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This is the highest RPO and growth rate since the I/O Fund began tracking Palantir in late 2023, highlighting its AI-driven momentum. No investment decision can be efficient without considering a stock’s valuation. Whether a stock’s current price rightly reflects the intrinsic value of the underlying business and the company’s growth prospects is an essential determinant of its future price performance.
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Palantir Announces Date of Fourth Quarter 2024 Earnings Release and Webcast
For example, when trading PLTR CFDs, setting a stop-loss order at a specific price below the entry point can help manage risk during unexpected market downturns. To make informed trades, you can use different types of analysis to assess PLTR’s potential price movements. Technical analysis focuses on price charts and trends, while fundamental how to start investing money for the first time analysis examines the company’s financial health and external market factors. Leverage can amplify gains but also magnify losses, making it crucial for traders to employ effective risk management strategies, such as setting stop-loss orders and maintaining disciplined trading practices.
- This is due to its strong execution in winning commercial market share, its margin expansion, and the significant potential it holds, especially considering how early it is in its growth story.
- Through his various investing entities, Thiel is Palantir’s largest shareholder.
- According to 17 analysts, the average rating for PLTR stock is “Hold.” The 12-month stock price forecast is $44.4, which is a decrease of -43.78% from the latest price.
- Implementing stop-loss orders can limit potential losses by setting a predetermined exit price for a trade.
- In total, 18 equity researchers track PLTR stock and issue ratings for it, per TipRanks.
- Share prices of the artificial intelligence (AI)-focused data fusion specialist are up 332% year-to-date through Dec. 19.
Services Overview
The NYSE gave a reference price on Tuesday of $7.25 a share, though no stock changed hands at that level. It traded as high as $11.42 on Wednesday financial planning advice and financial advisors before dropping below its opening price. Some current and former employees complained early in the trading session of being unable to access the system to sell their stock. The initial price gives Palantir a market cap of $16.5 billion, based on 1.65 billion shares outstanding, which excludes various restricted stock units (RSUs), options and unvested stock.
Blistering AI Momentum Continues
The company was incorporated in 2003 and is headquartered in Denver, Colorado. Palantir Technologies (PLTR) cemented its place as a leader in artificial intelligence (AI) innovation following a breakout year in 2024. The company successfully expanded beyond its traditional focus on national security applications for government agencies, 10 steps to creating your first trading strategy leveraging its AI technology and big data analytics to deliver solutions for commercial customers.
- If you go long, you could profit if the closing price is higher than the entry price, with the difference paid by the CFD provider.
- No investment decision can be efficient without considering a stock’s valuation.
- While Palantir’s surge this year is certainly impressive, the stock’s valuation seems to have become detached from the underlying business.
- The flagship ARK Innovation Fund (ARKK) has continued to underperform the broad market in the past few years as some of its prominent …
- For short positions, you’d profit if the closing price is lower than the entry price, but if the closing price is higher, you would pay the difference, resulting in a loss.
- The group is planning to announce itself publicly as soon as January, people with knowledge of the matter said.
- Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account.
Sales & Book Value
Palantir’s Q3 report was met with quite the enthusiasm from the market, but the fundamentals must be immaculate at this valuation. RPO growth has surged over the past four quarters, while Palantir’s Rule of 40 continues to rise as adjusted operating margins expand and revenue growth accelerates. Net retention has risen to two-year highs, reaching 118% in Q3, as deal expansion continues. Palantir is in uncharted territory, as it is separating itself as a rare breed in SaaS to see both strong and profitable AI-driven growth. The company’s revenue growth plus GAAP operating and net margins have been in the double-digit range for four consecutive quarters.
No one knows how Palantir will perform in 2025, but the stock seems likely to experience a significant pullback as its current valuation doesn’t seem sustainable. Kindig has spoken at many tech conferences, including the Android Developers Conference, GamesBeat, Advertising Week NYC, Tech Week Chicago, and BlackHat. She has been published in Forbes, MarketWatch, Venture Beat, MediaPost, AdExchanger, and the International Association of Privacy Professionals. She has appeared on Fox Business News, Bloomberg TV Asia, NPR, The Motley Fool podcast, This Week in Startups and more discussing her stock analysis. Cash flow margins were bonkers in Q3 — operating cash flow was nearly $420 million, or a 58% margin, while adjusted free cash flow was $435 million, a 60% margin.
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The silver lining is that patience could reward investors, as the possibility of a market correction might offer an opportunity to acquire shares at a lower and more attractive price. The challenge for Palantir is convincing investors that it’s more of a high-growth tech company than a low-margin consulting services firm. The company has only 125 customers, spending on average $5.6 million in 2019. Implementing stop-loss orders can limit potential losses by setting a predetermined exit price for a trade. This mechanism helps to ensure that a position is automatically closed if the market moves against the trader, preventing more significant losses.
This has been predominantly driven by the US, as international commercial has yet to scale. In the US, net new commercial customers have dropped over the past two quarters, falling from 41 net new adds in Q1 to 26 net new adds in Q3. There is a clear deceleration from peak customer acquisition following AIP’s ramp, where net new adds surged from 6 in Q to 41 by Q1, before slowing again. Palantir’s RPO (Remaining Performance Obligation) is sharply rising, indicating strong customer … RPO growth accelerated over the past four quarters, from 27.8% in Q4 to 58.6% YoY in Q3.