How is Palantir not at $85 ?

Discussion in 'Stocks' started by proforma50, May 24, 2024.

  1. I've owned Palantir for a while and it can't seem to reach $30 share which is confusing. It is a veteran player in the AI space, has solid profit and operating margins, lots of government contracts, lots of (and growing) commercial contracts, a partnership with Oracle Software, a backlog of AI bootcamps that they can't keep up with, yet the stock continues to languish.

    Anytime Palantir does something good, like increase profit or revenue, an analyst will find a minor point to quibble about like: "Yes Palantir increased earnings and revenue, but we thought it'd be slightly more". Then the market seems to listen to the minor quibble rather than recognize literally huge increases in revenue and profitability.

    Within the last month, all of the so called Magnificent 7 stocks have guided toward vastly increasing their investments in AI. While this is great, companies can't take advantage of AI if they don't know how to deploy it. Palantir, among other things, specializes in teaching companies how to use AI to transform their businesses. So shouldn't Palantir be much higher? What am I missing?
     
    murray t turtle likes this.
  2. d08

    d08

    Already priced in, it IPOd quite high and it's been kept a bubble for a long time, it's been trading with the expectation of explosive growth, so the numbers posted are very much in-line or below. There's plenty of companies nowadays using AI without any help from the likes of Palantir. It's not some secret-magical-technology as it was thought to be.
     
    jys78 and murray t turtle like this.
  3. mervyn

    mervyn

    it is a us intelligence linked, that put off lot of potential commercial customers. everyone has other choices like msft, c3, google, sales forces, etc.
     
    murray t turtle likes this.
  4. zdreg

    zdreg

    Interesting comment. Why is it true? Is it a generally true comment?
     
  5. mervyn

    mervyn

    well, they advertised themselve as a key to track down bin laden, good job but say no more. it is a defense contractor. and the ceo is full of himself.

    i sell many puts before its earnings but generally don't look at them during the dull months.

    How Palantir’s tech-based patriotism and politics grew into a multi-billion dollar company
    The CIA was an early investor in the company and the intelligence agency, as well as the FBI and NSA, are all clients, though Palantir has diversified into corporate work and diversified its big data across sectors including health care.
     
    murray t turtle likes this.
  6. DaveV

    DaveV

    That is NOT a minor quibble. Regarding earnings, the market only cares about three things - did the company beat expectations, meet expectations or came in below expectations. If a high growth company fails to meet expectations, expect the market to punish the stock
     
    d08 and murray t turtle like this.
  7. tomkat22

    tomkat22

    PLTR has always been a favorite of scalpers,daytraders,pikers,etc around the globe. One look at the volume will tell you that. And it's easy to short so that also hinders it from getting traction.
     
    lariatier, murray t turtle and zdreg like this.
  8. %%
    Its had some good moves valley to peak 2024;
    but off a lot from all time high.
    I like barchart.com ratings , not that they have the last word;
    24% buy , not too good . SPY + QQQ are 100%
     
  9. maxinger

    maxinger


    You cannot analyze PLTR superficially.
    You cannot just listen to PLTR CEO's words only.

    You have to spend significantly more time analyzing PLTR business,
    its competitors, growth potential etc

    Then perhaps you will know why it is not $85.
     
  10. Jack1960

    Jack1960

    Take a look at valuation. It is an expensive stock.
     
    #10     May 25, 2024