Opinions
Kevin Simpson
Palantir Technologies
PLTR-Q
TRADE
Sep 27, 2024
Stock price when the opinion was issued
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A note regarding shock events: Going back to the 1940's the average return after a shock event is up 7 1/2% 12 months later. She sees good growth with its powerful AI centres and increasing revenue. It is in the volatile tech space and trades at a premium of 60X earnings. It has long term contracts with revenue growth of 40% year over year. However she sees a downside price of 25% and there has been some insider selling.
Premium contentPalantir Technologies Inc. (NYSE: PLTR) is a public American software and services company specializing in big data analytics. Founded in 2003 and headquartered in Denver, Colorado, the company’s primary revenue streams come from government and commercial sectors. They offer platforms for integrating, visualizing, and analyzing data, and their clientele includes various government agencies and private organizations worldwide. Palantir's technology has been instrumental in projects involving counter-terrorism, fraud prevention, and enhancing data-driven decision-making. Social media mentions are up 6.7% in the past 24h.
Forget what you paid for something, as that's anchoring to the past. Loves the products, they're spookily clever. But the PE is 200x, so you have to believe that growth continues for 10-20 years without competition or economic slowdown. Be mindful of position size, given the valuation. Businesses can compress their multiples quite easily, without the news getting bad.
He'd take more than a little off the table.
Premium contentPalantir Technologies Inc. is a pioneering data analytics company that provides software solutions to a broad range of industries, including government, finance, healthcare, and manufacturing. Established in 2003, the company has grown to become a prominent player in the data analytics field, offering platform solutions that enable organizations to effectively integrate, visualize, and analyze large volumes of data. Palantir's key products include Palantir Gotham, Palantir Metropolis, and Palantir Foundry. Social media mentions are up 5.1% in the past 24h.
Valuation has expanded, business is growing. Look at selling a covered call. The thing is that all that volatility has made the options very expensive. Looking out to September, you can sell a $175 call for $8.15. That's 5% of the current share price for $15 of upside. Worst case is that somebody buys your position at a $15 increase, but you keep the $8.15 no matter what.
Easy to own tech names like this if you write covered calls, because of the volatility.