Pltr Stock Forecast: Pltr with an uptrend of 0.92% Trades in green, outperforms the market.

Pltr Stock Forecast: Pltr with an uptrend of 0.92% Trades in green, outperforms the market.

Cryptocurrency Uncategorized
December 27, 2021 by Mitchell Jhon
15
Pltr Stock Forecast: Shares of Palantir (PLTR: NYSE) are expected to trade between $18.31 and $19.14. The overall recommendation is Sell. 3 of 4 momentum indicators is positive 2 analysts Pltr Stock Forecast: Latest Price Pltr stock closed 0.92% Higher at $19.105 in the last trading session. Metric Value Share Volume 11.8 M Average Share

Pltr Stock Forecast: Shares of Palantir (PLTR: NYSE) are expected to trade between $18.31 and $19.14. The overall recommendation is Sell.

3 of 4 momentum indicators is positive

2 analysts

Pltr Stock Forecast: Latest Price

Pltr stock closed 0.92% Higher at $19.105 in the last trading session.

PLTR Stock Forecast
Metric
Value
Share Volume
11.8 M
Average Share Volume
NA
Forward PE (1 Year)
-270.43

Pltr Stock Forecast: Momentum Summary

Metric
Momentum
Price
Higher
Sentiment
Positive
Technical
Buy
Volume
NA

Pltr Stock Forecast: Performance Chart

Stock Name
1 day
5 day
1 Month
1 Year
+0.79%
+2.64%
-9.44%
-25.56%

Also Read: Tesla Stock Forecast

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Pltr Stock Forecast: Support and Resistance

Source
Support
Resistance
Recommendation
$18.31(S3)
$19.14(R1)
Neutral
$18.31(S3)
$18.14(R1)
Sell

Pltr Stock Forecast: Latest News and Tweets

Mike on Twitter: “$PLTR paid bears analysts, oh the stock has 30-40% downside next year, it will have -10% in sale not 30%+.Translation: Oh we want institutions to buy it at cheaper price and ride it for years later… Do your own DD, know what you own, make your own decision. / Twitter”

PLTR paid bears analysts, oh the stock has 30-40% downside next year, it will have -10% in sale not 30%+.Translation: Oh we want institutions to buy it at cheaper price and ride it for years later… Do your own DD, know what you own, make your own decision.

TizyCharts on Twitter: “$TSLA +3.5%$COIN +3.83%$PLTR +1.64%Later this evening with the full report of my #QuickTrade❤ to get more. / Twitter”

TSLA +3.5%$COIN +3.83%$PLTR +1.64%Later this evening with the full report of my #QuickTrade❤ to get more.

Pltr Stock Forecast: Latest Videos

BREAKING: Palantir Working With Wendys, Pfizer, General Motors, Comcast & Many More!?

Pltr Stock Forecast: Sentiment Analysis

Day
Positive
Negative
Sentiment
7 days
14.6%
12.8%
Positive
1 day
15.5%
9.6%
Positive

Reasons for Recent Downfall of Palantir Share in November

  • Palantir Technologies much hyped IPO came in last year September and by end of November 2020, it touched $27.66 starting from $9.20 on 2nd October. But, the growth investors were looking for since IPO, did not materialize and hence the stock is down by 20% in the last one month.
  • Palantir is a data analytics company selling its products to both government and private sector and it is being credited for helping Pentagon find Osama Bin Laden and uncovering Bernie Madoff fraud. But the company’s recent results did not excite the investors much, as company earned only $0.04 per share and reported a revenue of $392.15 million.
  • The year on year growth rate, an impressive 36% slowed from 49% growth in first half of 2021. During the recent quarter, although commercial revenue grew by 37%, but government revenue grew by only 34%. As government revenue represents 56% of total revenue generated, analysts were not impressed with the growth in government revenue.
  • William Blair analyst Kamil Mielczarek expressed concerns about sustainability of 30% growth rate over time calling commercial growth as “unsustainable” and also questioned the high valuations of Palantir. Palantir even after recent declines trades at more than 27 times sales.
  • That valuation is outrageous and in comparison to other data analytics company like Booz Allen Hamilton, which trade at two times sales, it will be difficult for Palantir to justify that premium in the future and investors did not get that assurance after this quarter results and hence stock plummeted in last month.

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%
Q1 2021
1.821billion
3.3%

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.

-Vineet Agarwal

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.

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