Tech-company $Palantir Technologies Inc.(PLTR)$ has been a popular stock with retail investors. However, it's been struggling of late. Investors also need to go back to Fall 2020 for the last time it was trading this low -- at less than $19 a share.
For long-term investors, there's plenty to like about Palantir. The business serves multiple industries, providing data and analytics solutions for defense, automotive, and many other sectors. Palantir projects that its revenue will rise at a rate of 40% this year to more than $1.5 billion. And over the next four years, the company doesn't expect that to slow down by much and expects annual growth during that time of at least 30%.
The data-oriented company has been winning over customers at a rapid rate, reporting that its commercial-customer count in the third quarter (period ending Sept. 30, 2021) grew by 46% quarter over quarter. When compared to Dec. 31, 2020, that percentage climbs to 135%. And the contracts it's signing aren't small -- 18 of the 54 deals it closed during the past quarter are worth at least $10 million.
However, investors may need to be patient with the company, given its losses have totaled $513 million over the trailing 12 months. That could deter some risk-averse investors and keep the stock down.
But the good news is Palantir has generated positive free cash flow in each of the past three quarters. The business looks to be on a strong path forward, and investing in it today, while its shares are struggling, could prove to be a great move in the long run.
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