PLTR Stock Forecast: Palantir still struggling in 2022. Stock is down 51% over the past year.
PLTR Stock Forecast: Latest Price
PLTR Stock is trading 4.18% higher at $12.34 in the current trading session.
|Share Volume||33.6 M||Lower|
|Forward PE (1 Year)||56.43||Lower|
Pltr Stock Forecast: Momentum Summary
|Performance vs NASDAQ||Lower|
|Social Media Sentiment||Negative|
Pltr Stock Forecast: Performance Chart
|Stock Name||1 day||5 day||1 Month||1 Year|
Also Read: Tesla Stock Forecast
Also Read: PayPal Stock Forecast
Pltr Stock Forecast: Support and Resistance
|Investing||$ 10.65 (S3)||$12.23 (R1)||Neutral|
|Bar chart||$ 10.64 (S3)||$12.22 (R1)||Sell|
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Pltr Stock Forecast: Latest News and Tweets
I think $PLTR will be a long term compounder, growing at >30%. Current stock prices are low based on valuations. We have a decent upside here. If you’re looking for quick gains, don’t follow me. I invest with a 3-5 year horizon.
$PLTR has big gap between $12.41 and $13.81, Hrly chart is bulish but daily chart is not so. need to see if resistance is at 12.41 or 13.81
|1. Should You Buy the Post-Earnings Dip in Palantir?|
2. Cathie Wood Sells Another $2.4M In Palantir And $7.8M In This Social Media Company On Wednesday
PLTR Stock Forecast: Sentiment Analysis
Palantri Price Targets For Next 12 Months
Pltr Stock Forecast: Is Pltr a Buy?
Palantir Technologies, a software business that specializes in big data analytics, is steadily declining once again. The company released its fourth-quarter financial report, which showed that sales exceeded forecasts, $433 million vs $418 million estimated. But, EPS is fell short of the analyst target, 2 cents vs 4 cents estimated. The market is becoming wary of the company’s prospects for expansion. Palantir increased sales by 34% year over year in the fourth quarter, reaching $433 million, and reiterated its goal of at least 30% annual sales growth until 2025. Some investors are concerned that public sector sales are faltering.
Recently, Palantir has established a partnership with Jacobs, saying that it needs more assistance than in the past to build its infrastructure in the national security industry. Palantir now has a market valuation of around $24 billion and is valued at roughly 59 times this year’s estimated adjusted earnings and 11.8 times expected sales, following recent sell-offs. Even after a huge drop in stock price over the last year, the company’s valuation remains growth-dependent. As a result, the stock is likely to be volatile in the near future. Analysts believe it is a good long-term investment opportunity.
Post the quarterly results, the stock has been volatile during the trading hours and affected by market sell-offs and recent corrections. The Marco-economic factors generally impact tech-stocks which are high valuation get impacted during the sell-offs.
For the short-term, the position is hold. For the medium-term, after the price stabilizes, for investors who find the numbers promising, it is a buy.
Positive and Negative Side of Palantir Business Modality
Positive Side: –
- The company has contracts from government organizations like CIA, FBI and Centers of Disease Control and Prevention and is rapidly bringing private sectors customers as well. The analytics specialist is seen as early leader in the emerging market and its proactive approach and artificial intelligence powered software can create a lasting impact.
- The company expects sales to climb 40% this year and so it increased its full year target growth of free cash flows from $300 million to $400 million. Post 2021, Palantir expects annual sales growth of exceeding 30% for each of next four years. Definitely, this forecast is aggressive, but in all likelihood data analytics services will see major demand boosts in age of artificial intelligence and machine learning.
- The ability to gather and analyse data will be at forefront of public and private sector organizations and Palantir is taking proactive steps to capture both private and public sector clients to sustain its long term growth.
Negative Side: –
- As Palantir tries to shift its focus from government clients to private players, it will have to changes in business modality and adapt to customer requests. Plenty of companies have transitioned well from their primary focus to ancillary market and succeeded well, but many have failed as well.
- Palantir saw its third quarter government revenue increase by 34% only as compared to 66% second quarter year on year, as government revenue consist a major chunk of overall revenue, it is concerning going forward.
- While, believing that all remains good and business succeed going forward in coming years, but being a shareholder will not reap the same fruits. Palantir is known for compensating its employees heavily with shares and as an outcome, share count keeps on rising.
|Quarter||Share Count||Quarter Over Quarter Growth|
|Q3 2021||1.964 billion||3.7%|
|Q2 2021||1.895 billion||4%|
Without factoring in the initial investment, one share purchased a year ago, now controls 11% less of the company. This is just like US inflation, but it being 11% and not 6.7% as was announced recently.
- Insight into company expenditure speaks volume of business model. For Palantir, sales and marketing cost grew 36% and general and administrative cost fell 34%, both are positive sign for investors but its research and development expenses grew at just 5%, and this is an alarm for investors, as company that does not continuously innovate will surely lapse in future.
- Lastly, valuations cannot be ignored for a company and Palantir is at farther end of the scale. Stock price at 30 times sale is a hefty multiple regardless of its growth story. Also it claims to have operating margin of 30%, but in reality it falls to 17% loss once stock based compensation is considered in the picture.
Is Palantir a Right Buy at Current Levels?
- Palantir has a solid business behind it and surely it will continue growing, but with growth dependent valuations, it is not a high risk stock. Investors will not be keen to participate in company’s success, if it cannot get its stock based compensation under control.
- For risk tolerant investors, Palantir promises to lead data analytics industry and stock has the potential to emerge as the big winner in the near future. Company has showcased new uses in financial services like crypto, and many of its investment and partnerships are still at nascent stage to bring results.
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.