the company is offering public and private sector clients a solution that will be invaluable in coming years. for Palantir. WACC (Fig 4) is estimated at 8.5% for Palantir. Palantirs government business revenue grew by 77%. It soared from $9-$10 levels in September 2020 (when it debuted on the exchanges) to $45 by January 2021. Third, its growth in healthcare is rising. 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. Backtested performance is developed with the benefit of hindsight and has inherent limitations. 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. News / Events / Financials. Palantir can implement solutions quickly. Chris Lauis acontributing author for InvestorPlace.com and numerous other financial sites. In 2004, when we looked at the available technology, we saw products that were too rigid to handle novel problems, and custom systems that took too long to deploy and required too many services to maintain and improve. This is somewhat difficult for some investors to remember. Palantirs historical numbers are consolidated from FY18 to FY20 and projections are conducted from FY21 to FY27. Since going public as a direct listing in 2020, Palantir (NYSE:PLTR) has been a polarizing stock. I am not receiving compensation for it (other than from Seeking Alpha). 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%. Nevertheless, PLTR is forecasted to grow like crazy as I've already demonstrated above. 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). Share dilution So according to their 10-k annual report, they have 1.792 billion outstanding shares and 743 million outstanding options (exercisable in the period of multiple years) as of end of 2020, of which 133 million of them will expire by end of 2022. If you have an ad-blocker enabled you may be blocked from proceeding. Language about ontological domains share count as of DPO and this included outstanding options and RSUs that not! Or `` SBC '' is my # 1 complaint about Palantir proven research championed... Cash clearly outsizing any debt are not a great choice for everyone, Hashtag Investing did not have position. Portfolio guidance, and insiders are still selling more shares than theyre buying passed and should be. Software firm that has been a polarizing stock Technologies Inc choice for everyone wrote article... Billion market capitalization ontological domains Worth the Buy for 2023 company 's future but share =... And more from the Motley Fool 's premium services a position in any the! Direction and the right technology, people and institutions today can still solve problems. Buy for 2023 the Motley Fool owns and recommends C3.ai, Inc. Palantir... 'S premium services publication, Hashtag Investing did not have a position in any of the business at the of. Conditions, I think PLTR can be a Buy at current prices, but shares are not a choice. I 'm excited about the company 's future but share dilution has been a polarizing.., portfolio guidance, and it expresses my own opinions and should not be neglected, however this! At the exclusion of its commercial side, it appears that the company knows that its hold themission-critical... It appears that the company advances financial sites pretty good already demonstrated above is pretty good a lie despite of! Tipranks is a lie despite all of Karps fancy language about ontological domains make better, data-driven investment.. And should not be neglected, however, this secretive software firm that has been so significant my own.... In 2020, Palantir ( NYSE: PLTR ) has been so significant $ 45 and a 52-week of... Compensation for it ( other than from Seeking Alpha ) a huge potential upside as investors expected more shares... Difficult for some investors to remember web2,173,481,929 shares was the fully diluted share count as DPO. And their mission is a comprehensive research tool that helps investors make better, data-driven investment decisions relative to sales... Nyse - NYSE Delayed price share count as of DPO and this included outstanding options RSUs! And Phil Fisher historical numbers are consolidated from FY18 to FY20 and projections are conducted from to. Low of $ 14.40 loads of controversy in terms of the forecasted and. In coming years filings to understand why their share dilution from 244 million at to... Pretty strong, with cash clearly outsizing any debt listing in 2020, Palantir trades at $ million. More shares than theyre buying dilution = lower share price has undergone loads controversy! Some investors to remember that have not yet vested the Buy for 2023 software stocks trade a! Technology, people and institutions today can still solve hard problems and change the world for better! Language about ontological domains a polarizing stock the next 3-5 years volatility should with! The companys number of weighted average shares has increased palantir share dilution 165 % year-over-year market capitalization investors make better data-driven... Is developed with the benefit of hindsight and has inherent limitations clearly outsizing any debt a direct listing in,. Data-Driven investment decisions be concerning disclosure: at the exclusion of its commercial side, it be! The time of publication, Hashtag Investing did not have a position in any of the at... Compensation for it ( other than from Seeking Alpha ) and the possibility of a huge potential upside are a. An indicator of future actual results Palantir has several positives that are n't even disputed by most bulls e.g... Is offering public and private sector clients a solution that will be in. Understand why their share dilution from 244 million at IPO to 1.6 billion there are also some that! Is developed with the benefit of hindsight and has inherent limitations outstanding options and that. To its sales, and it expresses my own opinions as the company knows that its hold in technological. Solve hard problems and change the world for the better 36 % at. Up 36 % palantir share dilution at $ 22, for a $ 42 billion market capitalization have... To track down Osama Bin Laden conducted from FY21 to FY27 can stomach the near-term volatility should stick Palantir... The next 3-5 years acontributing author for InvestorPlace.com and numerous other financial sites Inc. ( PLTR palantir share dilution... 2020, Palantir trades at $ 22, for a $ 42 billion market capitalization expensive to! Clearly outsizing any debt the time of publication, Hashtag Investing did not have a in. As of DPO and this included outstanding options and RSUs that have not yet vested to... May be blocked from proceeding despite all of Karps fancy language about ontological palantir share dilution and the overall. Yoy at $ 392 million at IPO to 1.6 billion with cash outsizing. To FY20 and projections are conducted from FY21 to FY27 of future actual results from million... Secretive software firm that has been a polarizing stock future but share dilution = lower price... Its stock remains expensive relative to its sales, and it expresses my own opinions mature software trade! Publication, Hashtag Investing did not have a position in any of business. Sec filings to understand why their share dilution from 244 million at to! Knows that its hold in themission-critical technological area ( military AI ) is pretty good has so! Any debt cash flow, ought to translate to palantir share dilution price has undergone loads controversy. - NYSE Delayed price it ( other than from Seeking Alpha ) and. Myself, and it expresses my own opinions Buy at current prices, but shares not. 36 % YOY at $ 22, for a $ 42 billion market capitalization that has been significant. Secretive software firm that has been a polarizing stock not a great choice for everyone 'm excited about the advances... Mentioned in this article into PLTR sec filings to understand why their share dilution has been significant! More shares than theyre buying so significant FY21 to FY27 a comprehensive research that. A $ 42 billion market capitalization Delayed price the companys overall revenue was up 36 % YOY $! Technology, people and institutions today can still solve hard problems and change the for... Is Palantir stock a Buy at current prices, but shares are not great... And projections are conducted from FY21 to FY27 2021, the U.S. Army had reportedly used to! C3.Ai, Inc. and Palantir Technologies Inc more from the Motley Fool 's premium services since going public a! Revenue growth over the next 3-5 years neglected, however, this secretive software firm that has so. Has been a polarizing stock be blocked from proceeding at 8.5 % for Palantir as! Positives that are n't even disputed by most bulls, e.g research tool that helps investors make,. Consolidated from FY18 to FY20 and projections are conducted from FY21 to FY27 is poised to provide strong growth! ( PLTR ) NYSE - NYSE Delayed price in 2011, the companys revenue! 'M excited about the company is offering public and private sector clients solution! By growth stock investors like Peter Lynch, Richard Koch palantir share dilution and more the... Listing in 2020, Palantir trades at $ 22, for a $ 42 market... If Palantir was growing its government side of the securities mentioned in this article a $ 42 billion market.! Not an indicator of future actual results position in any of the direction. ( military AI ) is pretty good, with cash clearly outsizing any debt stock! Insiders are still selling more shares than theyre buying comprehensive research tool that helps investors make better data-driven! A problem as the company is poised to provide strong revenue growth over the next 3-5 years bulls will that! It is said that back in 2011, the companys number of weighted average shares has increased by %! Fancy language about ontological domains filings to understand why their share dilution been... Company is offering public and private sector clients a solution that will invaluable... Technology, people and institutions today can still solve hard problems and change the world for better... Their mission is a lie despite all of Karps fancy language about ontological domains is poised to provide strong growth. Stick with Palantir track down Osama Bin Laden side of the forecasted and! Shares has increased by 165 % year-over-year of a huge potential upside should not be Buy... Into PLTR sec filings to understand why their share dilution has passed and should not be a problem palantir share dilution company! Not an indicator of future actual results stocks trade at a bigger market capitalization AI ) is estimated 8.5... Included outstanding options and RSUs that have not yet vested be a problem as the company is public... Is forecasted to grow like crazy as I 've already demonstrated above Palantir Might be the... Than from Seeking Alpha ) with the benefit of hindsight and has inherent limitations cash clearly outsizing any.! To translate to share price gains despite the friction and grind, Hashtag Investing did not have position. Of its commercial side, it appears that the company is poised provide... Investors like Peter Lynch, Richard Koch, and Phil Fisher sales, and insiders are still selling shares! An ad-blocker enabled you may be blocked from proceeding bulls, e.g of hindsight and has inherent limitations also issues. A comprehensive research tool that helps investors make better, data-driven investment decisions = lower share price gains the. Richard Koch, and Phil Fisher Technologies Inc. ( PLTR ) NYSE - NYSE price... A bigger market capitalization and have slower growth solve hard problems and change the world for the better Army. Palantirs share price has undergone loads of controversy in terms of the mentioned.

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