Stock Based Compensation: The Dilution Potential Of The Worst Offenders 7:01PM ET 1/15/2023 Seeking Alpha. I believe this is why PLTR leadership strongly emphasizes non-GAAP earnings. A sensitivity analysis is applied to Palantir to weigh out different possibilities on where the share priced will be headed towards, depending on the scenario and the type of valuation methodology employed. Just as it looked as though Palantir Technologies (NYSE:PLTR) would rally again, its quarterly earnings rained on its parade. Palantir announced its financial results for FY21 Q3 including the following: (1) 34 net new customers in Q3, closing 54 deals of >US$1M, 33 deals of >US$5M, and 18 deals of >US$10M, (2) Total revenue growth of 36% y-o-y to US$392M for FY21 Q3, (3) Positive free cash flow of US$119M, representing a 30% margin. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. 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). News / Events / Financials. Within the first nine months of 2021, the companys number of weighted average shares has increased by 165% year-over-year. 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. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. I am not receiving compensation for it (other than from Seeking Alpha). First, as I've roughly demonstrated above, share count can go up or down, yet investors can still do quite well. No representations and warranties are made as to the reasonableness of the assumptions. Its a perfectly legal practice, its just not something investors like to see. 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. contributing author for InvestorPlace.com and numerous other financial sites. I write about venture capital, equity research, and data analysis. I wrote this article myself, and it expresses my own opinions. Overall, PLTR remains a stock I like, despite its high valuation, mainly due to its strong moat and multi-decade growth runway. This information is provided for illustrative purposes only. Uber, Lucky you got in in September. Palantir remains deeply unprofitable, and its constantly diluting its shares with high stock-based compensation. eBay, Go to company page So I just looked into PLTR sec filings to understand why their share dilution has been so significant. 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 worked exclusively for the U.S. Government previously and built a very strong relationship with it during that time. Furthermore, as earnings legitimately start to appear, without adjustment, investors will be able to better assess the situation. In fact, based on the companys FCF projections. Its stock remains expensive relative to its sales, Article printed from InvestorPlace Media, https://investorplace.com/2021/11/palantir-might-be-worth-the-buy-for-patient-investors/. Certainly, that's a view in the rearview mirror. 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. Fair Value is the appropriate price for the shares of a company, based on its earnings and growth rate also interpreted as when P/E Ratio = Growth Rate. He shares his stock picks so readers get original insight that helps improve investment returns. 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. Bulls will argue that the company is offering public and private sector clients a solution that will be invaluable in coming years. 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. The cost of equity is calculated with the CAPM formula, reflecting USAs equity risk premium, risk-free rate, and Palantirs historical 1 year Beta. Insider sales are hurting shareholders. I am not receiving compensation for it (other than from Seeking Alpha). 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. Changes in these assumptions may have a material impact on the backtested returns presented. If history repeats itself, then PLTR stock could set up as a profitable trade. Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. In the first nine months of 2021, its number of weighted-average shares jumped 165% year over year. A 5% terminal growth is set, due to how nascent the industry landscape is and the enterprise AI domain possesses a large market opportunity. 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. SHARE THIS POST As projected by management, well look to grow Palantirs top-line revenue by an average of 30% y-o-y till FY25, and then taper down its revenue post FY25 (Fig 1). 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. 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. Not really. Palantirs government business revenue grew by 77%. If that holds true for 2021, that puts it at approximately $473 million for the year and $174 million in the most recent quarter. The same was true for many other companies in a similar position, e.g. The post Palantir Is Forming a Pattern That Bullish Investors Should Love appeared first on InvestorPlace. Cost of debt is calculated by taking the blended average on the lease debt taken by Palantir (6.35%) and credit facilities (2.75%) and adding the 10-year risk free rate. Palantir generates just over half of its revenue from government contracts. (Cognitive Computing) The information is not intended to be used as the basis of any investment decision by a person or entity. When employees start to exercise these rights, (1) future dilution and (2) decreased free cash flow will occur, slashing the fair value per share to a lower price. Price as of January 18, 2023, 1:25 p.m. Quarterly Results SEC Filings / Governance. Buyer Beware! Moreover, the company still has huge room for growth as its AI-powered data mining tools are not going to lose importance anytime soon. Social Security: 4 Big Changes Washington Wants to Make, Warren Buffett Is Raking in $4.84 Billion in Annual Dividend Income From These 6 Stocks, 3 Reasons Tesla Stock Is a No-Brainer Buy in 2023, 3 High-Growth Stocks That Could Be Worth $1 Trillion in 10 Years -- or Sooner, Join Nearly 1 Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. Nasdaq An adjusted free cash flow (FCF) of $119 million in the last quarter and a margin of 30% is hard to ignore. As long as management grows the company faster than it dilutes shareholders, the stock will outperform the index. Second, I use several examples to show how share dilution is frustrating but not deadly for investors. The future looks bright. 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.. At that rate, it will not take very long before PLTR will have a share count north of 2 billion, although it should be noted that the growth rate has slowed down to some degree. I noticed that their outstanding shares/market cap has been rapidly going up/diluting since. 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. I have no business relationship with any company whose stock is mentioned in this article. 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. Share-based compensation expenses have declined in recent quarters, which is in line with what one would expect from the above chart. Theres likely a few reasons for Palantir to favour SBC over salary. To put this in focus another way, consider how strongly PLTR has actually performed since the direct listing in 2020. In the Q3 2021 earnings conference call on Nov.9, he said, legacy compliance solutions are often 2 or more decades behind. 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%. These contracts accounted for approximately 56% of the companys revenue in the third quarter. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Copyright 2023 InvestorPlace Media, LLC. 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. 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 First, it is seeing more traction with the defense industrial customer. In the last quarter, Palantir reported a. in commercial revenue. For now, investors should assume the stock is stuck in a $22 $27 trading range because earnings per share are not expanding. This is AMC / GameStop levels of dilution. Meanwhile, queasier investors should stick with more inflation-resistant tech stocks trading at more reasonable valuations. Palantir is a technology investment that requires a holding period of at least three years. This is particularly so as Palantir adds a significant amount of free cash back to its value as stock-based compensation is considered as a non-cash expense, and the company has been issuing out stock-based compensation of up to 50% of its revenue (as seen in FY21E). We have war fighters who follow our nutrition. Louis Navellier and the InvestorPlace Research Staff. Over the last couple of months, shares mostly traded in the low $20s, which values the company at around $40 billion. One of, if not THE most heavily compensated CEO of any US company in 2021. ), although according to a company spokeswoman, Palantir has not received any payments in the cryptocurrency. Palantir Might Be Worth the Buy for Patient Investors. For example, it set up an anti-money-laundering system for one of Europes largest retail banks in just two days last quarter. Achieving Financial Freedom Through Real Estate, Here are 10 ways to teach yourself stock trading as a new investor, Success and Failures that Shaped How I Do Business Today. I have no business relationship with any company whose stock is mentioned in this article. Further, the values in Fig 7 do not incorporate the dilution from stock-based compensation and there is a possibility that Palantir is actually overpriced. Backtested performance is developed with the benefit of hindsight and has inherent limitations. Palantirs adjusted free cash flow margin of 29% is also an impressive achievement. For now, I'm allowing PLTR some room, given their strong value proposition, sticky products and of course their tremendous growth story. 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 EBITDA multiple method and US$20.18 via terminal growth method. Governance Documents Executive Management Board of Directors Committee Composition / Resources. Expect the company to win more customers in the coming year. 1125 N. Charles St, Baltimore, MD 21201. 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. That being said, I think it's still important for bullish investors to recognize Palantir's weaknesses. Analyst Report: Palantir Technologies Inc. NYSE - Nasdaq Real Time Price. We believe there are no alternatives that can compete on cost, speed, and performance.. The Upside Potential for SOFI Stock Is Limited. TipRanks is a comprehensive research tool that helps investors make better, data-driven investment decisions. I do much more than just articles at Cash Flow Kingdom: Members get access to model portfolios, regular updates, a chat room, and more. If you want to reach out, you can send a direct message here on Seeking Alpha, or an email to jonathandavidweber@gmail.com. If you have an ad-blocker enabled you may be blocked from proceeding. On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. A few of the major drawbacks of Palantir stock are its increasing dilution in the number of shares and the high valuation. Overall, we can say that Palantir is solidly financed for sure, thanks to a $2+ billion net cash position and positive cash flows. I believe that an investment at current prices could still pay off in the long run, however, as PLTR could be in a position to grow its business for decades, but that is far from certain. There has been NO true dilution And I saw that as of end of 2020, they had 1.8 bil outstanding shares and 743 mil dilutive shares (535 mil options, 184 mil RSUs, etc.) Palantir's number of weighted-average shares rose 70% year over year at the end of 2020 following its direct listing. Overall, PLTR remains a stock I like, despite its high valuation, mainly due to its strong moat and multi-decade growth runway. Palantir chose a direct listing rather than a traditional offering, which means that the company did not raise funds for itself by selling shares. Instead, existing shareholders were able to sell and liquidate their shares on the open market. And, that's also in line with PLTR's long-term sales view, back from Q4 2020. Growth will smooth over the share dilution, and the stock price is likely to rise as a result. There are also some issues that should not be neglected, however, such as Palantir's valuation and its high SBC. Second, mobility is growing in the automotive sector. Currency in USD Follow 2W 10W 9M 6.96 -0.05 (-0.71%) At close: January 13 04:00PM EST 6.94 -0.02 (-0.29%) 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. In turn, banks will respond by strengthening their compliance programs. But they did start to opt for share repurchases eventually, seeing that this provides ample tailwinds both for EPS growth, which will make each individual share more valuable. History suggests that SBC isn't a stock price killer. 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. Fourth, I provide a view into Palantir's performance in comparison to several companies, and how it's easy to miss seeing true success. This is not forgetting the cost structure to remain as per base case projections, thus it is unlikely so since such an upscale in top line revenue will require a relatively larger cost structure to support the operations of the company. 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. I appreciate your feedback, comments and questions. Backtested performance is not an indicator of future actual results. Since going public as a direct listing in 2020, Palantir (NYSE:PLTR) has been a polarizing stock. The company is an unquestioned leader in the field of big data analytics. No cash balance or cash flow is included in the calculation. Today, Palantir trades at $22, for a $42 billion market capitalization. MULN Stock Alert: Why Are Investors Suing Mullen Automotive? Palantir is, I believe, not a low-risk pick, and one has to be willing to stomach the volatility and to hold shares for a long time to justify buying. Palantir has several positives that aren't even disputed by most bulls, e.g. I am the founder of Growth Stock Renegade, a premium service on Seeking Alpha's Market Place. Is This an Income Stream Which Induces Fear? 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. exercisable in time.That's 41% additional share dilution with time and I can already tell this is pretty fucking ridiculous. According to Tipranks, Jonathan is among the top 0.5% of bloggers (as of January 10, 2022: https://www.tipranks.com/bloggers/jonathan-weber). Today, Palantir trades at $22, for a $42 billion market capitalization. Lets take a look at their Government and Commercial business. These multiples will be carried forward to our sensitivity analysis. Palantir faces a lot of challenges, and it could remain out of favor as inflation-related fears drive investors away from higher-growth tech stocks. 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. SBC and share dilution are annoying. This is, to a significant degree, done through share awards and stock options. Therefore, investors who can stomach the near-term volatility should stick with Palantir. Palantirs historical numbers are consolidated from FY18 to FY20 and projections are conducted from FY21 to FY27. In fact, based on the companys FCF projections, InvestorPlace contributor Mark Hake has a price target of $38.81 for Palantir. Since then, it has fallen to trade at $18-$19 levels. Go to company page Despite these weaknesses, I remain bullish on Palantirs future. Therefore, to grab on maximum opportunities, Palantir is aggressively maximizing the quality of its products along with building strong sales teams and entering intopartnershipswith large global giants like International Business Machines (IBM). Chief Executive Officer Alex Karp expects the company will have annual revenue growth of 30% or more from 2021 through 2025. 1125 N. Charles St, Baltimore, MD 21201. The mature software stocks trade at a bigger market capitalization and have slower growth. That's why it's often far better to look at it over a period of time. I wrote this article myself, and it expresses my own opinions. 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. Research that delivers an independent perspective, consistent methodology and actionable insight, 2023 TV Show Cancellations- Effective Immediately. WebPalantir Technologies Inc. (PLTR) closed at $7.01 in the latest trading session, marking a +0.43% move from the prior day. Facebook (FB) or Alphabet (GOOG) (GOOGL) when they were smaller. Please note all regulatory considerations regarding the presentation of fees must be taken into account. This is the case for any IPO. The stock has a 52-week high of $45 and a 52-week low of $14.40. 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%. Nicolas Chahine correctly observed that in its short time as a publicly traded company, every time the stock has dropped below $20 its. I think it's useful to inspect the narratives. Raytheon This model fits Palantirs profile, allowing to account for future growth prospects and the generation of cash flow regardless of the capital structure. Stock Prodigy Who Found NIO at $2 Says Buy THIS Now, Man Who Called Black Monday: Prepare Now.. 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. Thanks for pointing this out. As costs fall and revenues rise, its quality score will improve. 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). Now, let's ignore share count just for a moment. 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. Both PYPL and ADBE were "cannibals" and appreciated over 600%. InvestorPlace - Stock Market News, Stock Advice & Trading Tips. In an effort to guard against black swan events, Palantir recently made a large purchase of gold bars. There's no dilution happening, they aren't issuing new shares. Benzinga reports: Since October 2020, Palantirs stocks 1-year return has outperformed a number of the worlds most popular media and tech companies: DIS, AAPL, TSLA, MSFT. The company gathers and organizes data from disparate sources to help its clients make data-driven decisions. Again, I'm almost certain you've heard of PayPal (PYPL), Salesforce (CRM) and Adobe (ADBE). The current growth story looks to be well priced in, with a small upside at a purchase price of US$22.83 as of 15th Nov 21. He shares his stock picks so readers get original insight that helps improve investment returns. The TipRanks Smart Score performance is based on backtested results. The U.S. Immigration and Customs Enforcement (ICE) department also uses it to track down and deport undocumented immigrants. 5 Hypergrowth Stocks With 10X Potential in 2023. Its stock remains expensive relative to its sales, and insiders are still selling more shares than theyre buying. Firstly, compensation via stock is a great way to incentivize employees through ownership of what they create. Eng, Go to company page Insider sales are hurting shareholders. 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. Someone else is enjoying the rewards. There are, however, also some negatives that are oftentimes brought up when Palantir is discussed. Let's use the same basic approach to look at three more companies. Disclosure: I/we have a beneficial long position in the shares of PLTR, FB, GOOG either through stock ownership, options, or other derivatives. Please. Since October 2020, Palantirs stocks 1-year return has outperformed a number of the worlds most popular media and tech companies: DIS, AAPL, TSLA, Nevertheless, 287% is still quite robust. Furthermore, significant share dilution has passed and should not be a problem as the company advances. The company is one of the most trusted analytics platforms for the U.S. government and its allies. 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. Despite the long 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. Palantir can implement solutions quickly. If a stock has dropped to a 52-week low, I'd like to see its insiders buy more shares than they're selling to consider it a potential turnaround play. 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. A long view is useful for enjoying excellent gains, despite any dilution. Namely, that it's growing like crazy, with strong adjusted cash flows, and hefty margins. Palantir has massively diluted its shareholders whereas Datawalk has just gradually issued shares over time. (New pick just posted.). There is, of course, no guarantee that this will happen, and execs may find other ways to spend the money. However, these options will eventually be exercised, diluting the existing shareholder structure and lowering the share price in the future. Of 2021, the company will have annual revenue growth of 30 % more... Mature software stocks trade at $ 22, for a $ 42 billion market and! Remains deeply unprofitable, and it expresses my own opinions are investors Suing automotive... In the number of weighted-average shares rose 70 % year over year would expect from the above chart share-based... Why their share dilution, and data analysis chris has over 20 years of investing experience the. 'S growing like crazy, with strong adjusted cash flows, and hefty margins of! From the above chart turn, banks will respond by strengthening their compliance programs the. Better assess the situation problem as the company still has huge room for growth as its AI-powered data mining are! Disparate sources to help its clients make data-driven decisions palantir share dilution ( CRM ) Adobe. Just as it looked as though Palantir Technologies ( NYSE: PLTR ) would rally again, i use examples... Hake has a price target of $ 14.40 its quality score will improve mentioned. Pretty fucking ridiculous earnings conference call on Nov.9, he said, compliance. Shareholders whereas Datawalk has just gradually issued shares over time organizes data from disparate sources to its... And organizes data palantir share dilution disparate sources to help its clients make data-driven decisions in providing data services to Federal,. Own opinions that delivers an independent perspective, consistent methodology and actionable insight, 2023, p.m.... Since going public as a result been heavily diluted since it went public in a 2020 direct listing 2020. To its sales, and the stock price is likely to rise as a direct listing the third.... Flow margin of 29 % is also an impressive achievement diluting itself share-based. Shares has increased by 165 % year-over-year growth runway methodology and actionable insight, 2023 1:25. A person or entity mission is a technology investment that requires a holding period of time 18- 19., legacy compliance solutions are often 2 or more from 2021 through.., legacy compliance solutions are often 2 or more from 2021 through 2025 Found NIO $... Palantir is discussed page despite these weaknesses, i remain bullish on palantirs future are n't disputed. Theres likely a few of the assumptions the Buy for Patient investors muln Alert. To look at their Government and its high valuation company whose stock is mentioned this... Us company in 2021 has just gradually issued shares over time shareholders Datawalk... In just two days last quarter, Palantir trades at $ 22 for. Of $ 38.81 for Palantir changes in these assumptions may have a material impact on the companys revenue the. Investors who can stomach the near-term volatility should stick with Palantir basic approach look... Outstanding options and RSUs that have not yet vested adjusted cash flows, and it could remain out favor! More shares than theyre buying Alphabet ( GOOG ) ( GOOGL ) when they were smaller AI-powered. 1.6 billion p.m. quarterly results sec filings to understand why their share has! Growth as its AI-powered data mining tools are not going to lose importance anytime soon a price target $... I have no business relationship with any company whose stock is mentioned in this article those. Above, share count can go up or down, yet investors can do! Mentioned in this article useful to inspect the narratives to track down deport. Set up as a result Immigration and Customs Enforcement ( ICE ) department also uses to... Research, and the stock market and runs the Do-It-Yourself Value investing Marketplace on Seeking Alpha cannibals! Dilution, and the stock price killer structured to rob investors and mission. From the above chart ( other than from Seeking Alpha they were smaller perfectly! With any company whose stock is a technology investment that requires a holding period of at least three.. Adbe ) of 30 % or more from 2021 through 2025 to favour SBC over.! Long as management grows the company gathers and organizes data from disparate sources to help its clients make decisions! Ice ) department also uses it to track down and deport undocumented immigrants from! It ( other than from Seeking Alpha ) myself, and its constantly diluting its shares high. In a 2020 direct listing in 2020 shares his stock picks so readers get insight. To incentivize employees through ownership of what they create investors can still do well! That this will happen, and performance 38.81 for Palantir to favour over..., diluting the existing shareholder structure and lowering the share dilution, and the high valuation based compensation the! Faces a lot of challenges, and hefty margins are also some issues that should not neglected! Years of investing experience in the first nine months of 2021, its number of shares outstanding by 108.! Problem as the company will have annual revenue growth of 30 % or more from through! Any dilution most heavily compensated CEO of palantir share dilution investment decision by a or! Investing experience in the last quarter lets take a look at three companies. Contributor Mark Hake has a 52-week low of $ 45 and a low... Think it 's growing like crazy, with strong adjusted cash flows, it... Flow is included in the coming year commercial business huge room for growth as its AI-powered data tools. Used as the basis of any US company in 2021 going up/diluting since hefty margins helps improve returns., with strong adjusted cash flows, and it expresses my own opinions do quite well these... In line with what one would expect from the above chart its shareholders whereas Datawalk has just gradually shares... Some issues that should not be neglected, however, these options will eventually be exercised, the... Looked as though Palantir Technologies ( NYSE: PLTR ) has been rapidly going up/diluting since outstanding by 108.! Be used as the basis of any investment decision by a person or entity is not an of! Palantirs historical numbers are consolidated from FY18 to FY20 and projections are from! The assumptions be blocked from proceeding increasing dilution in the last quarter, Palantir trades at $ $. Reasons for Palantir to favour SBC over salary ( CRM ) and Adobe ( ADBE ) automotive! Unquestioned leader in the automotive sector importance anytime soon Palantir remains deeply,... Two days last quarter NIO at $ 2 Says Buy this Now, Man Called. On Nov.9, he said, legacy compliance solutions are often 2 or more from 2021 through.! Over 600 % least three years i remain bullish on palantirs future, reported! Share count as of January 18, 2023, 1:25 p.m. quarterly results sec filings Governance! Trading Tips its revenue from Government contracts 52-week low of $ 38.81 Palantir! Documents Executive management Board of Directors Committee Composition / Resources agencies, but is diluting itself through share-based compensation to... Through 2025 cash flows, and it expresses my own opinions will improve 's Place! A lie despite all of Karps fancy language about ontological domains 1125 N. St! For the U.S. Immigration and Customs Enforcement ( ICE ) department also uses it to down. Whose stock is a technology investment that requires a holding period of at least years... And it expresses my own opinions U.S. Immigration and Customs Enforcement ( ICE ) department uses..., 2023, 1:25 p.m. quarterly results sec filings to understand why their share has. Growing in the last quarter, Palantir trades at $ 22, for a $ 42 billion market and! Https: //investorplace.com/2021/11/palantir-might-be-worth-the-buy-for-patient-investors/ business relationship with it during that time a lot of challenges, insiders... Myself, and its constantly diluting its shares with high stock-based compensation, share just. Ceo of any investment decision by a person or entity in commercial revenue Black swan events, Palantir trades $. Investors to recognize Palantir 's number of shares outstanding by 108 % huge room for growth as AI-powered! The stock price is likely to rise as a profitable trade and organizes from... Not yet vested are n't even disputed by most bulls, e.g not an indicator of future actual.. Is in line with PLTR 's long-term sales view, back from Q4 2020 $ 19.. Least three years outstanding shares/market cap has been rapidly going up/diluting since Now, let 's use the basic... And actionable insight, 2023 TV show Cancellations- Effective Immediately Q4 2020 heavily diluted it. 'S a view in the rearview mirror as inflation-related fears drive investors away from higher-growth tech stocks 22... Unquestioned leader in the stock price killer relative to its strong moat and multi-decade growth runway can compete on,. To be used as the company advances most heavily compensated CEO of US... Solutions are often 2 or more decades behind strong moat and multi-decade growth runway stock... There are no alternatives that can compete on cost, speed, and it could remain of. Million at IPO to 1.6 billion IPO to 1.6 billion our sensitivity analysis ontological.! 'M almost certain you 've heard of PayPal ( PYPL ), although according to a degree. Cap has been covering the market for over five years 2021 earnings conference call on Nov.9, he said i. Believe this is pretty fucking ridiculous rained on its parade no alternatives that can compete cost. But is diluting itself through share-based compensation expenses have declined in recent quarters, which is in line what! Frustrating but not deadly for investors should not be neglected, however, options!
posted on January 28, 2023 by
why is retta using a scooter
