After a brief touch on Wednesday, it gained over 3% on Friday and continued to rise on Monday, entering a new buy zone with strong volume. While Christmas is just a few weeks away, Palantir fueled AI-assisted decision-making worldwide, spanning war zones, factories, and outer space. The Denver-based company extended its influence across diverse sectors, including defense, intelligence, energy, autos, data protection, health care, retail, and semiconductors.
- In the first stage we need to estimate the cash flows to the business over the next ten years.
- Palantir has strong secular tailwinds as the AI/ML market is expected to grow rapidly due to the exponential increase in data harvested by organizations.
- We’d like to share more about how we work and what drives our day-to-day business.
- As of 2022, Stephen Cohen, co-founder Alexander Karp, and Peter Thiel were president, CEO, and Chairman respectively.
- After all, an investor’s entry point will determine their rate of return for the long term.
After all, an investor’s entry point will determine their rate of return for the long term. At these levels, I’m not certain that investors will achieve their hurdle rate of return despite the company’s seemingly strong near-term prospects. power trend Palantir Technologies issued an update on its FY 2024 earnings guidance on Monday, February, 5th. The company issued revenue guidance of $2.7 billion-$2.7 billion, compared to the consensus revenue estimate of $2.7 billion.
Palantir’s ‘egregiously rich valuation’ draws downgrade to sell
Palantir’s US commercial sector achieved significant growth, with the company’s customer count rising 33% year-over-year and 12% quarter-over-quarter. Over three years, this metric has grown 10x, emphasizing the company’s robust acquisition and retention axitrader review strategies. The “Artificial Intelligence Platform” gained rapid adoption by nearly 300 organizations since its launch, showcasing market potential. The company’s swift customer base growth underscores its market traction and delivered value.
We discount the terminal cash flows to today’s value at a cost of equity of 7.2%. As a reminder, the driver of a stock’s value is the sum of its future cash flows discounted back to today. With lower interest rates, investors can apply higher valuations to their stocks. No wonder so many in the investment community are optimistic about 2024. We at StockStory remain cautious, as following the crowd can lead to adverse outcomes. During times like this, it’s best to own high-quality, cash-flowing companies that can weather the ups and downs of the market.
Terms & Info
Palantir Technologies Inc. is an SaaS company focused on AI and big data analytics. It was founded in 2003 in Denver, Co by well-known investors Peter Thiel and Stephen Cohen among others. The company’s goal is to augment human intelligence with data-gathering and analytic tools that can change the world for the better. As of 2022, Stephen Cohen, co-founder Alexander Karp, and Peter Thiel were president, CEO, and Chairman respectively. That said, I remain cautious of this high-potential company because we haven’t seen an elongated track record when it comes to AI’s impact on companies’ bottom lines.
We’d like to share more about how we work and what drives our day-to-day business. By not selling to countries or companies that are antithetical to its mission and cultural values, Palantir has self-restricted its growth opportunities. Palantir has strong secular tailwinds as the AI/ML market is expected to grow rapidly due to the exponential increase in data harvested by organizations.
Palantir and MetaConstellation
12 brokers have issued 12 month target prices for Palantir Technologies’ stock. Their PLTR share price targets range from $5.00 to $35.00. On average, they predict the company’s stock price to reach $18.35 in the next year. This suggests that the stock has fxprimus review a possible downside of 19.7%. View analysts price targets for PLTR or view top-rated stocks among Wall Street analysts. 12 Wall Street equities research analysts have issued « buy, » « hold, » and « sell » ratings for Palantir Technologies in the last year.
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