Palantir Technologies: Sell The AI Rip

seekingalpha2023-06-12

After a solid beat on Q1'23 earnings, Palantir Technologies (NYSE:PLTR) has soared in what wasn't an overly impressive quarter. The company promoted a new Artificial Intelligence Platform (AIP) ...

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Alvin1975
2023-06-12
Alvin1975
U
Longs
2023-06-12
Longs
👌🏼🙏🏼
LateWizard
2023-06-12
LateWizard
Look like somebody miss out on a deal 🙃🫠

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The company promoted a new Artificial Intelligence Platform (AIP) ...</p>\n\n<a href=\"https://seekingalpha.com/article/4610778-palantir-technologies-sell-the-ai-rip\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Palantir Technologies: Sell The AI Rip</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPalantir Technologies: Sell The AI Rip\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-06-12 17:16 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4610778-palantir-technologies-sell-the-ai-rip><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>After a solid beat on Q1'23 earnings, Palantir Technologies (NYSE:PLTR) has soared in what wasn't an overly impressive quarter. The company promoted a new Artificial Intelligence Platform (AIP) ...</p>\n\n<a href=\"https://seekingalpha.com/article/4610778-palantir-technologies-sell-the-ai-rip\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0708995401.HKD","symbol_name":"FRANKLIN U.S. OPPORTUNITIES \"A\" (HKD) ACC","start_time":0,"source_url":"https://seekingalpha.com/article/4610778-palantir-technologies-sell-the-ai-rip","article_id":"2342576928","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2342576928","pubTimestamp":1686561361,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"After a solid beat on Q1'23 earnings, Palantir Technologies (NYSE:PLTR) has soared in what wasn't an","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0708995401.HKD":"FRANKLIN U.S. OPPORTUNITIES \"A\" (HKD) ACC","LU0820561818.USD":"安联收益及增长平衡基金Cl AM DIS","BK4503":"景林资产持仓","BK4551":"寇图资本持仓","BK4141":"半导体产品","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","IE00B7KXQ091.USD":"Janus Henderson Balanced A Inc USD","LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","LU0943347566.SGD":"安联收益及增长平衡基金AM H2-SGD","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","LU0234570918.USD":"高盛全球核心股票组合Acc Close","IE00B19Z9505.USD":"美盛-美国大盘成长股A Acc","LU1429558221.USD":"Natixis Loomis Sayles US Growth Equity RA USD","BK4579":"人工智能","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","BK4548":"巴美列捷福持仓","BK4533":"AQR资本管理(全球第二大对冲基金)","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","LU1435385759.SGD":"Natixis Loomis Sayles US Growth Equity RA SGD-H","BK4529":"IDC概念","LU0079474960.USD":"联博美国增长基金A","LU1551013342.USD":"Allianz Income and Growth Cl AMg2 DIS USD","LU0082616367.USD":"摩根大通美国科技A（dist）","PLTR":"Palantir Technologies Inc.","LU0889565833.HKD":"FRANKLIN TECHNOLOGY \"A\" (HKD) ACC","LU0056508442.USD":"贝莱德世界科技基金A2","LU1623119135.USD":"Natixis Mirova Global Sustainable Equity R-NPF/A USD","BK4588":"碎股","LU0640476718.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQ \"AU\" (USD) ACC","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","LU1242518857.USD":"FULLERTON LUX FUNDS - ASIA ABSOLUTE ALPHA \"I\" (USD) ACC","LU1548497426.USD":"安联环球人工智能AT Acc","LU1280957306.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQUITIES \"AUP\" (USD) INC","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","BK4532":"文艺复兴科技持仓","IE00BFSS8Q28.SGD":"Janus Henderson Balanced A Inc SGD-H","BK4023":"应用软件","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","BK4550":"红杉资本持仓","LU0109392836.USD":"富兰克林科技股A","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","LU1242518931.SGD":"Fullerton Lux Funds - Asia Absolute Alpha A Acc SGD","NVDA":"英伟达","LU0979878070.USD":"FULLERTON LUX FUNDS - ASIA ABSOLUTE ALPHA \"A\" (USD) ACC","BK4543":"AI","BK4527":"明星科技股","BK4097":"系统软件","LU0316494557.USD":"FRANKLIN GLOBAL FUNDAMENTAL STRATEGIES \"A\" ACC","LU0786609619.USD":"高盛全球千禧一代股票组合Acc"},"translate_title":"Palantir技术公司：出售AI Rip","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NVDA":1,"PLTR":0.9},"content_text":"After a solid beat on Q1'23 earnings, Palantir Technologies (NYSE:PLTR) has soared in what wasn't an overly impressive quarter. The company promoted a new Artificial Intelligence Platform (AIP) leading to what appears an irrational boost in the stock. My investment thesis is Bearish on the stock, especially after the recent double off the lows.Source: FinvizArtificial RallyPalantir has seen the market cap rally back to over $32 billion. The company is only now releasing the new AIP platform to select customers. The system in essence super-charges a private enterprise network with large language models and empowers cutting-edge AI for defense and military organizations.The market has seen the huge pop in sales at Nvidia (NVDA) and probably has extrapolated too much into the near-term business opportunities of Palantir. The chip company is selling the GPUs to develop and maintain the LLMs utilized by companies like Palantir implementing the technology into enterprise and government organizations, but this business is still in the early stages of ramping up.On the Q1'23 earnings call, CEO Alex Karp made several statements like the following that unleashed the enthusiasm for the stock:The issue of how do you have security, a data model or knowledge and wisdom that's proprietary, interact with an external large language model or with generative AI is not new to Palantir, and that's why we were able to launch our platform AIP so quickly, the demand for -- of which is nothing I've ever seen in 20 years of being involved in Palantir.The data security company didn't actually report an overly impressive quarter. Palantir beat estimates with revenues growing 18%, but the company only reported a meager adjusted EPS of $0.05.C3.ai (AI) reported a similar quarter where sales were tepid despite all of the promises of enterprise AI software demand surging. Palantir only reported 18% sales growth for Q1'23 and after the quarter analysts haven't exactly hiked estimates for the years ahead.The company is forecast to just grow sales 16% this year to $2.2 billion, due to Palantir only guiding to 12% growth in Q2. Sales aren't even forecast to top 20% in the following 2 years, with a goal of just reaching $3.2 billion.Source: Seeking AlphaAnalysts have already had a month to update sales estimates since Palantir reported Q1 results. Similar to C3.ai, the updates aren't overly impressive for stocks soaring on supposed AI enterprise demand.Even though Palantir only trades at $15, the stock is back to trading at early 2021 levels. Back then, the company was producing nearly 50% revenue growth and the market thought fast growth was sustainable.The stock has clearly run ahead of reality in the short term.Analysts Oddly BearishThe average analyst rating isn't actually overly bullish on Palantir. The price target is just $9.54 in an odd scenario where the market is far more bullish on the stock than analysts predicting a 36% decline.Source: Seeking AlphaUnfortunately, the analysts appear logical on Palantir. The stock soared on the back of AI hype, though the contracts aren't flowing through yet.Even with Nvidia, analysts were at least as bullish on the stock as the market. Analyst estimates constantly rose along with the stock in the last 6+ months.Palantir trades at 14x 2023 revenue targets, while the stock still trades at an aggressive forward P/S multiple of 12x 2024 targets of $2.6 billion. Virtually all of the rally in the last month is due to expansion of the P/S multiple, not due to higher revenue estimates.Data by YChartsThe company has a solid cash balance of $2.9 billion along with positive free cash flows and adjusted profits. Unfortunately, though, Palantir only produces $530 million in quarterly revenues, reducing the amount of adjusted profits that can be achieved to even warrant a higher stock price.The company is already forecasting operating margins in the 24% range to produce the measly $0.05 quarterly EPS. Also, worth noting, the stock has 2.2 billion shares outstanding and the $114.7 million in stock-based compensation is contributing to the large share counts.Source: Palantir Tech. Q1'23 earnings releaseOne of the prime mistakes made by investors is to see the above multiple as reasonable, but one has to remember that Palantir has to trade at a nearly 14x the forward P/S multiple in order for an investor to produce a 20% return.TakeawayThe key investor takeaway is that Palantir has soared on AI hype. The company is definitely poised to benefit from AI demand in enterprises and military organizations, but the stock is now priced for perfection and enterprise AI software demand hasn't actually flowed through to the results yet.Investors should sell the rip and look to buy the tech titan on a sell-off to a more rational valuation.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":186542047096912,"gmtCreate":1686581767794,"gmtModify":1686581771728,"author":{"id":"3573788625955643","authorId":"3573788625955643","name":"Alvin1975","avatar":"https://static.tigerbbs.com/beba0668af2d109b87221754e75935b3","vip":1,"crmLevel":5,"crmLevelSwitch":0,"idStr":"3573788625955643","authorIdStr":"3573788625955643"},"htmlText":"U","listText":"U","text":"U","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/186542047096912","repostId":2342576928,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":186497082601480,"gmtCreate":1686570788115,"gmtModify":1686570792387,"author":{"id":"4115290449563752","authorId":"4115290449563752","name":"Longs","avatar":"https://community-static.tradeup.com/news/824b5073731ab909a8d4e129caa8d995","vip":1,"crmLevel":6,"crmLevelSwitch":0,"idStr":"4115290449563752","authorIdStr":"4115290449563752"},"htmlText":"👌🏼🙏🏼","listText":"👌🏼🙏🏼","text":"👌🏼🙏🏼","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/186497082601480","repostId":2342576928,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":186459245793392,"gmtCreate":1686561743720,"gmtModify":1686561747406,"author":{"id":"3576797853255359","authorId":"3576797853255359","name":"LateWizard","avatar":"https://static.tigerbbs.com/2623f0ebfedf9dedaf6b68dc8fe2f4b8","vip":1,"crmLevel":3,"crmLevelSwitch":1,"idStr":"3576797853255359","authorIdStr":"3576797853255359"},"htmlText":"Look like somebody miss out on a deal 🙃🫠","listText":"Look like somebody miss out on a deal 🙃🫠","text":"Look like somebody miss out on a deal 🙃🫠","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":8,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/186459245793392","repostId":2342576928,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":88,"commentSize":3,"repostSize":2,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2342576928"}