At the time of writing, the share price for Palantir Technologies (PLTR) reached $7.57, a 0.07 point increase and a 0.93% growth in the last 24 hours.
The company started the month at $7.85 but quickly dipped just under $7, but has steadily recovered, particularly after a jump from $7.18 to $7.75 between the 12th and the 13th. Currently, the stock isn’t looking so hot, but thanks to its growing portfolio things could always turn around in the future.
Let’s take a look at the past and current performance of Palantir Technologies to have an idea of what the future holds for the company.
Technical Analysis
According to PLTR’s valuation at the time, it reflects a company whose growth is primarily based on future expectations, while in the meantime, sales growth has slowed recently. Even compared to the NASDAQ Composite Index (COMP.IND), PLTR has performed relatively weakly, and this underperformance is likely to persist for some time.
Over the past few months, Beckett Collectibles, Hertz, and Crisis24 have been added to the company’s customer list, which continues to grow its contracts at a relatively astronomical pace. The company has also announced other positive news, including the expansion of modernization work with the FDA and the renewal of its partnership with the CDC.
And yet, for a company that consistently has such news its performance in the stock market doesn’t reflect that:
Palantir Technologies performance over December. Chart by Yahoo Finance.
Palantir has had a bearish month in December, and most analysts concur that the company is currently a “Hold” one.
This goes to show that in reality, even if such news pieces sound positive (“new contracts = new revenue stream”), they don’t always indicate an acceleration of a company’s growth.
A decline in the major benchmark indexes does not seem to be responsible for PLTR’s underperformance in 2022, but rather overly high expectations and an unreasonably high valuation.
For a company with such a high and positive profile, it’s stock performance doesn’t back it up.
The company signs new contracts and partnerships that result in long-term revenue and create backlogs of orders, so positive news doesn’t appear immediately on the income statement. Consequently, as you may have noticed, the amount of positive news a company reports in a quarter does not necessarily correlate with its growth rate. As a result of PLTR’s relatively high revenue base over the years, revenue growth has stagnated despite the overall backlog – which is why analysts expect revenue growth to continue stagnating in Q4 2022, despite all the positive news.
PLTR Analysis Conclusion
PLTR isn’t necessarily in a bad spot, as the company continues to grow and sign contracts at a rapid pace. However, the perceived value and the real value of the company seem to be at odds. It’s likely that the company will continue to see growth into 2023, but nowhere near as high as projected by other analysts. This is supported by the fact that even after numerous new contracts and positive news, the stock hasn’t grown significantly.
What Kind of Stock is PLTR?
PLTR is a Class A Common Stock. A common share represents part ownership in a company, with each shareholder receiving a proportionate share of its remaining assets if it is dissolved. A common stock investment offers shareholders theoretically unlimited upside potential, but if the company fails, they risk losing everything.
Palantir stock does not pay a dividend.
Does PLTR have any debt?
Palantir Technologies Inc. has a total debt equity of 10.27 (mrq), and a current ratio of 4.28. Currently, the company has an operating cash flow of 238.4M and a levered free cash flow of 261.71M.
Does the CIA use Palantir?
Since the early days of Palantir, it has had a close connection to government work, often in the dark. The CIA invested early in Palantir and the intelligence agency, as well as the FBI and NSA, are clients, though Palantir has expanded into corporate work and has diversified its big data across industries, including healthcare.
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