Palantir (PLTR) Stock FINALLY Bottomed?

TL;DR

Palantir's Q3 earnings beat expectations with revenue at $477.8 million, but the company's valuation of $16 billion is still not justified.

Transcript

we've got palantir Q3 earnings we've got a 16 billion dollar valuation we've got a technical chart pattern sitting right on the edge or a cliff of support we'll talk about that on more on today's show what is going on investors hopefully you guys are doing well out there time to talk about palantir technology remember doing videos on this stock whe... Read More

Key Insights

• 💪 Palantir's revenue growth of 22% YoY is still relatively strong, despite the company not being profitable.
• ✋ The company's valuation of $16 billion is considered high compared to its current financials.
• 🐢 Concerns about slower growth and potential government spending issues impact investor sentiment.
• 😘 Palantir's cost of revenues is low, contributing to higher gross profit margins.
• ❓ The upcoming Q4 is crucial for Palantir, and its performance will determine its future prospects.
• ⚾ Stock-based compensation contributes to increased shares outstanding, potentially putting downward pressure on the stock price.
• 💪 The company's strong balance sheet and cash position provide a runway for future operations.

Questions & Answers

Q: Is Palantir a profitable company?

No, Palantir is not profitable even when stock-based compensation is factored in. Its high valuation of $16 billion is not justified based on its current profitability.

Q: What are the factors contributing to Palantir's growth?

Palantir's revenue growth is driven by its relatively high growth rate, which is still at a mid-20s percentage. Additionally, its cost of revenues is significantly low, allowing for higher gross profit margins.

Q: What are some concerns about Palantir's future growth?

City analysts predict slower growth for Palantir due to potential government spending issues and higher interest rates. The upcoming elections in the United States may impact government contracts and military spending.

Q: What is Palantir's guidance for Q4 and 2022?

Palantir's Q4 guidance is around $503-505 million, slightly below Wall Street's expectations. For the full year of 2022, the company expects revenue to be slightly over $1.9 billion.

Summary & Key Takeaways

• Palantir reported Q3 revenue of $477.8 million, representing a 22% YoY growth, beating expectations by $3 million.

• The upcoming Q4 is crucial for Palantir as investors are betting on strong growth. However, City analysts predict further downside due to slower growth and potential government spending issues in the future.

• Despite the positive revenue growth, Palantir is still not profitable enough to justify its current valuation of $16 billion.