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2022-02-02

Why though

Block shares fell 8% in premarket trading

2022-01-17

Hopefully this year earnings can show the true potential of PLTR

Palantir: The Myth Of Overvaluation

2022-01-04

Insane progression

Tesla Adds $144 Billion to Market Value After Record Deliveries

2022-01-05

🩸money 🥲🥲🤣🤣

Cathie Wood Sells Another $50M in Tesla on Tuesday — Here's What She Bought Instead

2021-12-25

Safety stocks ?

3 Best Buffett Stocks to Buy for the Long Haul

2021-12-30

Still will go up I feel 😂

Tesla Recalls Over 475k Vehicles for Camera, Latch Issues

2022-06-22

Awesome deep dive

Palantir: The Black Box Company

06-29

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Win up to 50000 Tiger Coins.","listText":"Find out more here: <a href=\"https://www.tigerbrokers.com.sg/activity/market/2024/trading-guess?inviteId=PRHBESIV&amp;banner=0&amp;feature=Message&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=a5178a37f3435883e6d5b17c4a639f70&amp;invite=8QOKY9&amp;lang=en_US\">Guess the winner，Earn Tiger Coins</a> Join the Guessing Game , find high-yield Sharers! Win up to 50000 Tiger Coins.","text":"Find out more here: Guess the winner，Earn Tiger Coins Join the Guessing Game , find high-yield Sharers! Win up to 50000 Tiger Coins.","images":[{"img":"https://static.tigerbbs.com/f5b7f90833b0728cadecb5cb81220f1d"}],"top":1,"highlighted":1,"essential":1,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/321992694333520","isVote":1,"tweetType":1,"viewCount":10,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":9043109245,"gmtCreate":1655881616287,"gmtModify":1676535725012,"author":{"id":"3574951241870050","authorId":"3574951241870050","name":"Wnnn","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"Awesome deep dive&nbsp;","listText":"Awesome deep dive&nbsp;","text":"Awesome deep dive","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9043109245","repostId":"1178592634","repostType":4,"repost":{"id":"1178592634","pubTimestamp":1655876844,"share":"https://www.laohu8.com/m/news/1178592634?lang=&edition=full","pubTime":"2022-06-22 13:47","market":"us","language":"en","title":"Palantir: The Black Box Company","url":"https://stock-news.laohu8.com/highlight/detail?id=1178592634","media":"Seeking Alpha","summary":"SummaryGround Zero led to Zero to One — One being Palantir.Palantir is building the central operatin","content":"<html><head></head><body><p><b>Summary</b></p><ul><li>Ground Zero led to Zero to One — One being Palantir.</li><li>Palantir is building the central operating system of the modern world.</li><li>Growth remains robust, particularly in its Commercial segment, which will be the main growth engine for the company in the next decade.</li><li>Dilution and GAAP unprofitability remain the biggest risks, especially so in this kind of market environment.</li><li>Although we may see further downside, the selloff seems to be overdone. Palantir is a buy.</li></ul><p>Given the complexity and mysterious nature of the business, this Palantir (NYSE:PLTR) deep dive is probably the most difficult piece that I&#39;ve written compared to other company deep dives that I&#39;ve covered so far. I hope you find value in this article. Enjoy!</p><p><b>Investment Thesis</b></p><p>Palantir: the meme stock, the cult stock, the black box company. There&#39;s a lot of chatter about Palantir on the Internet and I&#39;ve come to notice that there&#39;s a lot of love and hate for the company. Regardless of what others say, it is undeniable that Palantir is one of the most mission-critical companies today.</p><p>Palantir is building the central operating system of the modern world, turning chaos into order. The ultimate bull thesis is that Palantir will replace legacy data and operations infrastructure, and Palantir&#39;s technology and management are more than capable of achieving this ambition.</p><p>The selloff has also created a wonderful opportunity to accumulate shares of Palantir. Palantir is a Buy at these levels.</p><p><b>Value Proposition</b></p><p>On 11th September 2001, 19 terrorists hijacked four commercial airlines during what seemed to be a normal working day for corporate America. What followed left the world at a standstill — things happened so slowly and so quickly that billions of people all over the globe were paralyzed by what they were seeing on their TV screens.</p><p>Two planes struck both the North and South Towers of the World Trade Center, only to leave both skyscrapers crumbling down a few hours later. Another plane crashed on the west side of The Pentagon, the home of the US Department of Defense, which left question marks on the true strength of the US military. The last plane, fortunately, failed to demolish its intended building target as a passenger steered the plane to an open field.</p><p>2,977 people lost their lives that day.</p><p>Undoubtedly, 9/11 left a huge scar on America. For one, the World Trade Center crash site was dubbed Ground Zero. While America work its way to recover and regain its confidence after the attacks, five entrepreneurs — Peter Thiel, Joe Lonsdale, Stephen Cohen, Nathan Gettings, and Alex Karp — joined forces to form Palantir. The name of the company resembles palantíri or &#34;seeing stones&#34; from the movie <i>The Lord of the Rings</i>. These stones were balls of crystal that enable the users to communicate with one another and to see afar, much like what Palantir was designed to do — to identify, anticipate, and prevent future attacks.</p><p>In essence, Ground Zero became the stepping stone to Zero to One—<i>One</i> being Palantir.</p><p>This is a good segway to the first topic of this article: what does Palantir do as a business?</p><p>In a nutshell, Palantir builds and deploys the foundational software of tomorrow that serves as the central operating system for its customers.</p><p>Traditionally, government and commercial institutions need to invest millions and even billions of dollars to build their own digital infrastructures, enterprise data warehouses, and digital twin models, which are incredibly difficult, complex, and risky to execute. But for Palantir, the more difficult, complex, and risky it is, the bigger the opportunity and the more likely it is for Palantir to succeed.</p><p>With that in mind, Palantir aims to help organizations to accelerate their digital transformation by integrating their data, decisions, and operations at scale. In other words, Palantir is a big data platform that helps companies make sense of their data to make data-driven decisions.</p><p>This is achieved through Palantir&#39;s three core products: Gotham, Foundry, and Apollo.</p><p><i><b>Gotham</b></i></p><p><b>Palantir Gotham is the operating system for government decision-making</b>. It has been used by government agencies including the USIC, NSA, FBI, CDC, and Air force to combat terrorism and analyze various highly-sensitive, highly-confidential matters. Rumors have also surfaced about Palantir Gotham playing a certain role in helping the US Navy SEALs locate and assassinate former Al-Qaeda leader, Osama bin Laden.</p><p><img src=\"https://static.tigerbbs.com/abaa773acc4f4b1727a9e2dfdfc1102b\" tg-width=\"1280\" tg-height=\"788\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Website</p><p>Aside from government agencies, financial institutions have also adopted Gotham specifically for fraud detection and investigations.</p><p>Gotham leverages artificial intelligence to identify patterns, threats, and hidden information deep within cluttered datasets. At the same time, machine learning embedded in its software provides continuous feedback loops which improve its models over time, allowing for smarter and faster decision-making.</p><p>Given that Gotham caters specifically to government functions, not much information has been published regarding its technology, thus the black-box nature of the overall business. The company&#39;s S-1 filing does cover a few features but it is quite vague, to say the least. On one hand, we can look at Palantir&#39;s commercial product, Foundry, to at least get some level of understanding of how Gotham works.</p><p><i><b>Foundry</b></i></p><p><b>Palantir Foundry is the operating system for modern enterprises.</b> Foundry has an open architecture and it integrates siloed data sources, analytics, and teams into a common foundation.</p><p><img src=\"https://static.tigerbbs.com/2d239b478ba11f2450bfd1fa421e0bd8\" tg-width=\"1280\" tg-height=\"1237\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Website</p><p>There are 5 layers to the Foundry stack, with each layer bridging the gap between data analytics and operational decision-making:</p><ul><li><b>Data Integration</b>— Foundry utilizes 200+ data connectors to integrate different data sources, data lakes, and data warehouses across the enterprise, across different types of data points including structured, unstructured, streaming, IoT, transactional, geospatial data, and more.</li><li><b>Model Integration</b>— Customers can integrate business logic and models by using Foundry&#39;s open, interoperable architecture along with third-party models like Snowflake (SNOW), Microsoft Azure (MSFT), and AWS (AMZN). Foundry can extend these third-party platforms into operations with bi-directional data syncs to ensure that Foundry is always in sync with those existing data systems.</li><li><b>Ontology</b>— Foundry connects all the data and models, and brings them together into a common foundation that can be used by the entire organization. This is called the Ontology and it is the operational layer of the organization. The Ontology connects all the digital assets (data and models) to their real-world counterparts (such as equipment, products, and customer orders), forming a digital twin of the enterprise that users can interact with.</li><li><b>Workflows</b>— With the Ontology in place, users can develop custom workflows or use out-of-the-box applications. As more and more objects, actions, and workflows are added, the shared Ontology evolves over time with greater operational knowledge.</li><li><b>Decision Orchestration</b>— After integrating all the historically siloed data and models, Foundry enables users to take actionable and insightful decisions, whether through manual operations, simulations, or AI.</li></ul><p>While this may be an oversimplified explanation of the Foundry platform, it does give us a rough idea of how Foundry works. Perhaps, we can take a look at a case study to get a better grasp of what Foundry does.</p><p>For example, here&#39;s how one of the largest utility companies in the US, PG&amp;E, uses Foundry:</p><ul><li><b>Data Integration</b>— PG&amp;E is facing a massive climate threat as global warming increases the risks of wildfire breakouts. As such, the company needs to leverage the 8-10 billion data points it receives every single day to operate a safe and reliable energy system. Foundry helps to aggregate and make sense of these data.</li><li><b>Model Integration</b>— Palantir has an open architecture that allows PG&amp;E to integrate Foundry and other third-party models into a single platform. This enables PG&amp;E to utilize all the models and data across various platforms, which ultimately gives richer datasets to combat wildfires.</li><li><b>Ontology</b>— PG&amp;E has launched the Enhanced Powerline Safety Settings to protect the grid and prevent wildfires. By integrating equipment health data, geospatial location, and network topology, Foundry is able to create a digital representation of PG&amp;E&#39;s entire grid and its 25,000+ miles of wire. This way, PG&amp;E can monitor the various components of the grid, and identify which of them need preventative maintenance.</li></ul><p><img src=\"https://static.tigerbbs.com/3db99337db4e48508064826092e69e90\" tg-width=\"640\" tg-height=\"351\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir YouTube</p><ul><li><b>Workflows</b>— PG&amp;E can leverage a common set of objects, actions, and relationships to develop custom workflows. Foundry enables PG&amp;E to manage workflows across the lifecycle of the grid including scenario modeling, work planning, scheduling, executing, operating, and closing.</li><li><b>Decision Orchestration</b>— Based on the new data that Foundry presented, PG&amp;E can now make more informed decisions to protect its grid. For instance, PG&amp;E can automate the switching on and off of certain devices in the grid, based on specific weather conditions, thus decreasing the likelihood of wildfires.</li></ul><p>Again, this is just one of many use cases. Foundry is applicable to other industries including auto racing, anti-money laundering, cryptocurrency, financial services, emerging startups, supply chains, telecommunications, and more.</p><p>Ultimately, Foundry aims to be the central operating system for modern commercial entities, replacing legacy data infrastructures and operating systems. Palantir has even gone as far as claiming that Foundry will be the next AWS in the coming decade.</p><p><img src=\"https://static.tigerbbs.com/0f4ac18bbb1849ffa347e4007eed824b\" tg-width=\"640\" tg-height=\"358\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir FY2022 Q1 Investor Presentation</p><p><i><b>Apollo</b></i></p><p><b>Palantir Apollo is the operating system for continuous delivery</b>. Apollo serves as the software to manage, deploy, and maintain Gotham and Foundry worldwide, across virtually any environment. Before its launch, deploying Palantir&#39;s software involves manual installations, upgrades, and configurations, which is especially true for the non-tech savvy governmental organizations. Back in 2008, Palantir Gotham ran on-premises, which is time-consuming and not scalable, thus leading to few software upgrades or updates.</p><p>Fast forward to 2016, Palantir launched the cloud-based Foundry, which gained positive reception from its commercial customers. As such, Palantir also began offering Gotham through the cloud. This allowed for the continuous delivery of Palantir&#39;s user-facing products, and it is made possible through Apollo.</p><p><img src=\"https://static.tigerbbs.com/3006a9ff19bf075547fa85acddd820b8\" tg-width=\"1280\" tg-height=\"849\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Blog</p><p>Apollo is an autonomous software deployment platform. Developers merge code once and can deploy software across all environments from a single pane of glass. With Apollo, Palantir&#39;s software — whether it be initial setup, new features, or security updates — can be rapidly and securely delivered through on-premise data centers, classified networks, embedded edge devices, the cloud, and more. More importantly, Apollo enables Palantir to bring its SaaS offering to environments where no SaaS has gone before.</p><p><img src=\"https://static.tigerbbs.com/e219616cba00fa8a47698f84061a8030\" tg-width=\"1280\" tg-height=\"1198\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Apollo Documentation</p><p>With the ever-growing popularity of SaaS offerings, the launch of Apollo enhances Palantir&#39;s distribution prowess and market adoption. Not only that, but it also accelerates customers&#39; time to value as well as caters to a broader range of customers given the vast deployment options available.</p><p>With all that said, despite its somewhat secretive nature as a public company, it seems that Palantir&#39;s three platforms display top-level interoperability and security, setting high standards to be the central operating system of the modern world. Its 2-decade tenure, solid government exposure, and widening customer base are also testaments to its unique technology offering.</p><p><b>Market Opportunity</b></p><p>According to Palantir&#39;s S-1 Filing, its total addressable market (TAM) is about $113 billion, comprising $63 billion for the government segment and $56 billion for the commercial segment. Breaking it down further by geography, Palantir estimated that the TAM for the US government sector is $26 billion while the international government sector is estimated to be $37 billion in value.</p><p>These estimates were calculated back in 2020, and we all know that there have been several important developments over the last couple of years that could mean TAM expansion for Palantir (pandemic, Russia-Ukraine war, cryptocurrency acceptance, SPAC boom, supply chain constraints, etc.). Furthermore, Palantir has rolled out additional features to supplement its core software products, which should also expand its use cases and TAM.</p><p><img src=\"https://static.tigerbbs.com/f2373ea9af4511b7dc0d5862fb73bfcb\" tg-width=\"640\" tg-height=\"359\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir FY2022 Q1 Investor Presentation</p><p>It is important to note that Palantir competes first and for most, with internal software developers where companies usually attempt to build in-house data platforms from scratch. In the fast-changing modern world, companies want speed and certainty — building their own operating systems is too high of a risk to take. That&#39;s where the opportunity is for Palantir.</p><p>Industry analysts have also sized the Big Data Analytics market to reach $200 to $600 billion+ over the next few years. It is also worth mentioning that the US government total expenditures have been on a long-term upward trajectory, which means higher incremental budgets for defense and intelligence initiatives that can flow to Palantir Gotham.</p><p><img src=\"https://static.tigerbbs.com/c57322e7cbf95536c0156247a1279152\" tg-width=\"640\" tg-height=\"247\" referrerpolicy=\"no-referrer\"/></p><p>Source: FRED Government Total Expenditures</p><p><b>Business Model</b></p><p>The company generates revenue from the sale of cloud-based subscriptions and on-premises subscriptions — both of these include ongoing operations and maintenance services. Revenue is generally recognized over the contract term on a ratable basis.</p><p>In addition, Palantir also generates revenue from professional services such as on-demand support, platform configurations, training, and data modeling support.</p><p>According to the S-1, Palantir&#39;s &#34;pricing is based primarily on the value that we anticipate our software platforms will produce for our customers.&#34; As such, pricing and customer billings vary from contract to contract.</p><p>Palantir also incorporates usage-based pricing for Foundry, thus allowing smaller commercial customers to use Foundry without breaking the bank. As these customers scale, Palantir stands to benefit from increased usage of its platform.</p><p><img src=\"https://static.tigerbbs.com/110e80db621909781b1018543e62944c\" tg-width=\"640\" tg-height=\"360\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir FY2022 Q1 Investor Presentation</p><p>Central to its business model is its Acquire-Expand-Scale strategy:</p><ul><li><b>Acquire</b>— Customers with less than $100,000 in Revenue belong in this category. The Acquire phase involves short-term pilot projects with little to no cost to customers, in an attempt to get them to experience Palantir&#39;s value proposition. Palantir operates at a loss during this phase. However, it is expected to generate significant Revenue over time. For example, the same customers in the 2020-Acquire cohort generated $36.8 million in 2021, as opposed to just $0.3 million in the previous year.</li><li><b>Expand</b>— Customers with more than $100,000 in Revenue but negative Contribution Margins, fall into this category. The Expand phase is where customers begin to realize Palantir&#39;s value proposition, and therefore, begin ramping up investments in the software. Similar to the Acquire phase, Palantir operates at a loss during the Expand phase. However, Revenue begins to scale at this stage. For instance, 2020-Expand cohort customers generated $83.3 million in 2021, as opposed to just $20.3 million in 2020. On the flip side, Contribution Margin for this cohort was (150)%.</li><li><b>Scale</b>— Customers with more than $100,000 in Revenue and positive Contribution Margins, belong in this category. In the Scale phase, Palantir&#39;s investment costs relative to Revenue drops as customers become self-sufficient. 2020-Scale cohort customers generated $1.3 billion in 2021, as compared to $1.1 billion in the prior year. Contribution Margin for this cohort was 63% for both 2020 and 2021.</li></ul><p>From this Acquire-Expand-Scale strategy, we can see why Palantir may incur short-term losses in exchange for robust, stable Revenue and Contribution Profit generation in the long term.</p><p><b>Growth</b></p><p>Q1 Revenue came in at $490 million, which is an increase of 31% YoY. As you can see, growth has decelerated over the last few quarters as Palantir grows over a larger base. Suffice to say, we are unlikely to see the 40%+ growth rates that investors are so accustomed to seeing. However, I believe Palantir has what it takes to at least produce 30%+ growth rates over the next few years as new and existing customers continue to adopt Palantir&#39;s breakthrough software.</p><p><img src=\"https://static.tigerbbs.com/7559544858a128c3016ab6450b35b368\" tg-width=\"640\" tg-height=\"430\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Investor Relations and Author&#39;s Analysis</p><p>As a supplemental metric, Billings — which is Revenue plus changes in Contract Liabilities — grew faster than overall Revenue. Contract Liabilities consist of Deferred Revenue and Customer Deposits that have not been recognized as Revenue. As such, the 35% growth in Billings means that there&#39;s higher Revenue Growth potential than meets the eye. This is supported by a 157% increase in the number of deals closed in Q1, which totaled 208 deals, compared to last year&#39;s 81 deals. Nonetheless, it is still a deceleration from prior quarters.</p><p><img src=\"https://static.tigerbbs.com/595648e598473dca2315f246c7651bf9\" tg-width=\"640\" tg-height=\"433\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Investor Relations and Author&#39;s Analysis</p><p>The slowdown in growth was primarily due to the lagging Government segment. Q1 Government Revenue was $242 million, up by only 16% YoY. According to the company&#39;s10-Q, virtually all of the Government Revenue growth came from existing customers as of Q4. The softness in Government Revenue is clearly a concern given that Palantir&#39;s bull thesis is closely tied to its relationship with government agencies. However, management did mention in the Q1 earnings call that Government Revenue is expected to reaccelerate in the next quarter:</p><blockquote>In the face of our customers&#39; challenges, we have and will continue to incur expenses prior to having contracts in the delivery of mission-critical capabilities. Following these investments, we expect acceleration of our U.S. government revenue into the second half of the year. In Q2 to date, we&#39;ve already seen the reacceleration of U.S. government revenue and expect<b>acceleration of the overall government segment to follow</b>in the next quarter or shortly thereafter — CFO Dave Glazer.</blockquote><p><img src=\"https://static.tigerbbs.com/e26c627c67284b3cc48993458f06aef7\" tg-width=\"640\" tg-height=\"428\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Investor Relations and Author&#39;s Analysis</p><p>On the other hand, Q1 Commercial Revenue growth remained robust, which saw a 54% YoY increase, to $205 million. This is the 5th straight quarter where Commercial Revenue accelerated. In the chart below, I&#39;ve included overall, US, and Non-US growth rates for reference. As you can see, US Commercial Revenue growth outpaced overall company growth, posting a whopping 136% YoY increase. Furthermore, management expects 2022 US Commercial Revenue to double YoY for the 3rd consecutive year, to $400 million+. This shows the increasing popularity and unmatched value proposition offered by Palantir Foundry.</p><p><img src=\"https://static.tigerbbs.com/a156be633835fada048f2b61c2a619b9\" tg-width=\"640\" tg-height=\"428\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Investor Relations and Author&#39;s Analysis</p><p>Taking a look at customer count, we can see why there are discrepancies between the two segments. As shown below, Palantir only added 4 new Government Customers, YoY. On the other hand, Palantir added 124 new Commercial Customers. It is also worth noting that despite US Commercial Customers making up 37% of total customer count, US Commercial Revenue only makes up 15% of Total Revenue. This shows high growth potential as Commercial Customers graduate from the Acquire, to Expand, to Scale phases.</p><p><img src=\"https://static.tigerbbs.com/0f97cf954faaae336cbf0de86d37cbab\" tg-width=\"640\" tg-height=\"181\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Investor Relations and Author&#39;s Analysis</p><p>On a side note, Revenue Per Top 20 Customer was $45 million, up 24% YoY. In addition, Net Dollar Retention rate was 124%, a drop from Q4&#39;s 131%. The softness in these metrics may yet be another indication that Palantir&#39;s growth has peaked.</p><p><img src=\"https://static.tigerbbs.com/525de0a8212ee91c6b520d7e32ed05c4\" tg-width=\"640\" tg-height=\"433\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Investor Relations and Author&#39;s Analysis</p><p>All in all, growth for Palantir as a whole remains robust, although we are seeing some significant slowdown in the Government department. However, Foundry and the Commercial segment seem to display a healthy pipeline, which should serve as the next growth engine for the company.</p><p><b>Profitability</b></p><p>Turning to the profitability of the company, Q1 Gross Profit was $352 million, which is a 79% Gross Margin. We can see that Gross Margins have been improving steadily over the last few quarters, demonstrating economies of scale within the business.</p><p><img src=\"https://static.tigerbbs.com/29f1c07a5d9b8546479cdfeae18d3f8c\" tg-width=\"640\" tg-height=\"430\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Investor Relations and Author&#39;s Analysis</p><p>Contribution Profit — which is Gross Profit minus Sales &amp; Marketing Expenses but excludes Share-based Compensation (SBC) — was $252 million in Q1. This is a measure of operational efficiency in terms of deploying its software to customers. Q1 Contribution Margin was 57%, and you can see that it has trailed down as of lately. As discussed in the Business Model section, Contribution Margins are lower for customers in the Acquire and Expand phases. Since Palantir is currently focusing on acquiring new customers, especially in the Commercial realm, we can expect downward pressure on Contribution Margins in the short-to-medium term.</p><p><img src=\"https://static.tigerbbs.com/95a2cec84256bad8f80210ee7295163f\" tg-width=\"640\" tg-height=\"430\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Investor Relations and Author&#39;s Analysis</p><p>Operating Profit for the quarter was $(39) million, a (9)% Margin. On an Adjusted basis, Operating Profit was $117 million, a 26% Margin. Adjusted Operating Margin has been trending downwards due to management ramping up investments to market its software, including expanding its direct sales team. Management mentioned that this trend should continue in the foreseeable future.</p><p><img src=\"https://static.tigerbbs.com/4a40b6efb695a06694e560bb5ad6b9a7\" tg-width=\"640\" tg-height=\"430\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Investor Relations and Author&#39;s Analysis</p><p>As you may have guessed, the negative GAAP Operating Margin is due to heavy SBC. Despite a stabilization in SBC after its direct listing back in 2020 Q3, SBC as a % of Revenue remains high at 33% as of Q1. However, I expect SBC to continue to drop moving forward, possibly to the 10% level over time.</p><p><img src=\"https://static.tigerbbs.com/e566cfd69fb5fe4a2a65d9f854983283\" tg-width=\"640\" tg-height=\"419\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Investor Relations and Author&#39;s Analysis</p><p>Q1 Net Income is much worse, which was $(101) million, a (23)% Margin. Adjusted Net Income, on the other hand, is positive at a 10% Margin.</p><p><img src=\"https://static.tigerbbs.com/a009de5afe198f34d587c05b0539f2e6\" tg-width=\"640\" tg-height=\"430\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Investor Relations and Author&#39;s Analysis</p><p>The poor Net Income performance relative to Operating Income is due to Palantir&#39;s realized and unrealized losses from Investments, namely the de-SPACed companies that Palantir partners with. Below are the companies that Palantir has invested in, including its corresponding amounts, as of Q4 2021. There are other SPAC investment commitments as of Q4 2021, but they may not have closed as some of these SPAC agreements did not fall through due to unfavorable market conditions. Nonetheless, some of these SPACs have lost a significant amount of their value relative to their NAV of $10 per share, which explains why Palantir&#39;s bottom line is significantly affected. Here are some examples:</p><ul><li>Lilium (LILM) — $2.69</li><li>Faraday Future (FFIE) — $2.50</li><li>Babylon Holdings (BBLN) — $1.16</li><li>Bird (BRDS) — $0.55</li><li>Wejo (WEJO) — $1.42</li></ul><p><img src=\"https://static.tigerbbs.com/a4d9a78021680283c989d7ccc40bc838\" tg-width=\"640\" tg-height=\"384\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir FY2021 10-K</p><p>Overall, Palantir has strong earnings potential given its high Gross Margin profile. Furthermore, Gross Margin has been improving, demonstrating economies of scale. However, the company has yet to show operating leverage as management continues to reinvest back into the business. High SBC expenses and losses from investments are also issues to consider.</p><p>Financial Health</p><p>Despite GAAP unprofitability, Palantir has a fortress balance sheet as the company is already cash-flow positive. As of Q1, Palantir had $2.5 billion in Cash and Short-term Investments with $0.3 billion of Total Debt, mostly in the form of Operating Lease Liabilities. As such, Palantir has a Net Cash of around $2.3 billion. Current Ratio is also at a healthy level of 4.0x.</p><p>The company also has access to $500 million from its revolving credit facility, if need be. These funds remain undrawn.</p><p><img src=\"https://static.tigerbbs.com/d41882008b5ed6978a6b0ec4d7c25b63\" tg-width=\"640\" tg-height=\"437\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Investor Relations and Author&#39;s Analysis</p><p>Palantir is already Free Cash Flow positive, generating $225 million of FCF in the last twelve months. FCF Margin dropped to just 5% in Q1, due to the timing of receipt of payments from customers, and timing of payments to vendors. The increase in Operating Expenses to scale the business is also a contributing factor to lower FCF Margins. However, there&#39;re reasons to believe that Palantir can achieve and sustain FCF Margins of 30%+ in the long run.</p><p><img src=\"https://static.tigerbbs.com/23c1ca2edf108ed2c6160197ceae15da\" tg-width=\"640\" tg-height=\"419\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Investor Relations and Author&#39;s Analysis</p><p>Given its strong balance sheet and cash-generative nature, I do not anticipate any equity raises or risks of bankruptcy. Now that Palantir is a self-funded business, Palantir needs to manage SBC spending to create the shareholder value that many investors sought for.</p><p><b>Outlook</b></p><p>In terms of outlook, management provided the following Q2 guidance:</p><ul><li><b>Revenue</b>— $470 million, implying a 25% YoY growth. This is quite a slowdown from Q1&#39;s 31% growth. However, I believe this is the most conservative scenario as management cites &#34;a wide range of potential upside&#34; driven by &#34;developing geopolitical events&#34;. US Government Revenue is also expected to accelerate in the next quarter.</li><li><b>Adjusted Operating Margin</b>— 20%. This is a drop from Q1&#39;s 27% as management ramps up investments &#34;to support our customers&#39; mission in advance of anticipated contract awards&#34;.</li></ul><p>Longer-term, management expects a 27% Adjusted Operating Margin for FY2022. In addition, management reiterated their long-term Revenue guidance of 30%+ growth for this year and the next 3 years through 2025.</p><p>Looking at Palantir&#39;s Total Remaining Deal Value can also give us a rough idea of Palantir&#39;s Revenue Potential. As shown below, Total Remaining Deal Value was $3.5 billion in Q1, up 25% YoY. This is a $0.3 billion decrease QoQ, showing some weakness in deal creation at the moment. Nevertheless, the deal pipeline remains robust and that should support Palantir&#39;s growth story moving forward.</p><p><img src=\"https://static.tigerbbs.com/d836dce4a14c27f69b8470dfc6a8a771\" tg-width=\"640\" tg-height=\"433\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Investor Relations and Author&#39;s Analysis</p><p>As a public company, Palantir has also beaten analyst estimates in each and every quarter. This could be an assurance that Palantir will continue to outperform expectations.</p><p><img src=\"https://static.tigerbbs.com/b5bd8aa79eefcd7832922438f2a8e55b\" tg-width=\"640\" tg-height=\"185\" referrerpolicy=\"no-referrer\"/></p><p>Source: Seeking Alpha</p><p><b>Competitive Moats</b></p><p>Based on my research and analysis, I identified 5 competitive advantages that Palantir possesses: technology, high barriers to entry, network effects, switching costs, and culture.</p><p><i><b>Technology</b></i></p><p>Despite being a publicly-traded company, Palantir is still considered to be one of those mysterious companies that many find difficult to understand. For me, I don&#39;t have a software engineering background, which makes the task of understanding Palantir&#39;s technological value proposition a real challenge. To make matters worst, Palantir&#39;s software has little coverage from industry analysts (Forrester, Gartner, Everest Group, etc.) and business software review sites (G2, etc.). The question is, how do we know if Palantir has a technological edge?</p><p>To answer that question, we can look at the types of deals and customers Palantir has established thus far. Below is a list of some of the deals that were signed in just the first half of 2022 alone. Mind you, these are not just some small-scale projects; these deals involve some of the largest and most important players in their respective industries. Such a strong deal pipeline speaks volumes about Palantir&#39;s technology moat.</p><ul><li>US Space Systems Command— $175 million contract value through March 2023.</li><li>Stellantis(STLA) — A leading automaker and mobility provider with $170 billion of Revenue in FY2021, will leverage Palantir&#39;s Foundry.</li><li>Trafigura— One of the largest multinational commodity trading companies that generated $231 billion of Revenue in FY2021, will collaborate with Palantir to develop a supply chain carbon emissions platform.</li><li>US Department of Health and Human Services— $90 million contract value for five years.</li><li>US Centers for Disease Control and Prevention— Customer since 2010. Extended partnership to modernize data management for disease monitoring and response.</li><li>Scuderia Ferrari— Customer since 2016. Extended partnership to utilize Foundry in Scuderia Ferrari’s Power Unit.</li><li>Hyundai Heavy Industries— The largest Korean auto manufacturer and Palantir will establish a big data platform for its business, with the potential of forming a joint venture to commercialize the platform.</li></ul><p><img src=\"https://static.tigerbbs.com/2b4ae5e82fb9bfea641536e37b499417\" tg-width=\"640\" tg-height=\"359\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir FY2022 Q1 Investor Presentation</p><p>Palantir has also been recognized as a Leader in the Dresner Wisdom of Crowds BI Market Study. Moreover, Palantir is part of FedRAMP, a government-wide program that empowers government agencies to adopt and use cloud services, particularly for information security and protection purposes. As of this writing, Palantir has 10 FedRAMP authorizations.</p><p><img src=\"https://static.tigerbbs.com/050365289a99536a27662fa1dd176c05\" tg-width=\"640\" tg-height=\"98\" referrerpolicy=\"no-referrer\"/></p><p>Source: FedRAMP Marketplace</p><p><i><b>High Barriers to Entry</b></i></p><p>Building a central operating system of that caliber, of that complexity — that is trusted by key industry players — is no easy feat. It requires years and decades of investment, development, and refinement, and Palantir has been doing so for two decades, which gives them a strong head start. Based on my research, I haven&#39;t come across any other company that comes close to what Palantir offers. These things put together creates high barriers to entry for emerging players to compete effectively with Palantir.</p><p>Palantir is also one of the most active names in the government sector, amassing a total of 93 Government Customers. Keep in mind that building such a large network requires substantial due diligence, relationship building, and lobbying, some things that not many companies are able to do or afford. As such, as it pertains to the government business, Palantir is setting high barriers to entry that practically eliminates most competition.</p><p><i><b>Network Effects</b></i></p><p>Despite its mysterious nature, Palantir has recently made itsFoundryandApollodocumentation available to the general public. This will help individuals, companies, investors, and the media to understand Palantir&#39;s software better, which should increase publicity. More importantly, this development should spur discussions in the developer community, thus increasing awareness, and ultimately, the adoption of Palantir&#39;s products.</p><p>As mentioned earlier, Palantir has 200+ data connectors and it works with major cloud platforms such as AWS, Snowflake, and Google Cloud (GOOG), which have network effects of their own. Just recently, Palantir and Google Cloud announced their partnership to make Foundry available on Google Cloud and Google Cloud Marketplace. This gives Palantir access to Google Clouds customers, including PayPal (PYPL), Twitter (TWTR), and Etsy (ETSY).</p><p><img src=\"https://static.tigerbbs.com/c9d286b4cc95de37ff84302d2d926e0f\" tg-width=\"640\" tg-height=\"238\" referrerpolicy=\"no-referrer\"/></p><p>Source: Google Cloud</p><p>Not only that, but Palantir also works with other cloud infrastructure service providers, including the top 3 providers listed in the chart below. This should amplify product distribution, leading to powerful network effects.</p><p><img src=\"https://static.tigerbbs.com/e02e55b6a000113eba8685b42c54c009\" tg-width=\"1200\" tg-height=\"1200\" referrerpolicy=\"no-referrer\"/></p><p>Source: Statista</p><p>On a side note, Palantir has also partnered with Carahsoft, which creates a channel program to increase Palantir&#39;s reach within the US Federal sector, solidifying its position in the government side of the business. One more thing, Palantir has also recently launched the Palantir Certification Program, encouraging users to learn how to use Foundry as well as highlight their technical expertise in Foundry.</p><p>Because of all the developments mentioned above, powerful network effects should ensue.</p><p><i><b>Switching Costs</b></i></p><p>Through its Acquire-Expand-Scale business strategy, Palantir inevitably creates high switching costs among its customers. As customers graduate to the Expand and Scale phases, they have already invested millions in the platform and experienced the full benefit of Palantir&#39;s central operating systems. As a reminder, Palantir offers a software infrastructure for data and operations, and infrastructures are very difficult to replace.</p><p>Let&#39;s take a look at an example. In 2016, through a Palantir-Airbus partnership, the aviation platform Skywise was formed. Skywise also serves as the medium to distribute Foundry across the aviation industry. Today, Skywise connects more than 9,000 aircraft across more than 100 airlines on the platform. If Airbus decides to abandon this program, the entire aviation value chain would be in a state of limbo, and that is something 100+ airlines would not want to deal with.</p><p><img src=\"https://static.tigerbbs.com/2562e7b0ef3dc91801f7bd972f33533a\" tg-width=\"1024\" tg-height=\"746\" referrerpolicy=\"no-referrer\"/></p><p>Source: Harvard Business Review</p><p>Put simply, once customers use Palantir&#39;s software, they are hooked into it for the long run as switching providers (if there&#39;s even a solution better than what Palantir provides) would mean a radical change in the customers&#39; data/operations infrastructure. Moreover, developing in-house operating systems from scratch is difficult, time-consuming, and costly. In other words, customers would rather avoid the high switching costs and opportunity costs associated with replacing Palantir&#39;s operating system.</p><p><i><b>Culture</b></i></p><p>Palantir has a high Glassdoor rating of 4.3/5.0 with 79% of reviewers citing a &#34;Positive Business Outlook&#34; for the company.</p><p><img src=\"https://static.tigerbbs.com/e02901a6d5e0d6d927216ba38413df09\" tg-width=\"640\" tg-height=\"584\" referrerpolicy=\"no-referrer\"/></p><p>Source: Glassdoor</p><p>Palantir is also founder-led, with the brilliant, eccentric, and visionary CEO Alex Karp at the helm of the company since day one. According to Comparably, Alex Karp is also a Top 5% based on 680 ratings. Alex Karp and co. are some of the most mission-critical people I get the pleasure of witnessing. And Palantirians are on board with management — the numbers speak for themselves.</p><p><img src=\"https://static.tigerbbs.com/f0d1db087f00e95b151d7f55a4be71e2\" tg-width=\"640\" tg-height=\"228\" referrerpolicy=\"no-referrer\"/></p><p>Source: Comparably</p><p><b>Valuation</b></p><p>The last few quarters have been one of the most difficult times for growth investors. Growth stocks have lost 50%-90%+ of their values as raging inflation, rising interest rates, and quantitative tightening punish all things growth stocks. Palantir has not been spared from this rout. Since November 2021, Palantir has lost 70% of its value.</p><p>In terms of EV/Sales, Palantir traded as high as 50x. Today, it trades at just 6.9x. In terms of EV/Gross Profit, Palantir traded as high as 100x. Today, it trades at just 11.3x.</p><p><img src=\"https://static.tigerbbs.com/02063016a5eb93f0b0775684657b9598\" tg-width=\"640\" tg-height=\"373\" referrerpolicy=\"no-referrer\"/></p><p>Source: Koyfin</p><p>After the selloff, Palantir now trades at a market cap of roughly $16 billion. To put further context to this number, investors can buy Palantir at a cheaper valuation than its 2015 funding round, which closed at a $20 billion valuation.</p><p>While the stock may look cheap today, further downside is possible given recession fears, raging inflation, rising interest rates, supply chain constraints, and a slowdown in growth. However, there seems to be a large margin of safety for long-term investors interested in partnering up with a high-quality, wide-moat business with a long growth runway ahead.</p><p><b>Catalysts</b></p><ul><li><b>GAAP Profitability</b>— Perhaps, one of the biggest milestones that Palantir can achieve is GAAP profitability. Much of the bear theses against Palantir is the insurmountable losses on a GAAP basis. Sure, Palantir is already profitable on a Non-GAAP and FCF basis, but in the long term, stock prices go up based on improvements in the bottom line of the income statement as well as the strong non-dilutive cash flow generation of the company. As such, flipping into GAAP profitability will most likely be a boost to Palantir&#39;s bull thesis.</li><li><b>Government Reacceleration</b>— As mentioned earlier, Palantir&#39;s growth story is largely predicated on its ability to retain and expand its ecosystem of government customers. As we have seen over the last few quarters, Government Revenue growth has decelerated to head-scratching levels. To recall, Q4 and Q1 Government Revenue growth was only 26% and 16%, respectively. Such a huge deceleration is probably the reason whyArk Invest dumped shares of Palantir. Despite the plateau in the Government segment, management does expect growth in the segment to reaccelerate in the next quarter. Returning to consistent 20%-30%+ growth in this department should welcome more bulls into the camp.</li><li><b>Buyback Program</b>— A big concern at the back of some investors&#39; minds is the fact that there have been no insider purchases ever since Palantir went public. Instead, we&#39;re only seeing selling after selling by insiders. That is certainly not a confidence booster for investors. However, given the recent selloff of the stock, management may be inclined to put their capital to good use. With Palantir&#39;s large cash in hand of $2.5 billion, management may start a share repurchase program, a well-needed silver lining during what seemed to be the gloomiest market environment we&#39;ve seen since the dot-com bubble and great financial crisis.</li></ul><p><b>Risks</b></p><ul><li><b>Revenue Concentration</b>— In FY2020 and FY2021, Palantir&#39;s top three customers accounted for 25% and 18% of total Revenue. While Revenue concentration is getting better, it is still a risk worth considering. On a side note, Palantir has a long sales cycle of six months to more than a year. Therefore, if Palantir loses major customers, it will take time for the company to recoup the losses as a result of customers leaving the platform.</li><li><b>SPAC Investments</b>— During the Q1 earnings call, management mentioned that Revenue contribution from SPAC investments is expected to be about $30 million per quarter. That is an annual run rate of $120 million. With that said, some of these de-SPACed companies are trading like penny stocks. Most of these companies are also unprofitable and worse, some of them are concept companies generating zero Revenue. As such, there&#39;s a strong likelihood that some of them will eventually go bankrupt. When this happens, Palantir&#39;s: 1) Revenue is negatively affected, 2) customer count decreases, and 3) earnings per share takes a hit as the company faces higher losses from investments.</li><li><b>Dilution</b>— This is perhaps the most controversial topic when it comes to investing in Palantir. While SBC as a % of Revenue is gradually improving, there&#39;s no denying that SBC spending has been high and continues to be high. This makes dilution a real problem, no matter how much growth the company can bring into the business. As shown below, Shares Outstanding more than tripled in the last two years.</li></ul><p><img src=\"https://static.tigerbbs.com/ff17e5bbcda87aa888bacd421bbaad77\" tg-width=\"640\" tg-height=\"46\" referrerpolicy=\"no-referrer\"/></p><p>Source: Seeking Alpha</p><p><b>Conclusion</b></p><p>Palantir is building the central operating system for the modern world, powered by its three platforms: Gotham, Foundry, and Apollo. The company is posting strong growth numbers, particularly fueled by its Commercial segment, which will be the primary driving force of growth in the years to come. On the other hand, the Government segment is showing some weakness, although management expects a reacceleration of growth in that department. Nevertheless, Palantir has technology, network effects, switching costs, high barriers to entry, and culture moats that should support its growth trajectory.</p><p>The past few months have not been easy for the stock, but the valuation reset is well needed and I think it has overshot to the downside. While we may see new lows due to a tough macro environment and the risks mentioned above, I believe there&#39;s a substantial margin of safety for long-term investors. I believe it is an opportune time to accumulate shares of this high-quality, wide-moat, black box company.</p><p>Thank you for reading my Palantir deep dive.</p></body></html>","collect":0,"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: The Black Box Company</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: The Black Box Company\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-06-22 13:47 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4519420-palantir-stock-selloff-overdone-robust-growth><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryGround Zero led to Zero to One — One being Palantir.Palantir is building the central operating system of the modern world.Growth remains robust, particularly in its Commercial segment, which ...</p>\n\n<a href=\"https://seekingalpha.com/article/4519420-palantir-stock-selloff-overdone-robust-growth\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4519420-palantir-stock-selloff-overdone-robust-growth","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1178592634","content_text":"SummaryGround Zero led to Zero to One — One being Palantir.Palantir is building the central operating system of the modern world.Growth remains robust, particularly in its Commercial segment, which will be the main growth engine for the company in the next decade.Dilution and GAAP unprofitability remain the biggest risks, especially so in this kind of market environment.Although we may see further downside, the selloff seems to be overdone. Palantir is a buy.Given the complexity and mysterious nature of the business, this Palantir (NYSE:PLTR) deep dive is probably the most difficult piece that I've written compared to other company deep dives that I've covered so far. I hope you find value in this article. Enjoy!Investment ThesisPalantir: the meme stock, the cult stock, the black box company. There's a lot of chatter about Palantir on the Internet and I've come to notice that there's a lot of love and hate for the company. Regardless of what others say, it is undeniable that Palantir is one of the most mission-critical companies today.Palantir is building the central operating system of the modern world, turning chaos into order. The ultimate bull thesis is that Palantir will replace legacy data and operations infrastructure, and Palantir's technology and management are more than capable of achieving this ambition.The selloff has also created a wonderful opportunity to accumulate shares of Palantir. Palantir is a Buy at these levels.Value PropositionOn 11th September 2001, 19 terrorists hijacked four commercial airlines during what seemed to be a normal working day for corporate America. What followed left the world at a standstill — things happened so slowly and so quickly that billions of people all over the globe were paralyzed by what they were seeing on their TV screens.Two planes struck both the North and South Towers of the World Trade Center, only to leave both skyscrapers crumbling down a few hours later. Another plane crashed on the west side of The Pentagon, the home of the US Department of Defense, which left question marks on the true strength of the US military. The last plane, fortunately, failed to demolish its intended building target as a passenger steered the plane to an open field.2,977 people lost their lives that day.Undoubtedly, 9/11 left a huge scar on America. For one, the World Trade Center crash site was dubbed Ground Zero. While America work its way to recover and regain its confidence after the attacks, five entrepreneurs — Peter Thiel, Joe Lonsdale, Stephen Cohen, Nathan Gettings, and Alex Karp — joined forces to form Palantir. The name of the company resembles palantíri or \"seeing stones\" from the movie The Lord of the Rings. These stones were balls of crystal that enable the users to communicate with one another and to see afar, much like what Palantir was designed to do — to identify, anticipate, and prevent future attacks.In essence, Ground Zero became the stepping stone to Zero to One—One being Palantir.This is a good segway to the first topic of this article: what does Palantir do as a business?In a nutshell, Palantir builds and deploys the foundational software of tomorrow that serves as the central operating system for its customers.Traditionally, government and commercial institutions need to invest millions and even billions of dollars to build their own digital infrastructures, enterprise data warehouses, and digital twin models, which are incredibly difficult, complex, and risky to execute. But for Palantir, the more difficult, complex, and risky it is, the bigger the opportunity and the more likely it is for Palantir to succeed.With that in mind, Palantir aims to help organizations to accelerate their digital transformation by integrating their data, decisions, and operations at scale. In other words, Palantir is a big data platform that helps companies make sense of their data to make data-driven decisions.This is achieved through Palantir's three core products: Gotham, Foundry, and Apollo.GothamPalantir Gotham is the operating system for government decision-making. It has been used by government agencies including the USIC, NSA, FBI, CDC, and Air force to combat terrorism and analyze various highly-sensitive, highly-confidential matters. Rumors have also surfaced about Palantir Gotham playing a certain role in helping the US Navy SEALs locate and assassinate former Al-Qaeda leader, Osama bin Laden.Source: Palantir WebsiteAside from government agencies, financial institutions have also adopted Gotham specifically for fraud detection and investigations.Gotham leverages artificial intelligence to identify patterns, threats, and hidden information deep within cluttered datasets. At the same time, machine learning embedded in its software provides continuous feedback loops which improve its models over time, allowing for smarter and faster decision-making.Given that Gotham caters specifically to government functions, not much information has been published regarding its technology, thus the black-box nature of the overall business. The company's S-1 filing does cover a few features but it is quite vague, to say the least. On one hand, we can look at Palantir's commercial product, Foundry, to at least get some level of understanding of how Gotham works.FoundryPalantir Foundry is the operating system for modern enterprises. Foundry has an open architecture and it integrates siloed data sources, analytics, and teams into a common foundation.Source: Palantir WebsiteThere are 5 layers to the Foundry stack, with each layer bridging the gap between data analytics and operational decision-making:Data Integration— Foundry utilizes 200+ data connectors to integrate different data sources, data lakes, and data warehouses across the enterprise, across different types of data points including structured, unstructured, streaming, IoT, transactional, geospatial data, and more.Model Integration— Customers can integrate business logic and models by using Foundry's open, interoperable architecture along with third-party models like Snowflake (SNOW), Microsoft Azure (MSFT), and AWS (AMZN). Foundry can extend these third-party platforms into operations with bi-directional data syncs to ensure that Foundry is always in sync with those existing data systems.Ontology— Foundry connects all the data and models, and brings them together into a common foundation that can be used by the entire organization. This is called the Ontology and it is the operational layer of the organization. The Ontology connects all the digital assets (data and models) to their real-world counterparts (such as equipment, products, and customer orders), forming a digital twin of the enterprise that users can interact with.Workflows— With the Ontology in place, users can develop custom workflows or use out-of-the-box applications. As more and more objects, actions, and workflows are added, the shared Ontology evolves over time with greater operational knowledge.Decision Orchestration— After integrating all the historically siloed data and models, Foundry enables users to take actionable and insightful decisions, whether through manual operations, simulations, or AI.While this may be an oversimplified explanation of the Foundry platform, it does give us a rough idea of how Foundry works. Perhaps, we can take a look at a case study to get a better grasp of what Foundry does.For example, here's how one of the largest utility companies in the US, PG&E, uses Foundry:Data Integration— PG&E is facing a massive climate threat as global warming increases the risks of wildfire breakouts. As such, the company needs to leverage the 8-10 billion data points it receives every single day to operate a safe and reliable energy system. Foundry helps to aggregate and make sense of these data.Model Integration— Palantir has an open architecture that allows PG&E to integrate Foundry and other third-party models into a single platform. This enables PG&E to utilize all the models and data across various platforms, which ultimately gives richer datasets to combat wildfires.Ontology— PG&E has launched the Enhanced Powerline Safety Settings to protect the grid and prevent wildfires. By integrating equipment health data, geospatial location, and network topology, Foundry is able to create a digital representation of PG&E's entire grid and its 25,000+ miles of wire. This way, PG&E can monitor the various components of the grid, and identify which of them need preventative maintenance.Source: Palantir YouTubeWorkflows— PG&E can leverage a common set of objects, actions, and relationships to develop custom workflows. Foundry enables PG&E to manage workflows across the lifecycle of the grid including scenario modeling, work planning, scheduling, executing, operating, and closing.Decision Orchestration— Based on the new data that Foundry presented, PG&E can now make more informed decisions to protect its grid. For instance, PG&E can automate the switching on and off of certain devices in the grid, based on specific weather conditions, thus decreasing the likelihood of wildfires.Again, this is just one of many use cases. Foundry is applicable to other industries including auto racing, anti-money laundering, cryptocurrency, financial services, emerging startups, supply chains, telecommunications, and more.Ultimately, Foundry aims to be the central operating system for modern commercial entities, replacing legacy data infrastructures and operating systems. Palantir has even gone as far as claiming that Foundry will be the next AWS in the coming decade.Source: Palantir FY2022 Q1 Investor PresentationApolloPalantir Apollo is the operating system for continuous delivery. Apollo serves as the software to manage, deploy, and maintain Gotham and Foundry worldwide, across virtually any environment. Before its launch, deploying Palantir's software involves manual installations, upgrades, and configurations, which is especially true for the non-tech savvy governmental organizations. Back in 2008, Palantir Gotham ran on-premises, which is time-consuming and not scalable, thus leading to few software upgrades or updates.Fast forward to 2016, Palantir launched the cloud-based Foundry, which gained positive reception from its commercial customers. As such, Palantir also began offering Gotham through the cloud. This allowed for the continuous delivery of Palantir's user-facing products, and it is made possible through Apollo.Source: Palantir BlogApollo is an autonomous software deployment platform. Developers merge code once and can deploy software across all environments from a single pane of glass. With Apollo, Palantir's software — whether it be initial setup, new features, or security updates — can be rapidly and securely delivered through on-premise data centers, classified networks, embedded edge devices, the cloud, and more. More importantly, Apollo enables Palantir to bring its SaaS offering to environments where no SaaS has gone before.Source: Palantir Apollo DocumentationWith the ever-growing popularity of SaaS offerings, the launch of Apollo enhances Palantir's distribution prowess and market adoption. Not only that, but it also accelerates customers' time to value as well as caters to a broader range of customers given the vast deployment options available.With all that said, despite its somewhat secretive nature as a public company, it seems that Palantir's three platforms display top-level interoperability and security, setting high standards to be the central operating system of the modern world. Its 2-decade tenure, solid government exposure, and widening customer base are also testaments to its unique technology offering.Market OpportunityAccording to Palantir's S-1 Filing, its total addressable market (TAM) is about $113 billion, comprising $63 billion for the government segment and $56 billion for the commercial segment. Breaking it down further by geography, Palantir estimated that the TAM for the US government sector is $26 billion while the international government sector is estimated to be $37 billion in value.These estimates were calculated back in 2020, and we all know that there have been several important developments over the last couple of years that could mean TAM expansion for Palantir (pandemic, Russia-Ukraine war, cryptocurrency acceptance, SPAC boom, supply chain constraints, etc.). Furthermore, Palantir has rolled out additional features to supplement its core software products, which should also expand its use cases and TAM.Source: Palantir FY2022 Q1 Investor PresentationIt is important to note that Palantir competes first and for most, with internal software developers where companies usually attempt to build in-house data platforms from scratch. In the fast-changing modern world, companies want speed and certainty — building their own operating systems is too high of a risk to take. That's where the opportunity is for Palantir.Industry analysts have also sized the Big Data Analytics market to reach $200 to $600 billion+ over the next few years. It is also worth mentioning that the US government total expenditures have been on a long-term upward trajectory, which means higher incremental budgets for defense and intelligence initiatives that can flow to Palantir Gotham.Source: FRED Government Total ExpendituresBusiness ModelThe company generates revenue from the sale of cloud-based subscriptions and on-premises subscriptions — both of these include ongoing operations and maintenance services. Revenue is generally recognized over the contract term on a ratable basis.In addition, Palantir also generates revenue from professional services such as on-demand support, platform configurations, training, and data modeling support.According to the S-1, Palantir's \"pricing is based primarily on the value that we anticipate our software platforms will produce for our customers.\" As such, pricing and customer billings vary from contract to contract.Palantir also incorporates usage-based pricing for Foundry, thus allowing smaller commercial customers to use Foundry without breaking the bank. As these customers scale, Palantir stands to benefit from increased usage of its platform.Source: Palantir FY2022 Q1 Investor PresentationCentral to its business model is its Acquire-Expand-Scale strategy:Acquire— Customers with less than $100,000 in Revenue belong in this category. The Acquire phase involves short-term pilot projects with little to no cost to customers, in an attempt to get them to experience Palantir's value proposition. Palantir operates at a loss during this phase. However, it is expected to generate significant Revenue over time. For example, the same customers in the 2020-Acquire cohort generated $36.8 million in 2021, as opposed to just $0.3 million in the previous year.Expand— Customers with more than $100,000 in Revenue but negative Contribution Margins, fall into this category. The Expand phase is where customers begin to realize Palantir's value proposition, and therefore, begin ramping up investments in the software. Similar to the Acquire phase, Palantir operates at a loss during the Expand phase. However, Revenue begins to scale at this stage. For instance, 2020-Expand cohort customers generated $83.3 million in 2021, as opposed to just $20.3 million in 2020. On the flip side, Contribution Margin for this cohort was (150)%.Scale— Customers with more than $100,000 in Revenue and positive Contribution Margins, belong in this category. In the Scale phase, Palantir's investment costs relative to Revenue drops as customers become self-sufficient. 2020-Scale cohort customers generated $1.3 billion in 2021, as compared to $1.1 billion in the prior year. Contribution Margin for this cohort was 63% for both 2020 and 2021.From this Acquire-Expand-Scale strategy, we can see why Palantir may incur short-term losses in exchange for robust, stable Revenue and Contribution Profit generation in the long term.GrowthQ1 Revenue came in at $490 million, which is an increase of 31% YoY. As you can see, growth has decelerated over the last few quarters as Palantir grows over a larger base. Suffice to say, we are unlikely to see the 40%+ growth rates that investors are so accustomed to seeing. However, I believe Palantir has what it takes to at least produce 30%+ growth rates over the next few years as new and existing customers continue to adopt Palantir's breakthrough software.Source: Palantir Investor Relations and Author's AnalysisAs a supplemental metric, Billings — which is Revenue plus changes in Contract Liabilities — grew faster than overall Revenue. Contract Liabilities consist of Deferred Revenue and Customer Deposits that have not been recognized as Revenue. As such, the 35% growth in Billings means that there's higher Revenue Growth potential than meets the eye. This is supported by a 157% increase in the number of deals closed in Q1, which totaled 208 deals, compared to last year's 81 deals. Nonetheless, it is still a deceleration from prior quarters.Source: Palantir Investor Relations and Author's AnalysisThe slowdown in growth was primarily due to the lagging Government segment. Q1 Government Revenue was $242 million, up by only 16% YoY. According to the company's10-Q, virtually all of the Government Revenue growth came from existing customers as of Q4. The softness in Government Revenue is clearly a concern given that Palantir's bull thesis is closely tied to its relationship with government agencies. However, management did mention in the Q1 earnings call that Government Revenue is expected to reaccelerate in the next quarter:In the face of our customers' challenges, we have and will continue to incur expenses prior to having contracts in the delivery of mission-critical capabilities. Following these investments, we expect acceleration of our U.S. government revenue into the second half of the year. In Q2 to date, we've already seen the reacceleration of U.S. government revenue and expectacceleration of the overall government segment to followin the next quarter or shortly thereafter — CFO Dave Glazer.Source: Palantir Investor Relations and Author's AnalysisOn the other hand, Q1 Commercial Revenue growth remained robust, which saw a 54% YoY increase, to $205 million. This is the 5th straight quarter where Commercial Revenue accelerated. In the chart below, I've included overall, US, and Non-US growth rates for reference. As you can see, US Commercial Revenue growth outpaced overall company growth, posting a whopping 136% YoY increase. Furthermore, management expects 2022 US Commercial Revenue to double YoY for the 3rd consecutive year, to $400 million+. This shows the increasing popularity and unmatched value proposition offered by Palantir Foundry.Source: Palantir Investor Relations and Author's AnalysisTaking a look at customer count, we can see why there are discrepancies between the two segments. As shown below, Palantir only added 4 new Government Customers, YoY. On the other hand, Palantir added 124 new Commercial Customers. It is also worth noting that despite US Commercial Customers making up 37% of total customer count, US Commercial Revenue only makes up 15% of Total Revenue. This shows high growth potential as Commercial Customers graduate from the Acquire, to Expand, to Scale phases.Source: Palantir Investor Relations and Author's AnalysisOn a side note, Revenue Per Top 20 Customer was $45 million, up 24% YoY. In addition, Net Dollar Retention rate was 124%, a drop from Q4's 131%. The softness in these metrics may yet be another indication that Palantir's growth has peaked.Source: Palantir Investor Relations and Author's AnalysisAll in all, growth for Palantir as a whole remains robust, although we are seeing some significant slowdown in the Government department. However, Foundry and the Commercial segment seem to display a healthy pipeline, which should serve as the next growth engine for the company.ProfitabilityTurning to the profitability of the company, Q1 Gross Profit was $352 million, which is a 79% Gross Margin. We can see that Gross Margins have been improving steadily over the last few quarters, demonstrating economies of scale within the business.Source: Palantir Investor Relations and Author's AnalysisContribution Profit — which is Gross Profit minus Sales & Marketing Expenses but excludes Share-based Compensation (SBC) — was $252 million in Q1. This is a measure of operational efficiency in terms of deploying its software to customers. Q1 Contribution Margin was 57%, and you can see that it has trailed down as of lately. As discussed in the Business Model section, Contribution Margins are lower for customers in the Acquire and Expand phases. Since Palantir is currently focusing on acquiring new customers, especially in the Commercial realm, we can expect downward pressure on Contribution Margins in the short-to-medium term.Source: Palantir Investor Relations and Author's AnalysisOperating Profit for the quarter was $(39) million, a (9)% Margin. On an Adjusted basis, Operating Profit was $117 million, a 26% Margin. Adjusted Operating Margin has been trending downwards due to management ramping up investments to market its software, including expanding its direct sales team. Management mentioned that this trend should continue in the foreseeable future.Source: Palantir Investor Relations and Author's AnalysisAs you may have guessed, the negative GAAP Operating Margin is due to heavy SBC. Despite a stabilization in SBC after its direct listing back in 2020 Q3, SBC as a % of Revenue remains high at 33% as of Q1. However, I expect SBC to continue to drop moving forward, possibly to the 10% level over time.Source: Palantir Investor Relations and Author's AnalysisQ1 Net Income is much worse, which was $(101) million, a (23)% Margin. Adjusted Net Income, on the other hand, is positive at a 10% Margin.Source: Palantir Investor Relations and Author's AnalysisThe poor Net Income performance relative to Operating Income is due to Palantir's realized and unrealized losses from Investments, namely the de-SPACed companies that Palantir partners with. Below are the companies that Palantir has invested in, including its corresponding amounts, as of Q4 2021. There are other SPAC investment commitments as of Q4 2021, but they may not have closed as some of these SPAC agreements did not fall through due to unfavorable market conditions. Nonetheless, some of these SPACs have lost a significant amount of their value relative to their NAV of $10 per share, which explains why Palantir's bottom line is significantly affected. Here are some examples:Lilium (LILM) — $2.69Faraday Future (FFIE) — $2.50Babylon Holdings (BBLN) — $1.16Bird (BRDS) — $0.55Wejo (WEJO) — $1.42Source: Palantir FY2021 10-KOverall, Palantir has strong earnings potential given its high Gross Margin profile. Furthermore, Gross Margin has been improving, demonstrating economies of scale. However, the company has yet to show operating leverage as management continues to reinvest back into the business. High SBC expenses and losses from investments are also issues to consider.Financial HealthDespite GAAP unprofitability, Palantir has a fortress balance sheet as the company is already cash-flow positive. As of Q1, Palantir had $2.5 billion in Cash and Short-term Investments with $0.3 billion of Total Debt, mostly in the form of Operating Lease Liabilities. As such, Palantir has a Net Cash of around $2.3 billion. Current Ratio is also at a healthy level of 4.0x.The company also has access to $500 million from its revolving credit facility, if need be. These funds remain undrawn.Source: Palantir Investor Relations and Author's AnalysisPalantir is already Free Cash Flow positive, generating $225 million of FCF in the last twelve months. FCF Margin dropped to just 5% in Q1, due to the timing of receipt of payments from customers, and timing of payments to vendors. The increase in Operating Expenses to scale the business is also a contributing factor to lower FCF Margins. However, there're reasons to believe that Palantir can achieve and sustain FCF Margins of 30%+ in the long run.Source: Palantir Investor Relations and Author's AnalysisGiven its strong balance sheet and cash-generative nature, I do not anticipate any equity raises or risks of bankruptcy. Now that Palantir is a self-funded business, Palantir needs to manage SBC spending to create the shareholder value that many investors sought for.OutlookIn terms of outlook, management provided the following Q2 guidance:Revenue— $470 million, implying a 25% YoY growth. This is quite a slowdown from Q1's 31% growth. However, I believe this is the most conservative scenario as management cites \"a wide range of potential upside\" driven by \"developing geopolitical events\". US Government Revenue is also expected to accelerate in the next quarter.Adjusted Operating Margin— 20%. This is a drop from Q1's 27% as management ramps up investments \"to support our customers' mission in advance of anticipated contract awards\".Longer-term, management expects a 27% Adjusted Operating Margin for FY2022. In addition, management reiterated their long-term Revenue guidance of 30%+ growth for this year and the next 3 years through 2025.Looking at Palantir's Total Remaining Deal Value can also give us a rough idea of Palantir's Revenue Potential. As shown below, Total Remaining Deal Value was $3.5 billion in Q1, up 25% YoY. This is a $0.3 billion decrease QoQ, showing some weakness in deal creation at the moment. Nevertheless, the deal pipeline remains robust and that should support Palantir's growth story moving forward.Source: Palantir Investor Relations and Author's AnalysisAs a public company, Palantir has also beaten analyst estimates in each and every quarter. This could be an assurance that Palantir will continue to outperform expectations.Source: Seeking AlphaCompetitive MoatsBased on my research and analysis, I identified 5 competitive advantages that Palantir possesses: technology, high barriers to entry, network effects, switching costs, and culture.TechnologyDespite being a publicly-traded company, Palantir is still considered to be one of those mysterious companies that many find difficult to understand. For me, I don't have a software engineering background, which makes the task of understanding Palantir's technological value proposition a real challenge. To make matters worst, Palantir's software has little coverage from industry analysts (Forrester, Gartner, Everest Group, etc.) and business software review sites (G2, etc.). The question is, how do we know if Palantir has a technological edge?To answer that question, we can look at the types of deals and customers Palantir has established thus far. Below is a list of some of the deals that were signed in just the first half of 2022 alone. Mind you, these are not just some small-scale projects; these deals involve some of the largest and most important players in their respective industries. Such a strong deal pipeline speaks volumes about Palantir's technology moat.US Space Systems Command— $175 million contract value through March 2023.Stellantis(STLA) — A leading automaker and mobility provider with $170 billion of Revenue in FY2021, will leverage Palantir's Foundry.Trafigura— One of the largest multinational commodity trading companies that generated $231 billion of Revenue in FY2021, will collaborate with Palantir to develop a supply chain carbon emissions platform.US Department of Health and Human Services— $90 million contract value for five years.US Centers for Disease Control and Prevention— Customer since 2010. Extended partnership to modernize data management for disease monitoring and response.Scuderia Ferrari— Customer since 2016. Extended partnership to utilize Foundry in Scuderia Ferrari’s Power Unit.Hyundai Heavy Industries— The largest Korean auto manufacturer and Palantir will establish a big data platform for its business, with the potential of forming a joint venture to commercialize the platform.Source: Palantir FY2022 Q1 Investor PresentationPalantir has also been recognized as a Leader in the Dresner Wisdom of Crowds BI Market Study. Moreover, Palantir is part of FedRAMP, a government-wide program that empowers government agencies to adopt and use cloud services, particularly for information security and protection purposes. As of this writing, Palantir has 10 FedRAMP authorizations.Source: FedRAMP MarketplaceHigh Barriers to EntryBuilding a central operating system of that caliber, of that complexity — that is trusted by key industry players — is no easy feat. It requires years and decades of investment, development, and refinement, and Palantir has been doing so for two decades, which gives them a strong head start. Based on my research, I haven't come across any other company that comes close to what Palantir offers. These things put together creates high barriers to entry for emerging players to compete effectively with Palantir.Palantir is also one of the most active names in the government sector, amassing a total of 93 Government Customers. Keep in mind that building such a large network requires substantial due diligence, relationship building, and lobbying, some things that not many companies are able to do or afford. As such, as it pertains to the government business, Palantir is setting high barriers to entry that practically eliminates most competition.Network EffectsDespite its mysterious nature, Palantir has recently made itsFoundryandApollodocumentation available to the general public. This will help individuals, companies, investors, and the media to understand Palantir's software better, which should increase publicity. More importantly, this development should spur discussions in the developer community, thus increasing awareness, and ultimately, the adoption of Palantir's products.As mentioned earlier, Palantir has 200+ data connectors and it works with major cloud platforms such as AWS, Snowflake, and Google Cloud (GOOG), which have network effects of their own. Just recently, Palantir and Google Cloud announced their partnership to make Foundry available on Google Cloud and Google Cloud Marketplace. This gives Palantir access to Google Clouds customers, including PayPal (PYPL), Twitter (TWTR), and Etsy (ETSY).Source: Google CloudNot only that, but Palantir also works with other cloud infrastructure service providers, including the top 3 providers listed in the chart below. This should amplify product distribution, leading to powerful network effects.Source: StatistaOn a side note, Palantir has also partnered with Carahsoft, which creates a channel program to increase Palantir's reach within the US Federal sector, solidifying its position in the government side of the business. One more thing, Palantir has also recently launched the Palantir Certification Program, encouraging users to learn how to use Foundry as well as highlight their technical expertise in Foundry.Because of all the developments mentioned above, powerful network effects should ensue.Switching CostsThrough its Acquire-Expand-Scale business strategy, Palantir inevitably creates high switching costs among its customers. As customers graduate to the Expand and Scale phases, they have already invested millions in the platform and experienced the full benefit of Palantir's central operating systems. As a reminder, Palantir offers a software infrastructure for data and operations, and infrastructures are very difficult to replace.Let's take a look at an example. In 2016, through a Palantir-Airbus partnership, the aviation platform Skywise was formed. Skywise also serves as the medium to distribute Foundry across the aviation industry. Today, Skywise connects more than 9,000 aircraft across more than 100 airlines on the platform. If Airbus decides to abandon this program, the entire aviation value chain would be in a state of limbo, and that is something 100+ airlines would not want to deal with.Source: Harvard Business ReviewPut simply, once customers use Palantir's software, they are hooked into it for the long run as switching providers (if there's even a solution better than what Palantir provides) would mean a radical change in the customers' data/operations infrastructure. Moreover, developing in-house operating systems from scratch is difficult, time-consuming, and costly. In other words, customers would rather avoid the high switching costs and opportunity costs associated with replacing Palantir's operating system.CulturePalantir has a high Glassdoor rating of 4.3/5.0 with 79% of reviewers citing a \"Positive Business Outlook\" for the company.Source: GlassdoorPalantir is also founder-led, with the brilliant, eccentric, and visionary CEO Alex Karp at the helm of the company since day one. According to Comparably, Alex Karp is also a Top 5% based on 680 ratings. Alex Karp and co. are some of the most mission-critical people I get the pleasure of witnessing. And Palantirians are on board with management — the numbers speak for themselves.Source: ComparablyValuationThe last few quarters have been one of the most difficult times for growth investors. Growth stocks have lost 50%-90%+ of their values as raging inflation, rising interest rates, and quantitative tightening punish all things growth stocks. Palantir has not been spared from this rout. Since November 2021, Palantir has lost 70% of its value.In terms of EV/Sales, Palantir traded as high as 50x. Today, it trades at just 6.9x. In terms of EV/Gross Profit, Palantir traded as high as 100x. Today, it trades at just 11.3x.Source: KoyfinAfter the selloff, Palantir now trades at a market cap of roughly $16 billion. To put further context to this number, investors can buy Palantir at a cheaper valuation than its 2015 funding round, which closed at a $20 billion valuation.While the stock may look cheap today, further downside is possible given recession fears, raging inflation, rising interest rates, supply chain constraints, and a slowdown in growth. However, there seems to be a large margin of safety for long-term investors interested in partnering up with a high-quality, wide-moat business with a long growth runway ahead.CatalystsGAAP Profitability— Perhaps, one of the biggest milestones that Palantir can achieve is GAAP profitability. Much of the bear theses against Palantir is the insurmountable losses on a GAAP basis. Sure, Palantir is already profitable on a Non-GAAP and FCF basis, but in the long term, stock prices go up based on improvements in the bottom line of the income statement as well as the strong non-dilutive cash flow generation of the company. As such, flipping into GAAP profitability will most likely be a boost to Palantir's bull thesis.Government Reacceleration— As mentioned earlier, Palantir's growth story is largely predicated on its ability to retain and expand its ecosystem of government customers. As we have seen over the last few quarters, Government Revenue growth has decelerated to head-scratching levels. To recall, Q4 and Q1 Government Revenue growth was only 26% and 16%, respectively. Such a huge deceleration is probably the reason whyArk Invest dumped shares of Palantir. Despite the plateau in the Government segment, management does expect growth in the segment to reaccelerate in the next quarter. Returning to consistent 20%-30%+ growth in this department should welcome more bulls into the camp.Buyback Program— A big concern at the back of some investors' minds is the fact that there have been no insider purchases ever since Palantir went public. Instead, we're only seeing selling after selling by insiders. That is certainly not a confidence booster for investors. However, given the recent selloff of the stock, management may be inclined to put their capital to good use. With Palantir's large cash in hand of $2.5 billion, management may start a share repurchase program, a well-needed silver lining during what seemed to be the gloomiest market environment we've seen since the dot-com bubble and great financial crisis.RisksRevenue Concentration— In FY2020 and FY2021, Palantir's top three customers accounted for 25% and 18% of total Revenue. While Revenue concentration is getting better, it is still a risk worth considering. On a side note, Palantir has a long sales cycle of six months to more than a year. Therefore, if Palantir loses major customers, it will take time for the company to recoup the losses as a result of customers leaving the platform.SPAC Investments— During the Q1 earnings call, management mentioned that Revenue contribution from SPAC investments is expected to be about $30 million per quarter. That is an annual run rate of $120 million. With that said, some of these de-SPACed companies are trading like penny stocks. Most of these companies are also unprofitable and worse, some of them are concept companies generating zero Revenue. As such, there's a strong likelihood that some of them will eventually go bankrupt. When this happens, Palantir's: 1) Revenue is negatively affected, 2) customer count decreases, and 3) earnings per share takes a hit as the company faces higher losses from investments.Dilution— This is perhaps the most controversial topic when it comes to investing in Palantir. While SBC as a % of Revenue is gradually improving, there's no denying that SBC spending has been high and continues to be high. This makes dilution a real problem, no matter how much growth the company can bring into the business. As shown below, Shares Outstanding more than tripled in the last two years.Source: Seeking AlphaConclusionPalantir is building the central operating system for the modern world, powered by its three platforms: Gotham, Foundry, and Apollo. The company is posting strong growth numbers, particularly fueled by its Commercial segment, which will be the primary driving force of growth in the years to come. On the other hand, the Government segment is showing some weakness, although management expects a reacceleration of growth in that department. Nevertheless, Palantir has technology, network effects, switching costs, high barriers to entry, and culture moats that should support its growth trajectory.The past few months have not been easy for the stock, but the valuation reset is well needed and I think it has overshot to the downside. While we may see new lows due to a tough macro environment and the risks mentioned above, I believe there's a substantial margin of safety for long-term investors. I believe it is an opportune time to accumulate shares of this high-quality, wide-moat, black box company.Thank you for reading my Palantir deep dive.","news_type":1},"isVote":1,"tweetType":1,"viewCount":249,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9091194048,"gmtCreate":1643795388412,"gmtModify":1676533857356,"author":{"id":"3574951241870050","authorId":"3574951241870050","name":"Wnnn","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"Why though","listText":"Why though","text":"Why though","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9091194048","repostId":"1111473451","repostType":2,"repost":{"id":"1111473451","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1643794763,"share":"https://www.laohu8.com/m/news/1111473451?lang=&edition=full","pubTime":"2022-02-02 17:39","market":"us","language":"en","title":"Block shares fell 8% in premarket trading","url":"https://stock-news.laohu8.com/highlight/detail?id=1111473451","media":"Tiger Newspress","summary":"Block shares fell 8% in premarket trading.Square parent $Block Inc. will let its merchant customers ","content":"<html><head></head><body><p>Block shares fell 8% in premarket trading.<img src=\"https://static.tigerbbs.com/15601e17c65b4f593355bcacff8a93e8\" tg-width=\"724\" tg-height=\"583\" width=\"100%\" height=\"auto\"/>Square parent $Block Inc. will let its merchant customers offer Afterpay installment options to customers in its first step toward integrating the newly-closed acquisition.</p><p>The company also announced late Monday that its deal for Australian BNPL operator Afterpay has officially closed. Block announced its $29 billion all-stock deal for Afterpayback in August.</p></body></html>","collect":0,"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>Block shares fell 8% in premarket trading</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\">\nBlock shares fell 8% in premarket trading\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2022-02-02 17:39</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Block shares fell 8% in premarket trading.<img src=\"https://static.tigerbbs.com/15601e17c65b4f593355bcacff8a93e8\" tg-width=\"724\" tg-height=\"583\" width=\"100%\" height=\"auto\"/>Square parent $Block Inc. will let its merchant customers offer Afterpay installment options to customers in its first step toward integrating the newly-closed acquisition.</p><p>The company also announced late Monday that its deal for Australian BNPL operator Afterpay has officially closed. Block announced its $29 billion all-stock deal for Afterpayback in August.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SQ":"Block"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1111473451","content_text":"Block shares fell 8% in premarket trading.Square parent $Block Inc. will let its merchant customers offer Afterpay installment options to customers in its first step toward integrating the newly-closed acquisition.The company also announced late Monday that its deal for Australian BNPL operator Afterpay has officially closed. Block announced its $29 billion all-stock deal for Afterpayback in August.","news_type":1},"isVote":1,"tweetType":1,"viewCount":439,"authorTweetTopStatus":1,"verified":2,"comments":[{"author":{"id":"4088082610944870","authorId":"4088082610944870","name":"SmallYang","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":4,"crmLevelSwitch":0},"content":"I don't understand either. shouldn't the shareholders price go up?","text":"I don't understand either. shouldn't the shareholders price go up?","html":"I don't understand either. shouldn't the shareholders price go up?"}],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9005582782,"gmtCreate":1642351171660,"gmtModify":1676533703215,"author":{"id":"3574951241870050","authorId":"3574951241870050","name":"Wnnn","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"Hopefully this year earnings can&nbsp;show the true potential of PLTR&nbsp;","listText":"Hopefully this year earnings can&nbsp;show the true potential of PLTR&nbsp;","text":"Hopefully this year earnings can show the true potential of PLTR","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9005582782","repostId":"1169852230","repostType":4,"repost":{"id":"1169852230","pubTimestamp":1642295348,"share":"https://www.laohu8.com/m/news/1169852230?lang=&edition=full","pubTime":"2022-01-16 09:09","market":"us","language":"en","title":"Palantir: The Myth Of Overvaluation","url":"https://stock-news.laohu8.com/highlight/detail?id=1169852230","media":"Seeking Alpha","summary":"SummaryPalantir went through a large drop in pricing in Q4’21 and in the early days of 2022.Shares o","content":"<html><head></head><body><p>Summary</p><ul><li>Palantir went through a large drop in pricing in Q4’21 and in the early days of 2022.</li><li>Shares of Palantir are not overvalued, they trade at 16X FY 2025 projected free cash flow.</li><li>Commercial revenue acceleration, new product launches, expansion of the free cash flow margin and potential SPAC deal pay-offs support Palantir’s valuation.</li></ul><p>The new year is just fourteen days old and shares of Palantir (PLTR) already fell 12%, continuing a sell-off that started back in November 2021. I don&#39;t see any good reason or justification for the sell-off as Palantir will continue to grow its top line rapidly and new service offerings are set to fuel the firm&#39;s commercial growth. That Palantir is overvalued, is a myth!</p><p><b>Commercial revenue growth could accelerate as new products launch</b></p><p>There are few industries that have as fantastic growth prospects as the big data and analytics industry. Companies are accumulating more and more data from customers and their operations, requiring software solutions and artificial intelligence support to monetize this data most efficiently.</p><p>What am I most excited about, as a Palantir investor, is Palantir&#39;s opening of a new growth frontier in the big data world. Palantir will start to roll out its &#34;Foundry for Crypto&#34; in FY 2022 which offers banks, FinTechs and other companies involved in the crypto economy a way to validate customer information and to implement anti-money laundering tools. Since the crypto universe is still highly unregulated, Palantir&#39;s Foundry for Crypto could make a big difference in legitimizing this industry.</p><p>Blockchain technology and cryptocurrencies are here to stay and Palantir has a huge opportunity at its hands to develop a multi-million-dollar revenue business within a very short period of time. Key customers for Palantir&#39;s Foundry for Crypto are likely going to be financial institutions and crypto trading marketplaces like Coinbase (COIN) which have massive customer bases. Adoption of Palantir&#39;s Foundry for Crypto platform by leading market institutions could materially accelerate Palantir&#39;s commercial revenue growth.</p><p>Because of the opening of a new business segment, I see strong prospects for revenue acceleration for Palantir in the foreseeable future. Palantir&#39;s commercial revenue growth accelerated throughout FY 2021 due to strong customer acquisition and growing adoption of the firm&#39;s products and services. Palantir&#39;s commercial revenue growth accelerated from 19% in Q1&#39;21 to 28% in Q2&#39;21, and then to 37% in Q3&#39;21. Palantir&#39;s revenue acceleration in the commercial business was the reason why Palantir raised its free cash flow and revenue guidance for FY 2021. Because the commercial segment is growing increasingly fast, Palantir already raised its free cash flow outlook twice in FY 2021. The firm now expects free cash flow of $400M+ for FY 2021, after raising the guidance by 33% in Q3&#39;21.</p><p><b>Palantir is not overvalued based on expected free cash flow ramp</b></p><p>Palantir&#39;s business reached a critical point in FY 2021 and the proof is in the company&#39;s growing free cash flow margins. As the firm scales its services and leads more customers through its onboarding process, Palantir should see a significant improvement of its free cash flow margin going forward. Palantir&#39;s Q3&#39;21 free cash flow was $119M which calculates to a free cash flow margin of 30%. I believe Palantir could grow its free cash flow margin to 40% by 2025, meaning the firm is set to become a seriously profitable business within the next four years.<img src=\"https://static.tigerbbs.com/5e54fb7120d0b51650400b5081ae56a9\" tg-width=\"1280\" tg-height=\"413\" width=\"100%\" height=\"auto\"/>I also expect Palantir to grow revenues faster than the 30% that have been mentioned as a long-term growth target. The reason for this is that Palantir is signing on more customers and those customers spend more money on the firm&#39;s products and services over time, meaning monetization is improving. Assuming that Palantir can grow revenues at an annual 35% rate over the next four years, Palantir is looking at $5.0B in revenues and $2.0B in free cash flow by FY 2025. The calculation below is built on the assumption that Palantir&#39;s free cash flow margin will grow from 30% in FY 2021 to 40% by FY 2025. Over the next four years, Palantir should be able to increase its annual free cash flow by at least a factor of 4 X.<img src=\"https://static.tigerbbs.com/48214b624573bdb844c741431b6fac4e\" tg-width=\"599\" tg-height=\"163\" width=\"100%\" height=\"auto\"/>And investors should not forget about this potentially massive income stream…</p><p><b>The &#34;forgotten&#34; SPAC business</b></p><p>Palantir has come up with a clever revenue growth strategy that combines upside in SPAC investments with long-term software servicing contracts. Palantir is committing investing capital to startups that look to finance growth and, in return, the company gets equity and a signed contract for the provision of its software platforms. I rarely see this business discussed, but it presents considerable valuation upside for Palantir. In Q3&#39;21, the firm&#39;s total investments in startups summarized to $226.5M. Palantir only needs one big exit from one of these SPAC investments listed below to generate a massive windfall.<img src=\"https://static.tigerbbs.com/c452699a2b9ef7ab9b9b5f16074fd788\" tg-width=\"935\" tg-height=\"315\" width=\"100%\" height=\"auto\"/><b>Risks with Palantir</b></p><p>The biggest risk for shares of Palantir, as I see it, is continual selling pressure that is the result of a profound misunderstanding related to how the firm&#39;s business model works in practice. Palantir&#39;s business is evolving and progress is measurable and undeniable. The proof is in Palantir&#39;s improving free cash flow margin and accelerating (commercial) revenue growth. Revenues can only accelerate if more companies adopt Palantir&#39;s services. Customers are also growing their platform spend, meaning each customer that signs with Palantir is going to have a higher value for the firm in the future, unless they cancel their relationship of course. Since the business had a net customer add of 34 in Q3&#39;21, there is no evidence that customers are unhappy with the services they receive. Palantir&#39;s total customer base increased at a massive 20% rate quarter over quarter in Q3&#39;21, proving significant momentum in customer sign-ups.</p><p>I am willing to change my opinion on Palantir if the firm&#39;s actual revenue growth rates and free cash flow margins drop below my estimates.</p><p><b>Final thoughts</b></p><p>Based off of free cash flow estimates, which do not include pay-offs from SPAC divestments, shares of Palantir trade at 16 X FY 2025 projected free cash flow, assuming a 10 PP FCF margin improvement in the next four years. This margin improvement could result from the launch of new high-margin products like Foundry for Crypto, the accelerating roll-out of Foundry for Builders and higher product spend on a per-customer basis. It is a myth that Palantir is overvalued and the stock has considerable rebound potential in FY 2022!</p></body></html>","source":"seekingalpha","collect":0,"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: The Myth Of Overvaluation</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: The Myth Of Overvaluation\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-01-16 09:09 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4479733-palantir-the-myth-of-overvaluation><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryPalantir went through a large drop in pricing in Q4’21 and in the early days of 2022.Shares of Palantir are not overvalued, they trade at 16X FY 2025 projected free cash flow.Commercial revenue...</p>\n\n<a href=\"https://seekingalpha.com/article/4479733-palantir-the-myth-of-overvaluation\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4479733-palantir-the-myth-of-overvaluation","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1169852230","content_text":"SummaryPalantir went through a large drop in pricing in Q4’21 and in the early days of 2022.Shares of Palantir are not overvalued, they trade at 16X FY 2025 projected free cash flow.Commercial revenue acceleration, new product launches, expansion of the free cash flow margin and potential SPAC deal pay-offs support Palantir’s valuation.The new year is just fourteen days old and shares of Palantir (PLTR) already fell 12%, continuing a sell-off that started back in November 2021. I don't see any good reason or justification for the sell-off as Palantir will continue to grow its top line rapidly and new service offerings are set to fuel the firm's commercial growth. That Palantir is overvalued, is a myth!Commercial revenue growth could accelerate as new products launchThere are few industries that have as fantastic growth prospects as the big data and analytics industry. Companies are accumulating more and more data from customers and their operations, requiring software solutions and artificial intelligence support to monetize this data most efficiently.What am I most excited about, as a Palantir investor, is Palantir's opening of a new growth frontier in the big data world. Palantir will start to roll out its \"Foundry for Crypto\" in FY 2022 which offers banks, FinTechs and other companies involved in the crypto economy a way to validate customer information and to implement anti-money laundering tools. Since the crypto universe is still highly unregulated, Palantir's Foundry for Crypto could make a big difference in legitimizing this industry.Blockchain technology and cryptocurrencies are here to stay and Palantir has a huge opportunity at its hands to develop a multi-million-dollar revenue business within a very short period of time. Key customers for Palantir's Foundry for Crypto are likely going to be financial institutions and crypto trading marketplaces like Coinbase (COIN) which have massive customer bases. Adoption of Palantir's Foundry for Crypto platform by leading market institutions could materially accelerate Palantir's commercial revenue growth.Because of the opening of a new business segment, I see strong prospects for revenue acceleration for Palantir in the foreseeable future. Palantir's commercial revenue growth accelerated throughout FY 2021 due to strong customer acquisition and growing adoption of the firm's products and services. Palantir's commercial revenue growth accelerated from 19% in Q1'21 to 28% in Q2'21, and then to 37% in Q3'21. Palantir's revenue acceleration in the commercial business was the reason why Palantir raised its free cash flow and revenue guidance for FY 2021. Because the commercial segment is growing increasingly fast, Palantir already raised its free cash flow outlook twice in FY 2021. The firm now expects free cash flow of $400M+ for FY 2021, after raising the guidance by 33% in Q3'21.Palantir is not overvalued based on expected free cash flow rampPalantir's business reached a critical point in FY 2021 and the proof is in the company's growing free cash flow margins. As the firm scales its services and leads more customers through its onboarding process, Palantir should see a significant improvement of its free cash flow margin going forward. Palantir's Q3'21 free cash flow was $119M which calculates to a free cash flow margin of 30%. I believe Palantir could grow its free cash flow margin to 40% by 2025, meaning the firm is set to become a seriously profitable business within the next four years.I also expect Palantir to grow revenues faster than the 30% that have been mentioned as a long-term growth target. The reason for this is that Palantir is signing on more customers and those customers spend more money on the firm's products and services over time, meaning monetization is improving. Assuming that Palantir can grow revenues at an annual 35% rate over the next four years, Palantir is looking at $5.0B in revenues and $2.0B in free cash flow by FY 2025. The calculation below is built on the assumption that Palantir's free cash flow margin will grow from 30% in FY 2021 to 40% by FY 2025. Over the next four years, Palantir should be able to increase its annual free cash flow by at least a factor of 4 X.And investors should not forget about this potentially massive income stream…The \"forgotten\" SPAC businessPalantir has come up with a clever revenue growth strategy that combines upside in SPAC investments with long-term software servicing contracts. Palantir is committing investing capital to startups that look to finance growth and, in return, the company gets equity and a signed contract for the provision of its software platforms. I rarely see this business discussed, but it presents considerable valuation upside for Palantir. In Q3'21, the firm's total investments in startups summarized to $226.5M. Palantir only needs one big exit from one of these SPAC investments listed below to generate a massive windfall.Risks with PalantirThe biggest risk for shares of Palantir, as I see it, is continual selling pressure that is the result of a profound misunderstanding related to how the firm's business model works in practice. Palantir's business is evolving and progress is measurable and undeniable. The proof is in Palantir's improving free cash flow margin and accelerating (commercial) revenue growth. Revenues can only accelerate if more companies adopt Palantir's services. Customers are also growing their platform spend, meaning each customer that signs with Palantir is going to have a higher value for the firm in the future, unless they cancel their relationship of course. Since the business had a net customer add of 34 in Q3'21, there is no evidence that customers are unhappy with the services they receive. Palantir's total customer base increased at a massive 20% rate quarter over quarter in Q3'21, proving significant momentum in customer sign-ups.I am willing to change my opinion on Palantir if the firm's actual revenue growth rates and free cash flow margins drop below my estimates.Final thoughtsBased off of free cash flow estimates, which do not include pay-offs from SPAC divestments, shares of Palantir trade at 16 X FY 2025 projected free cash flow, assuming a 10 PP FCF margin improvement in the next four years. This margin improvement could result from the launch of new high-margin products like Foundry for Crypto, the accelerating roll-out of Foundry for Builders and higher product spend on a per-customer basis. It is a myth that Palantir is overvalued and the stock has considerable rebound potential in FY 2022!","news_type":1},"isVote":1,"tweetType":1,"viewCount":448,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9008131480,"gmtCreate":1641384048854,"gmtModify":1676533608355,"author":{"id":"3574951241870050","authorId":"3574951241870050","name":"Wnnn","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"🩸money 🥲🥲🤣🤣","listText":"🩸money 🥲🥲🤣🤣","text":"🩸money 🥲🥲🤣🤣","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9008131480","repostId":"1182721899","repostType":2,"repost":{"id":"1182721899","pubTimestamp":1641383671,"share":"https://www.laohu8.com/m/news/1182721899?lang=&edition=full","pubTime":"2022-01-05 19:54","market":"us","language":"en","title":"Cathie Wood Sells Another $50M in Tesla on Tuesday — Here's What She Bought Instead","url":"https://stock-news.laohu8.com/highlight/detail?id=1182721899","media":"Benzinga","summary":"Cathie Wood’sArk Investment Management on Tuesday booked more profit in Tesla Inc(NASDAQ:TSLA), sell","content":"<html><head></head><body><p><b>Cathie Wood</b>’s<b>Ark Investment Management</b> on Tuesday booked more profit in <b>Tesla Inc</b>(NASDAQ:TSLA), selling 44,132 shares — estimated to be worth $50.7 million based on the latest closing price — in the electric vehicle maker’s stock.</p><p>The <b>Elon Musk</b>-led company’s stock, which had risen about 50% in 2021,  closed 4.2% lower at $1,149.6 a share on Tuesday.</p><p>Tesla shares soared 13.5% on Monday after it reported fourth-quarter delivery volumes that far surpassed expectations.</p><p>Ark Invest owns shares in Tesla via three of its exchange-traded funds — the <b>Ark Innovation ETF</b>(NYSE:ARKK), the <b>Ark Autonomous Technology &amp; Robotics ETF</b>(NYSE:ARKQ) and the <b>Ark Next Generation Internet ETF</b>(NYSE:ARKW).</p><p>The three ETFs held about 1.7 million shares worth $2.05 billion in Tesla, prior to Tuesday’s trade.</p><p>Tesla on Sunday smashed fourth-quarter delivery records, posting its biggest quarterly and full-year delivery volume.</p><p>The St. Petersburg, Florida-based Ark has also been loading up in U.S.-listed Chinese electric vehicle maker <b>Xpeng Inc</b>(NYSE:XPEV) recently.</p><p>Here are some other key Ark Invest trades from Tuesday:</p><ul><li>Sold 1.98 million shares —estimated to be worth $81.2 million— in <b>Twitter Inc</b>(NYSE:TWTR). The micro-blogging company’s stock closed 4.2% lower at $40.9 a share.</li><li>Bought 462,613 shares — estimated to be worth $8 million — in <b>RobinhoodMarkets Inc</b>(NASDAQ:HOOD). Shares of the commission-free trading app that deals in stocks, exchange-traded funds and cryptocurrencies closed 5.6% lower at $17.4 a share.</li><li>Bought 304,356 shares — estimated to be worth $47.6 million — in <b>Block Inc</b>(NYSE:SQ). Shares of Block, formerly known as Square, closed 4.7% lower at $156.3 a share.</li><li>Bought 1,185,460 shares — estimated to be worth $31.5 million — in <b>DraftKings Inc</b>(NASDAQ:DKNG). Shares of the fantasy sports company closed 4.1% lower at $26.6 a share.</li><li>Sold 250,359 shares — estimated to be worth $12.5 million — in<b>Pinduoduo Inc</b>(NASDAQ:PDD) on the dayshares of the Chinese agri-tech company closed 11.2% lower at $49.8 a share.</li></ul></body></html>","source":"lsy1606299360108","collect":0,"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>Cathie Wood Sells Another $50M in Tesla on Tuesday — Here's What She Bought Instead</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; 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}\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\">\nCathie Wood Sells Another $50M in Tesla on Tuesday — Here's What She Bought Instead\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-01-05 19:54 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.benzinga.com/trading-ideas/long-ideas/22/01/24899364/cathie-wood-sells-another-50m-in-tesla-on-tuesday-heres-what-she-bought-instead><strong>Benzinga</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cathie Wood’sArk Investment Management on Tuesday booked more profit in Tesla Inc(NASDAQ:TSLA), selling 44,132 shares — estimated to be worth $50.7 million based on the latest closing price — in the ...</p>\n\n<a href=\"https://www.benzinga.com/trading-ideas/long-ideas/22/01/24899364/cathie-wood-sells-another-50m-in-tesla-on-tuesday-heres-what-she-bought-instead\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TSLA":"特斯拉"},"source_url":"https://www.benzinga.com/trading-ideas/long-ideas/22/01/24899364/cathie-wood-sells-another-50m-in-tesla-on-tuesday-heres-what-she-bought-instead","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1182721899","content_text":"Cathie Wood’sArk Investment Management on Tuesday booked more profit in Tesla Inc(NASDAQ:TSLA), selling 44,132 shares — estimated to be worth $50.7 million based on the latest closing price — in the electric vehicle maker’s stock.The Elon Musk-led company’s stock, which had risen about 50% in 2021,  closed 4.2% lower at $1,149.6 a share on Tuesday.Tesla shares soared 13.5% on Monday after it reported fourth-quarter delivery volumes that far surpassed expectations.Ark Invest owns shares in Tesla via three of its exchange-traded funds — the Ark Innovation ETF(NYSE:ARKK), the Ark Autonomous Technology & Robotics ETF(NYSE:ARKQ) and the Ark Next Generation Internet ETF(NYSE:ARKW).The three ETFs held about 1.7 million shares worth $2.05 billion in Tesla, prior to Tuesday’s trade.Tesla on Sunday smashed fourth-quarter delivery records, posting its biggest quarterly and full-year delivery volume.The St. Petersburg, Florida-based Ark has also been loading up in U.S.-listed Chinese electric vehicle maker Xpeng Inc(NYSE:XPEV) recently.Here are some other key Ark Invest trades from Tuesday:Sold 1.98 million shares —estimated to be worth $81.2 million— in Twitter Inc(NYSE:TWTR). The micro-blogging company’s stock closed 4.2% lower at $40.9 a share.Bought 462,613 shares — estimated to be worth $8 million — in RobinhoodMarkets Inc(NASDAQ:HOOD). Shares of the commission-free trading app that deals in stocks, exchange-traded funds and cryptocurrencies closed 5.6% lower at $17.4 a share.Bought 304,356 shares — estimated to be worth $47.6 million — in Block Inc(NYSE:SQ). Shares of Block, formerly known as Square, closed 4.7% lower at $156.3 a share.Bought 1,185,460 shares — estimated to be worth $31.5 million — in DraftKings Inc(NASDAQ:DKNG). Shares of the fantasy sports company closed 4.1% lower at $26.6 a share.Sold 250,359 shares — estimated to be worth $12.5 million — inPinduoduo Inc(NASDAQ:PDD) on the dayshares of the Chinese agri-tech company closed 11.2% lower at $49.8 a share.","news_type":1},"isVote":1,"tweetType":1,"viewCount":247,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9001521085,"gmtCreate":1641279786165,"gmtModify":1676533592566,"author":{"id":"3574951241870050","authorId":"3574951241870050","name":"Wnnn","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"Insane progression","listText":"Insane progression","text":"Insane progression","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9001521085","repostId":"1102940638","repostType":2,"repost":{"id":"1102940638","pubTimestamp":1641254417,"share":"https://www.laohu8.com/m/news/1102940638?lang=&edition=full","pubTime":"2022-01-04 08:00","market":"us","language":"en","title":"Tesla Adds $144 Billion to Market Value After Record Deliveries","url":"https://stock-news.laohu8.com/highlight/detail?id=1102940638","media":"Bloomberg","summary":"Monday’s 14% gain is stock’s best performance to start a yearCompany delivered 308,600 vehicles worl","content":"<html><head></head><body><ul><li>Monday’s 14% gain is stock’s best performance to start a year</li><li>Company delivered 308,600 vehicles worldwide in fourth quarter</li></ul><p>Tesla Inc. is off to a strong start to the new year after the electric-car maker smashed its quarterly record for deliveries in what one analyst called a “trophy-case” performance.</p><p>The company’s shares jumped 14% in New York, their biggest gain since March and best start to a year since Tesla went public more than a decade ago. The $144 billion in market value that Tesla added on Monday is the equivalent of an entire Honeywell International Inc. or Starbucks Corp. It’s also more than the value of almost 90% of the companies in the S&amp;P 500 Index.</p><p><img src=\"https://static.tigerbbs.com/b98c9fe43c27a22e44f07c72304c2671\" tg-width=\"1200\" tg-height=\"675\" referrerpolicy=\"no-referrer\"/></p><p>Worldwide deliveries totaled 308,600 vehicles in the fourth quarter, well ahead of the average analyst estimate of roughly 263,000 vehicles, and topping the company’s previous record of 241,300 from the prior quarter. Annual handovers surged to more than 936,000 in 2021, up 87% from the previous year’s level, Austin, Texas-based Tesla said Sunday.</p><p>“This is a trophy-case quarter for Tesla as the company blew away even bull-case expectations,” Daniel Ives, an analyst at Wedbush Securities, said in an email. He called it a “jaw-dropper performance” for the end of the year that gives “massive tailwinds” heading into 2022.</p><p>The record quarter underscores the “green tidal wave taking hold” for Tesla and Chief Executive Officer Elon Musk, Ives said in a note to clients. The results also point to robust demand in China and Tesla’s skill at navigating the global semiconductor shortage, he said.</p><p>Musk, who has pledged delivery growth despite the “supply-chain nightmare” of 2021, praised his crew on Twitter.</p><p><img src=\"https://static.tigerbbs.com/ee8ecf3d5f76e1a511459de02365693c\" tg-width=\"830\" tg-height=\"496\" referrerpolicy=\"no-referrer\"/></p><p>Quarterly deliveries are one of the most closely watched indicators for Tesla. They underpin its financial results and are widely seen as a barometer of consumer demand for electric vehicles as a whole because the company has led the charge for battery-powered cars.</p><p>Tesla has said repeatedly it expects 50% annual increases in deliveries over a multiyear period. The seventh consecutive quarterly gain comes amid a global semiconductor slump that has crimped production at most other automakers and kept sales in check despite rising demand.</p><p>“Tesla continues to execute well, posting deliveries and production above consensus expectations,” Cowen analyst Jeffrey Osborne said. “As the competition heats up from incumbent OEMs and new entrants alike, we see 2022 becoming a critical year for Tesla.”</p><p>The EV market leader’s stock soared almost 50% in 2021 to give it a market valuation exceeding $1 trillion -- one of only a handful of U.S.-based public companies to achieve that status.</p><p>The shares reached a record high in early November before plunging after Musk began unloading 10% of his stake.</p><p><a href=\"https://ttm.financial/NW/1195533166\" target=\"_blank\"><b>Elon Musk’s Fortune Climbs $30 Billion on Tesla’s Record Quarter for Deliveries</b></a><b></b></p><p>Elon Musk started 2022 with a bang.</p><p><img src=\"https://static.tigerbbs.com/9bb18462e67b743b94632bf0093ff927\" tg-width=\"1000\" tg-height=\"667\" referrerpolicy=\"no-referrer\"/></p><p>Tesla Inc. reported it had smashed its previous record for vehicle deliveries, spurring a rally in the electric car-maker’s shares and creating one of the biggest one-day jumps in wealth.</p><p>Musk’s fortune jumped by $33.8 billion on Monday to $304.2 billion, according to the Bloomberg Billionaires Index. Jeff Bezos, second on the list, has a $196 billion fortune.</p><p>Tesla’s shares rose 13.5% to $1,199.78 on Monday after fourth-quarter results handily exceeded analysts’ estimates for auto deliveries.</p><p>The company’s market valuation jumped back above $1 trillion last month after a dip in November and early December.</p><p>Musk, who owns about 18% of Tesla, helped trigger the slide when he said he would reduce his stake in the company by 10%. He’ssoldmore than $10 billion worth of shares since November, part of a plan to generate cash to pay tax obligations.</p><p>Musk’s net worth, which also includes his stake in rocket manufacterer SpaceX, reached a high of $340 billion last year, surpassing the peak inflation-adjusted net worth of John D. Rockefeller and briefly making him the richest person in modern history.</p></body></html>","source":"lsy1584095487587","collect":0,"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>Tesla Adds $144 Billion to Market Value After Record Deliveries</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\">\nTesla Adds $144 Billion to Market Value After Record Deliveries\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-01-04 08:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.bloomberg.com/news/articles/2022-01-03/tesla-set-for-record-start-to-new-year-after-blowout-deliveries><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Monday’s 14% gain is stock’s best performance to start a yearCompany delivered 308,600 vehicles worldwide in fourth quarterTesla Inc. is off to a strong start to the new year after the electric-car ...</p>\n\n<a href=\"https://www.bloomberg.com/news/articles/2022-01-03/tesla-set-for-record-start-to-new-year-after-blowout-deliveries\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TSLA":"特斯拉"},"source_url":"https://www.bloomberg.com/news/articles/2022-01-03/tesla-set-for-record-start-to-new-year-after-blowout-deliveries","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1102940638","content_text":"Monday’s 14% gain is stock’s best performance to start a yearCompany delivered 308,600 vehicles worldwide in fourth quarterTesla Inc. is off to a strong start to the new year after the electric-car maker smashed its quarterly record for deliveries in what one analyst called a “trophy-case” performance.The company’s shares jumped 14% in New York, their biggest gain since March and best start to a year since Tesla went public more than a decade ago. The $144 billion in market value that Tesla added on Monday is the equivalent of an entire Honeywell International Inc. or Starbucks Corp. It’s also more than the value of almost 90% of the companies in the S&P 500 Index.Worldwide deliveries totaled 308,600 vehicles in the fourth quarter, well ahead of the average analyst estimate of roughly 263,000 vehicles, and topping the company’s previous record of 241,300 from the prior quarter. Annual handovers surged to more than 936,000 in 2021, up 87% from the previous year’s level, Austin, Texas-based Tesla said Sunday.“This is a trophy-case quarter for Tesla as the company blew away even bull-case expectations,” Daniel Ives, an analyst at Wedbush Securities, said in an email. He called it a “jaw-dropper performance” for the end of the year that gives “massive tailwinds” heading into 2022.The record quarter underscores the “green tidal wave taking hold” for Tesla and Chief Executive Officer Elon Musk, Ives said in a note to clients. The results also point to robust demand in China and Tesla’s skill at navigating the global semiconductor shortage, he said.Musk, who has pledged delivery growth despite the “supply-chain nightmare” of 2021, praised his crew on Twitter.Quarterly deliveries are one of the most closely watched indicators for Tesla. They underpin its financial results and are widely seen as a barometer of consumer demand for electric vehicles as a whole because the company has led the charge for battery-powered cars.Tesla has said repeatedly it expects 50% annual increases in deliveries over a multiyear period. The seventh consecutive quarterly gain comes amid a global semiconductor slump that has crimped production at most other automakers and kept sales in check despite rising demand.“Tesla continues to execute well, posting deliveries and production above consensus expectations,” Cowen analyst Jeffrey Osborne said. “As the competition heats up from incumbent OEMs and new entrants alike, we see 2022 becoming a critical year for Tesla.”The EV market leader’s stock soared almost 50% in 2021 to give it a market valuation exceeding $1 trillion -- one of only a handful of U.S.-based public companies to achieve that status.The shares reached a record high in early November before plunging after Musk began unloading 10% of his stake.Elon Musk’s Fortune Climbs $30 Billion on Tesla’s Record Quarter for DeliveriesElon Musk started 2022 with a bang.Tesla Inc. reported it had smashed its previous record for vehicle deliveries, spurring a rally in the electric car-maker’s shares and creating one of the biggest one-day jumps in wealth.Musk’s fortune jumped by $33.8 billion on Monday to $304.2 billion, according to the Bloomberg Billionaires Index. Jeff Bezos, second on the list, has a $196 billion fortune.Tesla’s shares rose 13.5% to $1,199.78 on Monday after fourth-quarter results handily exceeded analysts’ estimates for auto deliveries.The company’s market valuation jumped back above $1 trillion last month after a dip in November and early December.Musk, who owns about 18% of Tesla, helped trigger the slide when he said he would reduce his stake in the company by 10%. He’ssoldmore than $10 billion worth of shares since November, part of a plan to generate cash to pay tax obligations.Musk’s net worth, which also includes his stake in rocket manufacterer SpaceX, reached a high of $340 billion last year, surpassing the peak inflation-adjusted net worth of John D. Rockefeller and briefly making him the richest person in modern history.","news_type":1},"isVote":1,"tweetType":1,"viewCount":254,"authorTweetTopStatus":1,"verified":2,"comments":[{"author":{"id":"3580699589385230","authorId":"3580699589385230","name":"Mr. T","avatar":"https://static.tigerbbs.com/ffcbb09604bf679c78d4b172e4ad0c39","crmLevel":3,"crmLevelSwitch":0},"content":"My worry is that this is not sustainable.","text":"My worry is that this is not sustainable.","html":"My worry is that this is not sustainable."}],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9003975749,"gmtCreate":1640867588239,"gmtModify":1676533549178,"author":{"id":"3574951241870050","authorId":"3574951241870050","name":"Wnnn","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"Still will go up I feel 😂","listText":"Still will go up I feel 😂","text":"Still will go up I feel 😂","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9003975749","repostId":"1141716709","repostType":4,"repost":{"id":"1141716709","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1640864228,"share":"https://www.laohu8.com/m/news/1141716709?lang=&edition=full","pubTime":"2021-12-30 19:37","market":"us","language":"en","title":"Tesla Recalls Over 475k Vehicles for Camera, Latch Issues","url":"https://stock-news.laohu8.com/highlight/detail?id=1141716709","media":"Tiger Newspress","summary":"Shares of Tesla are down about 1.5% in pre-open Thursday after the company filed a recall of over 47","content":"<html><head></head><body><p>Shares of Tesla are down about 1.5% in pre-open Thursday after the company filed a recall of over 475,000 vehicles.</p><p><img src=\"https://static.tigerbbs.com/3acd6a90c5563e5b0720756c55d94748\" tg-width=\"840\" tg-height=\"619\" referrerpolicy=\"no-referrer\"/></p><p>Elon Musk’s company will recall 356,309 US vehicles related to the rearview camera cable harness that may be damaged by the opening and closing of the trunk lid. This could impact the rearview camera image from displaying. Ultimately, this can raise the risk of a crash, according to the NHTSA.</p><p>In a report dated December 21, NTHSA said that Tesla is also recalling 119,009 2014-21 Model S EV units due to the issues related to the front trunk latch assembly that are misaligned. This then prevents the secondary hood latch from engaging.</p><p>In November, Tesla stock price fell after the company recalled almost 12,000 EVs due to a software issue.</p></body></html>","collect":0,"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>Tesla Recalls Over 475k Vehicles for Camera, Latch Issues</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\">\nTesla Recalls Over 475k Vehicles for Camera, Latch Issues\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2021-12-30 19:37</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Shares of Tesla are down about 1.5% in pre-open Thursday after the company filed a recall of over 475,000 vehicles.</p><p><img src=\"https://static.tigerbbs.com/3acd6a90c5563e5b0720756c55d94748\" tg-width=\"840\" tg-height=\"619\" referrerpolicy=\"no-referrer\"/></p><p>Elon Musk’s company will recall 356,309 US vehicles related to the rearview camera cable harness that may be damaged by the opening and closing of the trunk lid. This could impact the rearview camera image from displaying. Ultimately, this can raise the risk of a crash, according to the NHTSA.</p><p>In a report dated December 21, NTHSA said that Tesla is also recalling 119,009 2014-21 Model S EV units due to the issues related to the front trunk latch assembly that are misaligned. This then prevents the secondary hood latch from engaging.</p><p>In November, Tesla stock price fell after the company recalled almost 12,000 EVs due to a software issue.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TSLA":"特斯拉"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1141716709","content_text":"Shares of Tesla are down about 1.5% in pre-open Thursday after the company filed a recall of over 475,000 vehicles.Elon Musk’s company will recall 356,309 US vehicles related to the rearview camera cable harness that may be damaged by the opening and closing of the trunk lid. This could impact the rearview camera image from displaying. Ultimately, this can raise the risk of a crash, according to the NHTSA.In a report dated December 21, NTHSA said that Tesla is also recalling 119,009 2014-21 Model S EV units due to the issues related to the front trunk latch assembly that are misaligned. This then prevents the secondary hood latch from engaging.In November, Tesla stock price fell after the company recalled almost 12,000 EVs due to a software issue.","news_type":1},"isVote":1,"tweetType":1,"viewCount":392,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9009914029,"gmtCreate":1640426827319,"gmtModify":1676533520722,"author":{"id":"3574951241870050","authorId":"3574951241870050","name":"Wnnn","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"Safety stocks ?","listText":"Safety stocks ?","text":"Safety stocks ?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9009914029","repostId":"2193917872","repostType":2,"repost":{"id":"2193917872","pubTimestamp":1640398248,"share":"https://www.laohu8.com/m/news/2193917872?lang=&edition=full","pubTime":"2021-12-25 10:10","market":"us","language":"en","title":"3 Best Buffett Stocks to Buy for the Long Haul","url":"https://stock-news.laohu8.com/highlight/detail?id=2193917872","media":"Motley Fool","summary":"Each of these three big pharma stocks are featured in Berkshire Hathaway's massive portfolio.","content":"<p>Since Warren Buffett took full control of <b>Berkshire Hathaway</b> in 1965, it became a diversified holding company with investments in publicly traded companies totaling nearly $345 billion at the time of writing.</p>\n<p>The Oracle of Omaha's reputation of buying the highest quality businesses means that many individual investors could also benefit from adding these stocks to their portfolios. Here are three healthcare stocks that Buffett owns, which you may also want to consider buying and holding for the long run.</p>\n<h2>1. Johnson &amp; Johnson</h2>\n<p>The first pharma stock within Berkshire's portfolio to contemplate purchasing is <b>Johnson &amp; Johnson</b> (NYSE:JNJ). While the stock is one of Buffett's smallest holdings, valued at just under $55 million, this doesn't take away from its 59 consecutive years of dividend increases that make the stock a Dividend King.</p>\n<p>J&amp;J will be spinning off its slower-growing and less profitable consumer health segment in the next 18 to 24 months, which should allow the company to focus on its faster-growing, more profitable pharmaceutical segment.</p>\n<p>J&amp;J has a strong existing drug portfolio, which should be able to make up for the upcoming 2025 to 2026 patent expirations for its top-selling drug known, Stelara. Year to date, the immunology drug made up just 9.9% of J&amp;J's $69 billion in net sales.</p>\n<p>These drugs include the immunology blockbuster Tremfya, which received its first of three U.S. Food and Drug Administration (FDA) approvals to date in July 2017. Another drug that was recently approved by the FDA was the oncology blockbuster called Darzalex, which received its first of nine FDA approvals to date in November 2015. These two drugs have grown their year-to-date revenue at high-40% clips year over year and should remain under patent most of this decade.</p>\n<p>J&amp;J's enviable existing drug portfolio and its nearly four dozen indications in late-stage clinical trials explain why analysts anticipate that the stock will deliver 8% annual non-GAAP (adjusted) earnings per share (EPS) growth over the next five years.</p>\n<p>Income investors can scoop up J&amp;J's 2.5% dividend yield at a forward P/E ratio of just 16.2 times, which makes the steady healthcare stock a great buy for the long term.</p>\n<h2>2. Bristol Myers Squibb</h2>\n<p>Another Buffett stock that could be a great fit in your portfolio is <b>Bristol Myers Squibb</b> (NYSE:BMY). Berkshire's Bristol Myers Squibb stake totals nearly $1.4 billion, making it one of the largest healthcare holdings in Berkshire's portfolio.</p>\n<p>Bristol Myers Squibb's oncology blockbusters Revlimid and Opdivo and the anticoagulant blockbuster co-owned with <b>Pfizer</b> (NYSE:PFE) named Eliquis each face patent expirations later this decade. While looming patent expirations on three drugs that account for approximately two-thirds of your company's total revenue sounds frightening, this is nothing new; it's just the nature of Bristol Myers Squibb's industry.</p>\n<p>What matters most is that a company is proactive in developing and acquiring its next generation of blockbuster drugs to absorb key patent expirations. With more than 50 compounds in over 40 different disease areas currently in development at Bristol Myers Squibb, this is exactly what the company has been doing for years now.</p>\n<p>As a result, analysts are projecting that Bristol Myers Squibb will be able to generate 6% annual earnings growth through the next five years.</p>\n<p>Yield-hungry investors can buy Bristol Myers Squibb's market-crushing 3.5% yield at a ridiculously cheap forward P/E ratio of 7.9, which is what makes the stock a buy for those looking to hedge against inflation.</p>\n<h2>3. AbbVie</h2>\n<p>Finally, a Buffett stock that'd also be a good fit for income investors is <b>AbbVie</b> (NYSE:ABBV). Berkshire currently holds about $1.9 billion worth of AbbVie stock.</p>\n<p>It's well known at this point that the biopharmaceutical's top-selling drug in the world, Humira, will be facing intense biosimilar competition in the U.S. beginning in 2023. Even though the immunology drug's U.S. sales made up 31% of AbbVie's $41.24 billion total year-to-date sales, the company's pipeline should be able to stabilize and grow its net revenue beyond 2023.</p>\n<p>AbbVie has 54 compounds in various stages of clinical trials, which is why analysts are forecasting that the stock will grow its adjusted EPS 4.5% annually in the next five years.</p>\n<p>AbbVie's massive 4.4% dividend yield can be picked up at a forward P/E ratio of only 9.3.&nbsp;This is an attractive valuation for a stock with the ability to fight off inflation with healthy dividend hikes.</p>","source":"fool_stock","collect":0,"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>3 Best Buffett Stocks to Buy for the Long Haul</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\">\n3 Best Buffett Stocks to Buy for the Long Haul\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-25 10:10 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/12/24/3-best-buffett-stocks-to-buy-for-the-long-haul/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Since Warren Buffett took full control of Berkshire Hathaway in 1965, it became a diversified holding company with investments in publicly traded companies totaling nearly $345 billion at the time of ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/12/24/3-best-buffett-stocks-to-buy-for-the-long-haul/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"JNJ":"强生","ABBV":"艾伯维公司","BMY":"施贵宝"},"source_url":"https://www.fool.com/investing/2021/12/24/3-best-buffett-stocks-to-buy-for-the-long-haul/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2193917872","content_text":"Since Warren Buffett took full control of Berkshire Hathaway in 1965, it became a diversified holding company with investments in publicly traded companies totaling nearly $345 billion at the time of writing.\nThe Oracle of Omaha's reputation of buying the highest quality businesses means that many individual investors could also benefit from adding these stocks to their portfolios. Here are three healthcare stocks that Buffett owns, which you may also want to consider buying and holding for the long run.\n1. Johnson & Johnson\nThe first pharma stock within Berkshire's portfolio to contemplate purchasing is Johnson & Johnson (NYSE:JNJ). While the stock is one of Buffett's smallest holdings, valued at just under $55 million, this doesn't take away from its 59 consecutive years of dividend increases that make the stock a Dividend King.\nJ&J will be spinning off its slower-growing and less profitable consumer health segment in the next 18 to 24 months, which should allow the company to focus on its faster-growing, more profitable pharmaceutical segment.\nJ&J has a strong existing drug portfolio, which should be able to make up for the upcoming 2025 to 2026 patent expirations for its top-selling drug known, Stelara. Year to date, the immunology drug made up just 9.9% of J&J's $69 billion in net sales.\nThese drugs include the immunology blockbuster Tremfya, which received its first of three U.S. Food and Drug Administration (FDA) approvals to date in July 2017. Another drug that was recently approved by the FDA was the oncology blockbuster called Darzalex, which received its first of nine FDA approvals to date in November 2015. These two drugs have grown their year-to-date revenue at high-40% clips year over year and should remain under patent most of this decade.\nJ&J's enviable existing drug portfolio and its nearly four dozen indications in late-stage clinical trials explain why analysts anticipate that the stock will deliver 8% annual non-GAAP (adjusted) earnings per share (EPS) growth over the next five years.\nIncome investors can scoop up J&J's 2.5% dividend yield at a forward P/E ratio of just 16.2 times, which makes the steady healthcare stock a great buy for the long term.\n2. Bristol Myers Squibb\nAnother Buffett stock that could be a great fit in your portfolio is Bristol Myers Squibb (NYSE:BMY). Berkshire's Bristol Myers Squibb stake totals nearly $1.4 billion, making it one of the largest healthcare holdings in Berkshire's portfolio.\nBristol Myers Squibb's oncology blockbusters Revlimid and Opdivo and the anticoagulant blockbuster co-owned with Pfizer (NYSE:PFE) named Eliquis each face patent expirations later this decade. While looming patent expirations on three drugs that account for approximately two-thirds of your company's total revenue sounds frightening, this is nothing new; it's just the nature of Bristol Myers Squibb's industry.\nWhat matters most is that a company is proactive in developing and acquiring its next generation of blockbuster drugs to absorb key patent expirations. With more than 50 compounds in over 40 different disease areas currently in development at Bristol Myers Squibb, this is exactly what the company has been doing for years now.\nAs a result, analysts are projecting that Bristol Myers Squibb will be able to generate 6% annual earnings growth through the next five years.\nYield-hungry investors can buy Bristol Myers Squibb's market-crushing 3.5% yield at a ridiculously cheap forward P/E ratio of 7.9, which is what makes the stock a buy for those looking to hedge against inflation.\n3. AbbVie\nFinally, a Buffett stock that'd also be a good fit for income investors is AbbVie (NYSE:ABBV). Berkshire currently holds about $1.9 billion worth of AbbVie stock.\nIt's well known at this point that the biopharmaceutical's top-selling drug in the world, Humira, will be facing intense biosimilar competition in the U.S. beginning in 2023. Even though the immunology drug's U.S. sales made up 31% of AbbVie's $41.24 billion total year-to-date sales, the company's pipeline should be able to stabilize and grow its net revenue beyond 2023.\nAbbVie has 54 compounds in various stages of clinical trials, which is why analysts are forecasting that the stock will grow its adjusted EPS 4.5% annually in the next five years.\nAbbVie's massive 4.4% dividend yield can be picked up at a forward P/E ratio of only 9.3. This is an attractive valuation for a stock with the ability to fight off inflation with healthy dividend hikes.","news_type":1},"isVote":1,"tweetType":1,"viewCount":376,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"hots":[{"id":9091194048,"gmtCreate":1643795388412,"gmtModify":1676533857356,"author":{"id":"3574951241870050","authorId":"3574951241870050","name":"Wnnn","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"Why though","listText":"Why though","text":"Why though","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9091194048","repostId":"1111473451","repostType":2,"repost":{"id":"1111473451","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1643794763,"share":"https://www.laohu8.com/m/news/1111473451?lang=&edition=full","pubTime":"2022-02-02 17:39","market":"us","language":"en","title":"Block shares fell 8% in premarket trading","url":"https://stock-news.laohu8.com/highlight/detail?id=1111473451","media":"Tiger Newspress","summary":"Block shares fell 8% in premarket trading.Square parent $Block Inc. will let its merchant customers ","content":"<html><head></head><body><p>Block shares fell 8% in premarket trading.<img src=\"https://static.tigerbbs.com/15601e17c65b4f593355bcacff8a93e8\" tg-width=\"724\" tg-height=\"583\" width=\"100%\" height=\"auto\"/>Square parent $Block Inc. will let its merchant customers offer Afterpay installment options to customers in its first step toward integrating the newly-closed acquisition.</p><p>The company also announced late Monday that its deal for Australian BNPL operator Afterpay has officially closed. Block announced its $29 billion all-stock deal for Afterpayback in August.</p></body></html>","collect":0,"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>Block shares fell 8% in premarket trading</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\">\nBlock shares fell 8% in premarket trading\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2022-02-02 17:39</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Block shares fell 8% in premarket trading.<img src=\"https://static.tigerbbs.com/15601e17c65b4f593355bcacff8a93e8\" tg-width=\"724\" tg-height=\"583\" width=\"100%\" height=\"auto\"/>Square parent $Block Inc. will let its merchant customers offer Afterpay installment options to customers in its first step toward integrating the newly-closed acquisition.</p><p>The company also announced late Monday that its deal for Australian BNPL operator Afterpay has officially closed. Block announced its $29 billion all-stock deal for Afterpayback in August.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SQ":"Block"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1111473451","content_text":"Block shares fell 8% in premarket trading.Square parent $Block Inc. will let its merchant customers offer Afterpay installment options to customers in its first step toward integrating the newly-closed acquisition.The company also announced late Monday that its deal for Australian BNPL operator Afterpay has officially closed. Block announced its $29 billion all-stock deal for Afterpayback in August.","news_type":1},"isVote":1,"tweetType":1,"viewCount":439,"authorTweetTopStatus":1,"verified":2,"comments":[{"author":{"id":"4088082610944870","authorId":"4088082610944870","name":"SmallYang","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":4,"crmLevelSwitch":0},"content":"I don't understand either. shouldn't the shareholders price go up?","text":"I don't understand either. shouldn't the shareholders price go up?","html":"I don't understand either. shouldn't the shareholders price go up?"}],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9005582782,"gmtCreate":1642351171660,"gmtModify":1676533703215,"author":{"id":"3574951241870050","authorId":"3574951241870050","name":"Wnnn","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"Hopefully this year earnings can&nbsp;show the true potential of PLTR&nbsp;","listText":"Hopefully this year earnings can&nbsp;show the true potential of PLTR&nbsp;","text":"Hopefully this year earnings can show the true potential of PLTR","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9005582782","repostId":"1169852230","repostType":4,"repost":{"id":"1169852230","pubTimestamp":1642295348,"share":"https://www.laohu8.com/m/news/1169852230?lang=&edition=full","pubTime":"2022-01-16 09:09","market":"us","language":"en","title":"Palantir: The Myth Of Overvaluation","url":"https://stock-news.laohu8.com/highlight/detail?id=1169852230","media":"Seeking Alpha","summary":"SummaryPalantir went through a large drop in pricing in Q4’21 and in the early days of 2022.Shares o","content":"<html><head></head><body><p>Summary</p><ul><li>Palantir went through a large drop in pricing in Q4’21 and in the early days of 2022.</li><li>Shares of Palantir are not overvalued, they trade at 16X FY 2025 projected free cash flow.</li><li>Commercial revenue acceleration, new product launches, expansion of the free cash flow margin and potential SPAC deal pay-offs support Palantir’s valuation.</li></ul><p>The new year is just fourteen days old and shares of Palantir (PLTR) already fell 12%, continuing a sell-off that started back in November 2021. I don&#39;t see any good reason or justification for the sell-off as Palantir will continue to grow its top line rapidly and new service offerings are set to fuel the firm&#39;s commercial growth. That Palantir is overvalued, is a myth!</p><p><b>Commercial revenue growth could accelerate as new products launch</b></p><p>There are few industries that have as fantastic growth prospects as the big data and analytics industry. Companies are accumulating more and more data from customers and their operations, requiring software solutions and artificial intelligence support to monetize this data most efficiently.</p><p>What am I most excited about, as a Palantir investor, is Palantir&#39;s opening of a new growth frontier in the big data world. Palantir will start to roll out its &#34;Foundry for Crypto&#34; in FY 2022 which offers banks, FinTechs and other companies involved in the crypto economy a way to validate customer information and to implement anti-money laundering tools. Since the crypto universe is still highly unregulated, Palantir&#39;s Foundry for Crypto could make a big difference in legitimizing this industry.</p><p>Blockchain technology and cryptocurrencies are here to stay and Palantir has a huge opportunity at its hands to develop a multi-million-dollar revenue business within a very short period of time. Key customers for Palantir&#39;s Foundry for Crypto are likely going to be financial institutions and crypto trading marketplaces like Coinbase (COIN) which have massive customer bases. Adoption of Palantir&#39;s Foundry for Crypto platform by leading market institutions could materially accelerate Palantir&#39;s commercial revenue growth.</p><p>Because of the opening of a new business segment, I see strong prospects for revenue acceleration for Palantir in the foreseeable future. Palantir&#39;s commercial revenue growth accelerated throughout FY 2021 due to strong customer acquisition and growing adoption of the firm&#39;s products and services. Palantir&#39;s commercial revenue growth accelerated from 19% in Q1&#39;21 to 28% in Q2&#39;21, and then to 37% in Q3&#39;21. Palantir&#39;s revenue acceleration in the commercial business was the reason why Palantir raised its free cash flow and revenue guidance for FY 2021. Because the commercial segment is growing increasingly fast, Palantir already raised its free cash flow outlook twice in FY 2021. The firm now expects free cash flow of $400M+ for FY 2021, after raising the guidance by 33% in Q3&#39;21.</p><p><b>Palantir is not overvalued based on expected free cash flow ramp</b></p><p>Palantir&#39;s business reached a critical point in FY 2021 and the proof is in the company&#39;s growing free cash flow margins. As the firm scales its services and leads more customers through its onboarding process, Palantir should see a significant improvement of its free cash flow margin going forward. Palantir&#39;s Q3&#39;21 free cash flow was $119M which calculates to a free cash flow margin of 30%. I believe Palantir could grow its free cash flow margin to 40% by 2025, meaning the firm is set to become a seriously profitable business within the next four years.<img src=\"https://static.tigerbbs.com/5e54fb7120d0b51650400b5081ae56a9\" tg-width=\"1280\" tg-height=\"413\" width=\"100%\" height=\"auto\"/>I also expect Palantir to grow revenues faster than the 30% that have been mentioned as a long-term growth target. The reason for this is that Palantir is signing on more customers and those customers spend more money on the firm&#39;s products and services over time, meaning monetization is improving. Assuming that Palantir can grow revenues at an annual 35% rate over the next four years, Palantir is looking at $5.0B in revenues and $2.0B in free cash flow by FY 2025. The calculation below is built on the assumption that Palantir&#39;s free cash flow margin will grow from 30% in FY 2021 to 40% by FY 2025. Over the next four years, Palantir should be able to increase its annual free cash flow by at least a factor of 4 X.<img src=\"https://static.tigerbbs.com/48214b624573bdb844c741431b6fac4e\" tg-width=\"599\" tg-height=\"163\" width=\"100%\" height=\"auto\"/>And investors should not forget about this potentially massive income stream…</p><p><b>The &#34;forgotten&#34; SPAC business</b></p><p>Palantir has come up with a clever revenue growth strategy that combines upside in SPAC investments with long-term software servicing contracts. Palantir is committing investing capital to startups that look to finance growth and, in return, the company gets equity and a signed contract for the provision of its software platforms. I rarely see this business discussed, but it presents considerable valuation upside for Palantir. In Q3&#39;21, the firm&#39;s total investments in startups summarized to $226.5M. Palantir only needs one big exit from one of these SPAC investments listed below to generate a massive windfall.<img src=\"https://static.tigerbbs.com/c452699a2b9ef7ab9b9b5f16074fd788\" tg-width=\"935\" tg-height=\"315\" width=\"100%\" height=\"auto\"/><b>Risks with Palantir</b></p><p>The biggest risk for shares of Palantir, as I see it, is continual selling pressure that is the result of a profound misunderstanding related to how the firm&#39;s business model works in practice. Palantir&#39;s business is evolving and progress is measurable and undeniable. The proof is in Palantir&#39;s improving free cash flow margin and accelerating (commercial) revenue growth. Revenues can only accelerate if more companies adopt Palantir&#39;s services. Customers are also growing their platform spend, meaning each customer that signs with Palantir is going to have a higher value for the firm in the future, unless they cancel their relationship of course. Since the business had a net customer add of 34 in Q3&#39;21, there is no evidence that customers are unhappy with the services they receive. Palantir&#39;s total customer base increased at a massive 20% rate quarter over quarter in Q3&#39;21, proving significant momentum in customer sign-ups.</p><p>I am willing to change my opinion on Palantir if the firm&#39;s actual revenue growth rates and free cash flow margins drop below my estimates.</p><p><b>Final thoughts</b></p><p>Based off of free cash flow estimates, which do not include pay-offs from SPAC divestments, shares of Palantir trade at 16 X FY 2025 projected free cash flow, assuming a 10 PP FCF margin improvement in the next four years. This margin improvement could result from the launch of new high-margin products like Foundry for Crypto, the accelerating roll-out of Foundry for Builders and higher product spend on a per-customer basis. It is a myth that Palantir is overvalued and the stock has considerable rebound potential in FY 2022!</p></body></html>","source":"seekingalpha","collect":0,"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: The Myth Of Overvaluation</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: The Myth Of Overvaluation\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-01-16 09:09 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4479733-palantir-the-myth-of-overvaluation><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryPalantir went through a large drop in pricing in Q4’21 and in the early days of 2022.Shares of Palantir are not overvalued, they trade at 16X FY 2025 projected free cash flow.Commercial revenue...</p>\n\n<a href=\"https://seekingalpha.com/article/4479733-palantir-the-myth-of-overvaluation\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4479733-palantir-the-myth-of-overvaluation","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1169852230","content_text":"SummaryPalantir went through a large drop in pricing in Q4’21 and in the early days of 2022.Shares of Palantir are not overvalued, they trade at 16X FY 2025 projected free cash flow.Commercial revenue acceleration, new product launches, expansion of the free cash flow margin and potential SPAC deal pay-offs support Palantir’s valuation.The new year is just fourteen days old and shares of Palantir (PLTR) already fell 12%, continuing a sell-off that started back in November 2021. I don't see any good reason or justification for the sell-off as Palantir will continue to grow its top line rapidly and new service offerings are set to fuel the firm's commercial growth. That Palantir is overvalued, is a myth!Commercial revenue growth could accelerate as new products launchThere are few industries that have as fantastic growth prospects as the big data and analytics industry. Companies are accumulating more and more data from customers and their operations, requiring software solutions and artificial intelligence support to monetize this data most efficiently.What am I most excited about, as a Palantir investor, is Palantir's opening of a new growth frontier in the big data world. Palantir will start to roll out its \"Foundry for Crypto\" in FY 2022 which offers banks, FinTechs and other companies involved in the crypto economy a way to validate customer information and to implement anti-money laundering tools. Since the crypto universe is still highly unregulated, Palantir's Foundry for Crypto could make a big difference in legitimizing this industry.Blockchain technology and cryptocurrencies are here to stay and Palantir has a huge opportunity at its hands to develop a multi-million-dollar revenue business within a very short period of time. Key customers for Palantir's Foundry for Crypto are likely going to be financial institutions and crypto trading marketplaces like Coinbase (COIN) which have massive customer bases. Adoption of Palantir's Foundry for Crypto platform by leading market institutions could materially accelerate Palantir's commercial revenue growth.Because of the opening of a new business segment, I see strong prospects for revenue acceleration for Palantir in the foreseeable future. Palantir's commercial revenue growth accelerated throughout FY 2021 due to strong customer acquisition and growing adoption of the firm's products and services. Palantir's commercial revenue growth accelerated from 19% in Q1'21 to 28% in Q2'21, and then to 37% in Q3'21. Palantir's revenue acceleration in the commercial business was the reason why Palantir raised its free cash flow and revenue guidance for FY 2021. Because the commercial segment is growing increasingly fast, Palantir already raised its free cash flow outlook twice in FY 2021. The firm now expects free cash flow of $400M+ for FY 2021, after raising the guidance by 33% in Q3'21.Palantir is not overvalued based on expected free cash flow rampPalantir's business reached a critical point in FY 2021 and the proof is in the company's growing free cash flow margins. As the firm scales its services and leads more customers through its onboarding process, Palantir should see a significant improvement of its free cash flow margin going forward. Palantir's Q3'21 free cash flow was $119M which calculates to a free cash flow margin of 30%. I believe Palantir could grow its free cash flow margin to 40% by 2025, meaning the firm is set to become a seriously profitable business within the next four years.I also expect Palantir to grow revenues faster than the 30% that have been mentioned as a long-term growth target. The reason for this is that Palantir is signing on more customers and those customers spend more money on the firm's products and services over time, meaning monetization is improving. Assuming that Palantir can grow revenues at an annual 35% rate over the next four years, Palantir is looking at $5.0B in revenues and $2.0B in free cash flow by FY 2025. The calculation below is built on the assumption that Palantir's free cash flow margin will grow from 30% in FY 2021 to 40% by FY 2025. Over the next four years, Palantir should be able to increase its annual free cash flow by at least a factor of 4 X.And investors should not forget about this potentially massive income stream…The \"forgotten\" SPAC businessPalantir has come up with a clever revenue growth strategy that combines upside in SPAC investments with long-term software servicing contracts. Palantir is committing investing capital to startups that look to finance growth and, in return, the company gets equity and a signed contract for the provision of its software platforms. I rarely see this business discussed, but it presents considerable valuation upside for Palantir. In Q3'21, the firm's total investments in startups summarized to $226.5M. Palantir only needs one big exit from one of these SPAC investments listed below to generate a massive windfall.Risks with PalantirThe biggest risk for shares of Palantir, as I see it, is continual selling pressure that is the result of a profound misunderstanding related to how the firm's business model works in practice. Palantir's business is evolving and progress is measurable and undeniable. The proof is in Palantir's improving free cash flow margin and accelerating (commercial) revenue growth. Revenues can only accelerate if more companies adopt Palantir's services. Customers are also growing their platform spend, meaning each customer that signs with Palantir is going to have a higher value for the firm in the future, unless they cancel their relationship of course. Since the business had a net customer add of 34 in Q3'21, there is no evidence that customers are unhappy with the services they receive. Palantir's total customer base increased at a massive 20% rate quarter over quarter in Q3'21, proving significant momentum in customer sign-ups.I am willing to change my opinion on Palantir if the firm's actual revenue growth rates and free cash flow margins drop below my estimates.Final thoughtsBased off of free cash flow estimates, which do not include pay-offs from SPAC divestments, shares of Palantir trade at 16 X FY 2025 projected free cash flow, assuming a 10 PP FCF margin improvement in the next four years. This margin improvement could result from the launch of new high-margin products like Foundry for Crypto, the accelerating roll-out of Foundry for Builders and higher product spend on a per-customer basis. It is a myth that Palantir is overvalued and the stock has considerable rebound potential in FY 2022!","news_type":1},"isVote":1,"tweetType":1,"viewCount":448,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9001521085,"gmtCreate":1641279786165,"gmtModify":1676533592566,"author":{"id":"3574951241870050","authorId":"3574951241870050","name":"Wnnn","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"Insane progression","listText":"Insane progression","text":"Insane progression","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9001521085","repostId":"1102940638","repostType":2,"repost":{"id":"1102940638","pubTimestamp":1641254417,"share":"https://www.laohu8.com/m/news/1102940638?lang=&edition=full","pubTime":"2022-01-04 08:00","market":"us","language":"en","title":"Tesla Adds $144 Billion to Market Value After Record Deliveries","url":"https://stock-news.laohu8.com/highlight/detail?id=1102940638","media":"Bloomberg","summary":"Monday’s 14% gain is stock’s best performance to start a yearCompany delivered 308,600 vehicles worl","content":"<html><head></head><body><ul><li>Monday’s 14% gain is stock’s best performance to start a year</li><li>Company delivered 308,600 vehicles worldwide in fourth quarter</li></ul><p>Tesla Inc. is off to a strong start to the new year after the electric-car maker smashed its quarterly record for deliveries in what one analyst called a “trophy-case” performance.</p><p>The company’s shares jumped 14% in New York, their biggest gain since March and best start to a year since Tesla went public more than a decade ago. The $144 billion in market value that Tesla added on Monday is the equivalent of an entire Honeywell International Inc. or Starbucks Corp. It’s also more than the value of almost 90% of the companies in the S&amp;P 500 Index.</p><p><img src=\"https://static.tigerbbs.com/b98c9fe43c27a22e44f07c72304c2671\" tg-width=\"1200\" tg-height=\"675\" referrerpolicy=\"no-referrer\"/></p><p>Worldwide deliveries totaled 308,600 vehicles in the fourth quarter, well ahead of the average analyst estimate of roughly 263,000 vehicles, and topping the company’s previous record of 241,300 from the prior quarter. Annual handovers surged to more than 936,000 in 2021, up 87% from the previous year’s level, Austin, Texas-based Tesla said Sunday.</p><p>“This is a trophy-case quarter for Tesla as the company blew away even bull-case expectations,” Daniel Ives, an analyst at Wedbush Securities, said in an email. He called it a “jaw-dropper performance” for the end of the year that gives “massive tailwinds” heading into 2022.</p><p>The record quarter underscores the “green tidal wave taking hold” for Tesla and Chief Executive Officer Elon Musk, Ives said in a note to clients. The results also point to robust demand in China and Tesla’s skill at navigating the global semiconductor shortage, he said.</p><p>Musk, who has pledged delivery growth despite the “supply-chain nightmare” of 2021, praised his crew on Twitter.</p><p><img src=\"https://static.tigerbbs.com/ee8ecf3d5f76e1a511459de02365693c\" tg-width=\"830\" tg-height=\"496\" referrerpolicy=\"no-referrer\"/></p><p>Quarterly deliveries are one of the most closely watched indicators for Tesla. They underpin its financial results and are widely seen as a barometer of consumer demand for electric vehicles as a whole because the company has led the charge for battery-powered cars.</p><p>Tesla has said repeatedly it expects 50% annual increases in deliveries over a multiyear period. The seventh consecutive quarterly gain comes amid a global semiconductor slump that has crimped production at most other automakers and kept sales in check despite rising demand.</p><p>“Tesla continues to execute well, posting deliveries and production above consensus expectations,” Cowen analyst Jeffrey Osborne said. “As the competition heats up from incumbent OEMs and new entrants alike, we see 2022 becoming a critical year for Tesla.”</p><p>The EV market leader’s stock soared almost 50% in 2021 to give it a market valuation exceeding $1 trillion -- one of only a handful of U.S.-based public companies to achieve that status.</p><p>The shares reached a record high in early November before plunging after Musk began unloading 10% of his stake.</p><p><a href=\"https://ttm.financial/NW/1195533166\" target=\"_blank\"><b>Elon Musk’s Fortune Climbs $30 Billion on Tesla’s Record Quarter for Deliveries</b></a><b></b></p><p>Elon Musk started 2022 with a bang.</p><p><img src=\"https://static.tigerbbs.com/9bb18462e67b743b94632bf0093ff927\" tg-width=\"1000\" tg-height=\"667\" referrerpolicy=\"no-referrer\"/></p><p>Tesla Inc. reported it had smashed its previous record for vehicle deliveries, spurring a rally in the electric car-maker’s shares and creating one of the biggest one-day jumps in wealth.</p><p>Musk’s fortune jumped by $33.8 billion on Monday to $304.2 billion, according to the Bloomberg Billionaires Index. Jeff Bezos, second on the list, has a $196 billion fortune.</p><p>Tesla’s shares rose 13.5% to $1,199.78 on Monday after fourth-quarter results handily exceeded analysts’ estimates for auto deliveries.</p><p>The company’s market valuation jumped back above $1 trillion last month after a dip in November and early December.</p><p>Musk, who owns about 18% of Tesla, helped trigger the slide when he said he would reduce his stake in the company by 10%. He’ssoldmore than $10 billion worth of shares since November, part of a plan to generate cash to pay tax obligations.</p><p>Musk’s net worth, which also includes his stake in rocket manufacterer SpaceX, reached a high of $340 billion last year, surpassing the peak inflation-adjusted net worth of John D. Rockefeller and briefly making him the richest person in modern history.</p></body></html>","source":"lsy1584095487587","collect":0,"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>Tesla Adds $144 Billion to Market Value After Record Deliveries</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\">\nTesla Adds $144 Billion to Market Value After Record Deliveries\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-01-04 08:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.bloomberg.com/news/articles/2022-01-03/tesla-set-for-record-start-to-new-year-after-blowout-deliveries><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Monday’s 14% gain is stock’s best performance to start a yearCompany delivered 308,600 vehicles worldwide in fourth quarterTesla Inc. is off to a strong start to the new year after the electric-car ...</p>\n\n<a href=\"https://www.bloomberg.com/news/articles/2022-01-03/tesla-set-for-record-start-to-new-year-after-blowout-deliveries\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TSLA":"特斯拉"},"source_url":"https://www.bloomberg.com/news/articles/2022-01-03/tesla-set-for-record-start-to-new-year-after-blowout-deliveries","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1102940638","content_text":"Monday’s 14% gain is stock’s best performance to start a yearCompany delivered 308,600 vehicles worldwide in fourth quarterTesla Inc. is off to a strong start to the new year after the electric-car maker smashed its quarterly record for deliveries in what one analyst called a “trophy-case” performance.The company’s shares jumped 14% in New York, their biggest gain since March and best start to a year since Tesla went public more than a decade ago. The $144 billion in market value that Tesla added on Monday is the equivalent of an entire Honeywell International Inc. or Starbucks Corp. It’s also more than the value of almost 90% of the companies in the S&P 500 Index.Worldwide deliveries totaled 308,600 vehicles in the fourth quarter, well ahead of the average analyst estimate of roughly 263,000 vehicles, and topping the company’s previous record of 241,300 from the prior quarter. Annual handovers surged to more than 936,000 in 2021, up 87% from the previous year’s level, Austin, Texas-based Tesla said Sunday.“This is a trophy-case quarter for Tesla as the company blew away even bull-case expectations,” Daniel Ives, an analyst at Wedbush Securities, said in an email. He called it a “jaw-dropper performance” for the end of the year that gives “massive tailwinds” heading into 2022.The record quarter underscores the “green tidal wave taking hold” for Tesla and Chief Executive Officer Elon Musk, Ives said in a note to clients. The results also point to robust demand in China and Tesla’s skill at navigating the global semiconductor shortage, he said.Musk, who has pledged delivery growth despite the “supply-chain nightmare” of 2021, praised his crew on Twitter.Quarterly deliveries are one of the most closely watched indicators for Tesla. They underpin its financial results and are widely seen as a barometer of consumer demand for electric vehicles as a whole because the company has led the charge for battery-powered cars.Tesla has said repeatedly it expects 50% annual increases in deliveries over a multiyear period. The seventh consecutive quarterly gain comes amid a global semiconductor slump that has crimped production at most other automakers and kept sales in check despite rising demand.“Tesla continues to execute well, posting deliveries and production above consensus expectations,” Cowen analyst Jeffrey Osborne said. “As the competition heats up from incumbent OEMs and new entrants alike, we see 2022 becoming a critical year for Tesla.”The EV market leader’s stock soared almost 50% in 2021 to give it a market valuation exceeding $1 trillion -- one of only a handful of U.S.-based public companies to achieve that status.The shares reached a record high in early November before plunging after Musk began unloading 10% of his stake.Elon Musk’s Fortune Climbs $30 Billion on Tesla’s Record Quarter for DeliveriesElon Musk started 2022 with a bang.Tesla Inc. reported it had smashed its previous record for vehicle deliveries, spurring a rally in the electric car-maker’s shares and creating one of the biggest one-day jumps in wealth.Musk’s fortune jumped by $33.8 billion on Monday to $304.2 billion, according to the Bloomberg Billionaires Index. Jeff Bezos, second on the list, has a $196 billion fortune.Tesla’s shares rose 13.5% to $1,199.78 on Monday after fourth-quarter results handily exceeded analysts’ estimates for auto deliveries.The company’s market valuation jumped back above $1 trillion last month after a dip in November and early December.Musk, who owns about 18% of Tesla, helped trigger the slide when he said he would reduce his stake in the company by 10%. He’ssoldmore than $10 billion worth of shares since November, part of a plan to generate cash to pay tax obligations.Musk’s net worth, which also includes his stake in rocket manufacterer SpaceX, reached a high of $340 billion last year, surpassing the peak inflation-adjusted net worth of John D. Rockefeller and briefly making him the richest person in modern history.","news_type":1},"isVote":1,"tweetType":1,"viewCount":254,"authorTweetTopStatus":1,"verified":2,"comments":[{"author":{"id":"3580699589385230","authorId":"3580699589385230","name":"Mr. T","avatar":"https://static.tigerbbs.com/ffcbb09604bf679c78d4b172e4ad0c39","crmLevel":3,"crmLevelSwitch":0},"content":"My worry is that this is not sustainable.","text":"My worry is that this is not sustainable.","html":"My worry is that this is not sustainable."}],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9008131480,"gmtCreate":1641384048854,"gmtModify":1676533608355,"author":{"id":"3574951241870050","authorId":"3574951241870050","name":"Wnnn","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"🩸money 🥲🥲🤣🤣","listText":"🩸money 🥲🥲🤣🤣","text":"🩸money 🥲🥲🤣🤣","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9008131480","repostId":"1182721899","repostType":2,"repost":{"id":"1182721899","pubTimestamp":1641383671,"share":"https://www.laohu8.com/m/news/1182721899?lang=&edition=full","pubTime":"2022-01-05 19:54","market":"us","language":"en","title":"Cathie Wood Sells Another $50M in Tesla on Tuesday — Here's What She Bought Instead","url":"https://stock-news.laohu8.com/highlight/detail?id=1182721899","media":"Benzinga","summary":"Cathie Wood’sArk Investment Management on Tuesday booked more profit in Tesla Inc(NASDAQ:TSLA), sell","content":"<html><head></head><body><p><b>Cathie Wood</b>’s<b>Ark Investment Management</b> on Tuesday booked more profit in <b>Tesla Inc</b>(NASDAQ:TSLA), selling 44,132 shares — estimated to be worth $50.7 million based on the latest closing price — in the electric vehicle maker’s stock.</p><p>The <b>Elon Musk</b>-led company’s stock, which had risen about 50% in 2021,  closed 4.2% lower at $1,149.6 a share on Tuesday.</p><p>Tesla shares soared 13.5% on Monday after it reported fourth-quarter delivery volumes that far surpassed expectations.</p><p>Ark Invest owns shares in Tesla via three of its exchange-traded funds — the <b>Ark Innovation ETF</b>(NYSE:ARKK), the <b>Ark Autonomous Technology &amp; Robotics ETF</b>(NYSE:ARKQ) and the <b>Ark Next Generation Internet ETF</b>(NYSE:ARKW).</p><p>The three ETFs held about 1.7 million shares worth $2.05 billion in Tesla, prior to Tuesday’s trade.</p><p>Tesla on Sunday smashed fourth-quarter delivery records, posting its biggest quarterly and full-year delivery volume.</p><p>The St. Petersburg, Florida-based Ark has also been loading up in U.S.-listed Chinese electric vehicle maker <b>Xpeng Inc</b>(NYSE:XPEV) recently.</p><p>Here are some other key Ark Invest trades from Tuesday:</p><ul><li>Sold 1.98 million shares —estimated to be worth $81.2 million— in <b>Twitter Inc</b>(NYSE:TWTR). The micro-blogging company’s stock closed 4.2% lower at $40.9 a share.</li><li>Bought 462,613 shares — estimated to be worth $8 million — in <b>RobinhoodMarkets Inc</b>(NASDAQ:HOOD). Shares of the commission-free trading app that deals in stocks, exchange-traded funds and cryptocurrencies closed 5.6% lower at $17.4 a share.</li><li>Bought 304,356 shares — estimated to be worth $47.6 million — in <b>Block Inc</b>(NYSE:SQ). Shares of Block, formerly known as Square, closed 4.7% lower at $156.3 a share.</li><li>Bought 1,185,460 shares — estimated to be worth $31.5 million — in <b>DraftKings Inc</b>(NASDAQ:DKNG). Shares of the fantasy sports company closed 4.1% lower at $26.6 a share.</li><li>Sold 250,359 shares — estimated to be worth $12.5 million — in<b>Pinduoduo Inc</b>(NASDAQ:PDD) on the dayshares of the Chinese agri-tech company closed 11.2% lower at $49.8 a share.</li></ul></body></html>","source":"lsy1606299360108","collect":0,"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>Cathie Wood Sells Another $50M in Tesla on Tuesday — Here's What She Bought Instead</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; 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}\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\">\nCathie Wood Sells Another $50M in Tesla on Tuesday — Here's What She Bought Instead\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-01-05 19:54 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.benzinga.com/trading-ideas/long-ideas/22/01/24899364/cathie-wood-sells-another-50m-in-tesla-on-tuesday-heres-what-she-bought-instead><strong>Benzinga</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cathie Wood’sArk Investment Management on Tuesday booked more profit in Tesla Inc(NASDAQ:TSLA), selling 44,132 shares — estimated to be worth $50.7 million based on the latest closing price — in the ...</p>\n\n<a href=\"https://www.benzinga.com/trading-ideas/long-ideas/22/01/24899364/cathie-wood-sells-another-50m-in-tesla-on-tuesday-heres-what-she-bought-instead\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TSLA":"特斯拉"},"source_url":"https://www.benzinga.com/trading-ideas/long-ideas/22/01/24899364/cathie-wood-sells-another-50m-in-tesla-on-tuesday-heres-what-she-bought-instead","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1182721899","content_text":"Cathie Wood’sArk Investment Management on Tuesday booked more profit in Tesla Inc(NASDAQ:TSLA), selling 44,132 shares — estimated to be worth $50.7 million based on the latest closing price — in the electric vehicle maker’s stock.The Elon Musk-led company’s stock, which had risen about 50% in 2021,  closed 4.2% lower at $1,149.6 a share on Tuesday.Tesla shares soared 13.5% on Monday after it reported fourth-quarter delivery volumes that far surpassed expectations.Ark Invest owns shares in Tesla via three of its exchange-traded funds — the Ark Innovation ETF(NYSE:ARKK), the Ark Autonomous Technology & Robotics ETF(NYSE:ARKQ) and the Ark Next Generation Internet ETF(NYSE:ARKW).The three ETFs held about 1.7 million shares worth $2.05 billion in Tesla, prior to Tuesday’s trade.Tesla on Sunday smashed fourth-quarter delivery records, posting its biggest quarterly and full-year delivery volume.The St. Petersburg, Florida-based Ark has also been loading up in U.S.-listed Chinese electric vehicle maker Xpeng Inc(NYSE:XPEV) recently.Here are some other key Ark Invest trades from Tuesday:Sold 1.98 million shares —estimated to be worth $81.2 million— in Twitter Inc(NYSE:TWTR). The micro-blogging company’s stock closed 4.2% lower at $40.9 a share.Bought 462,613 shares — estimated to be worth $8 million — in RobinhoodMarkets Inc(NASDAQ:HOOD). Shares of the commission-free trading app that deals in stocks, exchange-traded funds and cryptocurrencies closed 5.6% lower at $17.4 a share.Bought 304,356 shares — estimated to be worth $47.6 million — in Block Inc(NYSE:SQ). Shares of Block, formerly known as Square, closed 4.7% lower at $156.3 a share.Bought 1,185,460 shares — estimated to be worth $31.5 million — in DraftKings Inc(NASDAQ:DKNG). Shares of the fantasy sports company closed 4.1% lower at $26.6 a share.Sold 250,359 shares — estimated to be worth $12.5 million — inPinduoduo Inc(NASDAQ:PDD) on the dayshares of the Chinese agri-tech company closed 11.2% lower at $49.8 a share.","news_type":1},"isVote":1,"tweetType":1,"viewCount":247,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9009914029,"gmtCreate":1640426827319,"gmtModify":1676533520722,"author":{"id":"3574951241870050","authorId":"3574951241870050","name":"Wnnn","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"Safety stocks ?","listText":"Safety stocks ?","text":"Safety stocks ?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9009914029","repostId":"2193917872","repostType":2,"repost":{"id":"2193917872","pubTimestamp":1640398248,"share":"https://www.laohu8.com/m/news/2193917872?lang=&edition=full","pubTime":"2021-12-25 10:10","market":"us","language":"en","title":"3 Best Buffett Stocks to Buy for the Long Haul","url":"https://stock-news.laohu8.com/highlight/detail?id=2193917872","media":"Motley Fool","summary":"Each of these three big pharma stocks are featured in Berkshire Hathaway's massive portfolio.","content":"<p>Since Warren Buffett took full control of <b>Berkshire Hathaway</b> in 1965, it became a diversified holding company with investments in publicly traded companies totaling nearly $345 billion at the time of writing.</p>\n<p>The Oracle of Omaha's reputation of buying the highest quality businesses means that many individual investors could also benefit from adding these stocks to their portfolios. Here are three healthcare stocks that Buffett owns, which you may also want to consider buying and holding for the long run.</p>\n<h2>1. Johnson &amp; Johnson</h2>\n<p>The first pharma stock within Berkshire's portfolio to contemplate purchasing is <b>Johnson &amp; Johnson</b> (NYSE:JNJ). While the stock is one of Buffett's smallest holdings, valued at just under $55 million, this doesn't take away from its 59 consecutive years of dividend increases that make the stock a Dividend King.</p>\n<p>J&amp;J will be spinning off its slower-growing and less profitable consumer health segment in the next 18 to 24 months, which should allow the company to focus on its faster-growing, more profitable pharmaceutical segment.</p>\n<p>J&amp;J has a strong existing drug portfolio, which should be able to make up for the upcoming 2025 to 2026 patent expirations for its top-selling drug known, Stelara. Year to date, the immunology drug made up just 9.9% of J&amp;J's $69 billion in net sales.</p>\n<p>These drugs include the immunology blockbuster Tremfya, which received its first of three U.S. Food and Drug Administration (FDA) approvals to date in July 2017. Another drug that was recently approved by the FDA was the oncology blockbuster called Darzalex, which received its first of nine FDA approvals to date in November 2015. These two drugs have grown their year-to-date revenue at high-40% clips year over year and should remain under patent most of this decade.</p>\n<p>J&amp;J's enviable existing drug portfolio and its nearly four dozen indications in late-stage clinical trials explain why analysts anticipate that the stock will deliver 8% annual non-GAAP (adjusted) earnings per share (EPS) growth over the next five years.</p>\n<p>Income investors can scoop up J&amp;J's 2.5% dividend yield at a forward P/E ratio of just 16.2 times, which makes the steady healthcare stock a great buy for the long term.</p>\n<h2>2. Bristol Myers Squibb</h2>\n<p>Another Buffett stock that could be a great fit in your portfolio is <b>Bristol Myers Squibb</b> (NYSE:BMY). Berkshire's Bristol Myers Squibb stake totals nearly $1.4 billion, making it one of the largest healthcare holdings in Berkshire's portfolio.</p>\n<p>Bristol Myers Squibb's oncology blockbusters Revlimid and Opdivo and the anticoagulant blockbuster co-owned with <b>Pfizer</b> (NYSE:PFE) named Eliquis each face patent expirations later this decade. While looming patent expirations on three drugs that account for approximately two-thirds of your company's total revenue sounds frightening, this is nothing new; it's just the nature of Bristol Myers Squibb's industry.</p>\n<p>What matters most is that a company is proactive in developing and acquiring its next generation of blockbuster drugs to absorb key patent expirations. With more than 50 compounds in over 40 different disease areas currently in development at Bristol Myers Squibb, this is exactly what the company has been doing for years now.</p>\n<p>As a result, analysts are projecting that Bristol Myers Squibb will be able to generate 6% annual earnings growth through the next five years.</p>\n<p>Yield-hungry investors can buy Bristol Myers Squibb's market-crushing 3.5% yield at a ridiculously cheap forward P/E ratio of 7.9, which is what makes the stock a buy for those looking to hedge against inflation.</p>\n<h2>3. AbbVie</h2>\n<p>Finally, a Buffett stock that'd also be a good fit for income investors is <b>AbbVie</b> (NYSE:ABBV). Berkshire currently holds about $1.9 billion worth of AbbVie stock.</p>\n<p>It's well known at this point that the biopharmaceutical's top-selling drug in the world, Humira, will be facing intense biosimilar competition in the U.S. beginning in 2023. Even though the immunology drug's U.S. sales made up 31% of AbbVie's $41.24 billion total year-to-date sales, the company's pipeline should be able to stabilize and grow its net revenue beyond 2023.</p>\n<p>AbbVie has 54 compounds in various stages of clinical trials, which is why analysts are forecasting that the stock will grow its adjusted EPS 4.5% annually in the next five years.</p>\n<p>AbbVie's massive 4.4% dividend yield can be picked up at a forward P/E ratio of only 9.3.&nbsp;This is an attractive valuation for a stock with the ability to fight off inflation with healthy dividend hikes.</p>","source":"fool_stock","collect":0,"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>3 Best Buffett Stocks to Buy for the Long Haul</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\">\n3 Best Buffett Stocks to Buy for the Long Haul\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-25 10:10 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/12/24/3-best-buffett-stocks-to-buy-for-the-long-haul/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Since Warren Buffett took full control of Berkshire Hathaway in 1965, it became a diversified holding company with investments in publicly traded companies totaling nearly $345 billion at the time of ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/12/24/3-best-buffett-stocks-to-buy-for-the-long-haul/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"JNJ":"强生","ABBV":"艾伯维公司","BMY":"施贵宝"},"source_url":"https://www.fool.com/investing/2021/12/24/3-best-buffett-stocks-to-buy-for-the-long-haul/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2193917872","content_text":"Since Warren Buffett took full control of Berkshire Hathaway in 1965, it became a diversified holding company with investments in publicly traded companies totaling nearly $345 billion at the time of writing.\nThe Oracle of Omaha's reputation of buying the highest quality businesses means that many individual investors could also benefit from adding these stocks to their portfolios. Here are three healthcare stocks that Buffett owns, which you may also want to consider buying and holding for the long run.\n1. Johnson & Johnson\nThe first pharma stock within Berkshire's portfolio to contemplate purchasing is Johnson & Johnson (NYSE:JNJ). While the stock is one of Buffett's smallest holdings, valued at just under $55 million, this doesn't take away from its 59 consecutive years of dividend increases that make the stock a Dividend King.\nJ&J will be spinning off its slower-growing and less profitable consumer health segment in the next 18 to 24 months, which should allow the company to focus on its faster-growing, more profitable pharmaceutical segment.\nJ&J has a strong existing drug portfolio, which should be able to make up for the upcoming 2025 to 2026 patent expirations for its top-selling drug known, Stelara. Year to date, the immunology drug made up just 9.9% of J&J's $69 billion in net sales.\nThese drugs include the immunology blockbuster Tremfya, which received its first of three U.S. Food and Drug Administration (FDA) approvals to date in July 2017. Another drug that was recently approved by the FDA was the oncology blockbuster called Darzalex, which received its first of nine FDA approvals to date in November 2015. These two drugs have grown their year-to-date revenue at high-40% clips year over year and should remain under patent most of this decade.\nJ&J's enviable existing drug portfolio and its nearly four dozen indications in late-stage clinical trials explain why analysts anticipate that the stock will deliver 8% annual non-GAAP (adjusted) earnings per share (EPS) growth over the next five years.\nIncome investors can scoop up J&J's 2.5% dividend yield at a forward P/E ratio of just 16.2 times, which makes the steady healthcare stock a great buy for the long term.\n2. Bristol Myers Squibb\nAnother Buffett stock that could be a great fit in your portfolio is Bristol Myers Squibb (NYSE:BMY). Berkshire's Bristol Myers Squibb stake totals nearly $1.4 billion, making it one of the largest healthcare holdings in Berkshire's portfolio.\nBristol Myers Squibb's oncology blockbusters Revlimid and Opdivo and the anticoagulant blockbuster co-owned with Pfizer (NYSE:PFE) named Eliquis each face patent expirations later this decade. While looming patent expirations on three drugs that account for approximately two-thirds of your company's total revenue sounds frightening, this is nothing new; it's just the nature of Bristol Myers Squibb's industry.\nWhat matters most is that a company is proactive in developing and acquiring its next generation of blockbuster drugs to absorb key patent expirations. With more than 50 compounds in over 40 different disease areas currently in development at Bristol Myers Squibb, this is exactly what the company has been doing for years now.\nAs a result, analysts are projecting that Bristol Myers Squibb will be able to generate 6% annual earnings growth through the next five years.\nYield-hungry investors can buy Bristol Myers Squibb's market-crushing 3.5% yield at a ridiculously cheap forward P/E ratio of 7.9, which is what makes the stock a buy for those looking to hedge against inflation.\n3. AbbVie\nFinally, a Buffett stock that'd also be a good fit for income investors is AbbVie (NYSE:ABBV). Berkshire currently holds about $1.9 billion worth of AbbVie stock.\nIt's well known at this point that the biopharmaceutical's top-selling drug in the world, Humira, will be facing intense biosimilar competition in the U.S. beginning in 2023. Even though the immunology drug's U.S. sales made up 31% of AbbVie's $41.24 billion total year-to-date sales, the company's pipeline should be able to stabilize and grow its net revenue beyond 2023.\nAbbVie has 54 compounds in various stages of clinical trials, which is why analysts are forecasting that the stock will grow its adjusted EPS 4.5% annually in the next five years.\nAbbVie's massive 4.4% dividend yield can be picked up at a forward P/E ratio of only 9.3. This is an attractive valuation for a stock with the ability to fight off inflation with healthy dividend hikes.","news_type":1},"isVote":1,"tweetType":1,"viewCount":376,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9003975749,"gmtCreate":1640867588239,"gmtModify":1676533549178,"author":{"id":"3574951241870050","authorId":"3574951241870050","name":"Wnnn","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"Still will go up I feel 😂","listText":"Still will go up I feel 😂","text":"Still will go up I feel 😂","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9003975749","repostId":"1141716709","repostType":4,"repost":{"id":"1141716709","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1640864228,"share":"https://www.laohu8.com/m/news/1141716709?lang=&edition=full","pubTime":"2021-12-30 19:37","market":"us","language":"en","title":"Tesla Recalls Over 475k Vehicles for Camera, Latch Issues","url":"https://stock-news.laohu8.com/highlight/detail?id=1141716709","media":"Tiger Newspress","summary":"Shares of Tesla are down about 1.5% in pre-open Thursday after the company filed a recall of over 47","content":"<html><head></head><body><p>Shares of Tesla are down about 1.5% in pre-open Thursday after the company filed a recall of over 475,000 vehicles.</p><p><img src=\"https://static.tigerbbs.com/3acd6a90c5563e5b0720756c55d94748\" tg-width=\"840\" tg-height=\"619\" referrerpolicy=\"no-referrer\"/></p><p>Elon Musk’s company will recall 356,309 US vehicles related to the rearview camera cable harness that may be damaged by the opening and closing of the trunk lid. This could impact the rearview camera image from displaying. Ultimately, this can raise the risk of a crash, according to the NHTSA.</p><p>In a report dated December 21, NTHSA said that Tesla is also recalling 119,009 2014-21 Model S EV units due to the issues related to the front trunk latch assembly that are misaligned. This then prevents the secondary hood latch from engaging.</p><p>In November, Tesla stock price fell after the company recalled almost 12,000 EVs due to a software issue.</p></body></html>","collect":0,"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>Tesla Recalls Over 475k Vehicles for Camera, Latch Issues</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\">\nTesla Recalls Over 475k Vehicles for Camera, Latch Issues\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2021-12-30 19:37</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Shares of Tesla are down about 1.5% in pre-open Thursday after the company filed a recall of over 475,000 vehicles.</p><p><img src=\"https://static.tigerbbs.com/3acd6a90c5563e5b0720756c55d94748\" tg-width=\"840\" tg-height=\"619\" referrerpolicy=\"no-referrer\"/></p><p>Elon Musk’s company will recall 356,309 US vehicles related to the rearview camera cable harness that may be damaged by the opening and closing of the trunk lid. This could impact the rearview camera image from displaying. Ultimately, this can raise the risk of a crash, according to the NHTSA.</p><p>In a report dated December 21, NTHSA said that Tesla is also recalling 119,009 2014-21 Model S EV units due to the issues related to the front trunk latch assembly that are misaligned. This then prevents the secondary hood latch from engaging.</p><p>In November, Tesla stock price fell after the company recalled almost 12,000 EVs due to a software issue.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TSLA":"特斯拉"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1141716709","content_text":"Shares of Tesla are down about 1.5% in pre-open Thursday after the company filed a recall of over 475,000 vehicles.Elon Musk’s company will recall 356,309 US vehicles related to the rearview camera cable harness that may be damaged by the opening and closing of the trunk lid. This could impact the rearview camera image from displaying. Ultimately, this can raise the risk of a crash, according to the NHTSA.In a report dated December 21, NTHSA said that Tesla is also recalling 119,009 2014-21 Model S EV units due to the issues related to the front trunk latch assembly that are misaligned. This then prevents the secondary hood latch from engaging.In November, Tesla stock price fell after the company recalled almost 12,000 EVs due to a software issue.","news_type":1},"isVote":1,"tweetType":1,"viewCount":392,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9043109245,"gmtCreate":1655881616287,"gmtModify":1676535725012,"author":{"id":"3574951241870050","authorId":"3574951241870050","name":"Wnnn","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"Awesome deep dive&nbsp;","listText":"Awesome deep dive&nbsp;","text":"Awesome deep dive","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9043109245","repostId":"1178592634","repostType":4,"repost":{"id":"1178592634","pubTimestamp":1655876844,"share":"https://www.laohu8.com/m/news/1178592634?lang=&edition=full","pubTime":"2022-06-22 13:47","market":"us","language":"en","title":"Palantir: The Black Box Company","url":"https://stock-news.laohu8.com/highlight/detail?id=1178592634","media":"Seeking Alpha","summary":"SummaryGround Zero led to Zero to One — One being Palantir.Palantir is building the central operatin","content":"<html><head></head><body><p><b>Summary</b></p><ul><li>Ground Zero led to Zero to One — One being Palantir.</li><li>Palantir is building the central operating system of the modern world.</li><li>Growth remains robust, particularly in its Commercial segment, which will be the main growth engine for the company in the next decade.</li><li>Dilution and GAAP unprofitability remain the biggest risks, especially so in this kind of market environment.</li><li>Although we may see further downside, the selloff seems to be overdone. Palantir is a buy.</li></ul><p>Given the complexity and mysterious nature of the business, this Palantir (NYSE:PLTR) deep dive is probably the most difficult piece that I&#39;ve written compared to other company deep dives that I&#39;ve covered so far. I hope you find value in this article. Enjoy!</p><p><b>Investment Thesis</b></p><p>Palantir: the meme stock, the cult stock, the black box company. There&#39;s a lot of chatter about Palantir on the Internet and I&#39;ve come to notice that there&#39;s a lot of love and hate for the company. Regardless of what others say, it is undeniable that Palantir is one of the most mission-critical companies today.</p><p>Palantir is building the central operating system of the modern world, turning chaos into order. The ultimate bull thesis is that Palantir will replace legacy data and operations infrastructure, and Palantir&#39;s technology and management are more than capable of achieving this ambition.</p><p>The selloff has also created a wonderful opportunity to accumulate shares of Palantir. Palantir is a Buy at these levels.</p><p><b>Value Proposition</b></p><p>On 11th September 2001, 19 terrorists hijacked four commercial airlines during what seemed to be a normal working day for corporate America. What followed left the world at a standstill — things happened so slowly and so quickly that billions of people all over the globe were paralyzed by what they were seeing on their TV screens.</p><p>Two planes struck both the North and South Towers of the World Trade Center, only to leave both skyscrapers crumbling down a few hours later. Another plane crashed on the west side of The Pentagon, the home of the US Department of Defense, which left question marks on the true strength of the US military. The last plane, fortunately, failed to demolish its intended building target as a passenger steered the plane to an open field.</p><p>2,977 people lost their lives that day.</p><p>Undoubtedly, 9/11 left a huge scar on America. For one, the World Trade Center crash site was dubbed Ground Zero. While America work its way to recover and regain its confidence after the attacks, five entrepreneurs — Peter Thiel, Joe Lonsdale, Stephen Cohen, Nathan Gettings, and Alex Karp — joined forces to form Palantir. The name of the company resembles palantíri or &#34;seeing stones&#34; from the movie <i>The Lord of the Rings</i>. These stones were balls of crystal that enable the users to communicate with one another and to see afar, much like what Palantir was designed to do — to identify, anticipate, and prevent future attacks.</p><p>In essence, Ground Zero became the stepping stone to Zero to One—<i>One</i> being Palantir.</p><p>This is a good segway to the first topic of this article: what does Palantir do as a business?</p><p>In a nutshell, Palantir builds and deploys the foundational software of tomorrow that serves as the central operating system for its customers.</p><p>Traditionally, government and commercial institutions need to invest millions and even billions of dollars to build their own digital infrastructures, enterprise data warehouses, and digital twin models, which are incredibly difficult, complex, and risky to execute. But for Palantir, the more difficult, complex, and risky it is, the bigger the opportunity and the more likely it is for Palantir to succeed.</p><p>With that in mind, Palantir aims to help organizations to accelerate their digital transformation by integrating their data, decisions, and operations at scale. In other words, Palantir is a big data platform that helps companies make sense of their data to make data-driven decisions.</p><p>This is achieved through Palantir&#39;s three core products: Gotham, Foundry, and Apollo.</p><p><i><b>Gotham</b></i></p><p><b>Palantir Gotham is the operating system for government decision-making</b>. It has been used by government agencies including the USIC, NSA, FBI, CDC, and Air force to combat terrorism and analyze various highly-sensitive, highly-confidential matters. Rumors have also surfaced about Palantir Gotham playing a certain role in helping the US Navy SEALs locate and assassinate former Al-Qaeda leader, Osama bin Laden.</p><p><img src=\"https://static.tigerbbs.com/abaa773acc4f4b1727a9e2dfdfc1102b\" tg-width=\"1280\" tg-height=\"788\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Website</p><p>Aside from government agencies, financial institutions have also adopted Gotham specifically for fraud detection and investigations.</p><p>Gotham leverages artificial intelligence to identify patterns, threats, and hidden information deep within cluttered datasets. At the same time, machine learning embedded in its software provides continuous feedback loops which improve its models over time, allowing for smarter and faster decision-making.</p><p>Given that Gotham caters specifically to government functions, not much information has been published regarding its technology, thus the black-box nature of the overall business. The company&#39;s S-1 filing does cover a few features but it is quite vague, to say the least. On one hand, we can look at Palantir&#39;s commercial product, Foundry, to at least get some level of understanding of how Gotham works.</p><p><i><b>Foundry</b></i></p><p><b>Palantir Foundry is the operating system for modern enterprises.</b> Foundry has an open architecture and it integrates siloed data sources, analytics, and teams into a common foundation.</p><p><img src=\"https://static.tigerbbs.com/2d239b478ba11f2450bfd1fa421e0bd8\" tg-width=\"1280\" tg-height=\"1237\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Website</p><p>There are 5 layers to the Foundry stack, with each layer bridging the gap between data analytics and operational decision-making:</p><ul><li><b>Data Integration</b>— Foundry utilizes 200+ data connectors to integrate different data sources, data lakes, and data warehouses across the enterprise, across different types of data points including structured, unstructured, streaming, IoT, transactional, geospatial data, and more.</li><li><b>Model Integration</b>— Customers can integrate business logic and models by using Foundry&#39;s open, interoperable architecture along with third-party models like Snowflake (SNOW), Microsoft Azure (MSFT), and AWS (AMZN). Foundry can extend these third-party platforms into operations with bi-directional data syncs to ensure that Foundry is always in sync with those existing data systems.</li><li><b>Ontology</b>— Foundry connects all the data and models, and brings them together into a common foundation that can be used by the entire organization. This is called the Ontology and it is the operational layer of the organization. The Ontology connects all the digital assets (data and models) to their real-world counterparts (such as equipment, products, and customer orders), forming a digital twin of the enterprise that users can interact with.</li><li><b>Workflows</b>— With the Ontology in place, users can develop custom workflows or use out-of-the-box applications. As more and more objects, actions, and workflows are added, the shared Ontology evolves over time with greater operational knowledge.</li><li><b>Decision Orchestration</b>— After integrating all the historically siloed data and models, Foundry enables users to take actionable and insightful decisions, whether through manual operations, simulations, or AI.</li></ul><p>While this may be an oversimplified explanation of the Foundry platform, it does give us a rough idea of how Foundry works. Perhaps, we can take a look at a case study to get a better grasp of what Foundry does.</p><p>For example, here&#39;s how one of the largest utility companies in the US, PG&amp;E, uses Foundry:</p><ul><li><b>Data Integration</b>— PG&amp;E is facing a massive climate threat as global warming increases the risks of wildfire breakouts. As such, the company needs to leverage the 8-10 billion data points it receives every single day to operate a safe and reliable energy system. Foundry helps to aggregate and make sense of these data.</li><li><b>Model Integration</b>— Palantir has an open architecture that allows PG&amp;E to integrate Foundry and other third-party models into a single platform. This enables PG&amp;E to utilize all the models and data across various platforms, which ultimately gives richer datasets to combat wildfires.</li><li><b>Ontology</b>— PG&amp;E has launched the Enhanced Powerline Safety Settings to protect the grid and prevent wildfires. By integrating equipment health data, geospatial location, and network topology, Foundry is able to create a digital representation of PG&amp;E&#39;s entire grid and its 25,000+ miles of wire. This way, PG&amp;E can monitor the various components of the grid, and identify which of them need preventative maintenance.</li></ul><p><img src=\"https://static.tigerbbs.com/3db99337db4e48508064826092e69e90\" tg-width=\"640\" tg-height=\"351\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir YouTube</p><ul><li><b>Workflows</b>— PG&amp;E can leverage a common set of objects, actions, and relationships to develop custom workflows. Foundry enables PG&amp;E to manage workflows across the lifecycle of the grid including scenario modeling, work planning, scheduling, executing, operating, and closing.</li><li><b>Decision Orchestration</b>— Based on the new data that Foundry presented, PG&amp;E can now make more informed decisions to protect its grid. For instance, PG&amp;E can automate the switching on and off of certain devices in the grid, based on specific weather conditions, thus decreasing the likelihood of wildfires.</li></ul><p>Again, this is just one of many use cases. Foundry is applicable to other industries including auto racing, anti-money laundering, cryptocurrency, financial services, emerging startups, supply chains, telecommunications, and more.</p><p>Ultimately, Foundry aims to be the central operating system for modern commercial entities, replacing legacy data infrastructures and operating systems. Palantir has even gone as far as claiming that Foundry will be the next AWS in the coming decade.</p><p><img src=\"https://static.tigerbbs.com/0f4ac18bbb1849ffa347e4007eed824b\" tg-width=\"640\" tg-height=\"358\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir FY2022 Q1 Investor Presentation</p><p><i><b>Apollo</b></i></p><p><b>Palantir Apollo is the operating system for continuous delivery</b>. Apollo serves as the software to manage, deploy, and maintain Gotham and Foundry worldwide, across virtually any environment. Before its launch, deploying Palantir&#39;s software involves manual installations, upgrades, and configurations, which is especially true for the non-tech savvy governmental organizations. Back in 2008, Palantir Gotham ran on-premises, which is time-consuming and not scalable, thus leading to few software upgrades or updates.</p><p>Fast forward to 2016, Palantir launched the cloud-based Foundry, which gained positive reception from its commercial customers. As such, Palantir also began offering Gotham through the cloud. This allowed for the continuous delivery of Palantir&#39;s user-facing products, and it is made possible through Apollo.</p><p><img src=\"https://static.tigerbbs.com/3006a9ff19bf075547fa85acddd820b8\" tg-width=\"1280\" tg-height=\"849\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Blog</p><p>Apollo is an autonomous software deployment platform. Developers merge code once and can deploy software across all environments from a single pane of glass. With Apollo, Palantir&#39;s software — whether it be initial setup, new features, or security updates — can be rapidly and securely delivered through on-premise data centers, classified networks, embedded edge devices, the cloud, and more. More importantly, Apollo enables Palantir to bring its SaaS offering to environments where no SaaS has gone before.</p><p><img src=\"https://static.tigerbbs.com/e219616cba00fa8a47698f84061a8030\" tg-width=\"1280\" tg-height=\"1198\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Apollo Documentation</p><p>With the ever-growing popularity of SaaS offerings, the launch of Apollo enhances Palantir&#39;s distribution prowess and market adoption. Not only that, but it also accelerates customers&#39; time to value as well as caters to a broader range of customers given the vast deployment options available.</p><p>With all that said, despite its somewhat secretive nature as a public company, it seems that Palantir&#39;s three platforms display top-level interoperability and security, setting high standards to be the central operating system of the modern world. Its 2-decade tenure, solid government exposure, and widening customer base are also testaments to its unique technology offering.</p><p><b>Market Opportunity</b></p><p>According to Palantir&#39;s S-1 Filing, its total addressable market (TAM) is about $113 billion, comprising $63 billion for the government segment and $56 billion for the commercial segment. Breaking it down further by geography, Palantir estimated that the TAM for the US government sector is $26 billion while the international government sector is estimated to be $37 billion in value.</p><p>These estimates were calculated back in 2020, and we all know that there have been several important developments over the last couple of years that could mean TAM expansion for Palantir (pandemic, Russia-Ukraine war, cryptocurrency acceptance, SPAC boom, supply chain constraints, etc.). Furthermore, Palantir has rolled out additional features to supplement its core software products, which should also expand its use cases and TAM.</p><p><img src=\"https://static.tigerbbs.com/f2373ea9af4511b7dc0d5862fb73bfcb\" tg-width=\"640\" tg-height=\"359\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir FY2022 Q1 Investor Presentation</p><p>It is important to note that Palantir competes first and for most, with internal software developers where companies usually attempt to build in-house data platforms from scratch. In the fast-changing modern world, companies want speed and certainty — building their own operating systems is too high of a risk to take. That&#39;s where the opportunity is for Palantir.</p><p>Industry analysts have also sized the Big Data Analytics market to reach $200 to $600 billion+ over the next few years. It is also worth mentioning that the US government total expenditures have been on a long-term upward trajectory, which means higher incremental budgets for defense and intelligence initiatives that can flow to Palantir Gotham.</p><p><img src=\"https://static.tigerbbs.com/c57322e7cbf95536c0156247a1279152\" tg-width=\"640\" tg-height=\"247\" referrerpolicy=\"no-referrer\"/></p><p>Source: FRED Government Total Expenditures</p><p><b>Business Model</b></p><p>The company generates revenue from the sale of cloud-based subscriptions and on-premises subscriptions — both of these include ongoing operations and maintenance services. Revenue is generally recognized over the contract term on a ratable basis.</p><p>In addition, Palantir also generates revenue from professional services such as on-demand support, platform configurations, training, and data modeling support.</p><p>According to the S-1, Palantir&#39;s &#34;pricing is based primarily on the value that we anticipate our software platforms will produce for our customers.&#34; As such, pricing and customer billings vary from contract to contract.</p><p>Palantir also incorporates usage-based pricing for Foundry, thus allowing smaller commercial customers to use Foundry without breaking the bank. As these customers scale, Palantir stands to benefit from increased usage of its platform.</p><p><img src=\"https://static.tigerbbs.com/110e80db621909781b1018543e62944c\" tg-width=\"640\" tg-height=\"360\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir FY2022 Q1 Investor Presentation</p><p>Central to its business model is its Acquire-Expand-Scale strategy:</p><ul><li><b>Acquire</b>— Customers with less than $100,000 in Revenue belong in this category. The Acquire phase involves short-term pilot projects with little to no cost to customers, in an attempt to get them to experience Palantir&#39;s value proposition. Palantir operates at a loss during this phase. However, it is expected to generate significant Revenue over time. For example, the same customers in the 2020-Acquire cohort generated $36.8 million in 2021, as opposed to just $0.3 million in the previous year.</li><li><b>Expand</b>— Customers with more than $100,000 in Revenue but negative Contribution Margins, fall into this category. The Expand phase is where customers begin to realize Palantir&#39;s value proposition, and therefore, begin ramping up investments in the software. Similar to the Acquire phase, Palantir operates at a loss during the Expand phase. However, Revenue begins to scale at this stage. For instance, 2020-Expand cohort customers generated $83.3 million in 2021, as opposed to just $20.3 million in 2020. On the flip side, Contribution Margin for this cohort was (150)%.</li><li><b>Scale</b>— Customers with more than $100,000 in Revenue and positive Contribution Margins, belong in this category. In the Scale phase, Palantir&#39;s investment costs relative to Revenue drops as customers become self-sufficient. 2020-Scale cohort customers generated $1.3 billion in 2021, as compared to $1.1 billion in the prior year. Contribution Margin for this cohort was 63% for both 2020 and 2021.</li></ul><p>From this Acquire-Expand-Scale strategy, we can see why Palantir may incur short-term losses in exchange for robust, stable Revenue and Contribution Profit generation in the long term.</p><p><b>Growth</b></p><p>Q1 Revenue came in at $490 million, which is an increase of 31% YoY. As you can see, growth has decelerated over the last few quarters as Palantir grows over a larger base. Suffice to say, we are unlikely to see the 40%+ growth rates that investors are so accustomed to seeing. However, I believe Palantir has what it takes to at least produce 30%+ growth rates over the next few years as new and existing customers continue to adopt Palantir&#39;s breakthrough software.</p><p><img src=\"https://static.tigerbbs.com/7559544858a128c3016ab6450b35b368\" tg-width=\"640\" tg-height=\"430\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Investor Relations and Author&#39;s Analysis</p><p>As a supplemental metric, Billings — which is Revenue plus changes in Contract Liabilities — grew faster than overall Revenue. Contract Liabilities consist of Deferred Revenue and Customer Deposits that have not been recognized as Revenue. As such, the 35% growth in Billings means that there&#39;s higher Revenue Growth potential than meets the eye. This is supported by a 157% increase in the number of deals closed in Q1, which totaled 208 deals, compared to last year&#39;s 81 deals. Nonetheless, it is still a deceleration from prior quarters.</p><p><img src=\"https://static.tigerbbs.com/595648e598473dca2315f246c7651bf9\" tg-width=\"640\" tg-height=\"433\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Investor Relations and Author&#39;s Analysis</p><p>The slowdown in growth was primarily due to the lagging Government segment. Q1 Government Revenue was $242 million, up by only 16% YoY. According to the company&#39;s10-Q, virtually all of the Government Revenue growth came from existing customers as of Q4. The softness in Government Revenue is clearly a concern given that Palantir&#39;s bull thesis is closely tied to its relationship with government agencies. However, management did mention in the Q1 earnings call that Government Revenue is expected to reaccelerate in the next quarter:</p><blockquote>In the face of our customers&#39; challenges, we have and will continue to incur expenses prior to having contracts in the delivery of mission-critical capabilities. Following these investments, we expect acceleration of our U.S. government revenue into the second half of the year. In Q2 to date, we&#39;ve already seen the reacceleration of U.S. government revenue and expect<b>acceleration of the overall government segment to follow</b>in the next quarter or shortly thereafter — CFO Dave Glazer.</blockquote><p><img src=\"https://static.tigerbbs.com/e26c627c67284b3cc48993458f06aef7\" tg-width=\"640\" tg-height=\"428\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Investor Relations and Author&#39;s Analysis</p><p>On the other hand, Q1 Commercial Revenue growth remained robust, which saw a 54% YoY increase, to $205 million. This is the 5th straight quarter where Commercial Revenue accelerated. In the chart below, I&#39;ve included overall, US, and Non-US growth rates for reference. As you can see, US Commercial Revenue growth outpaced overall company growth, posting a whopping 136% YoY increase. Furthermore, management expects 2022 US Commercial Revenue to double YoY for the 3rd consecutive year, to $400 million+. This shows the increasing popularity and unmatched value proposition offered by Palantir Foundry.</p><p><img src=\"https://static.tigerbbs.com/a156be633835fada048f2b61c2a619b9\" tg-width=\"640\" tg-height=\"428\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Investor Relations and Author&#39;s Analysis</p><p>Taking a look at customer count, we can see why there are discrepancies between the two segments. As shown below, Palantir only added 4 new Government Customers, YoY. On the other hand, Palantir added 124 new Commercial Customers. It is also worth noting that despite US Commercial Customers making up 37% of total customer count, US Commercial Revenue only makes up 15% of Total Revenue. This shows high growth potential as Commercial Customers graduate from the Acquire, to Expand, to Scale phases.</p><p><img src=\"https://static.tigerbbs.com/0f97cf954faaae336cbf0de86d37cbab\" tg-width=\"640\" tg-height=\"181\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Investor Relations and Author&#39;s Analysis</p><p>On a side note, Revenue Per Top 20 Customer was $45 million, up 24% YoY. In addition, Net Dollar Retention rate was 124%, a drop from Q4&#39;s 131%. The softness in these metrics may yet be another indication that Palantir&#39;s growth has peaked.</p><p><img src=\"https://static.tigerbbs.com/525de0a8212ee91c6b520d7e32ed05c4\" tg-width=\"640\" tg-height=\"433\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Investor Relations and Author&#39;s Analysis</p><p>All in all, growth for Palantir as a whole remains robust, although we are seeing some significant slowdown in the Government department. However, Foundry and the Commercial segment seem to display a healthy pipeline, which should serve as the next growth engine for the company.</p><p><b>Profitability</b></p><p>Turning to the profitability of the company, Q1 Gross Profit was $352 million, which is a 79% Gross Margin. We can see that Gross Margins have been improving steadily over the last few quarters, demonstrating economies of scale within the business.</p><p><img src=\"https://static.tigerbbs.com/29f1c07a5d9b8546479cdfeae18d3f8c\" tg-width=\"640\" tg-height=\"430\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Investor Relations and Author&#39;s Analysis</p><p>Contribution Profit — which is Gross Profit minus Sales &amp; Marketing Expenses but excludes Share-based Compensation (SBC) — was $252 million in Q1. This is a measure of operational efficiency in terms of deploying its software to customers. Q1 Contribution Margin was 57%, and you can see that it has trailed down as of lately. As discussed in the Business Model section, Contribution Margins are lower for customers in the Acquire and Expand phases. Since Palantir is currently focusing on acquiring new customers, especially in the Commercial realm, we can expect downward pressure on Contribution Margins in the short-to-medium term.</p><p><img src=\"https://static.tigerbbs.com/95a2cec84256bad8f80210ee7295163f\" tg-width=\"640\" tg-height=\"430\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Investor Relations and Author&#39;s Analysis</p><p>Operating Profit for the quarter was $(39) million, a (9)% Margin. On an Adjusted basis, Operating Profit was $117 million, a 26% Margin. Adjusted Operating Margin has been trending downwards due to management ramping up investments to market its software, including expanding its direct sales team. Management mentioned that this trend should continue in the foreseeable future.</p><p><img src=\"https://static.tigerbbs.com/4a40b6efb695a06694e560bb5ad6b9a7\" tg-width=\"640\" tg-height=\"430\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Investor Relations and Author&#39;s Analysis</p><p>As you may have guessed, the negative GAAP Operating Margin is due to heavy SBC. Despite a stabilization in SBC after its direct listing back in 2020 Q3, SBC as a % of Revenue remains high at 33% as of Q1. However, I expect SBC to continue to drop moving forward, possibly to the 10% level over time.</p><p><img src=\"https://static.tigerbbs.com/e566cfd69fb5fe4a2a65d9f854983283\" tg-width=\"640\" tg-height=\"419\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Investor Relations and Author&#39;s Analysis</p><p>Q1 Net Income is much worse, which was $(101) million, a (23)% Margin. Adjusted Net Income, on the other hand, is positive at a 10% Margin.</p><p><img src=\"https://static.tigerbbs.com/a009de5afe198f34d587c05b0539f2e6\" tg-width=\"640\" tg-height=\"430\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Investor Relations and Author&#39;s Analysis</p><p>The poor Net Income performance relative to Operating Income is due to Palantir&#39;s realized and unrealized losses from Investments, namely the de-SPACed companies that Palantir partners with. Below are the companies that Palantir has invested in, including its corresponding amounts, as of Q4 2021. There are other SPAC investment commitments as of Q4 2021, but they may not have closed as some of these SPAC agreements did not fall through due to unfavorable market conditions. Nonetheless, some of these SPACs have lost a significant amount of their value relative to their NAV of $10 per share, which explains why Palantir&#39;s bottom line is significantly affected. Here are some examples:</p><ul><li>Lilium (LILM) — $2.69</li><li>Faraday Future (FFIE) — $2.50</li><li>Babylon Holdings (BBLN) — $1.16</li><li>Bird (BRDS) — $0.55</li><li>Wejo (WEJO) — $1.42</li></ul><p><img src=\"https://static.tigerbbs.com/a4d9a78021680283c989d7ccc40bc838\" tg-width=\"640\" tg-height=\"384\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir FY2021 10-K</p><p>Overall, Palantir has strong earnings potential given its high Gross Margin profile. Furthermore, Gross Margin has been improving, demonstrating economies of scale. However, the company has yet to show operating leverage as management continues to reinvest back into the business. High SBC expenses and losses from investments are also issues to consider.</p><p>Financial Health</p><p>Despite GAAP unprofitability, Palantir has a fortress balance sheet as the company is already cash-flow positive. As of Q1, Palantir had $2.5 billion in Cash and Short-term Investments with $0.3 billion of Total Debt, mostly in the form of Operating Lease Liabilities. As such, Palantir has a Net Cash of around $2.3 billion. Current Ratio is also at a healthy level of 4.0x.</p><p>The company also has access to $500 million from its revolving credit facility, if need be. These funds remain undrawn.</p><p><img src=\"https://static.tigerbbs.com/d41882008b5ed6978a6b0ec4d7c25b63\" tg-width=\"640\" tg-height=\"437\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Investor Relations and Author&#39;s Analysis</p><p>Palantir is already Free Cash Flow positive, generating $225 million of FCF in the last twelve months. FCF Margin dropped to just 5% in Q1, due to the timing of receipt of payments from customers, and timing of payments to vendors. The increase in Operating Expenses to scale the business is also a contributing factor to lower FCF Margins. However, there&#39;re reasons to believe that Palantir can achieve and sustain FCF Margins of 30%+ in the long run.</p><p><img src=\"https://static.tigerbbs.com/23c1ca2edf108ed2c6160197ceae15da\" tg-width=\"640\" tg-height=\"419\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Investor Relations and Author&#39;s Analysis</p><p>Given its strong balance sheet and cash-generative nature, I do not anticipate any equity raises or risks of bankruptcy. Now that Palantir is a self-funded business, Palantir needs to manage SBC spending to create the shareholder value that many investors sought for.</p><p><b>Outlook</b></p><p>In terms of outlook, management provided the following Q2 guidance:</p><ul><li><b>Revenue</b>— $470 million, implying a 25% YoY growth. This is quite a slowdown from Q1&#39;s 31% growth. However, I believe this is the most conservative scenario as management cites &#34;a wide range of potential upside&#34; driven by &#34;developing geopolitical events&#34;. US Government Revenue is also expected to accelerate in the next quarter.</li><li><b>Adjusted Operating Margin</b>— 20%. This is a drop from Q1&#39;s 27% as management ramps up investments &#34;to support our customers&#39; mission in advance of anticipated contract awards&#34;.</li></ul><p>Longer-term, management expects a 27% Adjusted Operating Margin for FY2022. In addition, management reiterated their long-term Revenue guidance of 30%+ growth for this year and the next 3 years through 2025.</p><p>Looking at Palantir&#39;s Total Remaining Deal Value can also give us a rough idea of Palantir&#39;s Revenue Potential. As shown below, Total Remaining Deal Value was $3.5 billion in Q1, up 25% YoY. This is a $0.3 billion decrease QoQ, showing some weakness in deal creation at the moment. Nevertheless, the deal pipeline remains robust and that should support Palantir&#39;s growth story moving forward.</p><p><img src=\"https://static.tigerbbs.com/d836dce4a14c27f69b8470dfc6a8a771\" tg-width=\"640\" tg-height=\"433\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir Investor Relations and Author&#39;s Analysis</p><p>As a public company, Palantir has also beaten analyst estimates in each and every quarter. This could be an assurance that Palantir will continue to outperform expectations.</p><p><img src=\"https://static.tigerbbs.com/b5bd8aa79eefcd7832922438f2a8e55b\" tg-width=\"640\" tg-height=\"185\" referrerpolicy=\"no-referrer\"/></p><p>Source: Seeking Alpha</p><p><b>Competitive Moats</b></p><p>Based on my research and analysis, I identified 5 competitive advantages that Palantir possesses: technology, high barriers to entry, network effects, switching costs, and culture.</p><p><i><b>Technology</b></i></p><p>Despite being a publicly-traded company, Palantir is still considered to be one of those mysterious companies that many find difficult to understand. For me, I don&#39;t have a software engineering background, which makes the task of understanding Palantir&#39;s technological value proposition a real challenge. To make matters worst, Palantir&#39;s software has little coverage from industry analysts (Forrester, Gartner, Everest Group, etc.) and business software review sites (G2, etc.). The question is, how do we know if Palantir has a technological edge?</p><p>To answer that question, we can look at the types of deals and customers Palantir has established thus far. Below is a list of some of the deals that were signed in just the first half of 2022 alone. Mind you, these are not just some small-scale projects; these deals involve some of the largest and most important players in their respective industries. Such a strong deal pipeline speaks volumes about Palantir&#39;s technology moat.</p><ul><li>US Space Systems Command— $175 million contract value through March 2023.</li><li>Stellantis(STLA) — A leading automaker and mobility provider with $170 billion of Revenue in FY2021, will leverage Palantir&#39;s Foundry.</li><li>Trafigura— One of the largest multinational commodity trading companies that generated $231 billion of Revenue in FY2021, will collaborate with Palantir to develop a supply chain carbon emissions platform.</li><li>US Department of Health and Human Services— $90 million contract value for five years.</li><li>US Centers for Disease Control and Prevention— Customer since 2010. Extended partnership to modernize data management for disease monitoring and response.</li><li>Scuderia Ferrari— Customer since 2016. Extended partnership to utilize Foundry in Scuderia Ferrari’s Power Unit.</li><li>Hyundai Heavy Industries— The largest Korean auto manufacturer and Palantir will establish a big data platform for its business, with the potential of forming a joint venture to commercialize the platform.</li></ul><p><img src=\"https://static.tigerbbs.com/2b4ae5e82fb9bfea641536e37b499417\" tg-width=\"640\" tg-height=\"359\" referrerpolicy=\"no-referrer\"/></p><p>Source: Palantir FY2022 Q1 Investor Presentation</p><p>Palantir has also been recognized as a Leader in the Dresner Wisdom of Crowds BI Market Study. Moreover, Palantir is part of FedRAMP, a government-wide program that empowers government agencies to adopt and use cloud services, particularly for information security and protection purposes. As of this writing, Palantir has 10 FedRAMP authorizations.</p><p><img src=\"https://static.tigerbbs.com/050365289a99536a27662fa1dd176c05\" tg-width=\"640\" tg-height=\"98\" referrerpolicy=\"no-referrer\"/></p><p>Source: FedRAMP Marketplace</p><p><i><b>High Barriers to Entry</b></i></p><p>Building a central operating system of that caliber, of that complexity — that is trusted by key industry players — is no easy feat. It requires years and decades of investment, development, and refinement, and Palantir has been doing so for two decades, which gives them a strong head start. Based on my research, I haven&#39;t come across any other company that comes close to what Palantir offers. These things put together creates high barriers to entry for emerging players to compete effectively with Palantir.</p><p>Palantir is also one of the most active names in the government sector, amassing a total of 93 Government Customers. Keep in mind that building such a large network requires substantial due diligence, relationship building, and lobbying, some things that not many companies are able to do or afford. As such, as it pertains to the government business, Palantir is setting high barriers to entry that practically eliminates most competition.</p><p><i><b>Network Effects</b></i></p><p>Despite its mysterious nature, Palantir has recently made itsFoundryandApollodocumentation available to the general public. This will help individuals, companies, investors, and the media to understand Palantir&#39;s software better, which should increase publicity. More importantly, this development should spur discussions in the developer community, thus increasing awareness, and ultimately, the adoption of Palantir&#39;s products.</p><p>As mentioned earlier, Palantir has 200+ data connectors and it works with major cloud platforms such as AWS, Snowflake, and Google Cloud (GOOG), which have network effects of their own. Just recently, Palantir and Google Cloud announced their partnership to make Foundry available on Google Cloud and Google Cloud Marketplace. This gives Palantir access to Google Clouds customers, including PayPal (PYPL), Twitter (TWTR), and Etsy (ETSY).</p><p><img src=\"https://static.tigerbbs.com/c9d286b4cc95de37ff84302d2d926e0f\" tg-width=\"640\" tg-height=\"238\" referrerpolicy=\"no-referrer\"/></p><p>Source: Google Cloud</p><p>Not only that, but Palantir also works with other cloud infrastructure service providers, including the top 3 providers listed in the chart below. This should amplify product distribution, leading to powerful network effects.</p><p><img src=\"https://static.tigerbbs.com/e02e55b6a000113eba8685b42c54c009\" tg-width=\"1200\" tg-height=\"1200\" referrerpolicy=\"no-referrer\"/></p><p>Source: Statista</p><p>On a side note, Palantir has also partnered with Carahsoft, which creates a channel program to increase Palantir&#39;s reach within the US Federal sector, solidifying its position in the government side of the business. One more thing, Palantir has also recently launched the Palantir Certification Program, encouraging users to learn how to use Foundry as well as highlight their technical expertise in Foundry.</p><p>Because of all the developments mentioned above, powerful network effects should ensue.</p><p><i><b>Switching Costs</b></i></p><p>Through its Acquire-Expand-Scale business strategy, Palantir inevitably creates high switching costs among its customers. As customers graduate to the Expand and Scale phases, they have already invested millions in the platform and experienced the full benefit of Palantir&#39;s central operating systems. As a reminder, Palantir offers a software infrastructure for data and operations, and infrastructures are very difficult to replace.</p><p>Let&#39;s take a look at an example. In 2016, through a Palantir-Airbus partnership, the aviation platform Skywise was formed. Skywise also serves as the medium to distribute Foundry across the aviation industry. Today, Skywise connects more than 9,000 aircraft across more than 100 airlines on the platform. If Airbus decides to abandon this program, the entire aviation value chain would be in a state of limbo, and that is something 100+ airlines would not want to deal with.</p><p><img src=\"https://static.tigerbbs.com/2562e7b0ef3dc91801f7bd972f33533a\" tg-width=\"1024\" tg-height=\"746\" referrerpolicy=\"no-referrer\"/></p><p>Source: Harvard Business Review</p><p>Put simply, once customers use Palantir&#39;s software, they are hooked into it for the long run as switching providers (if there&#39;s even a solution better than what Palantir provides) would mean a radical change in the customers&#39; data/operations infrastructure. Moreover, developing in-house operating systems from scratch is difficult, time-consuming, and costly. In other words, customers would rather avoid the high switching costs and opportunity costs associated with replacing Palantir&#39;s operating system.</p><p><i><b>Culture</b></i></p><p>Palantir has a high Glassdoor rating of 4.3/5.0 with 79% of reviewers citing a &#34;Positive Business Outlook&#34; for the company.</p><p><img src=\"https://static.tigerbbs.com/e02901a6d5e0d6d927216ba38413df09\" tg-width=\"640\" tg-height=\"584\" referrerpolicy=\"no-referrer\"/></p><p>Source: Glassdoor</p><p>Palantir is also founder-led, with the brilliant, eccentric, and visionary CEO Alex Karp at the helm of the company since day one. According to Comparably, Alex Karp is also a Top 5% based on 680 ratings. Alex Karp and co. are some of the most mission-critical people I get the pleasure of witnessing. And Palantirians are on board with management — the numbers speak for themselves.</p><p><img src=\"https://static.tigerbbs.com/f0d1db087f00e95b151d7f55a4be71e2\" tg-width=\"640\" tg-height=\"228\" referrerpolicy=\"no-referrer\"/></p><p>Source: Comparably</p><p><b>Valuation</b></p><p>The last few quarters have been one of the most difficult times for growth investors. Growth stocks have lost 50%-90%+ of their values as raging inflation, rising interest rates, and quantitative tightening punish all things growth stocks. Palantir has not been spared from this rout. Since November 2021, Palantir has lost 70% of its value.</p><p>In terms of EV/Sales, Palantir traded as high as 50x. Today, it trades at just 6.9x. In terms of EV/Gross Profit, Palantir traded as high as 100x. Today, it trades at just 11.3x.</p><p><img src=\"https://static.tigerbbs.com/02063016a5eb93f0b0775684657b9598\" tg-width=\"640\" tg-height=\"373\" referrerpolicy=\"no-referrer\"/></p><p>Source: Koyfin</p><p>After the selloff, Palantir now trades at a market cap of roughly $16 billion. To put further context to this number, investors can buy Palantir at a cheaper valuation than its 2015 funding round, which closed at a $20 billion valuation.</p><p>While the stock may look cheap today, further downside is possible given recession fears, raging inflation, rising interest rates, supply chain constraints, and a slowdown in growth. However, there seems to be a large margin of safety for long-term investors interested in partnering up with a high-quality, wide-moat business with a long growth runway ahead.</p><p><b>Catalysts</b></p><ul><li><b>GAAP Profitability</b>— Perhaps, one of the biggest milestones that Palantir can achieve is GAAP profitability. Much of the bear theses against Palantir is the insurmountable losses on a GAAP basis. Sure, Palantir is already profitable on a Non-GAAP and FCF basis, but in the long term, stock prices go up based on improvements in the bottom line of the income statement as well as the strong non-dilutive cash flow generation of the company. As such, flipping into GAAP profitability will most likely be a boost to Palantir&#39;s bull thesis.</li><li><b>Government Reacceleration</b>— As mentioned earlier, Palantir&#39;s growth story is largely predicated on its ability to retain and expand its ecosystem of government customers. As we have seen over the last few quarters, Government Revenue growth has decelerated to head-scratching levels. To recall, Q4 and Q1 Government Revenue growth was only 26% and 16%, respectively. Such a huge deceleration is probably the reason whyArk Invest dumped shares of Palantir. Despite the plateau in the Government segment, management does expect growth in the segment to reaccelerate in the next quarter. Returning to consistent 20%-30%+ growth in this department should welcome more bulls into the camp.</li><li><b>Buyback Program</b>— A big concern at the back of some investors&#39; minds is the fact that there have been no insider purchases ever since Palantir went public. Instead, we&#39;re only seeing selling after selling by insiders. That is certainly not a confidence booster for investors. However, given the recent selloff of the stock, management may be inclined to put their capital to good use. With Palantir&#39;s large cash in hand of $2.5 billion, management may start a share repurchase program, a well-needed silver lining during what seemed to be the gloomiest market environment we&#39;ve seen since the dot-com bubble and great financial crisis.</li></ul><p><b>Risks</b></p><ul><li><b>Revenue Concentration</b>— In FY2020 and FY2021, Palantir&#39;s top three customers accounted for 25% and 18% of total Revenue. While Revenue concentration is getting better, it is still a risk worth considering. On a side note, Palantir has a long sales cycle of six months to more than a year. Therefore, if Palantir loses major customers, it will take time for the company to recoup the losses as a result of customers leaving the platform.</li><li><b>SPAC Investments</b>— During the Q1 earnings call, management mentioned that Revenue contribution from SPAC investments is expected to be about $30 million per quarter. That is an annual run rate of $120 million. With that said, some of these de-SPACed companies are trading like penny stocks. Most of these companies are also unprofitable and worse, some of them are concept companies generating zero Revenue. As such, there&#39;s a strong likelihood that some of them will eventually go bankrupt. When this happens, Palantir&#39;s: 1) Revenue is negatively affected, 2) customer count decreases, and 3) earnings per share takes a hit as the company faces higher losses from investments.</li><li><b>Dilution</b>— This is perhaps the most controversial topic when it comes to investing in Palantir. While SBC as a % of Revenue is gradually improving, there&#39;s no denying that SBC spending has been high and continues to be high. This makes dilution a real problem, no matter how much growth the company can bring into the business. As shown below, Shares Outstanding more than tripled in the last two years.</li></ul><p><img src=\"https://static.tigerbbs.com/ff17e5bbcda87aa888bacd421bbaad77\" tg-width=\"640\" tg-height=\"46\" referrerpolicy=\"no-referrer\"/></p><p>Source: Seeking Alpha</p><p><b>Conclusion</b></p><p>Palantir is building the central operating system for the modern world, powered by its three platforms: Gotham, Foundry, and Apollo. The company is posting strong growth numbers, particularly fueled by its Commercial segment, which will be the primary driving force of growth in the years to come. On the other hand, the Government segment is showing some weakness, although management expects a reacceleration of growth in that department. Nevertheless, Palantir has technology, network effects, switching costs, high barriers to entry, and culture moats that should support its growth trajectory.</p><p>The past few months have not been easy for the stock, but the valuation reset is well needed and I think it has overshot to the downside. While we may see new lows due to a tough macro environment and the risks mentioned above, I believe there&#39;s a substantial margin of safety for long-term investors. I believe it is an opportune time to accumulate shares of this high-quality, wide-moat, black box company.</p><p>Thank you for reading my Palantir deep dive.</p></body></html>","collect":0,"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: The Black Box Company</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: The Black Box Company\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-06-22 13:47 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4519420-palantir-stock-selloff-overdone-robust-growth><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryGround Zero led to Zero to One — One being Palantir.Palantir is building the central operating system of the modern world.Growth remains robust, particularly in its Commercial segment, which ...</p>\n\n<a href=\"https://seekingalpha.com/article/4519420-palantir-stock-selloff-overdone-robust-growth\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4519420-palantir-stock-selloff-overdone-robust-growth","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1178592634","content_text":"SummaryGround Zero led to Zero to One — One being Palantir.Palantir is building the central operating system of the modern world.Growth remains robust, particularly in its Commercial segment, which will be the main growth engine for the company in the next decade.Dilution and GAAP unprofitability remain the biggest risks, especially so in this kind of market environment.Although we may see further downside, the selloff seems to be overdone. Palantir is a buy.Given the complexity and mysterious nature of the business, this Palantir (NYSE:PLTR) deep dive is probably the most difficult piece that I've written compared to other company deep dives that I've covered so far. I hope you find value in this article. Enjoy!Investment ThesisPalantir: the meme stock, the cult stock, the black box company. There's a lot of chatter about Palantir on the Internet and I've come to notice that there's a lot of love and hate for the company. Regardless of what others say, it is undeniable that Palantir is one of the most mission-critical companies today.Palantir is building the central operating system of the modern world, turning chaos into order. The ultimate bull thesis is that Palantir will replace legacy data and operations infrastructure, and Palantir's technology and management are more than capable of achieving this ambition.The selloff has also created a wonderful opportunity to accumulate shares of Palantir. Palantir is a Buy at these levels.Value PropositionOn 11th September 2001, 19 terrorists hijacked four commercial airlines during what seemed to be a normal working day for corporate America. What followed left the world at a standstill — things happened so slowly and so quickly that billions of people all over the globe were paralyzed by what they were seeing on their TV screens.Two planes struck both the North and South Towers of the World Trade Center, only to leave both skyscrapers crumbling down a few hours later. Another plane crashed on the west side of The Pentagon, the home of the US Department of Defense, which left question marks on the true strength of the US military. The last plane, fortunately, failed to demolish its intended building target as a passenger steered the plane to an open field.2,977 people lost their lives that day.Undoubtedly, 9/11 left a huge scar on America. For one, the World Trade Center crash site was dubbed Ground Zero. While America work its way to recover and regain its confidence after the attacks, five entrepreneurs — Peter Thiel, Joe Lonsdale, Stephen Cohen, Nathan Gettings, and Alex Karp — joined forces to form Palantir. The name of the company resembles palantíri or \"seeing stones\" from the movie The Lord of the Rings. These stones were balls of crystal that enable the users to communicate with one another and to see afar, much like what Palantir was designed to do — to identify, anticipate, and prevent future attacks.In essence, Ground Zero became the stepping stone to Zero to One—One being Palantir.This is a good segway to the first topic of this article: what does Palantir do as a business?In a nutshell, Palantir builds and deploys the foundational software of tomorrow that serves as the central operating system for its customers.Traditionally, government and commercial institutions need to invest millions and even billions of dollars to build their own digital infrastructures, enterprise data warehouses, and digital twin models, which are incredibly difficult, complex, and risky to execute. But for Palantir, the more difficult, complex, and risky it is, the bigger the opportunity and the more likely it is for Palantir to succeed.With that in mind, Palantir aims to help organizations to accelerate their digital transformation by integrating their data, decisions, and operations at scale. In other words, Palantir is a big data platform that helps companies make sense of their data to make data-driven decisions.This is achieved through Palantir's three core products: Gotham, Foundry, and Apollo.GothamPalantir Gotham is the operating system for government decision-making. It has been used by government agencies including the USIC, NSA, FBI, CDC, and Air force to combat terrorism and analyze various highly-sensitive, highly-confidential matters. Rumors have also surfaced about Palantir Gotham playing a certain role in helping the US Navy SEALs locate and assassinate former Al-Qaeda leader, Osama bin Laden.Source: Palantir WebsiteAside from government agencies, financial institutions have also adopted Gotham specifically for fraud detection and investigations.Gotham leverages artificial intelligence to identify patterns, threats, and hidden information deep within cluttered datasets. At the same time, machine learning embedded in its software provides continuous feedback loops which improve its models over time, allowing for smarter and faster decision-making.Given that Gotham caters specifically to government functions, not much information has been published regarding its technology, thus the black-box nature of the overall business. The company's S-1 filing does cover a few features but it is quite vague, to say the least. On one hand, we can look at Palantir's commercial product, Foundry, to at least get some level of understanding of how Gotham works.FoundryPalantir Foundry is the operating system for modern enterprises. Foundry has an open architecture and it integrates siloed data sources, analytics, and teams into a common foundation.Source: Palantir WebsiteThere are 5 layers to the Foundry stack, with each layer bridging the gap between data analytics and operational decision-making:Data Integration— Foundry utilizes 200+ data connectors to integrate different data sources, data lakes, and data warehouses across the enterprise, across different types of data points including structured, unstructured, streaming, IoT, transactional, geospatial data, and more.Model Integration— Customers can integrate business logic and models by using Foundry's open, interoperable architecture along with third-party models like Snowflake (SNOW), Microsoft Azure (MSFT), and AWS (AMZN). Foundry can extend these third-party platforms into operations with bi-directional data syncs to ensure that Foundry is always in sync with those existing data systems.Ontology— Foundry connects all the data and models, and brings them together into a common foundation that can be used by the entire organization. This is called the Ontology and it is the operational layer of the organization. The Ontology connects all the digital assets (data and models) to their real-world counterparts (such as equipment, products, and customer orders), forming a digital twin of the enterprise that users can interact with.Workflows— With the Ontology in place, users can develop custom workflows or use out-of-the-box applications. As more and more objects, actions, and workflows are added, the shared Ontology evolves over time with greater operational knowledge.Decision Orchestration— After integrating all the historically siloed data and models, Foundry enables users to take actionable and insightful decisions, whether through manual operations, simulations, or AI.While this may be an oversimplified explanation of the Foundry platform, it does give us a rough idea of how Foundry works. Perhaps, we can take a look at a case study to get a better grasp of what Foundry does.For example, here's how one of the largest utility companies in the US, PG&E, uses Foundry:Data Integration— PG&E is facing a massive climate threat as global warming increases the risks of wildfire breakouts. As such, the company needs to leverage the 8-10 billion data points it receives every single day to operate a safe and reliable energy system. Foundry helps to aggregate and make sense of these data.Model Integration— Palantir has an open architecture that allows PG&E to integrate Foundry and other third-party models into a single platform. This enables PG&E to utilize all the models and data across various platforms, which ultimately gives richer datasets to combat wildfires.Ontology— PG&E has launched the Enhanced Powerline Safety Settings to protect the grid and prevent wildfires. By integrating equipment health data, geospatial location, and network topology, Foundry is able to create a digital representation of PG&E's entire grid and its 25,000+ miles of wire. This way, PG&E can monitor the various components of the grid, and identify which of them need preventative maintenance.Source: Palantir YouTubeWorkflows— PG&E can leverage a common set of objects, actions, and relationships to develop custom workflows. Foundry enables PG&E to manage workflows across the lifecycle of the grid including scenario modeling, work planning, scheduling, executing, operating, and closing.Decision Orchestration— Based on the new data that Foundry presented, PG&E can now make more informed decisions to protect its grid. For instance, PG&E can automate the switching on and off of certain devices in the grid, based on specific weather conditions, thus decreasing the likelihood of wildfires.Again, this is just one of many use cases. Foundry is applicable to other industries including auto racing, anti-money laundering, cryptocurrency, financial services, emerging startups, supply chains, telecommunications, and more.Ultimately, Foundry aims to be the central operating system for modern commercial entities, replacing legacy data infrastructures and operating systems. Palantir has even gone as far as claiming that Foundry will be the next AWS in the coming decade.Source: Palantir FY2022 Q1 Investor PresentationApolloPalantir Apollo is the operating system for continuous delivery. Apollo serves as the software to manage, deploy, and maintain Gotham and Foundry worldwide, across virtually any environment. Before its launch, deploying Palantir's software involves manual installations, upgrades, and configurations, which is especially true for the non-tech savvy governmental organizations. Back in 2008, Palantir Gotham ran on-premises, which is time-consuming and not scalable, thus leading to few software upgrades or updates.Fast forward to 2016, Palantir launched the cloud-based Foundry, which gained positive reception from its commercial customers. As such, Palantir also began offering Gotham through the cloud. This allowed for the continuous delivery of Palantir's user-facing products, and it is made possible through Apollo.Source: Palantir BlogApollo is an autonomous software deployment platform. Developers merge code once and can deploy software across all environments from a single pane of glass. With Apollo, Palantir's software — whether it be initial setup, new features, or security updates — can be rapidly and securely delivered through on-premise data centers, classified networks, embedded edge devices, the cloud, and more. More importantly, Apollo enables Palantir to bring its SaaS offering to environments where no SaaS has gone before.Source: Palantir Apollo DocumentationWith the ever-growing popularity of SaaS offerings, the launch of Apollo enhances Palantir's distribution prowess and market adoption. Not only that, but it also accelerates customers' time to value as well as caters to a broader range of customers given the vast deployment options available.With all that said, despite its somewhat secretive nature as a public company, it seems that Palantir's three platforms display top-level interoperability and security, setting high standards to be the central operating system of the modern world. Its 2-decade tenure, solid government exposure, and widening customer base are also testaments to its unique technology offering.Market OpportunityAccording to Palantir's S-1 Filing, its total addressable market (TAM) is about $113 billion, comprising $63 billion for the government segment and $56 billion for the commercial segment. Breaking it down further by geography, Palantir estimated that the TAM for the US government sector is $26 billion while the international government sector is estimated to be $37 billion in value.These estimates were calculated back in 2020, and we all know that there have been several important developments over the last couple of years that could mean TAM expansion for Palantir (pandemic, Russia-Ukraine war, cryptocurrency acceptance, SPAC boom, supply chain constraints, etc.). Furthermore, Palantir has rolled out additional features to supplement its core software products, which should also expand its use cases and TAM.Source: Palantir FY2022 Q1 Investor PresentationIt is important to note that Palantir competes first and for most, with internal software developers where companies usually attempt to build in-house data platforms from scratch. In the fast-changing modern world, companies want speed and certainty — building their own operating systems is too high of a risk to take. That's where the opportunity is for Palantir.Industry analysts have also sized the Big Data Analytics market to reach $200 to $600 billion+ over the next few years. It is also worth mentioning that the US government total expenditures have been on a long-term upward trajectory, which means higher incremental budgets for defense and intelligence initiatives that can flow to Palantir Gotham.Source: FRED Government Total ExpendituresBusiness ModelThe company generates revenue from the sale of cloud-based subscriptions and on-premises subscriptions — both of these include ongoing operations and maintenance services. Revenue is generally recognized over the contract term on a ratable basis.In addition, Palantir also generates revenue from professional services such as on-demand support, platform configurations, training, and data modeling support.According to the S-1, Palantir's \"pricing is based primarily on the value that we anticipate our software platforms will produce for our customers.\" As such, pricing and customer billings vary from contract to contract.Palantir also incorporates usage-based pricing for Foundry, thus allowing smaller commercial customers to use Foundry without breaking the bank. As these customers scale, Palantir stands to benefit from increased usage of its platform.Source: Palantir FY2022 Q1 Investor PresentationCentral to its business model is its Acquire-Expand-Scale strategy:Acquire— Customers with less than $100,000 in Revenue belong in this category. The Acquire phase involves short-term pilot projects with little to no cost to customers, in an attempt to get them to experience Palantir's value proposition. Palantir operates at a loss during this phase. However, it is expected to generate significant Revenue over time. For example, the same customers in the 2020-Acquire cohort generated $36.8 million in 2021, as opposed to just $0.3 million in the previous year.Expand— Customers with more than $100,000 in Revenue but negative Contribution Margins, fall into this category. The Expand phase is where customers begin to realize Palantir's value proposition, and therefore, begin ramping up investments in the software. Similar to the Acquire phase, Palantir operates at a loss during the Expand phase. However, Revenue begins to scale at this stage. For instance, 2020-Expand cohort customers generated $83.3 million in 2021, as opposed to just $20.3 million in 2020. On the flip side, Contribution Margin for this cohort was (150)%.Scale— Customers with more than $100,000 in Revenue and positive Contribution Margins, belong in this category. In the Scale phase, Palantir's investment costs relative to Revenue drops as customers become self-sufficient. 2020-Scale cohort customers generated $1.3 billion in 2021, as compared to $1.1 billion in the prior year. Contribution Margin for this cohort was 63% for both 2020 and 2021.From this Acquire-Expand-Scale strategy, we can see why Palantir may incur short-term losses in exchange for robust, stable Revenue and Contribution Profit generation in the long term.GrowthQ1 Revenue came in at $490 million, which is an increase of 31% YoY. As you can see, growth has decelerated over the last few quarters as Palantir grows over a larger base. Suffice to say, we are unlikely to see the 40%+ growth rates that investors are so accustomed to seeing. However, I believe Palantir has what it takes to at least produce 30%+ growth rates over the next few years as new and existing customers continue to adopt Palantir's breakthrough software.Source: Palantir Investor Relations and Author's AnalysisAs a supplemental metric, Billings — which is Revenue plus changes in Contract Liabilities — grew faster than overall Revenue. Contract Liabilities consist of Deferred Revenue and Customer Deposits that have not been recognized as Revenue. As such, the 35% growth in Billings means that there's higher Revenue Growth potential than meets the eye. This is supported by a 157% increase in the number of deals closed in Q1, which totaled 208 deals, compared to last year's 81 deals. Nonetheless, it is still a deceleration from prior quarters.Source: Palantir Investor Relations and Author's AnalysisThe slowdown in growth was primarily due to the lagging Government segment. Q1 Government Revenue was $242 million, up by only 16% YoY. According to the company's10-Q, virtually all of the Government Revenue growth came from existing customers as of Q4. The softness in Government Revenue is clearly a concern given that Palantir's bull thesis is closely tied to its relationship with government agencies. However, management did mention in the Q1 earnings call that Government Revenue is expected to reaccelerate in the next quarter:In the face of our customers' challenges, we have and will continue to incur expenses prior to having contracts in the delivery of mission-critical capabilities. Following these investments, we expect acceleration of our U.S. government revenue into the second half of the year. In Q2 to date, we've already seen the reacceleration of U.S. government revenue and expectacceleration of the overall government segment to followin the next quarter or shortly thereafter — CFO Dave Glazer.Source: Palantir Investor Relations and Author's AnalysisOn the other hand, Q1 Commercial Revenue growth remained robust, which saw a 54% YoY increase, to $205 million. This is the 5th straight quarter where Commercial Revenue accelerated. In the chart below, I've included overall, US, and Non-US growth rates for reference. As you can see, US Commercial Revenue growth outpaced overall company growth, posting a whopping 136% YoY increase. Furthermore, management expects 2022 US Commercial Revenue to double YoY for the 3rd consecutive year, to $400 million+. This shows the increasing popularity and unmatched value proposition offered by Palantir Foundry.Source: Palantir Investor Relations and Author's AnalysisTaking a look at customer count, we can see why there are discrepancies between the two segments. As shown below, Palantir only added 4 new Government Customers, YoY. On the other hand, Palantir added 124 new Commercial Customers. It is also worth noting that despite US Commercial Customers making up 37% of total customer count, US Commercial Revenue only makes up 15% of Total Revenue. This shows high growth potential as Commercial Customers graduate from the Acquire, to Expand, to Scale phases.Source: Palantir Investor Relations and Author's AnalysisOn a side note, Revenue Per Top 20 Customer was $45 million, up 24% YoY. In addition, Net Dollar Retention rate was 124%, a drop from Q4's 131%. The softness in these metrics may yet be another indication that Palantir's growth has peaked.Source: Palantir Investor Relations and Author's AnalysisAll in all, growth for Palantir as a whole remains robust, although we are seeing some significant slowdown in the Government department. However, Foundry and the Commercial segment seem to display a healthy pipeline, which should serve as the next growth engine for the company.ProfitabilityTurning to the profitability of the company, Q1 Gross Profit was $352 million, which is a 79% Gross Margin. We can see that Gross Margins have been improving steadily over the last few quarters, demonstrating economies of scale within the business.Source: Palantir Investor Relations and Author's AnalysisContribution Profit — which is Gross Profit minus Sales & Marketing Expenses but excludes Share-based Compensation (SBC) — was $252 million in Q1. This is a measure of operational efficiency in terms of deploying its software to customers. Q1 Contribution Margin was 57%, and you can see that it has trailed down as of lately. As discussed in the Business Model section, Contribution Margins are lower for customers in the Acquire and Expand phases. Since Palantir is currently focusing on acquiring new customers, especially in the Commercial realm, we can expect downward pressure on Contribution Margins in the short-to-medium term.Source: Palantir Investor Relations and Author's AnalysisOperating Profit for the quarter was $(39) million, a (9)% Margin. On an Adjusted basis, Operating Profit was $117 million, a 26% Margin. Adjusted Operating Margin has been trending downwards due to management ramping up investments to market its software, including expanding its direct sales team. Management mentioned that this trend should continue in the foreseeable future.Source: Palantir Investor Relations and Author's AnalysisAs you may have guessed, the negative GAAP Operating Margin is due to heavy SBC. Despite a stabilization in SBC after its direct listing back in 2020 Q3, SBC as a % of Revenue remains high at 33% as of Q1. However, I expect SBC to continue to drop moving forward, possibly to the 10% level over time.Source: Palantir Investor Relations and Author's AnalysisQ1 Net Income is much worse, which was $(101) million, a (23)% Margin. Adjusted Net Income, on the other hand, is positive at a 10% Margin.Source: Palantir Investor Relations and Author's AnalysisThe poor Net Income performance relative to Operating Income is due to Palantir's realized and unrealized losses from Investments, namely the de-SPACed companies that Palantir partners with. Below are the companies that Palantir has invested in, including its corresponding amounts, as of Q4 2021. There are other SPAC investment commitments as of Q4 2021, but they may not have closed as some of these SPAC agreements did not fall through due to unfavorable market conditions. Nonetheless, some of these SPACs have lost a significant amount of their value relative to their NAV of $10 per share, which explains why Palantir's bottom line is significantly affected. Here are some examples:Lilium (LILM) — $2.69Faraday Future (FFIE) — $2.50Babylon Holdings (BBLN) — $1.16Bird (BRDS) — $0.55Wejo (WEJO) — $1.42Source: Palantir FY2021 10-KOverall, Palantir has strong earnings potential given its high Gross Margin profile. Furthermore, Gross Margin has been improving, demonstrating economies of scale. However, the company has yet to show operating leverage as management continues to reinvest back into the business. High SBC expenses and losses from investments are also issues to consider.Financial HealthDespite GAAP unprofitability, Palantir has a fortress balance sheet as the company is already cash-flow positive. As of Q1, Palantir had $2.5 billion in Cash and Short-term Investments with $0.3 billion of Total Debt, mostly in the form of Operating Lease Liabilities. As such, Palantir has a Net Cash of around $2.3 billion. Current Ratio is also at a healthy level of 4.0x.The company also has access to $500 million from its revolving credit facility, if need be. These funds remain undrawn.Source: Palantir Investor Relations and Author's AnalysisPalantir is already Free Cash Flow positive, generating $225 million of FCF in the last twelve months. FCF Margin dropped to just 5% in Q1, due to the timing of receipt of payments from customers, and timing of payments to vendors. The increase in Operating Expenses to scale the business is also a contributing factor to lower FCF Margins. However, there're reasons to believe that Palantir can achieve and sustain FCF Margins of 30%+ in the long run.Source: Palantir Investor Relations and Author's AnalysisGiven its strong balance sheet and cash-generative nature, I do not anticipate any equity raises or risks of bankruptcy. Now that Palantir is a self-funded business, Palantir needs to manage SBC spending to create the shareholder value that many investors sought for.OutlookIn terms of outlook, management provided the following Q2 guidance:Revenue— $470 million, implying a 25% YoY growth. This is quite a slowdown from Q1's 31% growth. However, I believe this is the most conservative scenario as management cites \"a wide range of potential upside\" driven by \"developing geopolitical events\". US Government Revenue is also expected to accelerate in the next quarter.Adjusted Operating Margin— 20%. This is a drop from Q1's 27% as management ramps up investments \"to support our customers' mission in advance of anticipated contract awards\".Longer-term, management expects a 27% Adjusted Operating Margin for FY2022. In addition, management reiterated their long-term Revenue guidance of 30%+ growth for this year and the next 3 years through 2025.Looking at Palantir's Total Remaining Deal Value can also give us a rough idea of Palantir's Revenue Potential. As shown below, Total Remaining Deal Value was $3.5 billion in Q1, up 25% YoY. This is a $0.3 billion decrease QoQ, showing some weakness in deal creation at the moment. Nevertheless, the deal pipeline remains robust and that should support Palantir's growth story moving forward.Source: Palantir Investor Relations and Author's AnalysisAs a public company, Palantir has also beaten analyst estimates in each and every quarter. This could be an assurance that Palantir will continue to outperform expectations.Source: Seeking AlphaCompetitive MoatsBased on my research and analysis, I identified 5 competitive advantages that Palantir possesses: technology, high barriers to entry, network effects, switching costs, and culture.TechnologyDespite being a publicly-traded company, Palantir is still considered to be one of those mysterious companies that many find difficult to understand. For me, I don't have a software engineering background, which makes the task of understanding Palantir's technological value proposition a real challenge. To make matters worst, Palantir's software has little coverage from industry analysts (Forrester, Gartner, Everest Group, etc.) and business software review sites (G2, etc.). The question is, how do we know if Palantir has a technological edge?To answer that question, we can look at the types of deals and customers Palantir has established thus far. Below is a list of some of the deals that were signed in just the first half of 2022 alone. Mind you, these are not just some small-scale projects; these deals involve some of the largest and most important players in their respective industries. Such a strong deal pipeline speaks volumes about Palantir's technology moat.US Space Systems Command— $175 million contract value through March 2023.Stellantis(STLA) — A leading automaker and mobility provider with $170 billion of Revenue in FY2021, will leverage Palantir's Foundry.Trafigura— One of the largest multinational commodity trading companies that generated $231 billion of Revenue in FY2021, will collaborate with Palantir to develop a supply chain carbon emissions platform.US Department of Health and Human Services— $90 million contract value for five years.US Centers for Disease Control and Prevention— Customer since 2010. Extended partnership to modernize data management for disease monitoring and response.Scuderia Ferrari— Customer since 2016. Extended partnership to utilize Foundry in Scuderia Ferrari’s Power Unit.Hyundai Heavy Industries— The largest Korean auto manufacturer and Palantir will establish a big data platform for its business, with the potential of forming a joint venture to commercialize the platform.Source: Palantir FY2022 Q1 Investor PresentationPalantir has also been recognized as a Leader in the Dresner Wisdom of Crowds BI Market Study. Moreover, Palantir is part of FedRAMP, a government-wide program that empowers government agencies to adopt and use cloud services, particularly for information security and protection purposes. As of this writing, Palantir has 10 FedRAMP authorizations.Source: FedRAMP MarketplaceHigh Barriers to EntryBuilding a central operating system of that caliber, of that complexity — that is trusted by key industry players — is no easy feat. It requires years and decades of investment, development, and refinement, and Palantir has been doing so for two decades, which gives them a strong head start. Based on my research, I haven't come across any other company that comes close to what Palantir offers. These things put together creates high barriers to entry for emerging players to compete effectively with Palantir.Palantir is also one of the most active names in the government sector, amassing a total of 93 Government Customers. Keep in mind that building such a large network requires substantial due diligence, relationship building, and lobbying, some things that not many companies are able to do or afford. As such, as it pertains to the government business, Palantir is setting high barriers to entry that practically eliminates most competition.Network EffectsDespite its mysterious nature, Palantir has recently made itsFoundryandApollodocumentation available to the general public. This will help individuals, companies, investors, and the media to understand Palantir's software better, which should increase publicity. More importantly, this development should spur discussions in the developer community, thus increasing awareness, and ultimately, the adoption of Palantir's products.As mentioned earlier, Palantir has 200+ data connectors and it works with major cloud platforms such as AWS, Snowflake, and Google Cloud (GOOG), which have network effects of their own. Just recently, Palantir and Google Cloud announced their partnership to make Foundry available on Google Cloud and Google Cloud Marketplace. This gives Palantir access to Google Clouds customers, including PayPal (PYPL), Twitter (TWTR), and Etsy (ETSY).Source: Google CloudNot only that, but Palantir also works with other cloud infrastructure service providers, including the top 3 providers listed in the chart below. This should amplify product distribution, leading to powerful network effects.Source: StatistaOn a side note, Palantir has also partnered with Carahsoft, which creates a channel program to increase Palantir's reach within the US Federal sector, solidifying its position in the government side of the business. One more thing, Palantir has also recently launched the Palantir Certification Program, encouraging users to learn how to use Foundry as well as highlight their technical expertise in Foundry.Because of all the developments mentioned above, powerful network effects should ensue.Switching CostsThrough its Acquire-Expand-Scale business strategy, Palantir inevitably creates high switching costs among its customers. As customers graduate to the Expand and Scale phases, they have already invested millions in the platform and experienced the full benefit of Palantir's central operating systems. As a reminder, Palantir offers a software infrastructure for data and operations, and infrastructures are very difficult to replace.Let's take a look at an example. In 2016, through a Palantir-Airbus partnership, the aviation platform Skywise was formed. Skywise also serves as the medium to distribute Foundry across the aviation industry. Today, Skywise connects more than 9,000 aircraft across more than 100 airlines on the platform. If Airbus decides to abandon this program, the entire aviation value chain would be in a state of limbo, and that is something 100+ airlines would not want to deal with.Source: Harvard Business ReviewPut simply, once customers use Palantir's software, they are hooked into it for the long run as switching providers (if there's even a solution better than what Palantir provides) would mean a radical change in the customers' data/operations infrastructure. Moreover, developing in-house operating systems from scratch is difficult, time-consuming, and costly. In other words, customers would rather avoid the high switching costs and opportunity costs associated with replacing Palantir's operating system.CulturePalantir has a high Glassdoor rating of 4.3/5.0 with 79% of reviewers citing a \"Positive Business Outlook\" for the company.Source: GlassdoorPalantir is also founder-led, with the brilliant, eccentric, and visionary CEO Alex Karp at the helm of the company since day one. According to Comparably, Alex Karp is also a Top 5% based on 680 ratings. Alex Karp and co. are some of the most mission-critical people I get the pleasure of witnessing. And Palantirians are on board with management — the numbers speak for themselves.Source: ComparablyValuationThe last few quarters have been one of the most difficult times for growth investors. Growth stocks have lost 50%-90%+ of their values as raging inflation, rising interest rates, and quantitative tightening punish all things growth stocks. Palantir has not been spared from this rout. Since November 2021, Palantir has lost 70% of its value.In terms of EV/Sales, Palantir traded as high as 50x. Today, it trades at just 6.9x. In terms of EV/Gross Profit, Palantir traded as high as 100x. Today, it trades at just 11.3x.Source: KoyfinAfter the selloff, Palantir now trades at a market cap of roughly $16 billion. To put further context to this number, investors can buy Palantir at a cheaper valuation than its 2015 funding round, which closed at a $20 billion valuation.While the stock may look cheap today, further downside is possible given recession fears, raging inflation, rising interest rates, supply chain constraints, and a slowdown in growth. However, there seems to be a large margin of safety for long-term investors interested in partnering up with a high-quality, wide-moat business with a long growth runway ahead.CatalystsGAAP Profitability— Perhaps, one of the biggest milestones that Palantir can achieve is GAAP profitability. Much of the bear theses against Palantir is the insurmountable losses on a GAAP basis. Sure, Palantir is already profitable on a Non-GAAP and FCF basis, but in the long term, stock prices go up based on improvements in the bottom line of the income statement as well as the strong non-dilutive cash flow generation of the company. As such, flipping into GAAP profitability will most likely be a boost to Palantir's bull thesis.Government Reacceleration— As mentioned earlier, Palantir's growth story is largely predicated on its ability to retain and expand its ecosystem of government customers. As we have seen over the last few quarters, Government Revenue growth has decelerated to head-scratching levels. To recall, Q4 and Q1 Government Revenue growth was only 26% and 16%, respectively. Such a huge deceleration is probably the reason whyArk Invest dumped shares of Palantir. Despite the plateau in the Government segment, management does expect growth in the segment to reaccelerate in the next quarter. Returning to consistent 20%-30%+ growth in this department should welcome more bulls into the camp.Buyback Program— A big concern at the back of some investors' minds is the fact that there have been no insider purchases ever since Palantir went public. Instead, we're only seeing selling after selling by insiders. That is certainly not a confidence booster for investors. However, given the recent selloff of the stock, management may be inclined to put their capital to good use. With Palantir's large cash in hand of $2.5 billion, management may start a share repurchase program, a well-needed silver lining during what seemed to be the gloomiest market environment we've seen since the dot-com bubble and great financial crisis.RisksRevenue Concentration— In FY2020 and FY2021, Palantir's top three customers accounted for 25% and 18% of total Revenue. While Revenue concentration is getting better, it is still a risk worth considering. On a side note, Palantir has a long sales cycle of six months to more than a year. Therefore, if Palantir loses major customers, it will take time for the company to recoup the losses as a result of customers leaving the platform.SPAC Investments— During the Q1 earnings call, management mentioned that Revenue contribution from SPAC investments is expected to be about $30 million per quarter. That is an annual run rate of $120 million. With that said, some of these de-SPACed companies are trading like penny stocks. Most of these companies are also unprofitable and worse, some of them are concept companies generating zero Revenue. As such, there's a strong likelihood that some of them will eventually go bankrupt. When this happens, Palantir's: 1) Revenue is negatively affected, 2) customer count decreases, and 3) earnings per share takes a hit as the company faces higher losses from investments.Dilution— This is perhaps the most controversial topic when it comes to investing in Palantir. While SBC as a % of Revenue is gradually improving, there's no denying that SBC spending has been high and continues to be high. This makes dilution a real problem, no matter how much growth the company can bring into the business. As shown below, Shares Outstanding more than tripled in the last two years.Source: Seeking AlphaConclusionPalantir is building the central operating system for the modern world, powered by its three platforms: Gotham, Foundry, and Apollo. The company is posting strong growth numbers, particularly fueled by its Commercial segment, which will be the primary driving force of growth in the years to come. On the other hand, the Government segment is showing some weakness, although management expects a reacceleration of growth in that department. Nevertheless, Palantir has technology, network effects, switching costs, high barriers to entry, and culture moats that should support its growth trajectory.The past few months have not been easy for the stock, but the valuation reset is well needed and I think it has overshot to the downside. While we may see new lows due to a tough macro environment and the risks mentioned above, I believe there's a substantial margin of safety for long-term investors. I believe it is an opportune time to accumulate shares of this high-quality, wide-moat, black box company.Thank you for reading my Palantir deep dive.","news_type":1},"isVote":1,"tweetType":1,"viewCount":249,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":321992694333520,"gmtCreate":1719641973467,"gmtModify":1719647250637,"author":{"id":"3574951241870050","authorId":"3574951241870050","name":"Wnnn","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"title":"Guess the winner，Earn Tiger Coins","htmlText":"Find out more here: <a href=\"https://www.tigerbrokers.com.sg/activity/market/2024/trading-guess?inviteId=PRHBESIV&amp;banner=0&amp;feature=Message&amp;utm_medium=tiger_community&amp;platform=iOS&amp;shareID=a5178a37f3435883e6d5b17c4a639f70&amp;invite=8QOKY9&amp;lang=en_US\">Guess the winner，Earn Tiger Coins</a> Join the Guessing Game , find high-yield Sharers! 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