Can Palantir Stock Reach $1000?
Can Palantir Stock Reach $1000: This article discusses the scenarios that could help PLTR stock reach $1000.
Palantir Market Data
| Metric | Value | Trend |
|---|---|---|
| Current Market Cap | $32.6 B | Lower |
| Trading Volume | $37.5 M | Lower |
| Metric | Last 24 Hours | Trend |
|---|---|---|
| Net Social Media Sentiment | 24.2% | Higher |
Palantir is a secretive company that was primarily known as a government contractor for the past two decades but the company’s CEO Alex Carp has bought Palantir’s name into headlines for good reasons in the last couple of years.
Can Palantir Stock Reach $1000? Latest news
- Palantir’s impact on reducing NHS waitlists: Isla Health, in collaboration with Palantir Technologies, is deploying its digital health solutions across various NHS sites to address patient waitlist management. Isla Health’s system is integrated with Palantir’s Foundry operating system, allowing clinical teams to set patients on monitoring pathways and automatically surface data into Foundry. One example of their collaboration is the Digital Health Questionnaire (DHQ), implemented at Chelsea and Westminster Hospital NHS Foundation Trust.
Palantir Stock, Buy or Sell, Crowd Poll (New)
- August 14th – Buy: 91.7%, Sell: 8.3%, Net: 83.4%
- September 6th – Buy: 81.5%, Sell: 4.9%, Net: 76.6%
Palantir Stock Forecast Today
| Overall Outlook | Neutral |
| 1. Market's Wisdom | Bearish |
| 1a. Market Data | Bearish |
| 1b. Technical Recommendation | Sell |
| 2. Crowd's Wisdom | Partially Bearish |
| 2a. Social Media Buzz | Higher |
| 2b. Social Media Sentiment | Higher |
Palantir Earnings, Q2 2023
Palantir Technologies Inc. reported a 13% YoY revenue increase, reaching $533 million, with the commercial and government sectors growing by 10% and 15%, respectively. Notably, the international government segment surged 31% YoY. Customer growth was marked at 38% YoY, with US commercial customers rising by 35%. The company’s operating expenses for the quarter were $416.3 million, with a net income turnaround of $28.1 million. For H1 2023, they boasted $1.1 billion in revenue and a GAAP net income of $45 million.
Projections for 2023 anticipate revenues to cross $2.212 billion. On the assets and liabilities front, current assets grew by 17.6%, while stockholders’ equity saw a 15.2% growth. Cash flow from operating activities improved significantly, by 183.6% for the year.
- Palantir’s CEO, Alexander Karp, has described their new artificial intelligence service as “transformative” for the company. In a letter to shareholders, he revealed that they are in talks with more than 300 customers to implement Palantir’s new Artificial Intelligence Platform. This platform enables large language models to analyze private data. Karp emphasized that the demand for this AI service is unprecedented, surpassing anything they have experienced in the past two decades.
- Palantir has announced a stock-buyback program worth up to $1 billion. The company’s decision is supported by a strong adjusted free cash flow of $285 million in the first half of the year and a robust balance sheet, which shows $3.1 billion in cash and equivalents by the end of the second quarter.
- For the third quarter, Palantir anticipates revenue ranging from $553 million to $557 million and expects to achieve GAAP profitability. Furthermore, the company projects reporting GAAP net income in the fourth quarter and forecasts a total revenue of over $2.212 billion for the full year.
Last 4 Quarters Results
| (USD) | June 2023 | Mar 2023 | Dec 2022 | Sep 2022 |
| Revenue | 533.31M | 525.19M | 508.62M | 477.88M |
| Net income | 27.87M | 16.8M | 30.88M | -123.88M |
| Diluted EPS | 0.01 | 0.01 | 0.02 | -0.06 |
| Net profit margin | 5.24% | 3.20% | 6.07% | -25.92% |
| Operating income | 10.07M | 4.12M | -17.83M | -62.19M |
| Net change in cash | -1.15B | -1.34B | 174.59M | 37.58M |
| Cost of revenue | 106.89M | 107.64M | 104.31M | 107.61M |
Factors in favor and in against of Palantir Stock
Let us see the positives and negatives for the company and the stock and the possible height share price can scale up to.
Can Palantir Stock Reach $1000: Bull Case
Strong growth prospects: Palantir is a data analytics company that provides software and services to government agencies and businesses. The company is growing rapidly, with revenue increasing by 45% in the most recent quarter. Palantir is well-positioned to continue to grow in the coming years, as more and more organizations adopt its software and services.
Large addressable market: Palantir’s software and services can be used in a wide variety of industries, including government, healthcare, financial services, and manufacturing. This gives the company a large addressable market, with the potential to generate significant revenue in the coming years.
Strong customer base: Palantir has a strong customer base. The company’s customers include some of the largest and most important organizations in the world, such as the US Department of Defense, the CIA, and the NHS.
Innovative technology: Palantir’s software and services are based on innovative technology that is not easily replicated by competitors. This gives the company a competitive advantage and allows it to charge premium prices for its products.
Palantir’s net dollar retention is greater than 100%: Net dollar retention rate is the measure of how much more customers have spent this year as compared to the prior year period and indicates customer satisfaction. Now, Palantir’s net dollar retention rate is 115% in 2023 and is a reason behind the robust 24% revenue growth last year.
Can Palantir Stock Reach $1000: Bear Case
A risky investment – Palantir has seen growth in private US commercial customers, but its bullish revenue and profitability guidance for 2023 is at risk if any government contract is not renewed. Analysts predict the company’s growth to be uneven due to contract renewals with government agencies like the U.S. Army and U.S. Airforce, which are also developing their own solutions.
Palantir faces three primary risks: competition from other companies offering similar AI tools and Palantir faces barriers to entry due to its unique technology, competition in the data analytics and software industry remains a risk, the controversy surrounding its government ties, and valuation concerns. While its tools are powerful, the company’s association with government activities might deter some potential customers.
Can Palantir Stock Reach $100?
In order for Palantir to reach $100, it would need to increase by a factor of 5.5. At $100, Palantir’s Market Cap will be $209.6 billion. If Palantir were to grow at a rate of 25% each year, it would take about 7.6 years to reach $100. Let us evaluate this data
- Quality of Investment: Good
- Growth required to reach $100: Feasible
- Market Cap at $100: Partially Feasible
- Time required to reach $100 if Palantir were to rise at 25% per annum: Feasible
Considering the criteria of quality of Investment, growth required, and time required, Palantir has good chances of reaching $100.
Can Palantir Stock Reach $1000? Conclusion
As of this writing, Palantir has a market capitalization of $32.7 billion and 18% is the one-year sales change. This is not a cheap valuation, for example, Salesforce, generating 17% sales growth this year trades at only 5 times that forecast and Splunk, which is expected to generate 30% sales growth this year also trades at less than 6 times that estimate.
*Source: Tradingview
The above figure shows the projected revenue growth for the coming years for the company. Assuming the revenue growth to be doubled by 2025 as per the figure and the Price/sales ratio remains the same, the share price will be in the range of $20-30.
However, Palantir will remain a risky investment but with bright prospects for the future.
Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.