Palantir has been in the news ever since it released its Q1 2024, as a good quarterly report and the stock fell anyway. Here are some takes on the stock.
You need Denethor hands to deal with the Palantir stock. This could mean either that you will hold onto Palantir through everything, or that you will end up dying while maddeningly clutching the stock. Which is it? Analysts are divided.
A fundamental approach
When Palantir announced its Q1 figures earlier in May, it exceeded most estimates for the quarter. The problem was that looking forward, the company saw full-year revenue coming in at $ 2.677 to $2.689 billion, rather than the $2.71 billion that analysts were expecting. This was the headline figure that caught the attention of the market.
David Jagielski at The Motley Fool points out, and rightly, that there are other factors. Palantir trades at more than 60x estimated future earnings. There’s the 12x price-to-book multiple; the price-to-sales ratio is >20. In these days of Truth Social, these numbers aren’t extreme, but Jagielski writes that figures like these set the bar pretty high for Palantir. By that measure, any miss or more conservative figure coming from management can be a downward trigger.
Sentiment
Amit Singh at Tipranks sees some upside to the stock. Moreover, he sees optimism regarding Palantir, despite the recent drop. He points out that more funds have acquired Palantir since the data came out. Individual investors also seem positively disposed toward it, too.
One important point from Parkev Tatevosian at The Motely Fool is that customers have the same feeling toward Palantir. Customer spend is increasing, year-on-year, which he points out is a healthy signal regarding customer sentiment. In his view, it says something about the company’s value proposition if its customers come back and spend more than they did previously.
BofA Weighs In
According to Marty Schtrubel at Tipranks, Mariana Perez Mora, an analyst for Bank of America, is bullish on Palantir because the main client who will be coming back and spending more is the U.S. government itself. Government attendees at recent AI concentrated events are discussing the various agencies’ needs that can be fulfilled by technology the likes of which are created and supported by Palantir.
Palantir is definitely in an interesting industry these days. AI is no longer some odd tech, and the use cases are becoming ever more varied. Palantir’s data-focused problem solving services are needed more than ever, too. The major question is if the multiples scare off investors. But if you have Denethor hands, all will be well.
Argomenti
