$Palantir Technologies Inc.(PLTR)$ is likely to be 1 of the top oversold stock in the market today. Apart from a slight EPS decline and lowered revenue estimates for the year, investors are uncertain with regards to Palantir short term outlook due to the following reasons:
1) Despite increasing its commercial business, currently government contracts still form the majority of Palantir's livelihood. As such, its performance is largely under the mercy of government awards.
2) Existing government mega projects might take time to roll out, hence the reap of benefits will only come in at a later period.
However, there is still bullish signs coming from Palantir. Palantir has started investing more into SPACs that signed multi year contracts with Palantir to use its software in their core operations. This helps to diversify Palantir business and reduce concentration in government contracts. Due to the multi year nature of the contracts, it ensures continuity of business and cashflow in the years to come.
All in all, Palantir specializes in big data analytics which is indispensible in the future of many businesses. It is not a software or capability easily understood, but it is not something easily replicated as well. That can serve as a moat for Palantir.
Fellow Tiger Investors of Palantir, hang in there while we ride through this turbulent times with Palantir!
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