NEWSLETTER
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Actions of Palantir technologies (Nasdaq: PLTR) exploded 27% higher today (February 4). This follows the profits of the fourth quarter of the software company, which once again crushed Wall Street estimates.
Incredibly, the price of shares has now increased 1,557% since the beginning of 2023! While I write, this means that an £ 20k investment carried out within the actions and shares of ISA at that time would have narrowed in approximately £ 332K (discounts on currency movements).
That even leaves his classmates Nvidia In the dust, it has risen 'only' 700% in this period.
Unfortunately, I have never had the action, despite considering it a handful of times since it was made public in 2020. Should now rectify this expensive supervision? Let's take a look at the profits.
Palantir scores a hat-trick
For the fourth quarter, Palantir informed that revenues grew 36% year after year to $ 828 million. This was better than the $ 776 million that analysts expected (they exceeded number one).
Next, the company -adjusted profits (EPS) rose 75% to $ 0.14. Again, this was higher than Wall Street anticipated ($ 0.11). So that was rhythm number two.
Finally, Management offered a better guide than expected by 2025. See income from all over $ 3.75 billion (31% growth), higher than the $ 3.52 billion expected above.
What we have here is a great double rhythm (at the top and lower part) and an increase in the guide. Palantir's income continues to accelerate!
Why is this happening?
What is feeding all this growth is the company's artificial intelligence platform (AIP). This is helping organizations and companies to take advantage of the ai to analyze large amounts of data, automate complex tasks and smarter decisions. You can discover patterns and forecast future real time.
The numbers speak for themselves. The US commercial revenues. In the quarter 64% were fired to $ 214 million, while US government revenues increased 45%. Its customer count grew 43% Since he closed 129 agreements worth $ 1m, 58 agreements of at least $ 5 million and 32 agreements worth $ 10 million!
The eccentric CEO Alex Karp is always worth mentioning. In Palantir's letter to the shareholders, he said: “We have the products and the scope of an established holder and the speed, growth and agility of an insurgent startup. Is that the most lethal of combinations. ”
In Q3, he said that a “Juggernaut is emerging“. In the fourth quarter, the CEO confirmed that”Juggernaut software has emerged in fact“The Juggernaut, of course, is palantir.
In many ways, Karp reminds me of David Goggins, former Navy Seal became a motivating speaker. If I want a motivation to get up in a cold morning to run, or finish that last mile, you could put one of your YouTube speeches.
Similarly, if I ever doubt that the ai revolution has legs, I can tune the quarterly Karp comment on ai. Ensuring, says: “We are still in the early stages, the beginning of the first act, of a revolution that will take place for years and decades. “
Crazy assessment
Do not be wrong, these numbers are very impressive. However, I still have the impression that this high quality stock is very overvalued. Based on the prognosis of 2025, it is now quoted to a price ratio to sales (p/s) of around 64.
In my experience, it is dangerous to invest in this multiple. So I think that investors who consider the shares should step carefully.
(tagstotranslate) category. Investing
