Palantir Technologies, Inc. (NASDAQ: PTL) is a US-based company that develops, sells and supports software for the business to government market. Palantir’s primary product is called Palantir Gotham, of which its 2nd generation is currently in beta. This article will be analyzing the stock based on profitability, risk, valuation and revenue figures.
Table of Contents
Introduction
Welcome to the blog section for our Palantir stock analysis. In this section, we’ll take a closer look at the company and its stock, and provide our thoughts on whether or not now is a good time to buy, sell, or hold.
Palantir is a data mining and analysis software company that was founded in 2004. The company’s software is used by governments and businesses to track and analyze large data sets.
Palantir went public in September of 2020, and its stock has been on a roller coaster ride since then. After soaring to a high of $30 per share in October, the stock fell sharply in November and December. As of January 2021, the stock price has stabilized around $22 per share.
So, what’s driving Palantir’s stock price? And should investors buy, sell, or hold the stock at its current level? Let’s take a closer look.
A Brief History of Palantir
Palantir was founded in 2004 by a group of actors from the CIA, including current CEO Alex Karp and early investor Peter Thiel. The company was built on the belief that data could be used to solve problems that had previously been intractable.
In the early days, Palantir focused on government contracts, helping the likes of the FBI track down terrorists and the NSA detect and prevent cyberattacks. The company has since expanded its reach, working with corporations like JP Morgan and Coca Cola, as well as non-profits and NGO’s.
Despite its success, Palantir has not been without controversy. The company has been criticized for its work with ICE and other government agencies that have been accused of human rights abuses. However, Palantir has always maintained that it is committed to using its technology for good.
Looking ahead, Palantir seems well positioned to continue its growth. The company is expanding its product offerings and moving into new markets. With big names like Elon Musk and Mark Zuckerberg backing the company, Palantir appears to have a bright future ahead.
Palantir Stock Analysis 2022:
Financial Performance Of Palantir
Palantir has been a publicly traded company since 2013, and in that time its stock has seen a lot of volatility. In the past year alone, the stock is up over 50%. So, is now the time to buy, sell or hold Palantir stock?
To help answer that question, let’s take a look at the company’s financial performance.
Over the past five years, Palantir has grown its revenue at a compound annual growth rate (CAGR) of 46%. That’s an impressive number, especially for a company that is already generating over $1 billion in annual revenue.
Looking at profitability, Palantir is not yet profitable on a GAAP basis. However, it is important to note that the company has been investing heavily in growth, which has led to GAAP losses. On a non-GAAP basis, which excludes these investments, Palantir was profitable in 2018 and 2019.
Looking ahead, Palantir is projecting continued strong growth. For 2020, the company is expecting revenue to grow by 35% to 40%. And looking further out, Palantir has said that it expects to eventually generate annual revenue of $100 billion.
Conclusion
If you’re considering investing in Palantir, it’s important to do your research and consider all of the factors involved before making a decision. The company’s stock has been volatile in recent years, so it’s important to understand the risks before investing. However, if you believe in the long-term potential of the company and are comfortable with the risks, then Palantir may be a good investment for you.
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