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Tonykhoo

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10-25

This guy is not trustworthy. He shld shut up

Apple Cuts Back iPhone Orders. Why Demand Fears Are Mounting

09-20

Isnt HK = China ?

DBS Sees Wealth Fees Doubling by 2027 as the Rich Head to Asia

08-20

This guy talk nonsense. Sore loser

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07-16

No brain analyst

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04-30

Well fargo cannot be trusted

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03-14

Holding on to 13.5k since $15

Palantir: Why I Am Not Selling

2023-11-23

Sore loser

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2023-07-20

The author does not have any credibility

Tesla: Consider Selling The News?

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He shld shut up&nbsp;","listText":"This guy is not trustworthy. He shld shut up&nbsp;","text":"This guy is not trustworthy. He shld shut up","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/363562869534840","repostId":"2477893276","repostType":2,"repost":{"id":"2477893276","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1729782900,"share":"https://ttm.financial/m/news/2477893276?lang=&edition=fundamental","pubTime":"2024-10-24 23:15","market":"us","language":"en","title":"Apple Cuts Back iPhone Orders. Why Demand Fears Are Mounting","url":"https://stock-news.laohu8.com/highlight/detail?id=2477893276","media":"Dow Jones","summary":"The argument around demand for Apple’s latest iPhones continues to rage. The latest update is a bearish assessment from influential Taiwan-based analyst Ming-Chi Kuo of TF International Securities.Chi","content":"<html><head></head><body><p style=\"text-align: start;\">The argument around demand for Apple’s latest iPhones continues to rage. The latest update is a bearish assessment from influential Taiwan-based analyst Ming-Chi Kuo of TF International Securities. </p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/251ba2cda65bbf71df6c08bebee8bf45\" alt=\"China is one of Apple’s biggest markets but it doesn’t currently plan to roll out its artificial-intelligence features in the country.\" title=\"China is one of Apple’s biggest markets but it doesn’t currently plan to roll out its artificial-intelligence features in the country.\" tg-width=\"958\" tg-height=\"635\"/><span>China is one of Apple’s biggest markets but it doesn’t currently plan to roll out its artificial-intelligence features in the country.</span></p><p style=\"text-align: start;\">Apple has cut its cut orders to suppliers for the iPhone 16 by about 10 million units for the fourth quarter of this year and the first half of 2025,accordingto Kuo. </p><p>Apple didn’t immediately respond to a request for comment early on Thursday. </p><p>Demand for the new iPhone 16 has been a subject of hot debate among analysts, who are trying to gauge whether the integration of artificial intelligence is attracting customers. Just this week, analysts at UBS noted they expect iPhone unit sales in the September quarter to be flat from the same time a year ago, while J.P. Morgan analysts said they see demand in line with the iPhone 15 based on delivery times. </p><p>Kuo’s assessment—which is based on his analysis of the company’s supply chain rather than sales—looks more downbeat. He now forecasts Apple partners will produce 80 million iPhones during the fourth quarter, down from around 84 million last year. He estimates production of 45 million units during the first quarter of 2025 and 39 million units during the second quarter—down from 48 million and 41 million, respectively.</p><p>The effect on sales might not be so pronounced in the short term as Kuo said the cuts are largely due to production of the cheaper non-Pro models. However, he said he expects iPhone revenue to come under pressure in the first half of 2025.</p><p style=\"text-align: start;\">“I believe that Apple is best positioned to succeed in on-device AI, and I am confident about the long-term potential for Apple Intelligence to become a popular paid service,” Kuo said. “However, significant growth in iPhone shipments will likely require further hardware innovation to accompany this AI development.”</p><p style=\"text-align: start;\">Apple CEO Tim Cook met with Chinese officials in Beijing on Wednesday. They discussed the company’s development in China, network data security and cloud services, according to a ministry statement. But it would be surprising if Cook didn’t take the chance to press for Beijing to allow Apple Intelligence—the company’s AI brand—to launch in China.</p><p style=\"text-align: start;\">Apple shares were down 0.4% in early trading on Thursday after falling 2.2% the previous day.</p><p style=\"text-align: start;\">The Consumer Financial Protection Bureau on Wednesday ordered Apple to pay a $25 million penalty over what it described as failures pertaining to its credit-card partnership with Goldman Sachs, which was ordered to pay nearly $65 million.</p><p style=\"text-align: start;\">The CFPB said Apple failed to send tens of thousands of consumer disputes of Apple Card transactions to Goldman—and that when Apple did send disputes to Goldman the bank didn’t follow federal requirements for investigating them.</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>Apple Cuts Back iPhone Orders. Why Demand Fears Are Mounting</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\">\nApple Cuts Back iPhone Orders. Why Demand Fears Are Mounting\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-10-24 23:15</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p style=\"text-align: start;\">The argument around demand for Apple’s latest iPhones continues to rage. The latest update is a bearish assessment from influential Taiwan-based analyst Ming-Chi Kuo of TF International Securities. </p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/251ba2cda65bbf71df6c08bebee8bf45\" alt=\"China is one of Apple’s biggest markets but it doesn’t currently plan to roll out its artificial-intelligence features in the country.\" title=\"China is one of Apple’s biggest markets but it doesn’t currently plan to roll out its artificial-intelligence features in the country.\" tg-width=\"958\" tg-height=\"635\"/><span>China is one of Apple’s biggest markets but it doesn’t currently plan to roll out its artificial-intelligence features in the country.</span></p><p style=\"text-align: start;\">Apple has cut its cut orders to suppliers for the iPhone 16 by about 10 million units for the fourth quarter of this year and the first half of 2025,accordingto Kuo. </p><p>Apple didn’t immediately respond to a request for comment early on Thursday. </p><p>Demand for the new iPhone 16 has been a subject of hot debate among analysts, who are trying to gauge whether the integration of artificial intelligence is attracting customers. Just this week, analysts at UBS noted they expect iPhone unit sales in the September quarter to be flat from the same time a year ago, while J.P. Morgan analysts said they see demand in line with the iPhone 15 based on delivery times. </p><p>Kuo’s assessment—which is based on his analysis of the company’s supply chain rather than sales—looks more downbeat. He now forecasts Apple partners will produce 80 million iPhones during the fourth quarter, down from around 84 million last year. He estimates production of 45 million units during the first quarter of 2025 and 39 million units during the second quarter—down from 48 million and 41 million, respectively.</p><p>The effect on sales might not be so pronounced in the short term as Kuo said the cuts are largely due to production of the cheaper non-Pro models. However, he said he expects iPhone revenue to come under pressure in the first half of 2025.</p><p style=\"text-align: start;\">“I believe that Apple is best positioned to succeed in on-device AI, and I am confident about the long-term potential for Apple Intelligence to become a popular paid service,” Kuo said. “However, significant growth in iPhone shipments will likely require further hardware innovation to accompany this AI development.”</p><p style=\"text-align: start;\">Apple CEO Tim Cook met with Chinese officials in Beijing on Wednesday. They discussed the company’s development in China, network data security and cloud services, according to a ministry statement. But it would be surprising if Cook didn’t take the chance to press for Beijing to allow Apple Intelligence—the company’s AI brand—to launch in China.</p><p style=\"text-align: start;\">Apple shares were down 0.4% in early trading on Thursday after falling 2.2% the previous day.</p><p style=\"text-align: start;\">The Consumer Financial Protection Bureau on Wednesday ordered Apple to pay a $25 million penalty over what it described as failures pertaining to its credit-card partnership with Goldman Sachs, which was ordered to pay nearly $65 million.</p><p style=\"text-align: start;\">The CFPB said Apple failed to send tens of thousands of consumer disputes of Apple Card transactions to Goldman—and that when Apple did send disputes to Goldman the bank didn’t follow federal requirements for investigating them.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU1363072403.SGD":"Fidelity Global Financial Services A-ACC-SGD","IE0005OL40V9.USD":"JANUS HENDERSON BALANCED \"A6M\" (USD) INC","IE00BZ1G4Q59.USD":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","LU0320765489.SGD":"FTIF - Franklin Mutual US Value A Acc SGD","LU0106831901.USD":"贝莱德世界金融基金A2","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","IE0009G5SDU7.USD":"PIMCO BALANCED INCOME AND GROWTH \"M\" (USD) INC","IE00B1BXHZ80.USD":"Legg Mason ClearBridge - US Appreciation A Acc USD","BK4554":"元宇宙及AR概念","IE000YTNTUN2.SGD":"PIMCO BALANCED INCOME AND GROWTH \"M\" (SGDHDG)INC","LU0203347892.USD":"SCHRODER ISF QEP GLOBAL ACTIVE VALLUE \"A\" (USD)  INC AV","IE000M9KFDE8.USD":"NEUBERGER BERMAN US LARGE CAP VALUE \"A\" (USD) ACC","LU1267930490.SGD":"TEMPLETON GLOBAL EQUITY INCOME \"AS\" (SGD) INC A","LU0976567544.SGD":"FTIF - Templeton Global Income A Mdis SGD-H1","LU0211327993.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (USD) ACC","BK4566":"资本集团","LU0149725797.USD":"汇丰美国股市经济规模基金","BK4507":"流媒体概念","LU0211326839.USD":"TEMPLETON GLOBAL INCOME \"A\" (USD) INC","IE0034235303.USD":"PINEBRIDGE US RESEARCH ENHANCED CORE EQUITY \"A\" (USD) ACC","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","BK4533":"AQR资本管理(全球第二大对冲基金)","LU0203345920.USD":"SCHRODER ISF QEP GLB ACT. VL \"A\" (USD) ACC","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","IE0009356076.USD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A2\" (USD) ACC","LU2237443895.HKD":"abrdn SICAV I -  GLOBAL DYNAMIC DIVIDEND \"A\" (HKD) ACC","LU1496350171.SGD":"FRANKLIN DIVERSIFIED BALANCED \"A\" (SGDHDG) ACC","IE00BLSP4239.USD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis USD Plus","IE0004086264.USD":"BNY MELLON GLOBAL OPPORTUNITIES \"A\" (USD) ACC","AAPL":"苹果","IE00B775SV38.USD":"NEUBERGER BERMAN US MULTICAP OPPORTUNITIES \"A\" (USD) ACC","HK0000320264.USD":"TAIKANG KAITAI CHINA NEW OPPORTUNITIES FUND \"A\" (USD) ACC","LU0238689110.USD":"贝莱德环球动力股票基金","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","LU1119994496.HKD":"FIDELITY WORLD \"A\" (HKD) ACC","BK4588":"碎股","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","LU0208291251.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) INC","LU2237443549.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA SGD-H","IE0034235071.USD":"PINEBRIDGE EUROPE RESEARCH ENHANCED EQUITY \"A\" (USD) ACC","BK4118":"综合性资本市场","BK4573":"虚拟现实","IE00BJLML261.HKD":"HSBC GLOBAL EQUITY INDEX \"HCH\" (HKD) ACC","BK4581":"高盛持仓","IE00BFXG1179.USD":"BNY MELLON U.S. EQUITY INCOME \"B\" (USD) INC","HK0000306701.USD":"TAIKANG KAITAI CHINA NEW OPPORTUNITIES FUND \"A\" (USD) INC","BK4504":"桥水持仓","IE00B775H168.HKD":"JANUS HENDERSON BALANCED \"A5M\" (HKD) INC"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2477893276","content_text":"The argument around demand for Apple’s latest iPhones continues to rage. The latest update is a bearish assessment from influential Taiwan-based analyst Ming-Chi Kuo of TF International Securities. China is one of Apple’s biggest markets but it doesn’t currently plan to roll out its artificial-intelligence features in the country.Apple has cut its cut orders to suppliers for the iPhone 16 by about 10 million units for the fourth quarter of this year and the first half of 2025,accordingto Kuo. Apple didn’t immediately respond to a request for comment early on Thursday. Demand for the new iPhone 16 has been a subject of hot debate among analysts, who are trying to gauge whether the integration of artificial intelligence is attracting customers. Just this week, analysts at UBS noted they expect iPhone unit sales in the September quarter to be flat from the same time a year ago, while J.P. Morgan analysts said they see demand in line with the iPhone 15 based on delivery times. Kuo’s assessment—which is based on his analysis of the company’s supply chain rather than sales—looks more downbeat. He now forecasts Apple partners will produce 80 million iPhones during the fourth quarter, down from around 84 million last year. He estimates production of 45 million units during the first quarter of 2025 and 39 million units during the second quarter—down from 48 million and 41 million, respectively.The effect on sales might not be so pronounced in the short term as Kuo said the cuts are largely due to production of the cheaper non-Pro models. However, he said he expects iPhone revenue to come under pressure in the first half of 2025.“I believe that Apple is best positioned to succeed in on-device AI, and I am confident about the long-term potential for Apple Intelligence to become a popular paid service,” Kuo said. “However, significant growth in iPhone shipments will likely require further hardware innovation to accompany this AI development.”Apple CEO Tim Cook met with Chinese officials in Beijing on Wednesday. They discussed the company’s development in China, network data security and cloud services, according to a ministry statement. But it would be surprising if Cook didn’t take the chance to press for Beijing to allow Apple Intelligence—the company’s AI brand—to launch in China.Apple shares were down 0.4% in early trading on Thursday after falling 2.2% the previous day.The Consumer Financial Protection Bureau on Wednesday ordered Apple to pay a $25 million penalty over what it described as failures pertaining to its credit-card partnership with Goldman Sachs, which was ordered to pay nearly $65 million.The CFPB said Apple failed to send tens of thousands of consumer disputes of Apple Card transactions to Goldman—and that when Apple did send disputes to Goldman the bank didn’t follow federal requirements for investigating them.","news_type":1},"isVote":1,"tweetType":1,"viewCount":23,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":351417391546496,"gmtCreate":1726833836393,"gmtModify":1726836904133,"author":{"id":"3582712972054494","authorId":"3582712972054494","name":"Tonykhoo","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582712972054494","authorIdStr":"3582712972054494"},"themes":[],"htmlText":"Isnt HK = China ?&nbsp;","listText":"Isnt HK = China ?&nbsp;","text":"Isnt HK = China ?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/351417391546496","repostId":"2468658038","repostType":2,"repost":{"id":"2468658038","pubTimestamp":1726797653,"share":"https://ttm.financial/m/news/2468658038?lang=&edition=fundamental","pubTime":"2024-09-20 10:00","market":"nz","language":"en","title":"DBS Sees Wealth Fees Doubling by 2027 as the Rich Head to Asia","url":"https://stock-news.laohu8.com/highlight/detail?id=2468658038","media":"Bloomberg","summary":"DBS Group Holdings Ltd. aims to double fees from wealth management by 2027 as more of the world’s affluent investors shift their assets to Asia.","content":"<html><head></head><body><p> <a href=\"https://laohu8.com/S/D05.SI\">DBS Group Holdings</a> aims to double fees from wealth management by 2027 as more of the world’s affluent investors shift their assets to Asia.</p><p>DBS’s income from servicing rich clients rose to more than S$2 billion ($1.5 billion) last year, doubling from 2015. It expects the same pace of increase in half that period as well-heeled people and family offices from various parts of the world head to Asia to park their money, said Shee Tse Koon, head of consumer and wealth banking at DBS.</p><p>“Given the trajectory and traction we have had over the past years, our aim going forward is that by 2027 we want to double our wealth fees,” Shee said in an interview with Bloomberg News this week. Wealthy clients of Southeast Asia’s largest bank usually invest their cash to improve returns and many have also tapped DBS for their trust and legacy planning needs, he said.</p><p>Shee’s optimism underscores the significance of rising wealth fees that boosted DBS’s income in recent years and will likely cushion its earnings with global interest rates set to decline. DBS is now the third-largest private bank in Asia, excluding China, only behind UBS Group AG and HSBC Holdings Plc, according to rankings by Asian Private Banker. </p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/3cb8dca0d31fce408d9bfcf95b20a9b3\" tg-width=\"442\" tg-height=\"237\"/></p><p>The assets of DBS clients, including those at the private bank and lower-rung tiers, reached S$396 billion as of June. That is set to exceed S$500 billion by 2027 with the number of clients investing and buying insurance products expected to quadruple, Shee said without specifying the numbers. The bank also handles a third of Singapore’s 1,650 single family offices, he said.</p><p>Singapore saw a $120 billion surge in financial assets booked from overseas last year, with China being the top source of new wealth in absolute terms, according to a Boston Consulting Group report published in July. Shee said there’s been “a good mix” of assets from North and South Asia, the Middle East and Europe with no particularly dominant region. </p><p>The bank has grown its relationship manager headcount by around 20% since the middle of 2023, Shee said, adding that hiring continues and that they’re still working out future headcount. DBS had 730 relationship managers as of 2023, up 12% from a year ago and the second highest in Asia, excluding China, according to Asian Private Banker.</p><p>DBS has two booking centers — Singapore and Hong Kong — for its wealthy clients across the regions. While the bank is seeing more traction from clients in Dubai, India and London, Shee said there is “no compelling reason” for now to consider the United Arab Emirates city as its third booking hub.</p><p>DBS, like other banks, has grappled with ensuring that assets of its clients are clean. In July, the bank was fined HKD10 million ($1.3 million) by the Hong Kong Monetary Authority for lapses including failure to continuously monitor business relationships and to establish the source of wealth of high-risk customers between 2012 and 2019. In Singapore, DBS had some S$100 million exposure to clients who were convicted this year in the city-state’s largest money-laundering case where more than S$3 billion of assets were seized.</p><p>DBS is constantly investing in both technology and people to detect misconduct and illicit flows, Shee said. It’s also boosting its surveillance and monitoring systems to keep pace with emerging criminal trends, he added. </p><p>“The whole point is how you balance between being effective in anti-money laundering and risk management and yet remain efficient and open for business,” he said.</p><p>Other highlights from the interview:</p><ul style=\"\"><li><p>DBS is open to additional partnerships in India where it has more than 500 branches. The bank is already working with local firms in areas like term insurance and mutual funds distribution</p></li><li><p>Following acquisition of $Citigroup Inc(C-N)$.’s retail business in Taiwan, DBS is seeing strong business especially in credit cards</p></li><li><p>More than half of DBS relationship managers are using generative-artificial intelligence in an early phase of a pilot project that helps them prepare investment conversations with clients</p></li></ul><p></p></body></html>","source":"bnn_bloomberg_highlight","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>DBS Sees Wealth Fees Doubling by 2027 as the Rich Head to Asia</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\">\nDBS Sees Wealth Fees Doubling by 2027 as the Rich Head to Asia\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-09-20 10:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.bloomberg.com/news/articles/2024-09-19/dbs-sees-wealth-fees-doubling-by-2027-as-the-rich-head-to-asia><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>DBS Group Holdings aims to double fees from wealth management by 2027 as more of the world’s affluent investors shift their assets to Asia.DBS’s income from servicing rich clients rose to more than S$...</p>\n\n<a href=\"https://www.bloomberg.com/news/articles/2024-09-19/dbs-sees-wealth-fees-doubling-by-2027-as-the-rich-head-to-asia\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0048597586.USD":"富达亚洲焦点A","IE00BKZH1Z71.USD":"BNY MELLON ASIAN INCOME \"B\" (USD) ACC","LU2257852520.SGD":"JPMorgan Funds - Asia Growth A (acc) SGD","LU0823397103.USD":"BNP PARIBAS SUSTAINABLE ASIA EX-JAPAN EQUITY \"C\" (USD) ACC","LU0128522157.USD":"TEMPLETON ASIAN GROWTH \"A\" ACC","LU0251143029.SGD":"Fidelity ASEAN A-SGD","LU0048573645.USD":"富达东盟基金","LU0823417653.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"C\" (USD) ACC","LU0084288322.USD":"Natixis Asia Equity RD USD","LU0384037296.USD":"ALLIANZ ASIAN MULTI INCOME PLUS \"AT\" (USD) ACC","LU0488056044.USD":"Allianz Asian Multi Income Plus Cl AM DIS USD","LU0823397285.USD":"BNP PARIBAS SUSTAINABLE ASIA EX-JAPAN EQUITY \"C\" (USD) INC","LU0210637038.USD":"HSBC GIF THAI EQUITY \"AD\" INC","LU0955669360.SGD":"Schroder ISF Asian Dividend Maximiser A Dis SGD","LU0737861269.HKD":"FIDELITY ASEAN \"A \" (HKD) ACC","LU0823417737.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"C\" (USD) INC","SG9999000459.SGD":"Aberdeen Standard Pacific Equity SGD","LU0762540952.USD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED INCOME \"AC\" (USD) ACC","BK6516":"银行与投资服务概念","LU0886674414.USD":"CT (LUX) I ASIAN EQUITY INCOME \"AUP\" (USD) INC","LU0831103253.SGD":"JPMorgan Funds - Asia Pacific Income A (mth) SGD","BK6523":"ESG概念","LU0532188223.SGD":"JPMorgan Funds - ASEAN Equity A (acc) SGD","LU0029875118.USD":"TEMPLETON ASIAN GROWTH \"A\" INC","LU1130305938.SGD":"Schroder ISF Asian Dividend Maximiser A Dis SGD-H","LU0251144936.SGD":"Fidelity Sustainable Asia Equity A-SGD","IE0031814969.USD":"FSSA ASEAN ALL CAP FUND \"I\" (USD) ACC","LU2506951875.HKD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"CRH\" (HKDHDG) ACC","LU1504937902.USD":"CT (LUX) I ASIAN EQUITY INCOME \"DUP\" (EUR) INC","LU0873338254.USD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"I\" (USD) INC","LU0235996351.USD":"UBS (LUX) KEY SELECTION SICAV - ASIAN EQUITY (USD) \"P\" (USD) ACC","LU2506952097.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"CRH\" (USDHDG) ACC","LU0630378429.USD":"HSBC GIF ASIA PACIFIC EX JAPAN EQ HD \"AM2\" (USD) INC","LU2506951958.HKD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"CRH\" (HKDHDG) INC","LU0577902371.SGD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"I\" (SGD) ACC","LU0557290698.USD":"施罗德环球可持续增长基金","LU0898667661.SGD":"JPMorgan Funds - Asia Pacific Income A (mth) SGD-H","LU2506952170.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"CRH\" (USDHDG) INC","LU0192582467.USD":"SCHRODER ISF ASIAN EQUITY YIELD \"A\" (USD) INC MF","LU0326948709.USD":"SCHRODER ISF ASIAN TOTAL RETURN \"A\" (USD) ACC","D05.SI":"星展集团控股","LU0831093199.SGD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED INCOME \"AM3\" (SGDHDG) INC","SG9999000343.SGD":"Schroder Singapore Trust A Dis SGD","LU0577902538.SGD":"Fullerton Lux Funds - Asia Growth and Income Equities A Acc SGD","LU0188438112.USD":"SCHRODER ISF ASIAN EQUITY YIELD \"A\" ACC","LU0011963245.USD":"abrdn SICAV I ASIA PACIFIC SUSTAINAB  LE EQUITY \"A\" (USD) ACC","LU1956131251.USD":"BNP PARIBAS SUSTAINABLE ASIA EX-JAPAN EQUITY \"C\"MD (USD) INC","LU0577902454.USD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"I\" (USD) ACC","LU0950375773.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"C\" (USD) INC A"},"source_url":"https://www.bloomberg.com/news/articles/2024-09-19/dbs-sees-wealth-fees-doubling-by-2027-as-the-rich-head-to-asia","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2468658038","content_text":"DBS Group Holdings aims to double fees from wealth management by 2027 as more of the world’s affluent investors shift their assets to Asia.DBS’s income from servicing rich clients rose to more than S$2 billion ($1.5 billion) last year, doubling from 2015. It expects the same pace of increase in half that period as well-heeled people and family offices from various parts of the world head to Asia to park their money, said Shee Tse Koon, head of consumer and wealth banking at DBS.“Given the trajectory and traction we have had over the past years, our aim going forward is that by 2027 we want to double our wealth fees,” Shee said in an interview with Bloomberg News this week. Wealthy clients of Southeast Asia’s largest bank usually invest their cash to improve returns and many have also tapped DBS for their trust and legacy planning needs, he said.Shee’s optimism underscores the significance of rising wealth fees that boosted DBS’s income in recent years and will likely cushion its earnings with global interest rates set to decline. DBS is now the third-largest private bank in Asia, excluding China, only behind UBS Group AG and HSBC Holdings Plc, according to rankings by Asian Private Banker. The assets of DBS clients, including those at the private bank and lower-rung tiers, reached S$396 billion as of June. That is set to exceed S$500 billion by 2027 with the number of clients investing and buying insurance products expected to quadruple, Shee said without specifying the numbers. The bank also handles a third of Singapore’s 1,650 single family offices, he said.Singapore saw a $120 billion surge in financial assets booked from overseas last year, with China being the top source of new wealth in absolute terms, according to a Boston Consulting Group report published in July. Shee said there’s been “a good mix” of assets from North and South Asia, the Middle East and Europe with no particularly dominant region. The bank has grown its relationship manager headcount by around 20% since the middle of 2023, Shee said, adding that hiring continues and that they’re still working out future headcount. DBS had 730 relationship managers as of 2023, up 12% from a year ago and the second highest in Asia, excluding China, according to Asian Private Banker.DBS has two booking centers — Singapore and Hong Kong — for its wealthy clients across the regions. While the bank is seeing more traction from clients in Dubai, India and London, Shee said there is “no compelling reason” for now to consider the United Arab Emirates city as its third booking hub.DBS, like other banks, has grappled with ensuring that assets of its clients are clean. In July, the bank was fined HKD10 million ($1.3 million) by the Hong Kong Monetary Authority for lapses including failure to continuously monitor business relationships and to establish the source of wealth of high-risk customers between 2012 and 2019. In Singapore, DBS had some S$100 million exposure to clients who were convicted this year in the city-state’s largest money-laundering case where more than S$3 billion of assets were seized.DBS is constantly investing in both technology and people to detect misconduct and illicit flows, Shee said. It’s also boosting its surveillance and monitoring systems to keep pace with emerging criminal trends, he added. “The whole point is how you balance between being effective in anti-money laundering and risk management and yet remain efficient and open for business,” he said.Other highlights from the interview:DBS is open to additional partnerships in India where it has more than 500 branches. The bank is already working with local firms in areas like term insurance and mutual funds distributionFollowing acquisition of $Citigroup Inc(C-N)$.’s retail business in Taiwan, DBS is seeing strong business especially in credit cardsMore than half of DBS relationship managers are using generative-artificial intelligence in an early phase of a pilot project that helps them prepare investment conversations with clients","news_type":1},"isVote":1,"tweetType":1,"viewCount":27,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":340435706003608,"gmtCreate":1724145216299,"gmtModify":1724147372940,"author":{"id":"3582712972054494","authorId":"3582712972054494","name":"Tonykhoo","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582712972054494","authorIdStr":"3582712972054494"},"themes":[],"htmlText":"This guy talk nonsense. Sore loser&nbsp;","listText":"This guy talk nonsense. Sore loser&nbsp;","text":"This guy talk nonsense. Sore loser","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/340435706003608","repostId":"2460103938","repostType":2,"repost":{"id":"2460103938","pubTimestamp":1724142540,"share":"https://ttm.financial/m/news/2460103938?lang=&edition=fundamental","pubTime":"2024-08-20 16:29","market":"sh","language":"en","title":"Palantir: Don't Follow It Off The Cliff, Overpriced Generative AI Story","url":"https://stock-news.laohu8.com/highlight/detail?id=2460103938","media":"Seekingalpha","summary":"PLTR has demonstrated the promising monetization of generative AI SaaS layer across the government and commercial segments, thanks to the highly opportunistic AIP boot camp.These have led to its highe","content":"<html><head></head><body><ul style=\"\"><li><p>PLTR has demonstrated the promising monetization of generative AI SaaS layer across the government and commercial segments, thanks to the highly opportunistic AIP boot camp.</p></li><li><p>These have led to its higher Net Retention Rates and the growing multi-year Remaining Performance Obligations, sustaining its high-growth investment thesis.</p></li><li><p>Even so, with these developments triggering PLTR&#39;s lofty valuations compared to its peers, we believe that there is a minimal margin of safety at current levels.</p></li><li><p>Based on its historical trading pattern, the stock is likely to pull back to its uptrend support levels of $24s in the near-term.</p></li><li><p>Traders may consider following the massive insider selling and taking part of their gains off the table, before coming back in later.</p></li></ul><p>We previously covered <a href=\"https://laohu8.com/S/PLTR\">Palantir Technologies Inc.</a> in May 2024, discussing the normalization in market sentiments surrounding generative AI stocks, despite the SaaS company&#39;s robust performance metrics thanks to the successful AIP boot camps.</p><p>We had upgraded our rating to a Buy then, preferably after a moderate retracement to its previous support levels of $18s for an improved margin of safety.</p><p>Since then, PLTR has maintained a floor at $20 while rallying by +55.7% to retest its all-time highs of $30s, naturally outperforming the wider market at +6.1%.</p><p>This is despite the drastic July 2024 market wide pullback, with the bullish support attributed to the double beat FQ2&#39;24 performance and raised FY2024 guidance, with it underscoring the successful penetration of generative AI monetization through the infrastructure layer to the SaaS layer.</p><p>Even so, we are downgrading the stock to a Hold instead, since it is now overly expensive with the baked in growth premium offering interested investors with a minimal upside potential.</p><h3 id=\"id_3847959463\">PLTR Continues To Outperform Expectations, With Robust Growth Prospects &amp; Performance Metrics</h3><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/750e4c736f8a7df65439c55a29a2630e\" alt=\"PLTR YTD Stock Price\" title=\"PLTR YTD Stock Price\" tg-width=\"640\" tg-height=\"375\"/><span>PLTR YTD Stock Price</span></p><p>Since its first GAAP profitability and the seven consecutive positive bottom-line results since Q4&#39;22, it is unsurprising that the PLTR stock has already generated robust gains, significantly aided by the growing demand for its generative AI SaaS offerings.</p><p>The latter is already observed in the double beat performance, with its commercial growth accelerating at +32.4% YoY in FQ2&#39;24, compared to +10.4% YoY reported in FQ2&#39;23. Government demand is robust at +23% YoY as well, compared to +14.6% YoY a year ago.</p><p>It is apparent from these developments that PLTR&#39;s AI Bootcamp strategy has been highly successful in winning new customers, as observed in the higher overall customer count at 593 (+39 QoQ/ +172 YoY).</p><p>This in top of the improved cross-selling to existing customers, given the higher Net Retention Dollar of 114% in FQ2&#39;24 (+3 points QoQ/ +6 from FQ4&#39;23 levels of 108%).</p><p>Most importantly, PLTR&#39;s boot camp strategy during the generative AI boom has directly contributed to the SaaS company&#39;s excellent Rule of 40 results at 64% by the latest quarter (+7 points QoQ/ +26 YoY), thanks to the accelerated sales growth at 27% (+6 points QoQ/ +14 YoY) and richer adj operating margin at 37% (+1 points QoQ/ +12 YoY).</p><p>Moving forward, we believe that the SaaS company may be able to continue generating robust performance metrics ahead, significantly aided by its highly strategic partnership with Microsoft (MSFT).</p><p>It is important for us to highlight that both PLTR and MSFT&#39;s Azure boast &#34;the highest possible DoD Impact Level 6 (IL6) provisional authorization (PA) at the high confidentiality and high integrity (H-H-x) information categorization.&#34;</p><p>These developments imply that PLTR will be able to leverage on Azure&#39;s existing Large Language Models and OpenAI&#39;s GPT-4 capabilities, while being integrated into the Federal government&#39;s highly classified cloud data, naturally driving further growth opportunities for the former&#39;s government segment.</p><p>With the US government comprising $278M (+8% QoQ/ +24% YoY) or the equivalent 41% (+0.5 points QoQ/ -1.1 YoY) of the SaaS company&#39;s overall FQ2&#39;24 revenues, it is undeniable that the US Federal contracts remain the backbone of its overall prospects.</p><p>The next few years are likely to bring forth significant growth opportunities as well, attributed to the higher defense spending as geopolitical hostilities intensify in Gaza and Ukraine.</p><p>PLTR&#39;s inflection is further observed in the raised FY2024 guidance, with revenues of $2.746B (+23.6% YoY) and adj income from operations of $970M (+53.2% YoY) at the midpoint.</p><p>This is up from the original guidance of $2.66B (+19.8% YoY) and $842M (+33% YoY) offered in the FQ4&#39;23 earnings call, respectively.</p><p>The raised guidance is not overly aggressive indeed, based on PLTR&#39;s H1&#39;24 numbers of $1.31B (+24.7% YoY) and $480.02M (+84.6% YoY), with it demonstrating the management&#39;s confidence about generating robust and profitable growth ahead, with another raise and beat performance likely in FQ3&#39;24.</p><p>With these numbers well-supported by the growing multi-year Remaining Performance Obligation of $1.37B (+5.3% QoQ/ +41.2% YoY), we believe the stock continues to offer a compelling high-growth investment thesis.</p><p><strong>The Consensus Forward Estimates</strong></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/3a35d43ec8b2405d6fda6813ce09fdb2\" alt=\"TIKR Terminal\" title=\"TIKR Terminal\" tg-width=\"640\" tg-height=\"227\"/><span>TIKR Terminal</span></p><p>As a result of the raised FY2024 guidance, it is unsurprising that the consensus have already raised their forward estimates, with PLTR expected to generate an accelerated top/ bottom-line growth at a CAGR of +21.3%/ +28.4% through FY2026.</p><p>This is compared to the original estimates of +20.3%/ +23.2% and historical top-line growth of +30.1% between FY2018 and FY2023, respectively.</p><p><strong>PLTR Valuations</strong></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/93b2208a8b0501fe0ad889cf9a0c3ccb\" tg-width=\"640\" tg-height=\"123\"/></p><p>On the other hand, it is undeniable that PLTR may be expensive at FWD P/E valuations of 90.29x, compared to its 1Y mean of 66.90x and 3Y mean of 69.54x.</p><p>Even when compared to its AI SaaS peers, it is apparent that PLTR is trading at a premium, including Google (GOOG) at FWD P/E of 21.63x with the projected adj EPS growth of +19.6% through FY2026, <a href=\"https://laohu8.com/S/ADBE\">Adobe</a> (ADBE) at 30.47x/ +14%, Microsoft at 31.75x/ +15.1%, Nvidia (NVDA) at 45.70x/ +49.3%, and with the rare exception being CrowdStrike (CRWD) at 66.94x/ +24.1%, respectively.</p><p>If we are to do the same exercise with its direct competitors, including BigBear.ai (BBAI) at FWD Price/ Sales of 1.83x with the projected revenue growth of +18% through FY2026, C3.ai (AI) at 8.30x/ +20.8%, and SoundHound AI (SOUN) at 21.59x/ +82.1%, we believe that PLTR at 26.04x/ +21.3% appears to be on the expensive side.</p><p>Given PLTR&#39;s relatively premium valuation, we believe that there is a minimal margin of safety at current levels indeed.</p><h2 id=\"id_2096264043\">So, Is PLTR Stock A Buy, Sell, or Hold?</h2><p><strong>PLTR 4Y Stock Price</strong></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/c9989f8853a376f38a76fb635552965d\" alt=\"TradingView\" title=\"TradingView\" tg-width=\"640\" tg-height=\"375\"/><span>TradingView</span></p><p>For now, PLTR&#39;s uptrend has been impressive since the December 2022 bottom, with it consistently charting higher highs and higher lows despite the recent market rotation from high-growth stocks.</p><p>For context, we had offered a long-term price target of $26.70 in our previous article, based on the consensus FY2026 adj EPS estimates of $0.47 and the 2022/ 2023 P/E mean of 57x.</p><p>Based on the consensus raised FY2026 adj EPS estimates of $0.53 and the same P/E, we are looking at an updated long-term price target of $30.20, with it implying a minimal margin of safety at current levels.</p><p>On the one hand, PLTR&#39;s short interest continues to moderate to 2.85% by the time of writing, down from the previous article levels of 3.52%, with it implying lower volatility from short sellers.</p><p>On the other hand, as the stock prices reached new peaks of over $30s, nearing those observed during the February 2021 peaks, it is unsurprising that insiders have been unlocking great gains at current levels with $240M sold in Q2&#39;24 (+30.4% QoQ/ +788% YoY).</p><p>While market sentiments surrounding high-growth stocks appear to have normalized after the great correction in July 2024 with the CBOE Volatility Index also moderating, we maintain our belief that there remains a minimal upside potential at current levels.</p><p>Based on PLTR&#39;s historical trading pattern, the stock is likely to pull back to its uptrend support levels of $24s in the near-term.</p><p>As a result of the potential capital losses, we are downgrading our Buy rating to Hold (Neutral) rating instead. Interested long-term investors may consider waiting for the pullback before adding for an improved dollar cost average.</p><p>Likewise, traders may consider following insiders and taking part of their gains off the table, before coming back in later.</p><p>For now, do not chase PLTR over the cliff.</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: Don't Follow It Off The Cliff, Overpriced Generative AI Story</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: Don't Follow It Off The Cliff, Overpriced Generative AI Story\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-08-20 16:29 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4715533-palantir-stock-dont-follow-it-off-the-cliff-overpriced-generative-ai-story><strong>Seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>PLTR has demonstrated the promising monetization of generative AI SaaS layer across the government and commercial segments, thanks to the highly opportunistic AIP boot camp.These have led to its ...</p>\n\n<a href=\"https://seekingalpha.com/article/4715533-palantir-stock-dont-follow-it-off-the-cliff-overpriced-generative-ai-story\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4528":"SaaS概念","LU1548497426.USD":"安联环球人工智能AT Acc","PLTR":"Palantir Technologies Inc.","BK4592":"伊斯兰概念","LU0154236417.USD":"BGF US FLEXIBLE EQUITY \"A2\" ACC","BK4507":"流媒体概念","LU1815333072.USD":"THREADNEEDLE (LUX) GLOBAL FOCUS \"AUP\" (USD) INC","BK4576":"AR","IE00B4JS1V06.HKD":"JANUS HENDERSON BALANCED \"A2\" (HKD) ACC","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","LU0557290698.USD":"施罗德环球可持续增长基金","BK4525":"远程办公概念","LU0889566641.SGD":"FTSF - Templeton Shariah Global Equity A Acc SGD","LU2023250504.SGD":"Allianz Thematica Cl AMg DIS H2-SGD","LU1923622614.USD":"Natixis Thematics Meta R/A USD","LU0238689110.USD":"贝莱德环球动力股票基金","LU0456855351.SGD":"JPMorgan Funds - Global Equity A (acc) SGD","LU0642271901.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD-H","LU0072462426.USD":"贝莱德全球配置 A2","BK4577":"网络游戏","BK4527":"明星科技股","LU2125909759.SGD":"Natixis Thematics Safety H-R/A SGD","BK4579":"人工智能","BK4529":"IDC概念","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","LU0056508442.USD":"贝莱德世界科技基金A2","LU2125154778.USD":"ALLSPRING GLOBAL EQUITY ENHANCED INCOME \"A\" (USD) INC","IE00BZ199S13.USD":"BNY MELLON MOBILITY INNOVATION \"B\" (USD) ACC","LU0048584097.USD":"FIDELITY FUNDS  GLOBAL THEMATIC OPPORTUNITIES \"A\" (USD) INC","LU2125909916.SGD":"Natixis Thematics Safety R/A SGD","LU1992135399.USD":"Allianz Global Intelligent Cities AT Acc USD","LU0640476718.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQ \"AU\" (USD) ACC","BK4503":"景林资产持仓","LU1923622291.USD":"Natixis Thematics Safety R/A USD","LU2210149790.SGD":"Natixis Thematics Subscription Economy R/A SGD-H","LU0289739343.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (SGD) ACC","LU0109392836.USD":"富兰克林科技股A","BK4504":"桥水持仓","BK4581":"高盛持仓","LU0965509010.AUD":"AB LOW VOLATILITY EQUITY PORTFOLIO \"AD\" (AUDHDG) INC","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","IE00B19Z8X17.USD":"FTGF CLEARBRIDGE US LARGE CAP GROWTH  \"AG\" (USD) ACC","LU0320765059.SGD":"FTIF - Franklin US Opportunities A Acc SGD"},"source_url":"https://seekingalpha.com/article/4715533-palantir-stock-dont-follow-it-off-the-cliff-overpriced-generative-ai-story","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2460103938","content_text":"PLTR has demonstrated the promising monetization of generative AI SaaS layer across the government and commercial segments, thanks to the highly opportunistic AIP boot camp.These have led to its higher Net Retention Rates and the growing multi-year Remaining Performance Obligations, sustaining its high-growth investment thesis.Even so, with these developments triggering PLTR's lofty valuations compared to its peers, we believe that there is a minimal margin of safety at current levels.Based on its historical trading pattern, the stock is likely to pull back to its uptrend support levels of $24s in the near-term.Traders may consider following the massive insider selling and taking part of their gains off the table, before coming back in later.We previously covered Palantir Technologies Inc. in May 2024, discussing the normalization in market sentiments surrounding generative AI stocks, despite the SaaS company's robust performance metrics thanks to the successful AIP boot camps.We had upgraded our rating to a Buy then, preferably after a moderate retracement to its previous support levels of $18s for an improved margin of safety.Since then, PLTR has maintained a floor at $20 while rallying by +55.7% to retest its all-time highs of $30s, naturally outperforming the wider market at +6.1%.This is despite the drastic July 2024 market wide pullback, with the bullish support attributed to the double beat FQ2'24 performance and raised FY2024 guidance, with it underscoring the successful penetration of generative AI monetization through the infrastructure layer to the SaaS layer.Even so, we are downgrading the stock to a Hold instead, since it is now overly expensive with the baked in growth premium offering interested investors with a minimal upside potential.PLTR Continues To Outperform Expectations, With Robust Growth Prospects & Performance MetricsPLTR YTD Stock PriceSince its first GAAP profitability and the seven consecutive positive bottom-line results since Q4'22, it is unsurprising that the PLTR stock has already generated robust gains, significantly aided by the growing demand for its generative AI SaaS offerings.The latter is already observed in the double beat performance, with its commercial growth accelerating at +32.4% YoY in FQ2'24, compared to +10.4% YoY reported in FQ2'23. Government demand is robust at +23% YoY as well, compared to +14.6% YoY a year ago.It is apparent from these developments that PLTR's AI Bootcamp strategy has been highly successful in winning new customers, as observed in the higher overall customer count at 593 (+39 QoQ/ +172 YoY).This in top of the improved cross-selling to existing customers, given the higher Net Retention Dollar of 114% in FQ2'24 (+3 points QoQ/ +6 from FQ4'23 levels of 108%).Most importantly, PLTR's boot camp strategy during the generative AI boom has directly contributed to the SaaS company's excellent Rule of 40 results at 64% by the latest quarter (+7 points QoQ/ +26 YoY), thanks to the accelerated sales growth at 27% (+6 points QoQ/ +14 YoY) and richer adj operating margin at 37% (+1 points QoQ/ +12 YoY).Moving forward, we believe that the SaaS company may be able to continue generating robust performance metrics ahead, significantly aided by its highly strategic partnership with Microsoft (MSFT).It is important for us to highlight that both PLTR and MSFT's Azure boast \"the highest possible DoD Impact Level 6 (IL6) provisional authorization (PA) at the high confidentiality and high integrity (H-H-x) information categorization.\"These developments imply that PLTR will be able to leverage on Azure's existing Large Language Models and OpenAI's GPT-4 capabilities, while being integrated into the Federal government's highly classified cloud data, naturally driving further growth opportunities for the former's government segment.With the US government comprising $278M (+8% QoQ/ +24% YoY) or the equivalent 41% (+0.5 points QoQ/ -1.1 YoY) of the SaaS company's overall FQ2'24 revenues, it is undeniable that the US Federal contracts remain the backbone of its overall prospects.The next few years are likely to bring forth significant growth opportunities as well, attributed to the higher defense spending as geopolitical hostilities intensify in Gaza and Ukraine.PLTR's inflection is further observed in the raised FY2024 guidance, with revenues of $2.746B (+23.6% YoY) and adj income from operations of $970M (+53.2% YoY) at the midpoint.This is up from the original guidance of $2.66B (+19.8% YoY) and $842M (+33% YoY) offered in the FQ4'23 earnings call, respectively.The raised guidance is not overly aggressive indeed, based on PLTR's H1'24 numbers of $1.31B (+24.7% YoY) and $480.02M (+84.6% YoY), with it demonstrating the management's confidence about generating robust and profitable growth ahead, with another raise and beat performance likely in FQ3'24.With these numbers well-supported by the growing multi-year Remaining Performance Obligation of $1.37B (+5.3% QoQ/ +41.2% YoY), we believe the stock continues to offer a compelling high-growth investment thesis.The Consensus Forward EstimatesTIKR TerminalAs a result of the raised FY2024 guidance, it is unsurprising that the consensus have already raised their forward estimates, with PLTR expected to generate an accelerated top/ bottom-line growth at a CAGR of +21.3%/ +28.4% through FY2026.This is compared to the original estimates of +20.3%/ +23.2% and historical top-line growth of +30.1% between FY2018 and FY2023, respectively.PLTR ValuationsOn the other hand, it is undeniable that PLTR may be expensive at FWD P/E valuations of 90.29x, compared to its 1Y mean of 66.90x and 3Y mean of 69.54x.Even when compared to its AI SaaS peers, it is apparent that PLTR is trading at a premium, including Google (GOOG) at FWD P/E of 21.63x with the projected adj EPS growth of +19.6% through FY2026, Adobe (ADBE) at 30.47x/ +14%, Microsoft at 31.75x/ +15.1%, Nvidia (NVDA) at 45.70x/ +49.3%, and with the rare exception being CrowdStrike (CRWD) at 66.94x/ +24.1%, respectively.If we are to do the same exercise with its direct competitors, including BigBear.ai (BBAI) at FWD Price/ Sales of 1.83x with the projected revenue growth of +18% through FY2026, C3.ai (AI) at 8.30x/ +20.8%, and SoundHound AI (SOUN) at 21.59x/ +82.1%, we believe that PLTR at 26.04x/ +21.3% appears to be on the expensive side.Given PLTR's relatively premium valuation, we believe that there is a minimal margin of safety at current levels indeed.So, Is PLTR Stock A Buy, Sell, or Hold?PLTR 4Y Stock PriceTradingViewFor now, PLTR's uptrend has been impressive since the December 2022 bottom, with it consistently charting higher highs and higher lows despite the recent market rotation from high-growth stocks.For context, we had offered a long-term price target of $26.70 in our previous article, based on the consensus FY2026 adj EPS estimates of $0.47 and the 2022/ 2023 P/E mean of 57x.Based on the consensus raised FY2026 adj EPS estimates of $0.53 and the same P/E, we are looking at an updated long-term price target of $30.20, with it implying a minimal margin of safety at current levels.On the one hand, PLTR's short interest continues to moderate to 2.85% by the time of writing, down from the previous article levels of 3.52%, with it implying lower volatility from short sellers.On the other hand, as the stock prices reached new peaks of over $30s, nearing those observed during the February 2021 peaks, it is unsurprising that insiders have been unlocking great gains at current levels with $240M sold in Q2'24 (+30.4% QoQ/ +788% YoY).While market sentiments surrounding high-growth stocks appear to have normalized after the great correction in July 2024 with the CBOE Volatility Index also moderating, we maintain our belief that there remains a minimal upside potential at current levels.Based on PLTR's historical trading pattern, the stock is likely to pull back to its uptrend support levels of $24s in the near-term.As a result of the potential capital losses, we are downgrading our Buy rating to Hold (Neutral) rating instead. Interested long-term investors may consider waiting for the pullback before adding for an improved dollar cost average.Likewise, traders may consider following insiders and taking part of their gains off the table, before coming back in later.For now, do not chase PLTR over the cliff.","news_type":1},"isVote":1,"tweetType":1,"viewCount":164,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":328123225444488,"gmtCreate":1721138184510,"gmtModify":1721138190287,"author":{"id":"3582712972054494","authorId":"3582712972054494","name":"Tonykhoo","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582712972054494","authorIdStr":"3582712972054494"},"themes":[],"htmlText":"No brain analyst&nbsp;","listText":"No brain analyst&nbsp;","text":"No brain analyst","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/328123225444488","repostId":"1162176667","repostType":2,"repost":{"id":"1162176667","pubTimestamp":1721136900,"share":"https://ttm.financial/m/news/1162176667?lang=&edition=fundamental","pubTime":"2024-07-16 21:35","market":"us","language":"en","title":"Palantir Slips 3% Following Ratings Downgrade from Mizuho","url":"https://stock-news.laohu8.com/highlight/detail?id=1162176667","media":"Seeking Alpha","summary":"Palantir Technologies slipped nearly 3% in morning trading Tuesday after being downgraded to Underperform from Neutral by Mizuho Securities.Although Palantir has performed well in recent quarters, Miz","content":"<html><head></head><body><p>Palantir Technologies slipped nearly 3% in morning trading Tuesday after being downgraded to Underperform from Neutral by Mizuho Securities.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/f69bfd5e8314b7d2b924705c598f1307\" tg-width=\"874\" tg-height=\"622\"/></p><p style=\"text-align: left;\">Although Palantir has performed well in recent quarters, Mizuho analysts doubt whether the big data analytics software firm can maintain these results.</p><p style=\"text-align: left;\">&#34;But primarily, following the material 67% rise in the shares YTD, we find it increasingly difficult to justify PLTR&#39;s high multiple (21x CY25E revenue) that, in our view, likely already discounts significant acceleration versus our consensus expectations for 20-21% revenue growth,&#34; said Mizuho analysts led by Gregg Moskowitz, in a note.</p><p style=\"text-align: left;\">However, Mizuho slightly increased the price target on the Denver-based firm to $22 from $21.</p><p style=\"text-align: left;\">&#34;There are some exciting aspects of the PLTR story (megadeals, AIP), although this is offset by a lack of transparency and a likelihood of lumpy results going forward, in our view,&#34; Moskowitz added. &#34;Net, we have limited confidence in the company&#39;s ability to deliver consistently strong results and accelerating growth, which is needed to justify the premium valuation.&#34;</p><p style=\"text-align: left;\">Palantir has a Hold rating from Seeking Alpha analysts, Wall Street analysts and Seeking Alpha&#39;s Quant system, which routinely beats the market.</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 Slips 3% Following Ratings Downgrade from Mizuho</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 Slips 3% Following Ratings Downgrade from Mizuho\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-16 21:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/news/4124573-palantir-slips-pre-market-following-ratings-downgrade-from-mizuho><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Palantir Technologies slipped nearly 3% in morning trading Tuesday after being downgraded to Underperform from Neutral by Mizuho Securities.Although Palantir has performed well in recent quarters, ...</p>\n\n<a href=\"https://seekingalpha.com/news/4124573-palantir-slips-pre-market-following-ratings-downgrade-from-mizuho\">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/news/4124573-palantir-slips-pre-market-following-ratings-downgrade-from-mizuho","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1162176667","content_text":"Palantir Technologies slipped nearly 3% in morning trading Tuesday after being downgraded to Underperform from Neutral by Mizuho Securities.Although Palantir has performed well in recent quarters, Mizuho analysts doubt whether the big data analytics software firm can maintain these results.\"But primarily, following the material 67% rise in the shares YTD, we find it increasingly difficult to justify PLTR's high multiple (21x CY25E revenue) that, in our view, likely already discounts significant acceleration versus our consensus expectations for 20-21% revenue growth,\" said Mizuho analysts led by Gregg Moskowitz, in a note.However, Mizuho slightly increased the price target on the Denver-based firm to $22 from $21.\"There are some exciting aspects of the PLTR story (megadeals, AIP), although this is offset by a lack of transparency and a likelihood of lumpy results going forward, in our view,\" Moskowitz added. \"Net, we have limited confidence in the company's ability to deliver consistently strong results and accelerating growth, which is needed to justify the premium valuation.\"Palantir has a Hold rating from Seeking Alpha analysts, Wall Street analysts and Seeking Alpha's Quant system, which routinely beats the market.","news_type":1},"isVote":1,"tweetType":1,"viewCount":353,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":300860266229792,"gmtCreate":1714468235009,"gmtModify":1714468395403,"author":{"id":"3582712972054494","authorId":"3582712972054494","name":"Tonykhoo","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582712972054494","authorIdStr":"3582712972054494"},"themes":[],"htmlText":"Well fargo cannot be trusted&nbsp;","listText":"Well fargo cannot be trusted&nbsp;","text":"Well fargo cannot be trusted","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/300860266229792","repostId":"2431848642","repostType":2,"repost":{"id":"2431848642","pubTimestamp":1714465356,"share":"https://ttm.financial/m/news/2431848642?lang=&edition=fundamental","pubTime":"2024-04-30 16:22","market":"fut","language":"en","title":"Tesla's Big Rally on China Developments Is Called Overdone by Wells Fargo","url":"https://stock-news.laohu8.com/highlight/detail?id=2431848642","media":"seekingalpha","summary":"Tesla (NASDAQ:TSLA) saw a big rally on Monday, with shares up as much as 18% after Elon Musk's surprise visit to China and the announcement of an expansion of the company's partnership with Baidu (BID","content":"<html><head></head><body><p>Tesla (NASDAQ:TSLA) saw a big rally on Monday, with shares up 15% after Elon Musk&#39;s surprise visit to China and the announcement of an expansion of the company&#39;s partnership with Baidu (BIDU).</p><p>Wells Fargo analyst Colin Langan said he was surprised by the big share price move on Monday, given the firm sees limited EPS impact and with deal details far from certain.</p><p>&#34;The partnership with Baidu helped ease China regulators&#39; concerns over data security. However, there&#39;re no details of the partnership in terms of economics &amp; data sharing. Also, TSLA&#39;s FSD system is vision-only with decisions that are not dependent on mapping, so Baidu&#39;s role in the FSD tech is unclear.&#34;</p><p>Langan also warned that there could be restrictions on sharing data, which could limit Tesla&#39;s (TSLA) ability to leverage the tech progress it has seen in the U.S.</p><p>There is also the glaring point that Chinese electric vehicle makers are fast followers and could undercut Tesla (TSLA) on pricing. Advanced driver-assistance systems are already going mainstream in China, with XPeng (XPEV) and Xiaomi (OTCPK:XIACF) two of the notable players. Li Auto (LI) and BYD Company (OTCPK:BYDDF) also have advanced driver-assistance systems plans of their own.</p><p>Morgan Stanley went in a different direction with the Tesla (TSLA) developments. Notably, analyst Adam Jonas said investor concerns about the focus of Elon Musk on Tesla (TSLA) could be alleviated after the China trip. Jonas said achieving a potential détente with the Chinese government on such areas as autonomous driving/FSD is surprising and deserves greater research and understanding.</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>Tesla's Big Rally on China Developments Is Called Overdone by Wells Fargo</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\">\nTesla's Big Rally on China Developments Is Called Overdone by Wells Fargo\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-04-30 16:22 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/news/4095786-teslas-big-rally-on-china-developments-is-called-overdone-by-wells-fargo><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Tesla (NASDAQ:TSLA) saw a big rally on Monday, with shares up 15% after Elon Musk's surprise visit to China and the announcement of an expansion of the company's partnership with Baidu (BIDU).Wells ...</p>\n\n<a href=\"https://seekingalpha.com/news/4095786-teslas-big-rally-on-china-developments-is-called-overdone-by-wells-fargo\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"89888":"百度集团-SWR","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","BIDU":"百度","LU1861559042.SGD":"日兴方舟颠覆性创新基金B SGD","XPEV":"小鹏汽车","BK4559":"巴菲特持仓","LU0823411888.USD":"法巴消费创新基金 Cap","IE00B0JY6N72.USD":"PINEBRIDGE GLOBAL EMERGING MARKETS FOCUS EQUITY \"A\" (USD) ACC","LU1989772840.SGD":"CPR Invest - Climate Action A2 Acc SGD-H","LU0348735423.USD":"ALLIANZ HONG KONG EQUITY \"A\" (USD) INC","LU0856984785.SGD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED GROWTH \"ACH\" (SGDHDG) ACC","LU1551013342.USD":"Allianz Income and Growth Cl AMg2 DIS USD","BK4550":"红杉资本持仓","SG9999014674.SGD":"Nikko AM All China Equity A SGD","XIACF":"Xiaomi Corp.","TSLA":"特斯拉","BK1587":"次新股","IE00B19Z3B42.SGD":"Legg Mason ClearBridge - Value A Acc SGD","BK4552":"Archegos爆仓风波概念","LU1989772923.USD":"CPR Invest - Climate Action A2 Acc USD-H","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","BK4551":"寇图资本持仓","BK4207":"综合性银行","LU1280957306.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQUITIES \"AUP\" (USD) INC","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","LU2249611893.SGD":"BNP PARIBAS ENERGY TRANSITION \"CRH\" (SGD) ACC","EVS.SI":"MSCI China Electric Vehicles and Future Mobility ETF-NikkoAM","LU0348825331.USD":"ALLIANZ CHINA EQUITY \"A\" (USD) INC","LU0823426308.USD":"法巴中国股票基金","LU0310800965.SGD":"FTIF - Templeton Global Balanced A Acc SGD","LU0106831901.USD":"贝莱德世界金融基金A2","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","LU2039709279.SGD":"MANULIFE GF DRAGON GROWTH \"AA\" (SGDHDG) INC","LU0287142896.SGD":"Fidelity China Focus A-SGD","09888":"百度集团-SW","LU0163747925.USD":"EASTSPRING INVESTMENTS ASIAN EQUITY A ACC","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","LU0417516902.SGD":"Allianz China Equity Cl AT Acc SGD","LU1861558580.USD":"日兴方舟颠覆性创新基金B","LI":"理想汽车","LU1074936037.SGD":"JPMorgan Funds - US Value A (acc) SGD","BYDDF":"BYD Co., Ltd.","LU0043850808.USD":"HSBC GIF ASIA EX JAPAN EQUITY \"AD\" INC","TSLL":"Direxion Daily TSLA Bull 2X Shares","LU1115378108.SGD":"Eastspring Investments - Global Emerging Markets Dynamic AS SGD","LU1668664300.SGD":"Blackrock World Financials A2 SGD-H","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","BK4555":"新能源车","LU0943347566.SGD":"安联收益及增长平衡基金AM H2-SGD","BK1588":"回港中概股"},"source_url":"https://seekingalpha.com/news/4095786-teslas-big-rally-on-china-developments-is-called-overdone-by-wells-fargo","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2431848642","content_text":"Tesla (NASDAQ:TSLA) saw a big rally on Monday, with shares up 15% after Elon Musk's surprise visit to China and the announcement of an expansion of the company's partnership with Baidu (BIDU).Wells Fargo analyst Colin Langan said he was surprised by the big share price move on Monday, given the firm sees limited EPS impact and with deal details far from certain.\"The partnership with Baidu helped ease China regulators' concerns over data security. However, there're no details of the partnership in terms of economics & data sharing. Also, TSLA's FSD system is vision-only with decisions that are not dependent on mapping, so Baidu's role in the FSD tech is unclear.\"Langan also warned that there could be restrictions on sharing data, which could limit Tesla's (TSLA) ability to leverage the tech progress it has seen in the U.S.There is also the glaring point that Chinese electric vehicle makers are fast followers and could undercut Tesla (TSLA) on pricing. Advanced driver-assistance systems are already going mainstream in China, with XPeng (XPEV) and Xiaomi (OTCPK:XIACF) two of the notable players. Li Auto (LI) and BYD Company (OTCPK:BYDDF) also have advanced driver-assistance systems plans of their own.Morgan Stanley went in a different direction with the Tesla (TSLA) developments. Notably, analyst Adam Jonas said investor concerns about the focus of Elon Musk on Tesla (TSLA) could be alleviated after the China trip. Jonas said achieving a potential détente with the Chinese government on such areas as autonomous driving/FSD is surprising and deserves greater research and understanding.","news_type":1},"isVote":1,"tweetType":1,"viewCount":192,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":284192333799704,"gmtCreate":1710398902822,"gmtModify":1710399219829,"author":{"id":"3582712972054494","authorId":"3582712972054494","name":"Tonykhoo","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582712972054494","authorIdStr":"3582712972054494"},"themes":[],"htmlText":"Holding on to 13.5k since $15","listText":"Holding on to 13.5k since $15","text":"Holding on to 13.5k since $15","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/284192333799704","repostId":"2419163746","repostType":2,"repost":{"id":"2419163746","pubTimestamp":1710396000,"share":"https://ttm.financial/m/news/2419163746?lang=&edition=fundamental","pubTime":"2024-03-14 14:00","market":"us","language":"en","title":"Palantir: Why I Am Not Selling","url":"https://stock-news.laohu8.com/highlight/detail?id=2419163746","media":"Seeking Alpha","summary":"$Palantir Technologies Inc.(PLTR)$'s Q4 2023 revenue grew by 20% YoY to $608.4 million, driven by streamlined go-to-market and increased customer acquisition in the U.S. commercial sector.Palantir exp","content":"<html><head></head><body><ul style=\"\"><li><p><a href=\"https://laohu8.com/S/PLTR\">Palantir Technologies Inc.</a>&#39;s Q4 2023 revenue grew by 20% YoY to $608.4 million, driven by streamlined go-to-market and increased customer acquisition in the U.S. commercial sector.</p></li><li><p>Palantir expects upward growth of at least 40% in the U.S. commercial segment for the year, highlighting strong revenue momentum.</p></li><li><p>Despite anticipating a market correction, the long-term outlook for Palantir Technologies remains positive, supported by solid fundamentals and aggressive growth strategies.</p></li><li><p>Following the strong bull run YTD, a pullback in Palantir Technologies is necessary before breaking into new highs.</p></li></ul><h2 id=\"id_3566456717\">Investment Thesis</h2><p>Since our in-depth analysis of <a href=\"https://laohu8.com/S/PLTR\">Palantir Technologies Inc.</a> in February 2022, when we first presented a bullish stance on the stock, the company has remarkably validated our conviction, richly rewarding patient investors.</p><p>Our confidence was well-placed; since doubling down on our position, PLTR has delivered a staggering return of over 230% in less than 17 months. This exceptional performance is underpinned by consecutive profitability milestones, robust growth metrics, impressive conversion rates, and the impactful deployment of AI capabilities, all contributing to a sustained bull run.</p><p>However, despite the significant gains, we anticipate a necessary pullback correction before PLTR reaches new heights. This expected correction should be viewed not as a deterrent, but as a potential opportunity for investors to enter or increase their positions in anticipation of further growth.</p><p>Therefore, our long-term investment thesis remains intact, underpinned by Palantir&#39;s solid fundamentals, strategic growth initiatives, and the broadening application of its AI technologies.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/044c0989cab46968f91e82f129c09235\" title=\"Data by YCharts\" tg-width=\"635\" tg-height=\"439\"/><span>Data by YCharts</span></p><h2 id=\"id_420075811\">Powering Growth and Diversification in the Commercial Sector</h2><p>Artificial intelligence platforms (AIP) momentum drives new customer conversions and existing customer expansions. The transformative effect of AIP on the business is best highlighted in the U.S. commercial bookings and backlog. Palantir experienced noteworthy achievements in the U.S. commercial sector, the most significant being shorter times to conversion and expansion (from a prototype to a product in months).</p><p>By the 31st of December 2023, PLTR had 497 customers, with the commercial segment reporting high customer count growth of 14% quarter-over-quarter, while the government segment remained flat. The commercial segment experienced significant growth, with fourth-quarter revenue increasing by 32% year-over-year (YoY) and full-year revenue growing by 20%, <strong>exceeding $1 billion</strong> for the first time.</p><p>Additionally, the US Commercial revenue in Q4 surged by 70% YoY, reaching $131 million. With a revamped go-to-market strategy and piloting approach followed by significantly compressed sales cycles, the U.S. customer count grew by 55% YoY to 221, reflecting a robust market presence. This acceleration is attributed to a surge in demand, resulting in the highest commercial Total Contract Value (TCV) booked in a quarter, showcasing a 156% growth YoY. Hence, the strategic expansion and increased demand in the U.S. contributed majorly to this growth.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/7e3f3d334334b2a0f85573e224db1d8a\" title=\"Author\" tg-width=\"1024\" tg-height=\"768\"/><span>Author</span></p><p>Palantir&#39;s accelerated customer acquisition process stems from three key drivers. First, boot camps are rapidly transitioning into paying customers. In Palantir boot camps, participants and potential users <strong>learn how to apply AI</strong> to mission-critical operations within their organizations. They progress from having no prior knowledge to building practical use cases.</p><p>Once they feel empowered by Palantir&#39;s AI capabilities, the majority of them will convert into paying customers. Second, there&#39;s growth among existing customers and those with longstanding engagements with Palantir. Third, the introduction of AIP has further fueled this momentum. Despite these gains, Palantir recognizes that they have merely scratched the surface of their total addressable market, or TAM; they&#39;re only just getting started.</p><p>The firm also reported a meaningful increase in their US commercial TCV on a dollar-weighted duration basis, up 107% YoY and 42% sequentially. In the fourth quarter, TCV booked was 1.15 billion, up 192% YoY and 38% sequentially. Net dollar retention was 108%, an increase of 100 basis points from last quarter. They ended the fourth quarter with $3.9 billion in total remaining deal value, an increase of 5% sequentially. AIP boosted Palantir&#39;s total addressable market, with the TCV in the U.S. commercial segment reaching $343 million, showcasing a remarkable 107% growth YoY.</p><p>Additionally, Palantir remains an outlier among its peers, as the <strong>company&#39;s average revenue per customer</strong> (ARPC) remains off the chart compared to its peers, delivering a staggering ARPC of $4.5 million. The top 20 high-value customers drive most of Palantir&#39;s revenue. However, reliance on these customers is slowly <strong>declining</strong>, signifying the company&#39;s effort to serve an expansive and diverse market. On the positive side, the top 20 customers&#39; contribution to total revenue dropped to 49.4% based on TTM as of December 2023, compared to 57.1% in FY21. As a result, the average revenue per customer of PLTR dropped below $5 million based on the latest TTM revenue, compared to $6.5 million in FY21.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/7330b3dbe0063739a11a0feb0b9f4d4c\" title=\"Author\" tg-width=\"1024\" tg-height=\"768\"/><span>Author</span></p><p>Finally, Palantir&#39;s remaining performance obligations (RPO) recovery also suggests improving revenue growth in the coming quarters. The company&#39;s net dollar retention remains above 100.0%, which indicates that the PLTR platform&#39;s stickiness has remained intact. Net dollar retention does not include revenue from new customers they acquired in the past 12 months and, therefore, <strong>does not yet fully capture the acceleration</strong> in their U.S. commercial business.</p><h2 id=\"id_3060580783\">AIP Upgrade: Seamless LLM Integration for Quicker Decisions and Market Expansion</h2><p>Palantir Technologies has recently enhanced its AIP platform by integrating large language models (LLMs), augmenting user-friendliness and power. AIP facilitates the seamless connection of LLMs with user data, aiding decision-making. The AIP Bootcamp expedites customer onboarding, contributing to remarkably swift time-to-market.</p><p>Integrating LLMs with Foundry through AIP significantly broadens the accessibility of deploying use cases, expanding the addressable market. While the company is observing initial momentum, it acknowledges that it is still at the initial stage of capturing this expanded market. Palantir has successfully covered nearly 200 use cases from AIP Boot camps, underscoring the potential of this approach, with a focus on data integration as a core value-driving principle.</p><p>AIP enables the integration of diverse data types, such as video conferences, incident response calls, Slack rooms, PDFs, images, video, and audio, leveraging the power of LLMs and ontology. The acceleration in AIP customer engagement is anticipated to continue, fueled by its adaptability and versatility.</p><p>The recent quarter saw Palantir signing multiple U.S. commercial deals, where AIP played a pivotal role in driving various deal archetypes. New customers attending boot camps swiftly signing enterprise contracts, AIP-driven conversions of ongoing pilots, and expansions in existing accounts are illustrative examples. Internationally, AIP reinforces partnerships in Continental Europe and fosters growth in select markets.</p><p>Lastly, Palantir&#39;s focus on enhancing product usability and charisma through AI-driven developments, particularly in LLMs, marks a convergence aimed at broadening Foundry&#39;s market appeal. Current research and development efforts are directed toward deploying software, models, and assets at the edge, aligning with the growing market trend of edge computing - positioning Palantir favorably to secure a substantial share in this evolving landscape.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/6f3ab05e66d0cabae9105e27861c0d0e\" alt=\"LLM - Palantir Defense\" title=\"LLM - Palantir Defense\" tg-width=\"640\" tg-height=\"359\"/><span>LLM - Palantir Defense</span></p><h2 id=\"id_3599242473\">Turning Complex Challenges into Competitive Advantage with AIP Bootcamps</h2><p>Rather than rejecting projects with risky and resource-intensive installation requirements, Palantir actively seeks them out. They&#39;ve obtained strict government clearances, manage complex data environments, offer cloud-agnostic integration, and don&#39;t shy away from long sales cycles. These are substantial barriers to entry for competitors.</p><p>Still, their fundamental competition is their own customers&#39; internal software development. AIP Bootcamp makes platform onboarding much easier and forcefully addresses this competitive risk. Bootcamp teaches end-users how to use AIP effectively.</p><p>Additionally, Palantir is strategically intensifying efforts to convert boot camps into enterprise deals, evident in the noteworthy impact on sales cycles and the accelerated rate of new customer acquisition. In Q4, U.S. commercial saw a sequential rise of 22%, a substantial increase compared to 12% and 4% in Q3 and Q2, respectively.</p><p>The success stories include new customers attending boot camps and promptly signing enterprise contracts, demonstrating the efficacy of this conversion strategy. Cold outreaches leading to boot camps and subsequent enterprise agreements highlight the streamlined approach.</p><p>AIP-driven conversions of ongoing pilots constitute another facet of Palantir&#39;s successful strategy. Companies engaged in a pilot, during which AIP was introduced, ultimately converted to enterprise agreements. Moreover, AIP has been instrumental in driving expansions within existing key accounts. Demonstrating speed to value at boot camps, Palantir showcased its ability to deliver new use cases atop existing ontologies in as little as 24 hours, contributing significantly to successful agreements.</p><p>In tandem with the emphasis on boot camps, Palantir is strategically deepening its distribution channels to swiftly capitalize on opportunities in specific regions, focusing on expanding its presence in Japan. Hence, these strategic maneuvers underscore Palantir&#39;s commitment to driving efficient conversions, expanding market reach, and solidifying its position as a leader in the data integration landscape.</p><h2 id=\"id_2288010704\">How Palantir&#39;s Self-Selling Software Soars Beyond the Aviation Industry</h2><p>Palantir&#39;s greatest strength is product-led acquisition. They have dedicated support agents for each deployment. Then, they let the software sell itself by deepening existing relationships or cross-selling to businesses that work with their customers. The prime example is Skywise, initially built for Airbus SE (OTCPK:EADSF) but which has expanded throughout the airline industry.</p><p>Skywise is an aviation platform that is the central operating system of the airline industry. Adoption has been swift. Since June 2017, Skywise has expanded from zero to more than one hundred airlines. Each one is now an existing or potential customer - this is a product-led acquisition - something that will be an industry-agnostic tailwind for PLTR growth in the coming years.</p><p>When other airlines saw the benefits of PLTR software, they swiftly engaged with the company. No outbound sales efforts were needed because the platform sold itself. This platform initially grew from a single customer relationship with Airbus.</p><p>The platform&#39;s ability to garner new clients without outbound sales efforts, relying on the software&#39;s intrinsic value, underscores the effectiveness of Palantir&#39;s strategic approach and positions the company favorably for sustained expansion across diverse sectors.</p><h2 id=\"id_129334450\">Unlocking Value Beyond the Surface</h2><p>Despite the initial impression that Palantir is trading at elevated multiples, a more in-depth analysis reveals a nuanced perspective. About a year ago, the company achieved a significant milestone by transitioning to profitability. While its valuation might appear high initially, it likely reflects the market&#39;s recognition of PLTR&#39;s improved margin and, critically, the substantial potential of AIP.</p><p>This potential can extend the company&#39;s market reach beyond government contracts, venturing into diverse use cases within the commercial segment. Palantir&#39;s substantial government contracts and growing presence in pivotal industries like defense, healthcare, and finance, bolstered by strategic partnerships, further underscore its considerable long-term potential in the market.</p><p>Rule of 40 analysis holds significance for software or SaaS companies, signifying that those attaining a combined score of 40.0% in revenue growth and margin (with EBITDA margin in this instance) are more likely to achieve sustainable growth. PLTR can exceed the 40.0% threshold (sum of growth and margin) by revitalizing its revenue growth beyond 30.0% and continuing the upward trend in profitability margin.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/905e373641d072897f210cca42db058b\" alt=\"Author\" title=\"Author\" tg-width=\"1024\" tg-height=\"768\"/><span>Author</span></p><h2 id=\"id_353816885\">Takeaway</h2><p>Palantir Technologies Inc. has outperformed expectations, delivering impressive returns and highlighting its strategic prowess and robust growth in the AI sector. Despite anticipating a market correction, the long-term outlook for PLTR remains positive, supported by solid fundamentals and aggressive growth strategies.</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: Why I Am Not Selling</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: Why I Am Not Selling\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-03-14 14:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4677924-palantir-why-i-am-not-selling><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Palantir Technologies Inc.'s Q4 2023 revenue grew by 20% YoY to $608.4 million, driven by streamlined go-to-market and increased customer acquisition in the U.S. commercial sector.Palantir expects ...</p>\n\n<a href=\"https://seekingalpha.com/article/4677924-palantir-why-i-am-not-selling\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4543":"AI","BK4097":"系统软件","BK4547":"WSB热门概念","BK4585":"ETF&股票定投概念","BK4588":"碎股","BK4023":"应用软件","BK4192":"特殊消费者服务","PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4677924-palantir-why-i-am-not-selling","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2419163746","content_text":"Palantir Technologies Inc.'s Q4 2023 revenue grew by 20% YoY to $608.4 million, driven by streamlined go-to-market and increased customer acquisition in the U.S. commercial sector.Palantir expects upward growth of at least 40% in the U.S. commercial segment for the year, highlighting strong revenue momentum.Despite anticipating a market correction, the long-term outlook for Palantir Technologies remains positive, supported by solid fundamentals and aggressive growth strategies.Following the strong bull run YTD, a pullback in Palantir Technologies is necessary before breaking into new highs.Investment ThesisSince our in-depth analysis of Palantir Technologies Inc. in February 2022, when we first presented a bullish stance on the stock, the company has remarkably validated our conviction, richly rewarding patient investors.Our confidence was well-placed; since doubling down on our position, PLTR has delivered a staggering return of over 230% in less than 17 months. This exceptional performance is underpinned by consecutive profitability milestones, robust growth metrics, impressive conversion rates, and the impactful deployment of AI capabilities, all contributing to a sustained bull run.However, despite the significant gains, we anticipate a necessary pullback correction before PLTR reaches new heights. This expected correction should be viewed not as a deterrent, but as a potential opportunity for investors to enter or increase their positions in anticipation of further growth.Therefore, our long-term investment thesis remains intact, underpinned by Palantir's solid fundamentals, strategic growth initiatives, and the broadening application of its AI technologies.Data by YChartsPowering Growth and Diversification in the Commercial SectorArtificial intelligence platforms (AIP) momentum drives new customer conversions and existing customer expansions. The transformative effect of AIP on the business is best highlighted in the U.S. commercial bookings and backlog. Palantir experienced noteworthy achievements in the U.S. commercial sector, the most significant being shorter times to conversion and expansion (from a prototype to a product in months).By the 31st of December 2023, PLTR had 497 customers, with the commercial segment reporting high customer count growth of 14% quarter-over-quarter, while the government segment remained flat. The commercial segment experienced significant growth, with fourth-quarter revenue increasing by 32% year-over-year (YoY) and full-year revenue growing by 20%, exceeding $1 billion for the first time.Additionally, the US Commercial revenue in Q4 surged by 70% YoY, reaching $131 million. With a revamped go-to-market strategy and piloting approach followed by significantly compressed sales cycles, the U.S. customer count grew by 55% YoY to 221, reflecting a robust market presence. This acceleration is attributed to a surge in demand, resulting in the highest commercial Total Contract Value (TCV) booked in a quarter, showcasing a 156% growth YoY. Hence, the strategic expansion and increased demand in the U.S. contributed majorly to this growth.AuthorPalantir's accelerated customer acquisition process stems from three key drivers. First, boot camps are rapidly transitioning into paying customers. In Palantir boot camps, participants and potential users learn how to apply AI to mission-critical operations within their organizations. They progress from having no prior knowledge to building practical use cases.Once they feel empowered by Palantir's AI capabilities, the majority of them will convert into paying customers. Second, there's growth among existing customers and those with longstanding engagements with Palantir. Third, the introduction of AIP has further fueled this momentum. Despite these gains, Palantir recognizes that they have merely scratched the surface of their total addressable market, or TAM; they're only just getting started.The firm also reported a meaningful increase in their US commercial TCV on a dollar-weighted duration basis, up 107% YoY and 42% sequentially. In the fourth quarter, TCV booked was 1.15 billion, up 192% YoY and 38% sequentially. Net dollar retention was 108%, an increase of 100 basis points from last quarter. They ended the fourth quarter with $3.9 billion in total remaining deal value, an increase of 5% sequentially. AIP boosted Palantir's total addressable market, with the TCV in the U.S. commercial segment reaching $343 million, showcasing a remarkable 107% growth YoY.Additionally, Palantir remains an outlier among its peers, as the company's average revenue per customer (ARPC) remains off the chart compared to its peers, delivering a staggering ARPC of $4.5 million. The top 20 high-value customers drive most of Palantir's revenue. However, reliance on these customers is slowly declining, signifying the company's effort to serve an expansive and diverse market. On the positive side, the top 20 customers' contribution to total revenue dropped to 49.4% based on TTM as of December 2023, compared to 57.1% in FY21. As a result, the average revenue per customer of PLTR dropped below $5 million based on the latest TTM revenue, compared to $6.5 million in FY21.AuthorFinally, Palantir's remaining performance obligations (RPO) recovery also suggests improving revenue growth in the coming quarters. The company's net dollar retention remains above 100.0%, which indicates that the PLTR platform's stickiness has remained intact. Net dollar retention does not include revenue from new customers they acquired in the past 12 months and, therefore, does not yet fully capture the acceleration in their U.S. commercial business.AIP Upgrade: Seamless LLM Integration for Quicker Decisions and Market ExpansionPalantir Technologies has recently enhanced its AIP platform by integrating large language models (LLMs), augmenting user-friendliness and power. AIP facilitates the seamless connection of LLMs with user data, aiding decision-making. The AIP Bootcamp expedites customer onboarding, contributing to remarkably swift time-to-market.Integrating LLMs with Foundry through AIP significantly broadens the accessibility of deploying use cases, expanding the addressable market. While the company is observing initial momentum, it acknowledges that it is still at the initial stage of capturing this expanded market. Palantir has successfully covered nearly 200 use cases from AIP Boot camps, underscoring the potential of this approach, with a focus on data integration as a core value-driving principle.AIP enables the integration of diverse data types, such as video conferences, incident response calls, Slack rooms, PDFs, images, video, and audio, leveraging the power of LLMs and ontology. The acceleration in AIP customer engagement is anticipated to continue, fueled by its adaptability and versatility.The recent quarter saw Palantir signing multiple U.S. commercial deals, where AIP played a pivotal role in driving various deal archetypes. New customers attending boot camps swiftly signing enterprise contracts, AIP-driven conversions of ongoing pilots, and expansions in existing accounts are illustrative examples. Internationally, AIP reinforces partnerships in Continental Europe and fosters growth in select markets.Lastly, Palantir's focus on enhancing product usability and charisma through AI-driven developments, particularly in LLMs, marks a convergence aimed at broadening Foundry's market appeal. Current research and development efforts are directed toward deploying software, models, and assets at the edge, aligning with the growing market trend of edge computing - positioning Palantir favorably to secure a substantial share in this evolving landscape.LLM - Palantir DefenseTurning Complex Challenges into Competitive Advantage with AIP BootcampsRather than rejecting projects with risky and resource-intensive installation requirements, Palantir actively seeks them out. They've obtained strict government clearances, manage complex data environments, offer cloud-agnostic integration, and don't shy away from long sales cycles. These are substantial barriers to entry for competitors.Still, their fundamental competition is their own customers' internal software development. AIP Bootcamp makes platform onboarding much easier and forcefully addresses this competitive risk. Bootcamp teaches end-users how to use AIP effectively.Additionally, Palantir is strategically intensifying efforts to convert boot camps into enterprise deals, evident in the noteworthy impact on sales cycles and the accelerated rate of new customer acquisition. In Q4, U.S. commercial saw a sequential rise of 22%, a substantial increase compared to 12% and 4% in Q3 and Q2, respectively.The success stories include new customers attending boot camps and promptly signing enterprise contracts, demonstrating the efficacy of this conversion strategy. Cold outreaches leading to boot camps and subsequent enterprise agreements highlight the streamlined approach.AIP-driven conversions of ongoing pilots constitute another facet of Palantir's successful strategy. Companies engaged in a pilot, during which AIP was introduced, ultimately converted to enterprise agreements. Moreover, AIP has been instrumental in driving expansions within existing key accounts. Demonstrating speed to value at boot camps, Palantir showcased its ability to deliver new use cases atop existing ontologies in as little as 24 hours, contributing significantly to successful agreements.In tandem with the emphasis on boot camps, Palantir is strategically deepening its distribution channels to swiftly capitalize on opportunities in specific regions, focusing on expanding its presence in Japan. Hence, these strategic maneuvers underscore Palantir's commitment to driving efficient conversions, expanding market reach, and solidifying its position as a leader in the data integration landscape.How Palantir's Self-Selling Software Soars Beyond the Aviation IndustryPalantir's greatest strength is product-led acquisition. They have dedicated support agents for each deployment. Then, they let the software sell itself by deepening existing relationships or cross-selling to businesses that work with their customers. The prime example is Skywise, initially built for Airbus SE (OTCPK:EADSF) but which has expanded throughout the airline industry.Skywise is an aviation platform that is the central operating system of the airline industry. Adoption has been swift. Since June 2017, Skywise has expanded from zero to more than one hundred airlines. Each one is now an existing or potential customer - this is a product-led acquisition - something that will be an industry-agnostic tailwind for PLTR growth in the coming years.When other airlines saw the benefits of PLTR software, they swiftly engaged with the company. No outbound sales efforts were needed because the platform sold itself. This platform initially grew from a single customer relationship with Airbus.The platform's ability to garner new clients without outbound sales efforts, relying on the software's intrinsic value, underscores the effectiveness of Palantir's strategic approach and positions the company favorably for sustained expansion across diverse sectors.Unlocking Value Beyond the SurfaceDespite the initial impression that Palantir is trading at elevated multiples, a more in-depth analysis reveals a nuanced perspective. About a year ago, the company achieved a significant milestone by transitioning to profitability. While its valuation might appear high initially, it likely reflects the market's recognition of PLTR's improved margin and, critically, the substantial potential of AIP.This potential can extend the company's market reach beyond government contracts, venturing into diverse use cases within the commercial segment. Palantir's substantial government contracts and growing presence in pivotal industries like defense, healthcare, and finance, bolstered by strategic partnerships, further underscore its considerable long-term potential in the market.Rule of 40 analysis holds significance for software or SaaS companies, signifying that those attaining a combined score of 40.0% in revenue growth and margin (with EBITDA margin in this instance) are more likely to achieve sustainable growth. PLTR can exceed the 40.0% threshold (sum of growth and margin) by revitalizing its revenue growth beyond 30.0% and continuing the upward trend in profitability margin.AuthorTakeawayPalantir Technologies Inc. has outperformed expectations, delivering impressive returns and highlighting its strategic prowess and robust growth in the AI sector. Despite anticipating a market correction, the long-term outlook for PLTR remains positive, supported by solid fundamentals and aggressive growth strategies.","news_type":1},"isVote":1,"tweetType":1,"viewCount":180,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":244364819083280,"gmtCreate":1700683400830,"gmtModify":1700684097440,"author":{"id":"3582712972054494","authorId":"3582712972054494","name":"Tonykhoo","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582712972054494","authorIdStr":"3582712972054494"},"themes":[],"htmlText":"Sore loser&nbsp;","listText":"Sore loser&nbsp;","text":"Sore loser","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/244364819083280","repostId":"2385857498","repostType":2,"repost":{"id":"2385857498","pubTimestamp":1700661133,"share":"https://ttm.financial/m/news/2385857498?lang=&edition=fundamental","pubTime":"2023-11-22 21:52","market":"us","language":"en","title":"Palantir Technologies: Investors Are Set For A Massive Reality Check","url":"https://stock-news.laohu8.com/highlight/detail?id=2385857498","media":"Seekingalpha","summary":"Palantir Technologies' stock price has risen from $8 to $20 since the CEO made comments about AI-driven growth.The company's positive investor sentiment is exaggerated and its stock multiple of 21x is","content":"<html><head></head><body><ul style=\"\"><li><p>Palantir Technologies&#39; stock price has risen from $8 to $20 since the CEO made comments about AI-driven growth.</p></li><li><p>The company&#39;s positive investor sentiment is exaggerated and its stock multiple of 21x is unsustainable.</p></li><li><p>Palantir&#39;s GAAP profits are minimal compared to its accumulated losses, indicating that the AI bubble will soon burst.</p></li></ul><p>Ever since CEO of <strong><a href=\"https://laohu8.com/S/PLTR\">Palantir Technologies Inc.</a> (NYSE: PLTR)</strong> made comments about the prospects for artificial intelligence-driven growth for the core software offers, investors have showered the company with praise and Palantir’s stock price has since risen from about $8 in May to about $20 today.</p><p>Though I am willing to acknowledge that Palantir Technologies has made some progress in terms of posting GAAP profits, positive investor sentiment seems to be off the charts right now.</p><p>Exaggerated optimism about AI adoption and the potential for AI-related sales growth have led to Palantir Technologies’ stock multiple to expand to 21x, which looks neither sensible nor sustainable.</p><p>Since Palantir’s GAAP profits relative to its accumulated deficit show a gap of monumental proportions, I think the AI bubble will soon be pricked.</p><h2 id=\"id_343657280\">My Rating History</h2><p>Truth be told, I have been skeptical of Palantir Technologies ever since the stock made its public debut.</p><p>Palantir Technologies has racked up an obscene amount of losses since it was started more than two decades ago, a fact that too many investors are willing to overlook now that the company is reporting GAAP profits.</p><p>Slowing sales growth has been a concern for many investors and the valuation multiple is now so detached from fundamentals again, that a Sell rating is the only rating that makes sense, in my view.</p><p>My prior Sell call from February was, with the benefit of hindsight, wrong as the stock has soared from $8 to $21. With that being said, I think that the market continues to overvalue Palantir Technologies’ sales potential.</p><p>I cited a deteriorating sales position for Palantir Technologies (lower expected sales growth) specifically as a headwind for the stock. Investors should remember that not long ago, Palantir guided for 30% annual sales growth.</p><p>Despite the company posting GAAP profits, these profits are a nothing more than a drop in the bucket relative to Palantir Technologies’ accumulated losses. My key argument here is that investors overreact to PLTR’s reported GAAP profits.</p><h2 id=\"id_3974044529\">Put GAAP Profits In Relation To Accumulated Losses</h2><p>Palantir Technologies celebrated itself for producing a &#39;fourth consecutive quarter of GAAP profitability&#39; in the third quarter which yielded a GAAP profit of $72 million. The first GAAP profit showed up on Palantir Technologies’ profit statement in the fourth quarter of 2022 when the company revealed positive $31 million net income.</p><p>Since Palantir Technologies has been celebrated for its third quarter earnings performance, it is important, in my view, to connect the 3Q-23 GAAP profit to the amount of accumulated losses PLTR also reported.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/91b841b1194b336a0e1a9786203525e5\" tg-width=\"617\" tg-height=\"536\"/></p><p>Net Income Losses (Palantir Technologies)</p><p>While the $72 million in 3Q GAAP profits looks like a big win (on first glance), it is rather a drop in the bucket considering that the company, at the beginning of 3Q-23, had an accumulated deficit of $5.81 billion.</p><p>Counting the $72 million in profits against the accumulated deficit leaves us with a 3Q ending accumulated deficit balance of $5.74 billion.</p><p>In a nutshell, Palantir Technologies had a total net profit in 3Q equal to just 1.2% of its total historical losses which, in my view, is not something that investors should bring the champagne bottles out for.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/dd0f61a41f68ad8fc47a2744d96de484\" tg-width=\"625\" tg-height=\"281\"/></p><p>Accumulated Deficit (Palantir Technologies)</p><p>Palantir Technologies would have to see much higher GAAP profits in order to justify its valuation, in my view, and the valuation multiple presently seems to be detached from the underlying fundamentals. It would take years of improving GAAP profitability for Palantir Technologies to grow into its present valuation, but if the commercial business, for instance, keeps performing well, a case could be made for a richer sales multiple.</p><p>Moving forward, Palantir Technologies clearly has an opportunity to grow its AI-related services which could be instrumental in boosting the company’s operating income margins as well as GAAP profits.</p><p>The scaling of Palantir AI could be a source of incremental growth, in both the commercial and government realm, but it is difficult to quantify. With that being said, though, Palantir Technologies won’t be the only company that offers AI-related services, so I am still skeptical about the &#39;uniqueness&#39; aspect for Palantir Technologies’ AI offer.</p><p>Palantir Technologies also will still have to show that it can successfully translate demand for AI into stronger sales growth since Palantir’s total sales growth is slowing down. So far, this is not yet the case, really.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/4342459e85ac64c52dcca6fb75673eeb\" tg-width=\"640\" tg-height=\"342\"/></p><p>Adjusted Operating Income (Palantir Technologies)</p><p>Palantir Technologies’ sales rose 17% YoY in the third quarter to $558 million, but U.S. commercial sales were up 33%. Government sales were up 12% YoY, so the non-government business is growing much faster right now. Total commercial sales were up 23% YoY in 3Q-23 compared to 16% YoY in the first three quarters of 2023, so Palantir Technologies is seeing some momentum here. While the 17% may sound good, it doesn’t justify the high sales multiple and it is way below the initially stated 30% annual sales growth prediction.</p><p>The commercial segment continues to outperform government which is good for Palantir Technologies as it reduces the company’s reliance on government clients which in the past have been crucial in driving Palantir Technologies’ sales growth.</p><p>With that being said, though, I don’t think this invalidates my core criticism about Palantir Technologies which is that the rate of sales growth doesn’t justify the company’s excessively high sales multiple.</p><p>Moving forward, Palantir Technologies clearly has an opportunity to add to its commercial client roster. The company’s customers grew 34% YoY in 3Q-23 and more companies are signing on for partnerships for Palantir Technologies’ Artificial Intelligence Platform. The combination of AI and commercial customers could potentially be beneficial for Palantir Technologies, but the potential nonetheless appears to be presently over-hyped.</p><p>I do expect this momentum in the commercial segment to continue. The commercial segment appears set to not only drive Palantir Technologies’ sales growth, but to also account for a higher sales share in the future.</p><p>Commercial sales accounted for 44% of all sales in the first nine months of the year and this percentage may very well rise above 50% moving forward.</p><p>I don’t see Palantir Technologies, however, to return to its earlier stated goal of achieving 30% annual sales growth as competition for AI services is only going to increase and the company’s sales growth overall has slowed quite drastically. Thus, I expect Palantir Technologies to keep growing its sales well below 30% in the near future.</p><h2 id=\"id_2695042223\">AI Adoption, Sales Outlook And Palantir’s Unsustainable Valuation Multiple</h2><p>Alexander Karp said a few months back that the company was going in big on AI. He said in Palantir Technologies’ latest shareholder letter that demand for its AI products was growing.</p><p>With that being said, this demand is not really translating into tangible sales growth (at least not so far), suggesting that investors that are bidding up Palantir’s stock price primarily on hopes. And this is where I think investors are going to get a brutal reality check moving forward.</p><p>Let’s just look at the company’s sales guidance for 2023 to see what I mean.</p><p>Investors have clearly bought into the hype about AI products as can be seen in the huge inflation in PLTR’s stock multiple, but Palantir Technologies’ outlook for 2023 only calls for $2.216 - $2.220 billion in sales this year.</p><p>The guidance was raised QoQ from $2.212 billion in 2Q-23, but the revised guidance implies a rather paltry YoY growth rate of only 16%. Not exactly what I would expect from a company that is active in the booming market for alternative intelligence.</p><p><strong>Nvidia Corporation (NVDA)</strong>, for instance, is expected to see 104% sales growth this year and 51% next year, and those are growth rates that would be deserving of a high sales multiple.</p><p>Now, 16% is not nothing and the market presently models 19% sales growth next year, but it is hardly a rate that I would want to describe as impressive, and most certainly Palantir’s sales growth isn’t skyrocketing to the extent that one would expect when reading about growing AI adoption.</p><p>Palantir Technologies’ stock valuation, I would submit, is fully and utterly unsustainable again and investors are way, way too celebratory about the company’s 3Q GAAP profit. This year, the market models $2.21 billion in sales which translates into a 19.4x sales multiple (based on this year’s sales) which is not only excessive, but not sustainable, in my view.</p><p>If I was really generous, I could agree on paying 5x 2023E sales (4x 2024E sales) for Palantir Technologies’ growth potential, particularly as it relates to the AI realm, but this would be conditional upon the company scaling aggressively, improving profitability and, preferably, cutting back on its share-based compensation scheme (which is another issue in and of itself).</p><p>With a 4x 2024E sales multiple, Palantir would have a market value of $11 billion which would be equal to a stock value of $5. I previously considered a 2-3x 2024E sales reasonable, but in acknowledgement of commercial growth and potential with AIP, I think a higher sales multiple might be justified than the one I laid out the last time.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/bed29b35f2c164c4aa69408d20013f67\" tg-width=\"622\" tg-height=\"259\"/></p><p>Revenue Estimate (Yahoo Finance)</p><h2 id=\"id_2629790112\">Why Palantir Technologies Might See A Higher Valuation Multiple</h2><p>If Palantir Technologies were, against my expectations and judgment, to see a translation of its AI adoption into actual sales growth, there is a not insignificant chance that investors will continue to inflate the company’s stock multiple. Irrationality can clearly persist for very long periods of time, and so can exuberance.</p><p>Should Palantir Technologies manage to grow and scale its AI products to such an extent that its sales growth rate accelerates, then PLTR might deserve a rich valuation.</p><p>Since the stock multiple is already more than rich right now, I tend to think Palantir Technologies’ valuation is in bubble territory and the stock has a deeply, deeply unattractive risk/reward.</p><h2 id=\"id_1744648375\">My Conclusion</h2><p>Investors often fall into the same trap: They wholeheartedly jump on press releases, containing acronyms like &#39;AI&#39;, &#39;AI demand&#39; or &#39;AI adoption&#39; which causes them to fail to evaluate the underlying performance of the business that purports to deliver such benefits to its customers.</p><p>Palantir Technologies may be GAAP profitable now, but Palantir’s business has put investors back a cumulative $5.74 billion since its inception which in and of itself is a cause for concern.</p><p>Furthermore, Palantir Technologies’ sales growth and extraordinary AI potential that so many analysts seem to see, is not really reflected in the company’s sales outlook for 2023 nor in the market estimates for next year (19% growth).</p><p>Paying 19.4x sales for a software business with a TTM GAAP profit of $147 million and a $5.74 billion accumulated deficit seems more than just excessive and I think investors are set for a painful reality check in the near future.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; 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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPalantir Technologies: Investors Are Set For A Massive Reality Check\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-11-22 21:52 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4653464-palantir-technologies-investors-are-set-for-a-massive-reality-check><strong>Seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Palantir Technologies' stock price has risen from $8 to $20 since the CEO made comments about AI-driven growth.The company's positive investor sentiment is exaggerated and its stock multiple of 21x is...</p>\n\n<a href=\"https://seekingalpha.com/article/4653464-palantir-technologies-investors-are-set-for-a-massive-reality-check\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","BK4529":"IDC概念","LU0056508442.USD":"贝莱德世界科技基金A2","LU0080751232.USD":"富达环球多元动力基金A","LU0640476718.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQ \"AU\" (USD) ACC","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","LU1242518857.USD":"FULLERTON LUX FUNDS - ASIA ABSOLUTE ALPHA \"I\" (USD) ACC","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","BK4554":"元宇宙及AR概念","BK4532":"文艺复兴科技持仓","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","BK4567":"ESG概念","LU0820562030.AUD":"ALLIANZ INCOME AND GROWTH \"AMH2\" (AUDHDG) H2 INC","LU0109392836.USD":"富兰克林科技股A","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","BK4533":"AQR资本管理(全球第二大对冲基金)","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","BK4587":"ChatGPT概念","LU0097036916.USD":"贝莱德美国增长A2 USD","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","LU0689472784.USD":"安联收益及增长基金Cl AM AT Acc","LU0320765059.SGD":"FTIF - Franklin US Opportunities A Acc SGD","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU0672654240.SGD":"FTIF - Franklin US Opportunities A Acc SGD-H1","BK4548":"巴美列捷福持仓","BK4579":"人工智能","BK4550":"红杉资本持仓","LU0786609619.USD":"高盛全球千禧一代股票组合Acc","BK4588":"碎股","LU1064131342.USD":"Fullerton Lux Funds - Global Absolute Alpha A Acc USD","LU0820561818.USD":"安联收益及增长平衡基金Cl AM DIS","BK4141":"半导体产品","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","PLTR":"Palantir Technologies Inc.","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","BK4551":"寇图资本持仓","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","LU0943347566.SGD":"安联收益及增长平衡基金AM H2-SGD","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","LU0642271901.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD-H","LU0079474960.USD":"联博美国增长基金A"},"source_url":"https://seekingalpha.com/article/4653464-palantir-technologies-investors-are-set-for-a-massive-reality-check","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2385857498","content_text":"Palantir Technologies' stock price has risen from $8 to $20 since the CEO made comments about AI-driven growth.The company's positive investor sentiment is exaggerated and its stock multiple of 21x is unsustainable.Palantir's GAAP profits are minimal compared to its accumulated losses, indicating that the AI bubble will soon burst.Ever since CEO of Palantir Technologies Inc. (NYSE: PLTR) made comments about the prospects for artificial intelligence-driven growth for the core software offers, investors have showered the company with praise and Palantir’s stock price has since risen from about $8 in May to about $20 today.Though I am willing to acknowledge that Palantir Technologies has made some progress in terms of posting GAAP profits, positive investor sentiment seems to be off the charts right now.Exaggerated optimism about AI adoption and the potential for AI-related sales growth have led to Palantir Technologies’ stock multiple to expand to 21x, which looks neither sensible nor sustainable.Since Palantir’s GAAP profits relative to its accumulated deficit show a gap of monumental proportions, I think the AI bubble will soon be pricked.My Rating HistoryTruth be told, I have been skeptical of Palantir Technologies ever since the stock made its public debut.Palantir Technologies has racked up an obscene amount of losses since it was started more than two decades ago, a fact that too many investors are willing to overlook now that the company is reporting GAAP profits.Slowing sales growth has been a concern for many investors and the valuation multiple is now so detached from fundamentals again, that a Sell rating is the only rating that makes sense, in my view.My prior Sell call from February was, with the benefit of hindsight, wrong as the stock has soared from $8 to $21. With that being said, I think that the market continues to overvalue Palantir Technologies’ sales potential.I cited a deteriorating sales position for Palantir Technologies (lower expected sales growth) specifically as a headwind for the stock. Investors should remember that not long ago, Palantir guided for 30% annual sales growth.Despite the company posting GAAP profits, these profits are a nothing more than a drop in the bucket relative to Palantir Technologies’ accumulated losses. My key argument here is that investors overreact to PLTR’s reported GAAP profits.Put GAAP Profits In Relation To Accumulated LossesPalantir Technologies celebrated itself for producing a 'fourth consecutive quarter of GAAP profitability' in the third quarter which yielded a GAAP profit of $72 million. The first GAAP profit showed up on Palantir Technologies’ profit statement in the fourth quarter of 2022 when the company revealed positive $31 million net income.Since Palantir Technologies has been celebrated for its third quarter earnings performance, it is important, in my view, to connect the 3Q-23 GAAP profit to the amount of accumulated losses PLTR also reported.Net Income Losses (Palantir Technologies)While the $72 million in 3Q GAAP profits looks like a big win (on first glance), it is rather a drop in the bucket considering that the company, at the beginning of 3Q-23, had an accumulated deficit of $5.81 billion.Counting the $72 million in profits against the accumulated deficit leaves us with a 3Q ending accumulated deficit balance of $5.74 billion.In a nutshell, Palantir Technologies had a total net profit in 3Q equal to just 1.2% of its total historical losses which, in my view, is not something that investors should bring the champagne bottles out for.Accumulated Deficit (Palantir Technologies)Palantir Technologies would have to see much higher GAAP profits in order to justify its valuation, in my view, and the valuation multiple presently seems to be detached from the underlying fundamentals. It would take years of improving GAAP profitability for Palantir Technologies to grow into its present valuation, but if the commercial business, for instance, keeps performing well, a case could be made for a richer sales multiple.Moving forward, Palantir Technologies clearly has an opportunity to grow its AI-related services which could be instrumental in boosting the company’s operating income margins as well as GAAP profits.The scaling of Palantir AI could be a source of incremental growth, in both the commercial and government realm, but it is difficult to quantify. With that being said, though, Palantir Technologies won’t be the only company that offers AI-related services, so I am still skeptical about the 'uniqueness' aspect for Palantir Technologies’ AI offer.Palantir Technologies also will still have to show that it can successfully translate demand for AI into stronger sales growth since Palantir’s total sales growth is slowing down. So far, this is not yet the case, really.Adjusted Operating Income (Palantir Technologies)Palantir Technologies’ sales rose 17% YoY in the third quarter to $558 million, but U.S. commercial sales were up 33%. Government sales were up 12% YoY, so the non-government business is growing much faster right now. Total commercial sales were up 23% YoY in 3Q-23 compared to 16% YoY in the first three quarters of 2023, so Palantir Technologies is seeing some momentum here. While the 17% may sound good, it doesn’t justify the high sales multiple and it is way below the initially stated 30% annual sales growth prediction.The commercial segment continues to outperform government which is good for Palantir Technologies as it reduces the company’s reliance on government clients which in the past have been crucial in driving Palantir Technologies’ sales growth.With that being said, though, I don’t think this invalidates my core criticism about Palantir Technologies which is that the rate of sales growth doesn’t justify the company’s excessively high sales multiple.Moving forward, Palantir Technologies clearly has an opportunity to add to its commercial client roster. The company’s customers grew 34% YoY in 3Q-23 and more companies are signing on for partnerships for Palantir Technologies’ Artificial Intelligence Platform. The combination of AI and commercial customers could potentially be beneficial for Palantir Technologies, but the potential nonetheless appears to be presently over-hyped.I do expect this momentum in the commercial segment to continue. The commercial segment appears set to not only drive Palantir Technologies’ sales growth, but to also account for a higher sales share in the future.Commercial sales accounted for 44% of all sales in the first nine months of the year and this percentage may very well rise above 50% moving forward.I don’t see Palantir Technologies, however, to return to its earlier stated goal of achieving 30% annual sales growth as competition for AI services is only going to increase and the company’s sales growth overall has slowed quite drastically. Thus, I expect Palantir Technologies to keep growing its sales well below 30% in the near future.AI Adoption, Sales Outlook And Palantir’s Unsustainable Valuation MultipleAlexander Karp said a few months back that the company was going in big on AI. He said in Palantir Technologies’ latest shareholder letter that demand for its AI products was growing.With that being said, this demand is not really translating into tangible sales growth (at least not so far), suggesting that investors that are bidding up Palantir’s stock price primarily on hopes. And this is where I think investors are going to get a brutal reality check moving forward.Let’s just look at the company’s sales guidance for 2023 to see what I mean.Investors have clearly bought into the hype about AI products as can be seen in the huge inflation in PLTR’s stock multiple, but Palantir Technologies’ outlook for 2023 only calls for $2.216 - $2.220 billion in sales this year.The guidance was raised QoQ from $2.212 billion in 2Q-23, but the revised guidance implies a rather paltry YoY growth rate of only 16%. Not exactly what I would expect from a company that is active in the booming market for alternative intelligence.Nvidia Corporation (NVDA), for instance, is expected to see 104% sales growth this year and 51% next year, and those are growth rates that would be deserving of a high sales multiple.Now, 16% is not nothing and the market presently models 19% sales growth next year, but it is hardly a rate that I would want to describe as impressive, and most certainly Palantir’s sales growth isn’t skyrocketing to the extent that one would expect when reading about growing AI adoption.Palantir Technologies’ stock valuation, I would submit, is fully and utterly unsustainable again and investors are way, way too celebratory about the company’s 3Q GAAP profit. This year, the market models $2.21 billion in sales which translates into a 19.4x sales multiple (based on this year’s sales) which is not only excessive, but not sustainable, in my view.If I was really generous, I could agree on paying 5x 2023E sales (4x 2024E sales) for Palantir Technologies’ growth potential, particularly as it relates to the AI realm, but this would be conditional upon the company scaling aggressively, improving profitability and, preferably, cutting back on its share-based compensation scheme (which is another issue in and of itself).With a 4x 2024E sales multiple, Palantir would have a market value of $11 billion which would be equal to a stock value of $5. I previously considered a 2-3x 2024E sales reasonable, but in acknowledgement of commercial growth and potential with AIP, I think a higher sales multiple might be justified than the one I laid out the last time.Revenue Estimate (Yahoo Finance)Why Palantir Technologies Might See A Higher Valuation MultipleIf Palantir Technologies were, against my expectations and judgment, to see a translation of its AI adoption into actual sales growth, there is a not insignificant chance that investors will continue to inflate the company’s stock multiple. Irrationality can clearly persist for very long periods of time, and so can exuberance.Should Palantir Technologies manage to grow and scale its AI products to such an extent that its sales growth rate accelerates, then PLTR might deserve a rich valuation.Since the stock multiple is already more than rich right now, I tend to think Palantir Technologies’ valuation is in bubble territory and the stock has a deeply, deeply unattractive risk/reward.My ConclusionInvestors often fall into the same trap: They wholeheartedly jump on press releases, containing acronyms like 'AI', 'AI demand' or 'AI adoption' which causes them to fail to evaluate the underlying performance of the business that purports to deliver such benefits to its customers.Palantir Technologies may be GAAP profitable now, but Palantir’s business has put investors back a cumulative $5.74 billion since its inception which in and of itself is a cause for concern.Furthermore, Palantir Technologies’ sales growth and extraordinary AI potential that so many analysts seem to see, is not really reflected in the company’s sales outlook for 2023 nor in the market estimates for next year (19% growth).Paying 19.4x sales for a software business with a TTM GAAP profit of $147 million and a $5.74 billion accumulated deficit seems more than just excessive and I think investors are set for a painful reality check in the near future.","news_type":1},"isVote":1,"tweetType":1,"viewCount":281,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":199829394473000,"gmtCreate":1689828056518,"gmtModify":1689829620561,"author":{"id":"3582712972054494","authorId":"3582712972054494","name":"Tonykhoo","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582712972054494","authorIdStr":"3582712972054494"},"themes":[],"htmlText":"The author does not have any credibility","listText":"The author does not have any credibility","text":"The author does not have any credibility","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/199829394473000","repostId":"2352050694","repostType":2,"repost":{"id":"2352050694","pubTimestamp":1689824031,"share":"https://ttm.financial/m/news/2352050694?lang=&edition=fundamental","pubTime":"2023-07-20 11:33","market":"us","language":"en","title":"Tesla: Consider Selling The News?","url":"https://stock-news.laohu8.com/highlight/detail?id=2352050694","media":"Seeking Alpha","summary":"Tesla: Consider Selling The News (NASDAQ:TSLA)","content":"<html><head></head><body><h2 id=\"id_3062389901\" style=\"text-align: left;\">Summary</h2><ul><li><p>Tesla, Inc. Q2 earnings beat estimates, but margins continued to compress and free cash flows were weak, leading to suggestions that selling shares to lock in gains could be a good move.</p></li><li><p>Despite record deliveries and revenue growth, the company&#39;s gross margins dropped from 25% to 18% during Q2.</p></li><li><p>Tesla&#39;s energy business performed well, with storage deployment up 200% YoY, but this was not enough to offset falling gross margins in the automotive business.</p></li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/f95882ca5c26944bd571917c1cf125e3\" alt=\"Justin Sullivan\" title=\"Justin Sullivan\" tg-width=\"750\" tg-height=\"515\"/><span>Justin Sullivan</span></p><h2 id=\"id_3430076673\" style=\"text-align: left;\">Article Thesis</h2><p style=\"text-align: left;\"><strong>Tesla, Inc.</strong> (NASDAQ:TSLA) reported its second quarter earnings results on Wednesday afternoon. While the company beat estimates on both lines, margin compression continued and free cash flows were pretty weak. Due to a very high valuation, I believe that selling shares in order to lock in gains makes sense.</p><h2 id=\"id_2832312125\" style=\"text-align: left;\">What Happened?</h2><p style=\"text-align: left;\">On Wednesday afternoon, Tesla, Inc. reported its second-quarter earnings results, which can be seen here. The headline numbers looked like this:</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/dda02d5a34ba894a1df155753aaded78\" alt=\"Seeking Alpha\" title=\"Seeking Alpha\" tg-width=\"640\" tg-height=\"263\"/><span>Seeking Alpha</span></p><p style=\"text-align: left;\">The electric vehicle (&#34;EV&#34;) player beat estimates on both lines, which naturally was a positive surprise. Record deliveries had been announced in early July already, thus this was not a surprise any longer. The company&#39;s revenue growth rate was very attractive, but that was, at least partially, due to the easy comparison to the weak results from the previous year&#39;s second quarter. On a quarter-to-quarter basis, revenues were up around 7% -- which is still very meaningful, but which annualizes to around 30%. This implies that Tesla will experience a significant growth slowdown once the comparison to the previous year&#39;s quarters becomes tougher again. Or, seen differently, growth is slowing down -- although it is still well north of the growth that legacy auto players are experiencing.</p><h2 id=\"id_2980243369\" style=\"text-align: left;\">Margins Continue To Compress, Free Cash Generation Is Weak</h2><p style=\"text-align: left;\">When we look beyond the headline numbers, there were a couple of things in Tesla&#39;s report that did not look great at all. Let&#39;s start with Tesla&#39;s margins, which continued to compress. Tesla bulls have, in the past, argued that the company had massive competitive advantages due to its high margins and that this would warrant a premium valuation versus other automobile companies. The high margins were, according to some Tesla bulls, the result of an excellent operational structure and highly advantaged production technologies. But it seems that these tailwinds have either vanished, or, alternatively, they never existed in the first place, and Tesla was just benefitting from a demand overhang in the EV space.</p><p style=\"text-align: left;\">Over the last couple of quarters, Tesla&#39;s margins have only been moving in one direction -- downward:</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a934ba79e0c6fe76f504c963143ac488\" alt=\"Tesla presentation\" title=\"Tesla presentation\" tg-width=\"640\" tg-height=\"166\"/><span>Tesla presentation</span></p><p style=\"text-align: left;\">We see that gross margins have dropped from an impressive 25% to just 18% during the second quarter, which implies a hefty 700 base point margin hit. Even worse, margins continued to decline on a sequential basis, which implies that further margin contraction is possible -- we have not passed the nadir yet. While operating margins declined by a little less in absolute terms, dropping 500 base points over the last year, the operating margin decline, in relative terms, was extraordinary, as Tesla&#39;s operating margin dropped by 34%. This means that Tesla now has to generate revenues that are 52% higher than one year ago in order to generate the same amount of operating profit [1/0.66]. This, in turn, explains why Tesla&#39;s operating profits are <em>down</em> year over year, despite the substantial increase in the company&#39;s revenues and deliveries over the last year.</p><p style=\"text-align: left;\">While the year-over-year decline has not been very high during the second quarter, it looks like we could see more substantial profit declines during the second half of this year. H2 of 2022 was better profit-wise compared to the first half of 2022, which means that the comparison will become harder for Tesla in H2 of 2023. Since Tesla has experienced a profit decline during the second quarter despite a relatively easy comparison, a more substantial profit decline during Q3 and/or Q4 would not be surprising, I believe.</p><p style=\"text-align: left;\">Operating income did also fall versus the first quarter, despite higher deliveries. To me, this suggests that Tesla&#39;s strategy of lowering the price of its vehicles in order to sell more vehicles is not generating any value for shareholders -- deliveries climb, but when profits are declining, that&#39;s not really helping anyone (at least not investors, which should care about profit).</p><p style=\"text-align: left;\">Tesla has a very clean balance sheet, but the cash flow picture is far from good. Despite profits being much higher, the company generated just $1 billion of free cash flow during the second quarter, and around $1.4 billion during the first half -- that&#39;s a little less than $3 billion annualized, which is far from appealing, considering Tesla is valued at well north of $900 billion. If H2 is comparable to the first half of the current year, Tesla trades at a 300x free cash flow multiple, which is, I believe, incredibly expensive. In other words, for every $1 investors put into Tesla stock, they have a claim on one-third of a cent of free cash flow. Considering that $1 dollar put into short-term treasuries generates around $0.05 per month in interest, the cash flow yield of Tesla stock is pretty weak (and this does not yet factor in that Tesla doesn&#39;t even pay out any of the free cash flow it generates).</p><p style=\"text-align: left;\">There were also some positives in Tesla&#39;s report, of course. While solar deployment was very weak (down 40% year over year), the other, more important, part of Tesla&#39;s energy business performed well. The company deployed 3.7 GWh of storage, which was up more than 200% year over year -- which is a very strong growth rate for sure. While the energy business showed a much weaker revenue growth rate of 74%, that was still strong in absolute terms. The energy business is profitable on a gross cost basis, before factoring in operating expenses, as the gross margin of this unit was 18% during the second quarter. This represents an improvement versus the previous quarter, during which Tesla Energy&#39;s gross margin was 11%.</p><p style=\"text-align: left;\">Unfortunately, the gross margin improvement in the energy business is not sizeable enough to offset the headwinds from falling gross margins in the automotive business, which is why the company-wide gross margin dropped, as shown earlier. Still, if Tesla is able to ramp up the energy business at a compelling pace in the coming quarters while also growing the gross margin over time, this should have a positive impact on Tesla&#39;s company-wide financial results.</p><p style=\"text-align: left;\">While the energy business is small for now (around 7% of Tesla&#39;s automobile revenues), it&#39;s a fast-growing unit with long-term potential, although there are also some uncertainties -- we don&#39;t know yet how large this market will ultimately become, and which company will win out.</p><h2 id=\"id_576248438\" style=\"text-align: left;\">Do New Models Justify This Valuation?</h2><p style=\"text-align: left;\">Tesla has gotten a lot of attention in the recent past due to speculation about a $25,000 model that could be manufactured in Mexico, while Tesla also has manufactured the first Cybertruck this summer. How impactful these models will become is up for debate. It is pretty clear that a $25,000 model has a substantial addressable market, as not too many people can (or want to) buy an EV for a much higher price. This holds especially true in emerging markets.</p><p style=\"text-align: left;\">But on the other hand, there is not a lot of charging infrastructure in some emerging markets, and a $25,000 price may still be too high for many consumers around the world. It is also highly likely that selling a vehicle for a price of $25,000 would not help boost Tesla&#39;s margins -- in general, higher-end vehicles have higher margins than lower-end vehicles. This explains why some of Tesla&#39;s competitors, such as Mercedes-Benz Group (OTCPK:MBGYY), are getting rid of some of their lower-end models in order to focus on higher-end models, as this is where these companies are generating much higher margins. Mercedes, which has been moving in the opposite direction of Tesla when it comes to focusing on profit instead of volume, has higher gross margins than Tesla.</p><p style=\"text-align: left;\">Tesla could presumably sell a very substantial number of vehicles at $25,000 per car. However, it is far from guaranteed that this would boost Tesla&#39;s profits -- after all, we have seen earlier that volume growth does not translate into earnings growth, and may even go hand in hand with a profit decline (see the Q2 numbers).</p><p style=\"text-align: left;\">The Cybertruck will be sold at a substantially higher price and should generate higher margins. But we still don&#39;t know yet how profitable this vehicle will be for Tesla, as the manufacturing process is rather different from Tesla&#39;s other vehicles, and since there are many consumers that don&#39;t like the Cybertruck&#39;s unconventional design.</p><p style=\"text-align: left;\">Looking at Wall Street estimates, the profit outlook isn&#39;t great for Tesla:</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7d18b2536dfbdec909ab065307fcb315\" alt=\"Seeking Alpha\" title=\"Seeking Alpha\" tg-width=\"640\" tg-height=\"112\"/><span>Seeking Alpha</span></p><p style=\"text-align: left;\">There were barely any EPS upward revisions over the last quarter, while many analysts have lowered their estimates due to the margin pressure Tesla is experiencing. Not even the company&#39;s revenue estimates are moving in the right direction. Earnings per share are forecasted to decline by double digits this year, and while Tesla profits are forecasted to improve in 2024 and beyond, Tesla still looks quite expensive even when we look at profit estimates for the coming years. Tesla trades at 46x 2026&#39;s earnings per share estimate, for example -- that&#39;s three years from now, and still, the earnings yield is just 2%.</p><h2 id=\"id_3530739842\" style=\"text-align: left;\">Final Thoughts</h2><p style=\"text-align: left;\">Tesla beat headline estimates, but the underlying margin picture isn&#39;t pretty. Free cash generation remains rather weak as well, especially compared to the very high market capitalization. Tesla has rallied massively year-to-date (congrats to those that bought at the lows), but I believe it is not a good investment at current prices. Locking in gains today could make sense, which is why I rate Tesla a sell today -- a 300x free cash flow multiple for an automobile company with declining margins and declining profits is just too expensive.</p><p style=\"text-align: left;\">Editor&#39;s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.</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>Tesla: Consider Selling The News?</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: Consider Selling The News?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-07-20 11:33 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4618210-tesla-sell-the-news><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryTesla, Inc. Q2 earnings beat estimates, but margins continued to compress and free cash flows were weak, leading to suggestions that selling shares to lock in gains could be a good move.Despite...</p>\n\n<a href=\"https://seekingalpha.com/article/4618210-tesla-sell-the-news\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","BK4511":"特斯拉概念","BK4548":"巴美列捷福持仓","LU0823414478.USD":"法巴经典能源转换基金","TSLA":"特斯拉","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","LU0689472784.USD":"安联收益及增长基金Cl AM AT Acc","LU2087621335.USD":"ALLSPRING GLOBAL FACTOR ENHANCED EQUITY \"A\" (USD) ACC","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU1429558221.USD":"Natixis Loomis Sayles US Growth Equity RA USD","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","BK4581":"高盛持仓","LU1435385759.SGD":"Natixis Loomis Sayles US Growth Equity RA SGD-H","LU1839511570.USD":"WELLS FARGO GLOBAL FACTOR ENHANCED EQUITY \"I\" (USD) ACC","LU1861559042.SGD":"日兴方舟颠覆性创新基金B SGD","LU2063271972.USD":"富兰克林创新领域基金","LU1548497426.USD":"安联环球人工智能AT Acc","LU1861558580.USD":"日兴方舟颠覆性创新基金B","LU0820561818.USD":"安联收益及增长平衡基金Cl AM DIS","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓","LU2249611893.SGD":"BNP PARIBAS ENERGY TRANSITION \"CRH\" (SGD) ACC","LU1551013425.SGD":"Allianz Income and Growth Cl AMg2 DIS H2-SGD","BK4555":"新能源车","BK4533":"AQR资本管理(全球第二大对冲基金)","LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","LU0316494557.USD":"FRANKLIN GLOBAL FUNDAMENTAL STRATEGIES \"A\" ACC","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","LU1861215975.USD":"贝莱德新一代科技基金 A2","BK4527":"明星科技股","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","LU2326559502.SGD":"Natixis Loomis Sayles US Growth Equity P/A SGD-H","LU0823411888.USD":"法巴消费创新基金 Cap","LU1852331112.SGD":"Blackrock World Technology Fund A2 SGD-H","BK4588":"碎股","BK4550":"红杉资本持仓","LU0082616367.USD":"摩根大通美国科技A（dist）","LU1551013342.USD":"Allianz Income and Growth Cl AMg2 DIS USD","LU0097036916.USD":"贝莱德美国增长A2 USD","LU0056508442.USD":"贝莱德世界科技基金A2","BK4574":"无人驾驶","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","BK4551":"寇图资本持仓","IE00BSNM7G36.USD":"NEUBERGER BERMAN SYSTEMATIC GLOBAL SUSTAINABLE VALUE \"A\" (USD) ACC"},"source_url":"https://seekingalpha.com/article/4618210-tesla-sell-the-news","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2352050694","content_text":"SummaryTesla, Inc. Q2 earnings beat estimates, but margins continued to compress and free cash flows were weak, leading to suggestions that selling shares to lock in gains could be a good move.Despite record deliveries and revenue growth, the company's gross margins dropped from 25% to 18% during Q2.Tesla's energy business performed well, with storage deployment up 200% YoY, but this was not enough to offset falling gross margins in the automotive business.Justin SullivanArticle ThesisTesla, Inc. (NASDAQ:TSLA) reported its second quarter earnings results on Wednesday afternoon. While the company beat estimates on both lines, margin compression continued and free cash flows were pretty weak. Due to a very high valuation, I believe that selling shares in order to lock in gains makes sense.What Happened?On Wednesday afternoon, Tesla, Inc. reported its second-quarter earnings results, which can be seen here. The headline numbers looked like this:Seeking AlphaThe electric vehicle (\"EV\") player beat estimates on both lines, which naturally was a positive surprise. Record deliveries had been announced in early July already, thus this was not a surprise any longer. The company's revenue growth rate was very attractive, but that was, at least partially, due to the easy comparison to the weak results from the previous year's second quarter. On a quarter-to-quarter basis, revenues were up around 7% -- which is still very meaningful, but which annualizes to around 30%. This implies that Tesla will experience a significant growth slowdown once the comparison to the previous year's quarters becomes tougher again. Or, seen differently, growth is slowing down -- although it is still well north of the growth that legacy auto players are experiencing.Margins Continue To Compress, Free Cash Generation Is WeakWhen we look beyond the headline numbers, there were a couple of things in Tesla's report that did not look great at all. Let's start with Tesla's margins, which continued to compress. Tesla bulls have, in the past, argued that the company had massive competitive advantages due to its high margins and that this would warrant a premium valuation versus other automobile companies. The high margins were, according to some Tesla bulls, the result of an excellent operational structure and highly advantaged production technologies. But it seems that these tailwinds have either vanished, or, alternatively, they never existed in the first place, and Tesla was just benefitting from a demand overhang in the EV space.Over the last couple of quarters, Tesla's margins have only been moving in one direction -- downward:Tesla presentationWe see that gross margins have dropped from an impressive 25% to just 18% during the second quarter, which implies a hefty 700 base point margin hit. Even worse, margins continued to decline on a sequential basis, which implies that further margin contraction is possible -- we have not passed the nadir yet. While operating margins declined by a little less in absolute terms, dropping 500 base points over the last year, the operating margin decline, in relative terms, was extraordinary, as Tesla's operating margin dropped by 34%. This means that Tesla now has to generate revenues that are 52% higher than one year ago in order to generate the same amount of operating profit [1/0.66]. This, in turn, explains why Tesla's operating profits are down year over year, despite the substantial increase in the company's revenues and deliveries over the last year.While the year-over-year decline has not been very high during the second quarter, it looks like we could see more substantial profit declines during the second half of this year. H2 of 2022 was better profit-wise compared to the first half of 2022, which means that the comparison will become harder for Tesla in H2 of 2023. Since Tesla has experienced a profit decline during the second quarter despite a relatively easy comparison, a more substantial profit decline during Q3 and/or Q4 would not be surprising, I believe.Operating income did also fall versus the first quarter, despite higher deliveries. To me, this suggests that Tesla's strategy of lowering the price of its vehicles in order to sell more vehicles is not generating any value for shareholders -- deliveries climb, but when profits are declining, that's not really helping anyone (at least not investors, which should care about profit).Tesla has a very clean balance sheet, but the cash flow picture is far from good. Despite profits being much higher, the company generated just $1 billion of free cash flow during the second quarter, and around $1.4 billion during the first half -- that's a little less than $3 billion annualized, which is far from appealing, considering Tesla is valued at well north of $900 billion. If H2 is comparable to the first half of the current year, Tesla trades at a 300x free cash flow multiple, which is, I believe, incredibly expensive. In other words, for every $1 investors put into Tesla stock, they have a claim on one-third of a cent of free cash flow. Considering that $1 dollar put into short-term treasuries generates around $0.05 per month in interest, the cash flow yield of Tesla stock is pretty weak (and this does not yet factor in that Tesla doesn't even pay out any of the free cash flow it generates).There were also some positives in Tesla's report, of course. While solar deployment was very weak (down 40% year over year), the other, more important, part of Tesla's energy business performed well. The company deployed 3.7 GWh of storage, which was up more than 200% year over year -- which is a very strong growth rate for sure. While the energy business showed a much weaker revenue growth rate of 74%, that was still strong in absolute terms. The energy business is profitable on a gross cost basis, before factoring in operating expenses, as the gross margin of this unit was 18% during the second quarter. This represents an improvement versus the previous quarter, during which Tesla Energy's gross margin was 11%.Unfortunately, the gross margin improvement in the energy business is not sizeable enough to offset the headwinds from falling gross margins in the automotive business, which is why the company-wide gross margin dropped, as shown earlier. Still, if Tesla is able to ramp up the energy business at a compelling pace in the coming quarters while also growing the gross margin over time, this should have a positive impact on Tesla's company-wide financial results.While the energy business is small for now (around 7% of Tesla's automobile revenues), it's a fast-growing unit with long-term potential, although there are also some uncertainties -- we don't know yet how large this market will ultimately become, and which company will win out.Do New Models Justify This Valuation?Tesla has gotten a lot of attention in the recent past due to speculation about a $25,000 model that could be manufactured in Mexico, while Tesla also has manufactured the first Cybertruck this summer. How impactful these models will become is up for debate. It is pretty clear that a $25,000 model has a substantial addressable market, as not too many people can (or want to) buy an EV for a much higher price. This holds especially true in emerging markets.But on the other hand, there is not a lot of charging infrastructure in some emerging markets, and a $25,000 price may still be too high for many consumers around the world. It is also highly likely that selling a vehicle for a price of $25,000 would not help boost Tesla's margins -- in general, higher-end vehicles have higher margins than lower-end vehicles. This explains why some of Tesla's competitors, such as Mercedes-Benz Group (OTCPK:MBGYY), are getting rid of some of their lower-end models in order to focus on higher-end models, as this is where these companies are generating much higher margins. Mercedes, which has been moving in the opposite direction of Tesla when it comes to focusing on profit instead of volume, has higher gross margins than Tesla.Tesla could presumably sell a very substantial number of vehicles at $25,000 per car. However, it is far from guaranteed that this would boost Tesla's profits -- after all, we have seen earlier that volume growth does not translate into earnings growth, and may even go hand in hand with a profit decline (see the Q2 numbers).The Cybertruck will be sold at a substantially higher price and should generate higher margins. But we still don't know yet how profitable this vehicle will be for Tesla, as the manufacturing process is rather different from Tesla's other vehicles, and since there are many consumers that don't like the Cybertruck's unconventional design.Looking at Wall Street estimates, the profit outlook isn't great for Tesla:Seeking AlphaThere were barely any EPS upward revisions over the last quarter, while many analysts have lowered their estimates due to the margin pressure Tesla is experiencing. Not even the company's revenue estimates are moving in the right direction. Earnings per share are forecasted to decline by double digits this year, and while Tesla profits are forecasted to improve in 2024 and beyond, Tesla still looks quite expensive even when we look at profit estimates for the coming years. Tesla trades at 46x 2026's earnings per share estimate, for example -- that's three years from now, and still, the earnings yield is just 2%.Final ThoughtsTesla beat headline estimates, but the underlying margin picture isn't pretty. Free cash generation remains rather weak as well, especially compared to the very high market capitalization. Tesla has rallied massively year-to-date (congrats to those that bought at the lows), but I believe it is not a good investment at current prices. Locking in gains today could make sense, which is why I rate Tesla a sell today -- a 300x free cash flow multiple for an automobile company with declining margins and declining profits is just too expensive.Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.","news_type":1},"isVote":1,"tweetType":1,"viewCount":315,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"hots":[{"id":328123225444488,"gmtCreate":1721138184510,"gmtModify":1721138190287,"author":{"id":"3582712972054494","authorId":"3582712972054494","name":"Tonykhoo","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582712972054494","authorIdStr":"3582712972054494"},"themes":[],"htmlText":"No brain analyst&nbsp;","listText":"No brain analyst&nbsp;","text":"No brain analyst","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/328123225444488","repostId":"1162176667","repostType":2,"repost":{"id":"1162176667","pubTimestamp":1721136900,"share":"https://ttm.financial/m/news/1162176667?lang=&edition=fundamental","pubTime":"2024-07-16 21:35","market":"us","language":"en","title":"Palantir Slips 3% Following Ratings Downgrade from Mizuho","url":"https://stock-news.laohu8.com/highlight/detail?id=1162176667","media":"Seeking Alpha","summary":"Palantir Technologies slipped nearly 3% in morning trading Tuesday after being downgraded to Underperform from Neutral by Mizuho Securities.Although Palantir has performed well in recent quarters, Miz","content":"<html><head></head><body><p>Palantir Technologies slipped nearly 3% in morning trading Tuesday after being downgraded to Underperform from Neutral by Mizuho Securities.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/f69bfd5e8314b7d2b924705c598f1307\" tg-width=\"874\" tg-height=\"622\"/></p><p style=\"text-align: left;\">Although Palantir has performed well in recent quarters, Mizuho analysts doubt whether the big data analytics software firm can maintain these results.</p><p style=\"text-align: left;\">&#34;But primarily, following the material 67% rise in the shares YTD, we find it increasingly difficult to justify PLTR&#39;s high multiple (21x CY25E revenue) that, in our view, likely already discounts significant acceleration versus our consensus expectations for 20-21% revenue growth,&#34; said Mizuho analysts led by Gregg Moskowitz, in a note.</p><p style=\"text-align: left;\">However, Mizuho slightly increased the price target on the Denver-based firm to $22 from $21.</p><p style=\"text-align: left;\">&#34;There are some exciting aspects of the PLTR story (megadeals, AIP), although this is offset by a lack of transparency and a likelihood of lumpy results going forward, in our view,&#34; Moskowitz added. &#34;Net, we have limited confidence in the company&#39;s ability to deliver consistently strong results and accelerating growth, which is needed to justify the premium valuation.&#34;</p><p style=\"text-align: left;\">Palantir has a Hold rating from Seeking Alpha analysts, Wall Street analysts and Seeking Alpha&#39;s Quant system, which routinely beats the market.</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 Slips 3% Following Ratings Downgrade from Mizuho</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\">\nPalantir Slips 3% Following Ratings Downgrade from Mizuho\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-16 21:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/news/4124573-palantir-slips-pre-market-following-ratings-downgrade-from-mizuho><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Palantir Technologies slipped nearly 3% in morning trading Tuesday after being downgraded to Underperform from Neutral by Mizuho Securities.Although Palantir has performed well in recent quarters, ...</p>\n\n<a href=\"https://seekingalpha.com/news/4124573-palantir-slips-pre-market-following-ratings-downgrade-from-mizuho\">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/news/4124573-palantir-slips-pre-market-following-ratings-downgrade-from-mizuho","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1162176667","content_text":"Palantir Technologies slipped nearly 3% in morning trading Tuesday after being downgraded to Underperform from Neutral by Mizuho Securities.Although Palantir has performed well in recent quarters, Mizuho analysts doubt whether the big data analytics software firm can maintain these results.\"But primarily, following the material 67% rise in the shares YTD, we find it increasingly difficult to justify PLTR's high multiple (21x CY25E revenue) that, in our view, likely already discounts significant acceleration versus our consensus expectations for 20-21% revenue growth,\" said Mizuho analysts led by Gregg Moskowitz, in a note.However, Mizuho slightly increased the price target on the Denver-based firm to $22 from $21.\"There are some exciting aspects of the PLTR story (megadeals, AIP), although this is offset by a lack of transparency and a likelihood of lumpy results going forward, in our view,\" Moskowitz added. \"Net, we have limited confidence in the company's ability to deliver consistently strong results and accelerating growth, which is needed to justify the premium valuation.\"Palantir has a Hold rating from Seeking Alpha analysts, Wall Street analysts and Seeking Alpha's Quant system, which routinely beats the market.","news_type":1},"isVote":1,"tweetType":1,"viewCount":353,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":363562869534840,"gmtCreate":1729787021029,"gmtModify":1729787654945,"author":{"id":"3582712972054494","authorId":"3582712972054494","name":"Tonykhoo","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582712972054494","authorIdStr":"3582712972054494"},"themes":[],"htmlText":"This guy is not trustworthy. He shld shut up&nbsp;","listText":"This guy is not trustworthy. He shld shut up&nbsp;","text":"This guy is not trustworthy. He shld shut up","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/363562869534840","repostId":"2477893276","repostType":2,"repost":{"id":"2477893276","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1729782900,"share":"https://ttm.financial/m/news/2477893276?lang=&edition=fundamental","pubTime":"2024-10-24 23:15","market":"us","language":"en","title":"Apple Cuts Back iPhone Orders. Why Demand Fears Are Mounting","url":"https://stock-news.laohu8.com/highlight/detail?id=2477893276","media":"Dow Jones","summary":"The argument around demand for Apple’s latest iPhones continues to rage. The latest update is a bearish assessment from influential Taiwan-based analyst Ming-Chi Kuo of TF International Securities.Chi","content":"<html><head></head><body><p style=\"text-align: start;\">The argument around demand for Apple’s latest iPhones continues to rage. The latest update is a bearish assessment from influential Taiwan-based analyst Ming-Chi Kuo of TF International Securities. </p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/251ba2cda65bbf71df6c08bebee8bf45\" alt=\"China is one of Apple’s biggest markets but it doesn’t currently plan to roll out its artificial-intelligence features in the country.\" title=\"China is one of Apple’s biggest markets but it doesn’t currently plan to roll out its artificial-intelligence features in the country.\" tg-width=\"958\" tg-height=\"635\"/><span>China is one of Apple’s biggest markets but it doesn’t currently plan to roll out its artificial-intelligence features in the country.</span></p><p style=\"text-align: start;\">Apple has cut its cut orders to suppliers for the iPhone 16 by about 10 million units for the fourth quarter of this year and the first half of 2025,accordingto Kuo. </p><p>Apple didn’t immediately respond to a request for comment early on Thursday. </p><p>Demand for the new iPhone 16 has been a subject of hot debate among analysts, who are trying to gauge whether the integration of artificial intelligence is attracting customers. Just this week, analysts at UBS noted they expect iPhone unit sales in the September quarter to be flat from the same time a year ago, while J.P. Morgan analysts said they see demand in line with the iPhone 15 based on delivery times. </p><p>Kuo’s assessment—which is based on his analysis of the company’s supply chain rather than sales—looks more downbeat. He now forecasts Apple partners will produce 80 million iPhones during the fourth quarter, down from around 84 million last year. He estimates production of 45 million units during the first quarter of 2025 and 39 million units during the second quarter—down from 48 million and 41 million, respectively.</p><p>The effect on sales might not be so pronounced in the short term as Kuo said the cuts are largely due to production of the cheaper non-Pro models. However, he said he expects iPhone revenue to come under pressure in the first half of 2025.</p><p style=\"text-align: start;\">“I believe that Apple is best positioned to succeed in on-device AI, and I am confident about the long-term potential for Apple Intelligence to become a popular paid service,” Kuo said. “However, significant growth in iPhone shipments will likely require further hardware innovation to accompany this AI development.”</p><p style=\"text-align: start;\">Apple CEO Tim Cook met with Chinese officials in Beijing on Wednesday. They discussed the company’s development in China, network data security and cloud services, according to a ministry statement. But it would be surprising if Cook didn’t take the chance to press for Beijing to allow Apple Intelligence—the company’s AI brand—to launch in China.</p><p style=\"text-align: start;\">Apple shares were down 0.4% in early trading on Thursday after falling 2.2% the previous day.</p><p style=\"text-align: start;\">The Consumer Financial Protection Bureau on Wednesday ordered Apple to pay a $25 million penalty over what it described as failures pertaining to its credit-card partnership with Goldman Sachs, which was ordered to pay nearly $65 million.</p><p style=\"text-align: start;\">The CFPB said Apple failed to send tens of thousands of consumer disputes of Apple Card transactions to Goldman—and that when Apple did send disputes to Goldman the bank didn’t follow federal requirements for investigating them.</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>Apple Cuts Back iPhone Orders. Why Demand Fears Are Mounting</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\">\nApple Cuts Back iPhone Orders. Why Demand Fears Are Mounting\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-10-24 23:15</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p style=\"text-align: start;\">The argument around demand for Apple’s latest iPhones continues to rage. The latest update is a bearish assessment from influential Taiwan-based analyst Ming-Chi Kuo of TF International Securities. </p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/251ba2cda65bbf71df6c08bebee8bf45\" alt=\"China is one of Apple’s biggest markets but it doesn’t currently plan to roll out its artificial-intelligence features in the country.\" title=\"China is one of Apple’s biggest markets but it doesn’t currently plan to roll out its artificial-intelligence features in the country.\" tg-width=\"958\" tg-height=\"635\"/><span>China is one of Apple’s biggest markets but it doesn’t currently plan to roll out its artificial-intelligence features in the country.</span></p><p style=\"text-align: start;\">Apple has cut its cut orders to suppliers for the iPhone 16 by about 10 million units for the fourth quarter of this year and the first half of 2025,accordingto Kuo. </p><p>Apple didn’t immediately respond to a request for comment early on Thursday. </p><p>Demand for the new iPhone 16 has been a subject of hot debate among analysts, who are trying to gauge whether the integration of artificial intelligence is attracting customers. Just this week, analysts at UBS noted they expect iPhone unit sales in the September quarter to be flat from the same time a year ago, while J.P. Morgan analysts said they see demand in line with the iPhone 15 based on delivery times. </p><p>Kuo’s assessment—which is based on his analysis of the company’s supply chain rather than sales—looks more downbeat. He now forecasts Apple partners will produce 80 million iPhones during the fourth quarter, down from around 84 million last year. He estimates production of 45 million units during the first quarter of 2025 and 39 million units during the second quarter—down from 48 million and 41 million, respectively.</p><p>The effect on sales might not be so pronounced in the short term as Kuo said the cuts are largely due to production of the cheaper non-Pro models. However, he said he expects iPhone revenue to come under pressure in the first half of 2025.</p><p style=\"text-align: start;\">“I believe that Apple is best positioned to succeed in on-device AI, and I am confident about the long-term potential for Apple Intelligence to become a popular paid service,” Kuo said. “However, significant growth in iPhone shipments will likely require further hardware innovation to accompany this AI development.”</p><p style=\"text-align: start;\">Apple CEO Tim Cook met with Chinese officials in Beijing on Wednesday. They discussed the company’s development in China, network data security and cloud services, according to a ministry statement. But it would be surprising if Cook didn’t take the chance to press for Beijing to allow Apple Intelligence—the company’s AI brand—to launch in China.</p><p style=\"text-align: start;\">Apple shares were down 0.4% in early trading on Thursday after falling 2.2% the previous day.</p><p style=\"text-align: start;\">The Consumer Financial Protection Bureau on Wednesday ordered Apple to pay a $25 million penalty over what it described as failures pertaining to its credit-card partnership with Goldman Sachs, which was ordered to pay nearly $65 million.</p><p style=\"text-align: start;\">The CFPB said Apple failed to send tens of thousands of consumer disputes of Apple Card transactions to Goldman—and that when Apple did send disputes to Goldman the bank didn’t follow federal requirements for investigating them.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU1363072403.SGD":"Fidelity Global Financial Services A-ACC-SGD","IE0005OL40V9.USD":"JANUS HENDERSON BALANCED \"A6M\" (USD) INC","IE00BZ1G4Q59.USD":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","LU0320765489.SGD":"FTIF - Franklin Mutual US Value A Acc SGD","LU0106831901.USD":"贝莱德世界金融基金A2","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","IE0009G5SDU7.USD":"PIMCO BALANCED INCOME AND GROWTH \"M\" (USD) INC","IE00B1BXHZ80.USD":"Legg Mason ClearBridge - US Appreciation A Acc USD","BK4554":"元宇宙及AR概念","IE000YTNTUN2.SGD":"PIMCO BALANCED INCOME AND GROWTH \"M\" (SGDHDG)INC","LU0203347892.USD":"SCHRODER ISF QEP GLOBAL ACTIVE VALLUE \"A\" (USD)  INC AV","IE000M9KFDE8.USD":"NEUBERGER BERMAN US LARGE CAP VALUE \"A\" (USD) ACC","LU1267930490.SGD":"TEMPLETON GLOBAL EQUITY INCOME \"AS\" (SGD) INC A","LU0976567544.SGD":"FTIF - Templeton Global Income A Mdis SGD-H1","LU0211327993.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (USD) ACC","BK4566":"资本集团","LU0149725797.USD":"汇丰美国股市经济规模基金","BK4507":"流媒体概念","LU0211326839.USD":"TEMPLETON GLOBAL INCOME \"A\" (USD) INC","IE0034235303.USD":"PINEBRIDGE US RESEARCH ENHANCED CORE EQUITY \"A\" (USD) ACC","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","BK4533":"AQR资本管理(全球第二大对冲基金)","LU0203345920.USD":"SCHRODER ISF QEP GLB ACT. VL \"A\" (USD) ACC","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","IE0009356076.USD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A2\" (USD) ACC","LU2237443895.HKD":"abrdn SICAV I -  GLOBAL DYNAMIC DIVIDEND \"A\" (HKD) ACC","LU1496350171.SGD":"FRANKLIN DIVERSIFIED BALANCED \"A\" (SGDHDG) ACC","IE00BLSP4239.USD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis USD Plus","IE0004086264.USD":"BNY MELLON GLOBAL OPPORTUNITIES \"A\" (USD) ACC","AAPL":"苹果","IE00B775SV38.USD":"NEUBERGER BERMAN US MULTICAP OPPORTUNITIES \"A\" (USD) ACC","HK0000320264.USD":"TAIKANG KAITAI CHINA NEW OPPORTUNITIES FUND \"A\" (USD) ACC","LU0238689110.USD":"贝莱德环球动力股票基金","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","LU1119994496.HKD":"FIDELITY WORLD \"A\" (HKD) ACC","BK4588":"碎股","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","LU0208291251.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) INC","LU2237443549.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA SGD-H","IE0034235071.USD":"PINEBRIDGE EUROPE RESEARCH ENHANCED EQUITY \"A\" (USD) ACC","BK4118":"综合性资本市场","BK4573":"虚拟现实","IE00BJLML261.HKD":"HSBC GLOBAL EQUITY INDEX \"HCH\" (HKD) ACC","BK4581":"高盛持仓","IE00BFXG1179.USD":"BNY MELLON U.S. EQUITY INCOME \"B\" (USD) INC","HK0000306701.USD":"TAIKANG KAITAI CHINA NEW OPPORTUNITIES FUND \"A\" (USD) INC","BK4504":"桥水持仓","IE00B775H168.HKD":"JANUS HENDERSON BALANCED \"A5M\" (HKD) INC"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2477893276","content_text":"The argument around demand for Apple’s latest iPhones continues to rage. The latest update is a bearish assessment from influential Taiwan-based analyst Ming-Chi Kuo of TF International Securities. China is one of Apple’s biggest markets but it doesn’t currently plan to roll out its artificial-intelligence features in the country.Apple has cut its cut orders to suppliers for the iPhone 16 by about 10 million units for the fourth quarter of this year and the first half of 2025,accordingto Kuo. Apple didn’t immediately respond to a request for comment early on Thursday. Demand for the new iPhone 16 has been a subject of hot debate among analysts, who are trying to gauge whether the integration of artificial intelligence is attracting customers. Just this week, analysts at UBS noted they expect iPhone unit sales in the September quarter to be flat from the same time a year ago, while J.P. Morgan analysts said they see demand in line with the iPhone 15 based on delivery times. Kuo’s assessment—which is based on his analysis of the company’s supply chain rather than sales—looks more downbeat. He now forecasts Apple partners will produce 80 million iPhones during the fourth quarter, down from around 84 million last year. He estimates production of 45 million units during the first quarter of 2025 and 39 million units during the second quarter—down from 48 million and 41 million, respectively.The effect on sales might not be so pronounced in the short term as Kuo said the cuts are largely due to production of the cheaper non-Pro models. However, he said he expects iPhone revenue to come under pressure in the first half of 2025.“I believe that Apple is best positioned to succeed in on-device AI, and I am confident about the long-term potential for Apple Intelligence to become a popular paid service,” Kuo said. “However, significant growth in iPhone shipments will likely require further hardware innovation to accompany this AI development.”Apple CEO Tim Cook met with Chinese officials in Beijing on Wednesday. They discussed the company’s development in China, network data security and cloud services, according to a ministry statement. But it would be surprising if Cook didn’t take the chance to press for Beijing to allow Apple Intelligence—the company’s AI brand—to launch in China.Apple shares were down 0.4% in early trading on Thursday after falling 2.2% the previous day.The Consumer Financial Protection Bureau on Wednesday ordered Apple to pay a $25 million penalty over what it described as failures pertaining to its credit-card partnership with Goldman Sachs, which was ordered to pay nearly $65 million.The CFPB said Apple failed to send tens of thousands of consumer disputes of Apple Card transactions to Goldman—and that when Apple did send disputes to Goldman the bank didn’t follow federal requirements for investigating them.","news_type":1},"isVote":1,"tweetType":1,"viewCount":23,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":244364819083280,"gmtCreate":1700683400830,"gmtModify":1700684097440,"author":{"id":"3582712972054494","authorId":"3582712972054494","name":"Tonykhoo","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582712972054494","authorIdStr":"3582712972054494"},"themes":[],"htmlText":"Sore loser&nbsp;","listText":"Sore loser&nbsp;","text":"Sore loser","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/244364819083280","repostId":"2385857498","repostType":2,"repost":{"id":"2385857498","pubTimestamp":1700661133,"share":"https://ttm.financial/m/news/2385857498?lang=&edition=fundamental","pubTime":"2023-11-22 21:52","market":"us","language":"en","title":"Palantir Technologies: Investors Are Set For A Massive Reality Check","url":"https://stock-news.laohu8.com/highlight/detail?id=2385857498","media":"Seekingalpha","summary":"Palantir Technologies' stock price has risen from $8 to $20 since the CEO made comments about AI-driven growth.The company's positive investor sentiment is exaggerated and its stock multiple of 21x is","content":"<html><head></head><body><ul style=\"\"><li><p>Palantir Technologies&#39; stock price has risen from $8 to $20 since the CEO made comments about AI-driven growth.</p></li><li><p>The company&#39;s positive investor sentiment is exaggerated and its stock multiple of 21x is unsustainable.</p></li><li><p>Palantir&#39;s GAAP profits are minimal compared to its accumulated losses, indicating that the AI bubble will soon burst.</p></li></ul><p>Ever since CEO of <strong><a href=\"https://laohu8.com/S/PLTR\">Palantir Technologies Inc.</a> (NYSE: PLTR)</strong> made comments about the prospects for artificial intelligence-driven growth for the core software offers, investors have showered the company with praise and Palantir’s stock price has since risen from about $8 in May to about $20 today.</p><p>Though I am willing to acknowledge that Palantir Technologies has made some progress in terms of posting GAAP profits, positive investor sentiment seems to be off the charts right now.</p><p>Exaggerated optimism about AI adoption and the potential for AI-related sales growth have led to Palantir Technologies’ stock multiple to expand to 21x, which looks neither sensible nor sustainable.</p><p>Since Palantir’s GAAP profits relative to its accumulated deficit show a gap of monumental proportions, I think the AI bubble will soon be pricked.</p><h2 id=\"id_343657280\">My Rating History</h2><p>Truth be told, I have been skeptical of Palantir Technologies ever since the stock made its public debut.</p><p>Palantir Technologies has racked up an obscene amount of losses since it was started more than two decades ago, a fact that too many investors are willing to overlook now that the company is reporting GAAP profits.</p><p>Slowing sales growth has been a concern for many investors and the valuation multiple is now so detached from fundamentals again, that a Sell rating is the only rating that makes sense, in my view.</p><p>My prior Sell call from February was, with the benefit of hindsight, wrong as the stock has soared from $8 to $21. With that being said, I think that the market continues to overvalue Palantir Technologies’ sales potential.</p><p>I cited a deteriorating sales position for Palantir Technologies (lower expected sales growth) specifically as a headwind for the stock. Investors should remember that not long ago, Palantir guided for 30% annual sales growth.</p><p>Despite the company posting GAAP profits, these profits are a nothing more than a drop in the bucket relative to Palantir Technologies’ accumulated losses. My key argument here is that investors overreact to PLTR’s reported GAAP profits.</p><h2 id=\"id_3974044529\">Put GAAP Profits In Relation To Accumulated Losses</h2><p>Palantir Technologies celebrated itself for producing a &#39;fourth consecutive quarter of GAAP profitability&#39; in the third quarter which yielded a GAAP profit of $72 million. The first GAAP profit showed up on Palantir Technologies’ profit statement in the fourth quarter of 2022 when the company revealed positive $31 million net income.</p><p>Since Palantir Technologies has been celebrated for its third quarter earnings performance, it is important, in my view, to connect the 3Q-23 GAAP profit to the amount of accumulated losses PLTR also reported.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/91b841b1194b336a0e1a9786203525e5\" tg-width=\"617\" tg-height=\"536\"/></p><p>Net Income Losses (Palantir Technologies)</p><p>While the $72 million in 3Q GAAP profits looks like a big win (on first glance), it is rather a drop in the bucket considering that the company, at the beginning of 3Q-23, had an accumulated deficit of $5.81 billion.</p><p>Counting the $72 million in profits against the accumulated deficit leaves us with a 3Q ending accumulated deficit balance of $5.74 billion.</p><p>In a nutshell, Palantir Technologies had a total net profit in 3Q equal to just 1.2% of its total historical losses which, in my view, is not something that investors should bring the champagne bottles out for.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/dd0f61a41f68ad8fc47a2744d96de484\" tg-width=\"625\" tg-height=\"281\"/></p><p>Accumulated Deficit (Palantir Technologies)</p><p>Palantir Technologies would have to see much higher GAAP profits in order to justify its valuation, in my view, and the valuation multiple presently seems to be detached from the underlying fundamentals. It would take years of improving GAAP profitability for Palantir Technologies to grow into its present valuation, but if the commercial business, for instance, keeps performing well, a case could be made for a richer sales multiple.</p><p>Moving forward, Palantir Technologies clearly has an opportunity to grow its AI-related services which could be instrumental in boosting the company’s operating income margins as well as GAAP profits.</p><p>The scaling of Palantir AI could be a source of incremental growth, in both the commercial and government realm, but it is difficult to quantify. With that being said, though, Palantir Technologies won’t be the only company that offers AI-related services, so I am still skeptical about the &#39;uniqueness&#39; aspect for Palantir Technologies’ AI offer.</p><p>Palantir Technologies also will still have to show that it can successfully translate demand for AI into stronger sales growth since Palantir’s total sales growth is slowing down. So far, this is not yet the case, really.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/4342459e85ac64c52dcca6fb75673eeb\" tg-width=\"640\" tg-height=\"342\"/></p><p>Adjusted Operating Income (Palantir Technologies)</p><p>Palantir Technologies’ sales rose 17% YoY in the third quarter to $558 million, but U.S. commercial sales were up 33%. Government sales were up 12% YoY, so the non-government business is growing much faster right now. Total commercial sales were up 23% YoY in 3Q-23 compared to 16% YoY in the first three quarters of 2023, so Palantir Technologies is seeing some momentum here. While the 17% may sound good, it doesn’t justify the high sales multiple and it is way below the initially stated 30% annual sales growth prediction.</p><p>The commercial segment continues to outperform government which is good for Palantir Technologies as it reduces the company’s reliance on government clients which in the past have been crucial in driving Palantir Technologies’ sales growth.</p><p>With that being said, though, I don’t think this invalidates my core criticism about Palantir Technologies which is that the rate of sales growth doesn’t justify the company’s excessively high sales multiple.</p><p>Moving forward, Palantir Technologies clearly has an opportunity to add to its commercial client roster. The company’s customers grew 34% YoY in 3Q-23 and more companies are signing on for partnerships for Palantir Technologies’ Artificial Intelligence Platform. The combination of AI and commercial customers could potentially be beneficial for Palantir Technologies, but the potential nonetheless appears to be presently over-hyped.</p><p>I do expect this momentum in the commercial segment to continue. The commercial segment appears set to not only drive Palantir Technologies’ sales growth, but to also account for a higher sales share in the future.</p><p>Commercial sales accounted for 44% of all sales in the first nine months of the year and this percentage may very well rise above 50% moving forward.</p><p>I don’t see Palantir Technologies, however, to return to its earlier stated goal of achieving 30% annual sales growth as competition for AI services is only going to increase and the company’s sales growth overall has slowed quite drastically. Thus, I expect Palantir Technologies to keep growing its sales well below 30% in the near future.</p><h2 id=\"id_2695042223\">AI Adoption, Sales Outlook And Palantir’s Unsustainable Valuation Multiple</h2><p>Alexander Karp said a few months back that the company was going in big on AI. He said in Palantir Technologies’ latest shareholder letter that demand for its AI products was growing.</p><p>With that being said, this demand is not really translating into tangible sales growth (at least not so far), suggesting that investors that are bidding up Palantir’s stock price primarily on hopes. And this is where I think investors are going to get a brutal reality check moving forward.</p><p>Let’s just look at the company’s sales guidance for 2023 to see what I mean.</p><p>Investors have clearly bought into the hype about AI products as can be seen in the huge inflation in PLTR’s stock multiple, but Palantir Technologies’ outlook for 2023 only calls for $2.216 - $2.220 billion in sales this year.</p><p>The guidance was raised QoQ from $2.212 billion in 2Q-23, but the revised guidance implies a rather paltry YoY growth rate of only 16%. Not exactly what I would expect from a company that is active in the booming market for alternative intelligence.</p><p><strong>Nvidia Corporation (NVDA)</strong>, for instance, is expected to see 104% sales growth this year and 51% next year, and those are growth rates that would be deserving of a high sales multiple.</p><p>Now, 16% is not nothing and the market presently models 19% sales growth next year, but it is hardly a rate that I would want to describe as impressive, and most certainly Palantir’s sales growth isn’t skyrocketing to the extent that one would expect when reading about growing AI adoption.</p><p>Palantir Technologies’ stock valuation, I would submit, is fully and utterly unsustainable again and investors are way, way too celebratory about the company’s 3Q GAAP profit. This year, the market models $2.21 billion in sales which translates into a 19.4x sales multiple (based on this year’s sales) which is not only excessive, but not sustainable, in my view.</p><p>If I was really generous, I could agree on paying 5x 2023E sales (4x 2024E sales) for Palantir Technologies’ growth potential, particularly as it relates to the AI realm, but this would be conditional upon the company scaling aggressively, improving profitability and, preferably, cutting back on its share-based compensation scheme (which is another issue in and of itself).</p><p>With a 4x 2024E sales multiple, Palantir would have a market value of $11 billion which would be equal to a stock value of $5. I previously considered a 2-3x 2024E sales reasonable, but in acknowledgement of commercial growth and potential with AIP, I think a higher sales multiple might be justified than the one I laid out the last time.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/bed29b35f2c164c4aa69408d20013f67\" tg-width=\"622\" tg-height=\"259\"/></p><p>Revenue Estimate (Yahoo Finance)</p><h2 id=\"id_2629790112\">Why Palantir Technologies Might See A Higher Valuation Multiple</h2><p>If Palantir Technologies were, against my expectations and judgment, to see a translation of its AI adoption into actual sales growth, there is a not insignificant chance that investors will continue to inflate the company’s stock multiple. Irrationality can clearly persist for very long periods of time, and so can exuberance.</p><p>Should Palantir Technologies manage to grow and scale its AI products to such an extent that its sales growth rate accelerates, then PLTR might deserve a rich valuation.</p><p>Since the stock multiple is already more than rich right now, I tend to think Palantir Technologies’ valuation is in bubble territory and the stock has a deeply, deeply unattractive risk/reward.</p><h2 id=\"id_1744648375\">My Conclusion</h2><p>Investors often fall into the same trap: They wholeheartedly jump on press releases, containing acronyms like &#39;AI&#39;, &#39;AI demand&#39; or &#39;AI adoption&#39; which causes them to fail to evaluate the underlying performance of the business that purports to deliver such benefits to its customers.</p><p>Palantir Technologies may be GAAP profitable now, but Palantir’s business has put investors back a cumulative $5.74 billion since its inception which in and of itself is a cause for concern.</p><p>Furthermore, Palantir Technologies’ sales growth and extraordinary AI potential that so many analysts seem to see, is not really reflected in the company’s sales outlook for 2023 nor in the market estimates for next year (19% growth).</p><p>Paying 19.4x sales for a software business with a TTM GAAP profit of $147 million and a $5.74 billion accumulated deficit seems more than just excessive and I think investors are set for a painful reality check in the near future.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; 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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPalantir Technologies: Investors Are Set For A Massive Reality Check\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-11-22 21:52 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4653464-palantir-technologies-investors-are-set-for-a-massive-reality-check><strong>Seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Palantir Technologies' stock price has risen from $8 to $20 since the CEO made comments about AI-driven growth.The company's positive investor sentiment is exaggerated and its stock multiple of 21x is...</p>\n\n<a href=\"https://seekingalpha.com/article/4653464-palantir-technologies-investors-are-set-for-a-massive-reality-check\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","BK4529":"IDC概念","LU0056508442.USD":"贝莱德世界科技基金A2","LU0080751232.USD":"富达环球多元动力基金A","LU0640476718.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQ \"AU\" (USD) ACC","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","LU1242518857.USD":"FULLERTON LUX FUNDS - ASIA ABSOLUTE ALPHA \"I\" (USD) ACC","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","BK4554":"元宇宙及AR概念","BK4532":"文艺复兴科技持仓","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","BK4567":"ESG概念","LU0820562030.AUD":"ALLIANZ INCOME AND GROWTH \"AMH2\" (AUDHDG) H2 INC","LU0109392836.USD":"富兰克林科技股A","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","BK4533":"AQR资本管理(全球第二大对冲基金)","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","BK4587":"ChatGPT概念","LU0097036916.USD":"贝莱德美国增长A2 USD","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","LU0689472784.USD":"安联收益及增长基金Cl AM AT Acc","LU0320765059.SGD":"FTIF - Franklin US Opportunities A Acc SGD","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU0672654240.SGD":"FTIF - Franklin US Opportunities A Acc SGD-H1","BK4548":"巴美列捷福持仓","BK4579":"人工智能","BK4550":"红杉资本持仓","LU0786609619.USD":"高盛全球千禧一代股票组合Acc","BK4588":"碎股","LU1064131342.USD":"Fullerton Lux Funds - Global Absolute Alpha A Acc USD","LU0820561818.USD":"安联收益及增长平衡基金Cl AM DIS","BK4141":"半导体产品","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","PLTR":"Palantir Technologies Inc.","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","BK4551":"寇图资本持仓","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","LU0943347566.SGD":"安联收益及增长平衡基金AM H2-SGD","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","LU0642271901.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD-H","LU0079474960.USD":"联博美国增长基金A"},"source_url":"https://seekingalpha.com/article/4653464-palantir-technologies-investors-are-set-for-a-massive-reality-check","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2385857498","content_text":"Palantir Technologies' stock price has risen from $8 to $20 since the CEO made comments about AI-driven growth.The company's positive investor sentiment is exaggerated and its stock multiple of 21x is unsustainable.Palantir's GAAP profits are minimal compared to its accumulated losses, indicating that the AI bubble will soon burst.Ever since CEO of Palantir Technologies Inc. (NYSE: PLTR) made comments about the prospects for artificial intelligence-driven growth for the core software offers, investors have showered the company with praise and Palantir’s stock price has since risen from about $8 in May to about $20 today.Though I am willing to acknowledge that Palantir Technologies has made some progress in terms of posting GAAP profits, positive investor sentiment seems to be off the charts right now.Exaggerated optimism about AI adoption and the potential for AI-related sales growth have led to Palantir Technologies’ stock multiple to expand to 21x, which looks neither sensible nor sustainable.Since Palantir’s GAAP profits relative to its accumulated deficit show a gap of monumental proportions, I think the AI bubble will soon be pricked.My Rating HistoryTruth be told, I have been skeptical of Palantir Technologies ever since the stock made its public debut.Palantir Technologies has racked up an obscene amount of losses since it was started more than two decades ago, a fact that too many investors are willing to overlook now that the company is reporting GAAP profits.Slowing sales growth has been a concern for many investors and the valuation multiple is now so detached from fundamentals again, that a Sell rating is the only rating that makes sense, in my view.My prior Sell call from February was, with the benefit of hindsight, wrong as the stock has soared from $8 to $21. With that being said, I think that the market continues to overvalue Palantir Technologies’ sales potential.I cited a deteriorating sales position for Palantir Technologies (lower expected sales growth) specifically as a headwind for the stock. Investors should remember that not long ago, Palantir guided for 30% annual sales growth.Despite the company posting GAAP profits, these profits are a nothing more than a drop in the bucket relative to Palantir Technologies’ accumulated losses. My key argument here is that investors overreact to PLTR’s reported GAAP profits.Put GAAP Profits In Relation To Accumulated LossesPalantir Technologies celebrated itself for producing a 'fourth consecutive quarter of GAAP profitability' in the third quarter which yielded a GAAP profit of $72 million. The first GAAP profit showed up on Palantir Technologies’ profit statement in the fourth quarter of 2022 when the company revealed positive $31 million net income.Since Palantir Technologies has been celebrated for its third quarter earnings performance, it is important, in my view, to connect the 3Q-23 GAAP profit to the amount of accumulated losses PLTR also reported.Net Income Losses (Palantir Technologies)While the $72 million in 3Q GAAP profits looks like a big win (on first glance), it is rather a drop in the bucket considering that the company, at the beginning of 3Q-23, had an accumulated deficit of $5.81 billion.Counting the $72 million in profits against the accumulated deficit leaves us with a 3Q ending accumulated deficit balance of $5.74 billion.In a nutshell, Palantir Technologies had a total net profit in 3Q equal to just 1.2% of its total historical losses which, in my view, is not something that investors should bring the champagne bottles out for.Accumulated Deficit (Palantir Technologies)Palantir Technologies would have to see much higher GAAP profits in order to justify its valuation, in my view, and the valuation multiple presently seems to be detached from the underlying fundamentals. It would take years of improving GAAP profitability for Palantir Technologies to grow into its present valuation, but if the commercial business, for instance, keeps performing well, a case could be made for a richer sales multiple.Moving forward, Palantir Technologies clearly has an opportunity to grow its AI-related services which could be instrumental in boosting the company’s operating income margins as well as GAAP profits.The scaling of Palantir AI could be a source of incremental growth, in both the commercial and government realm, but it is difficult to quantify. With that being said, though, Palantir Technologies won’t be the only company that offers AI-related services, so I am still skeptical about the 'uniqueness' aspect for Palantir Technologies’ AI offer.Palantir Technologies also will still have to show that it can successfully translate demand for AI into stronger sales growth since Palantir’s total sales growth is slowing down. So far, this is not yet the case, really.Adjusted Operating Income (Palantir Technologies)Palantir Technologies’ sales rose 17% YoY in the third quarter to $558 million, but U.S. commercial sales were up 33%. Government sales were up 12% YoY, so the non-government business is growing much faster right now. Total commercial sales were up 23% YoY in 3Q-23 compared to 16% YoY in the first three quarters of 2023, so Palantir Technologies is seeing some momentum here. While the 17% may sound good, it doesn’t justify the high sales multiple and it is way below the initially stated 30% annual sales growth prediction.The commercial segment continues to outperform government which is good for Palantir Technologies as it reduces the company’s reliance on government clients which in the past have been crucial in driving Palantir Technologies’ sales growth.With that being said, though, I don’t think this invalidates my core criticism about Palantir Technologies which is that the rate of sales growth doesn’t justify the company’s excessively high sales multiple.Moving forward, Palantir Technologies clearly has an opportunity to add to its commercial client roster. The company’s customers grew 34% YoY in 3Q-23 and more companies are signing on for partnerships for Palantir Technologies’ Artificial Intelligence Platform. The combination of AI and commercial customers could potentially be beneficial for Palantir Technologies, but the potential nonetheless appears to be presently over-hyped.I do expect this momentum in the commercial segment to continue. The commercial segment appears set to not only drive Palantir Technologies’ sales growth, but to also account for a higher sales share in the future.Commercial sales accounted for 44% of all sales in the first nine months of the year and this percentage may very well rise above 50% moving forward.I don’t see Palantir Technologies, however, to return to its earlier stated goal of achieving 30% annual sales growth as competition for AI services is only going to increase and the company’s sales growth overall has slowed quite drastically. Thus, I expect Palantir Technologies to keep growing its sales well below 30% in the near future.AI Adoption, Sales Outlook And Palantir’s Unsustainable Valuation MultipleAlexander Karp said a few months back that the company was going in big on AI. He said in Palantir Technologies’ latest shareholder letter that demand for its AI products was growing.With that being said, this demand is not really translating into tangible sales growth (at least not so far), suggesting that investors that are bidding up Palantir’s stock price primarily on hopes. And this is where I think investors are going to get a brutal reality check moving forward.Let’s just look at the company’s sales guidance for 2023 to see what I mean.Investors have clearly bought into the hype about AI products as can be seen in the huge inflation in PLTR’s stock multiple, but Palantir Technologies’ outlook for 2023 only calls for $2.216 - $2.220 billion in sales this year.The guidance was raised QoQ from $2.212 billion in 2Q-23, but the revised guidance implies a rather paltry YoY growth rate of only 16%. Not exactly what I would expect from a company that is active in the booming market for alternative intelligence.Nvidia Corporation (NVDA), for instance, is expected to see 104% sales growth this year and 51% next year, and those are growth rates that would be deserving of a high sales multiple.Now, 16% is not nothing and the market presently models 19% sales growth next year, but it is hardly a rate that I would want to describe as impressive, and most certainly Palantir’s sales growth isn’t skyrocketing to the extent that one would expect when reading about growing AI adoption.Palantir Technologies’ stock valuation, I would submit, is fully and utterly unsustainable again and investors are way, way too celebratory about the company’s 3Q GAAP profit. This year, the market models $2.21 billion in sales which translates into a 19.4x sales multiple (based on this year’s sales) which is not only excessive, but not sustainable, in my view.If I was really generous, I could agree on paying 5x 2023E sales (4x 2024E sales) for Palantir Technologies’ growth potential, particularly as it relates to the AI realm, but this would be conditional upon the company scaling aggressively, improving profitability and, preferably, cutting back on its share-based compensation scheme (which is another issue in and of itself).With a 4x 2024E sales multiple, Palantir would have a market value of $11 billion which would be equal to a stock value of $5. I previously considered a 2-3x 2024E sales reasonable, but in acknowledgement of commercial growth and potential with AIP, I think a higher sales multiple might be justified than the one I laid out the last time.Revenue Estimate (Yahoo Finance)Why Palantir Technologies Might See A Higher Valuation MultipleIf Palantir Technologies were, against my expectations and judgment, to see a translation of its AI adoption into actual sales growth, there is a not insignificant chance that investors will continue to inflate the company’s stock multiple. Irrationality can clearly persist for very long periods of time, and so can exuberance.Should Palantir Technologies manage to grow and scale its AI products to such an extent that its sales growth rate accelerates, then PLTR might deserve a rich valuation.Since the stock multiple is already more than rich right now, I tend to think Palantir Technologies’ valuation is in bubble territory and the stock has a deeply, deeply unattractive risk/reward.My ConclusionInvestors often fall into the same trap: They wholeheartedly jump on press releases, containing acronyms like 'AI', 'AI demand' or 'AI adoption' which causes them to fail to evaluate the underlying performance of the business that purports to deliver such benefits to its customers.Palantir Technologies may be GAAP profitable now, but Palantir’s business has put investors back a cumulative $5.74 billion since its inception which in and of itself is a cause for concern.Furthermore, Palantir Technologies’ sales growth and extraordinary AI potential that so many analysts seem to see, is not really reflected in the company’s sales outlook for 2023 nor in the market estimates for next year (19% growth).Paying 19.4x sales for a software business with a TTM GAAP profit of $147 million and a $5.74 billion accumulated deficit seems more than just excessive and I think investors are set for a painful reality check in the near future.","news_type":1},"isVote":1,"tweetType":1,"viewCount":281,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":340435706003608,"gmtCreate":1724145216299,"gmtModify":1724147372940,"author":{"id":"3582712972054494","authorId":"3582712972054494","name":"Tonykhoo","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582712972054494","authorIdStr":"3582712972054494"},"themes":[],"htmlText":"This guy talk nonsense. Sore loser&nbsp;","listText":"This guy talk nonsense. Sore loser&nbsp;","text":"This guy talk nonsense. Sore loser","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/340435706003608","repostId":"2460103938","repostType":2,"repost":{"id":"2460103938","pubTimestamp":1724142540,"share":"https://ttm.financial/m/news/2460103938?lang=&edition=fundamental","pubTime":"2024-08-20 16:29","market":"sh","language":"en","title":"Palantir: Don't Follow It Off The Cliff, Overpriced Generative AI Story","url":"https://stock-news.laohu8.com/highlight/detail?id=2460103938","media":"Seekingalpha","summary":"PLTR has demonstrated the promising monetization of generative AI SaaS layer across the government and commercial segments, thanks to the highly opportunistic AIP boot camp.These have led to its highe","content":"<html><head></head><body><ul style=\"\"><li><p>PLTR has demonstrated the promising monetization of generative AI SaaS layer across the government and commercial segments, thanks to the highly opportunistic AIP boot camp.</p></li><li><p>These have led to its higher Net Retention Rates and the growing multi-year Remaining Performance Obligations, sustaining its high-growth investment thesis.</p></li><li><p>Even so, with these developments triggering PLTR&#39;s lofty valuations compared to its peers, we believe that there is a minimal margin of safety at current levels.</p></li><li><p>Based on its historical trading pattern, the stock is likely to pull back to its uptrend support levels of $24s in the near-term.</p></li><li><p>Traders may consider following the massive insider selling and taking part of their gains off the table, before coming back in later.</p></li></ul><p>We previously covered <a href=\"https://laohu8.com/S/PLTR\">Palantir Technologies Inc.</a> in May 2024, discussing the normalization in market sentiments surrounding generative AI stocks, despite the SaaS company&#39;s robust performance metrics thanks to the successful AIP boot camps.</p><p>We had upgraded our rating to a Buy then, preferably after a moderate retracement to its previous support levels of $18s for an improved margin of safety.</p><p>Since then, PLTR has maintained a floor at $20 while rallying by +55.7% to retest its all-time highs of $30s, naturally outperforming the wider market at +6.1%.</p><p>This is despite the drastic July 2024 market wide pullback, with the bullish support attributed to the double beat FQ2&#39;24 performance and raised FY2024 guidance, with it underscoring the successful penetration of generative AI monetization through the infrastructure layer to the SaaS layer.</p><p>Even so, we are downgrading the stock to a Hold instead, since it is now overly expensive with the baked in growth premium offering interested investors with a minimal upside potential.</p><h3 id=\"id_3847959463\">PLTR Continues To Outperform Expectations, With Robust Growth Prospects &amp; Performance Metrics</h3><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/750e4c736f8a7df65439c55a29a2630e\" alt=\"PLTR YTD Stock Price\" title=\"PLTR YTD Stock Price\" tg-width=\"640\" tg-height=\"375\"/><span>PLTR YTD Stock Price</span></p><p>Since its first GAAP profitability and the seven consecutive positive bottom-line results since Q4&#39;22, it is unsurprising that the PLTR stock has already generated robust gains, significantly aided by the growing demand for its generative AI SaaS offerings.</p><p>The latter is already observed in the double beat performance, with its commercial growth accelerating at +32.4% YoY in FQ2&#39;24, compared to +10.4% YoY reported in FQ2&#39;23. Government demand is robust at +23% YoY as well, compared to +14.6% YoY a year ago.</p><p>It is apparent from these developments that PLTR&#39;s AI Bootcamp strategy has been highly successful in winning new customers, as observed in the higher overall customer count at 593 (+39 QoQ/ +172 YoY).</p><p>This in top of the improved cross-selling to existing customers, given the higher Net Retention Dollar of 114% in FQ2&#39;24 (+3 points QoQ/ +6 from FQ4&#39;23 levels of 108%).</p><p>Most importantly, PLTR&#39;s boot camp strategy during the generative AI boom has directly contributed to the SaaS company&#39;s excellent Rule of 40 results at 64% by the latest quarter (+7 points QoQ/ +26 YoY), thanks to the accelerated sales growth at 27% (+6 points QoQ/ +14 YoY) and richer adj operating margin at 37% (+1 points QoQ/ +12 YoY).</p><p>Moving forward, we believe that the SaaS company may be able to continue generating robust performance metrics ahead, significantly aided by its highly strategic partnership with Microsoft (MSFT).</p><p>It is important for us to highlight that both PLTR and MSFT&#39;s Azure boast &#34;the highest possible DoD Impact Level 6 (IL6) provisional authorization (PA) at the high confidentiality and high integrity (H-H-x) information categorization.&#34;</p><p>These developments imply that PLTR will be able to leverage on Azure&#39;s existing Large Language Models and OpenAI&#39;s GPT-4 capabilities, while being integrated into the Federal government&#39;s highly classified cloud data, naturally driving further growth opportunities for the former&#39;s government segment.</p><p>With the US government comprising $278M (+8% QoQ/ +24% YoY) or the equivalent 41% (+0.5 points QoQ/ -1.1 YoY) of the SaaS company&#39;s overall FQ2&#39;24 revenues, it is undeniable that the US Federal contracts remain the backbone of its overall prospects.</p><p>The next few years are likely to bring forth significant growth opportunities as well, attributed to the higher defense spending as geopolitical hostilities intensify in Gaza and Ukraine.</p><p>PLTR&#39;s inflection is further observed in the raised FY2024 guidance, with revenues of $2.746B (+23.6% YoY) and adj income from operations of $970M (+53.2% YoY) at the midpoint.</p><p>This is up from the original guidance of $2.66B (+19.8% YoY) and $842M (+33% YoY) offered in the FQ4&#39;23 earnings call, respectively.</p><p>The raised guidance is not overly aggressive indeed, based on PLTR&#39;s H1&#39;24 numbers of $1.31B (+24.7% YoY) and $480.02M (+84.6% YoY), with it demonstrating the management&#39;s confidence about generating robust and profitable growth ahead, with another raise and beat performance likely in FQ3&#39;24.</p><p>With these numbers well-supported by the growing multi-year Remaining Performance Obligation of $1.37B (+5.3% QoQ/ +41.2% YoY), we believe the stock continues to offer a compelling high-growth investment thesis.</p><p><strong>The Consensus Forward Estimates</strong></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/3a35d43ec8b2405d6fda6813ce09fdb2\" alt=\"TIKR Terminal\" title=\"TIKR Terminal\" tg-width=\"640\" tg-height=\"227\"/><span>TIKR Terminal</span></p><p>As a result of the raised FY2024 guidance, it is unsurprising that the consensus have already raised their forward estimates, with PLTR expected to generate an accelerated top/ bottom-line growth at a CAGR of +21.3%/ +28.4% through FY2026.</p><p>This is compared to the original estimates of +20.3%/ +23.2% and historical top-line growth of +30.1% between FY2018 and FY2023, respectively.</p><p><strong>PLTR Valuations</strong></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/93b2208a8b0501fe0ad889cf9a0c3ccb\" tg-width=\"640\" tg-height=\"123\"/></p><p>On the other hand, it is undeniable that PLTR may be expensive at FWD P/E valuations of 90.29x, compared to its 1Y mean of 66.90x and 3Y mean of 69.54x.</p><p>Even when compared to its AI SaaS peers, it is apparent that PLTR is trading at a premium, including Google (GOOG) at FWD P/E of 21.63x with the projected adj EPS growth of +19.6% through FY2026, <a href=\"https://laohu8.com/S/ADBE\">Adobe</a> (ADBE) at 30.47x/ +14%, Microsoft at 31.75x/ +15.1%, Nvidia (NVDA) at 45.70x/ +49.3%, and with the rare exception being CrowdStrike (CRWD) at 66.94x/ +24.1%, respectively.</p><p>If we are to do the same exercise with its direct competitors, including BigBear.ai (BBAI) at FWD Price/ Sales of 1.83x with the projected revenue growth of +18% through FY2026, C3.ai (AI) at 8.30x/ +20.8%, and SoundHound AI (SOUN) at 21.59x/ +82.1%, we believe that PLTR at 26.04x/ +21.3% appears to be on the expensive side.</p><p>Given PLTR&#39;s relatively premium valuation, we believe that there is a minimal margin of safety at current levels indeed.</p><h2 id=\"id_2096264043\">So, Is PLTR Stock A Buy, Sell, or Hold?</h2><p><strong>PLTR 4Y Stock Price</strong></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/c9989f8853a376f38a76fb635552965d\" alt=\"TradingView\" title=\"TradingView\" tg-width=\"640\" tg-height=\"375\"/><span>TradingView</span></p><p>For now, PLTR&#39;s uptrend has been impressive since the December 2022 bottom, with it consistently charting higher highs and higher lows despite the recent market rotation from high-growth stocks.</p><p>For context, we had offered a long-term price target of $26.70 in our previous article, based on the consensus FY2026 adj EPS estimates of $0.47 and the 2022/ 2023 P/E mean of 57x.</p><p>Based on the consensus raised FY2026 adj EPS estimates of $0.53 and the same P/E, we are looking at an updated long-term price target of $30.20, with it implying a minimal margin of safety at current levels.</p><p>On the one hand, PLTR&#39;s short interest continues to moderate to 2.85% by the time of writing, down from the previous article levels of 3.52%, with it implying lower volatility from short sellers.</p><p>On the other hand, as the stock prices reached new peaks of over $30s, nearing those observed during the February 2021 peaks, it is unsurprising that insiders have been unlocking great gains at current levels with $240M sold in Q2&#39;24 (+30.4% QoQ/ +788% YoY).</p><p>While market sentiments surrounding high-growth stocks appear to have normalized after the great correction in July 2024 with the CBOE Volatility Index also moderating, we maintain our belief that there remains a minimal upside potential at current levels.</p><p>Based on PLTR&#39;s historical trading pattern, the stock is likely to pull back to its uptrend support levels of $24s in the near-term.</p><p>As a result of the potential capital losses, we are downgrading our Buy rating to Hold (Neutral) rating instead. Interested long-term investors may consider waiting for the pullback before adding for an improved dollar cost average.</p><p>Likewise, traders may consider following insiders and taking part of their gains off the table, before coming back in later.</p><p>For now, do not chase PLTR over the cliff.</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: Don't Follow It Off The Cliff, Overpriced Generative AI Story</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: Don't Follow It Off The Cliff, Overpriced Generative AI Story\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-08-20 16:29 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4715533-palantir-stock-dont-follow-it-off-the-cliff-overpriced-generative-ai-story><strong>Seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>PLTR has demonstrated the promising monetization of generative AI SaaS layer across the government and commercial segments, thanks to the highly opportunistic AIP boot camp.These have led to its ...</p>\n\n<a href=\"https://seekingalpha.com/article/4715533-palantir-stock-dont-follow-it-off-the-cliff-overpriced-generative-ai-story\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4528":"SaaS概念","LU1548497426.USD":"安联环球人工智能AT Acc","PLTR":"Palantir Technologies Inc.","BK4592":"伊斯兰概念","LU0154236417.USD":"BGF US FLEXIBLE EQUITY \"A2\" ACC","BK4507":"流媒体概念","LU1815333072.USD":"THREADNEEDLE (LUX) GLOBAL FOCUS \"AUP\" (USD) INC","BK4576":"AR","IE00B4JS1V06.HKD":"JANUS HENDERSON BALANCED \"A2\" (HKD) ACC","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","LU0557290698.USD":"施罗德环球可持续增长基金","BK4525":"远程办公概念","LU0889566641.SGD":"FTSF - Templeton Shariah Global Equity A Acc SGD","LU2023250504.SGD":"Allianz Thematica Cl AMg DIS H2-SGD","LU1923622614.USD":"Natixis Thematics Meta R/A USD","LU0238689110.USD":"贝莱德环球动力股票基金","LU0456855351.SGD":"JPMorgan Funds - Global Equity A (acc) SGD","LU0642271901.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD-H","LU0072462426.USD":"贝莱德全球配置 A2","BK4577":"网络游戏","BK4527":"明星科技股","LU2125909759.SGD":"Natixis Thematics Safety H-R/A SGD","BK4579":"人工智能","BK4529":"IDC概念","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","LU0056508442.USD":"贝莱德世界科技基金A2","LU2125154778.USD":"ALLSPRING GLOBAL EQUITY ENHANCED INCOME \"A\" (USD) INC","IE00BZ199S13.USD":"BNY MELLON MOBILITY INNOVATION \"B\" (USD) ACC","LU0048584097.USD":"FIDELITY FUNDS  GLOBAL THEMATIC OPPORTUNITIES \"A\" (USD) INC","LU2125909916.SGD":"Natixis Thematics Safety R/A SGD","LU1992135399.USD":"Allianz Global Intelligent Cities AT Acc USD","LU0640476718.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQ \"AU\" (USD) ACC","BK4503":"景林资产持仓","LU1923622291.USD":"Natixis Thematics Safety R/A USD","LU2210149790.SGD":"Natixis Thematics Subscription Economy R/A SGD-H","LU0289739343.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (SGD) ACC","LU0109392836.USD":"富兰克林科技股A","BK4504":"桥水持仓","BK4581":"高盛持仓","LU0965509010.AUD":"AB LOW VOLATILITY EQUITY PORTFOLIO \"AD\" (AUDHDG) INC","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","IE00B19Z8X17.USD":"FTGF CLEARBRIDGE US LARGE CAP GROWTH  \"AG\" (USD) ACC","LU0320765059.SGD":"FTIF - Franklin US Opportunities A Acc SGD"},"source_url":"https://seekingalpha.com/article/4715533-palantir-stock-dont-follow-it-off-the-cliff-overpriced-generative-ai-story","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2460103938","content_text":"PLTR has demonstrated the promising monetization of generative AI SaaS layer across the government and commercial segments, thanks to the highly opportunistic AIP boot camp.These have led to its higher Net Retention Rates and the growing multi-year Remaining Performance Obligations, sustaining its high-growth investment thesis.Even so, with these developments triggering PLTR's lofty valuations compared to its peers, we believe that there is a minimal margin of safety at current levels.Based on its historical trading pattern, the stock is likely to pull back to its uptrend support levels of $24s in the near-term.Traders may consider following the massive insider selling and taking part of their gains off the table, before coming back in later.We previously covered Palantir Technologies Inc. in May 2024, discussing the normalization in market sentiments surrounding generative AI stocks, despite the SaaS company's robust performance metrics thanks to the successful AIP boot camps.We had upgraded our rating to a Buy then, preferably after a moderate retracement to its previous support levels of $18s for an improved margin of safety.Since then, PLTR has maintained a floor at $20 while rallying by +55.7% to retest its all-time highs of $30s, naturally outperforming the wider market at +6.1%.This is despite the drastic July 2024 market wide pullback, with the bullish support attributed to the double beat FQ2'24 performance and raised FY2024 guidance, with it underscoring the successful penetration of generative AI monetization through the infrastructure layer to the SaaS layer.Even so, we are downgrading the stock to a Hold instead, since it is now overly expensive with the baked in growth premium offering interested investors with a minimal upside potential.PLTR Continues To Outperform Expectations, With Robust Growth Prospects & Performance MetricsPLTR YTD Stock PriceSince its first GAAP profitability and the seven consecutive positive bottom-line results since Q4'22, it is unsurprising that the PLTR stock has already generated robust gains, significantly aided by the growing demand for its generative AI SaaS offerings.The latter is already observed in the double beat performance, with its commercial growth accelerating at +32.4% YoY in FQ2'24, compared to +10.4% YoY reported in FQ2'23. Government demand is robust at +23% YoY as well, compared to +14.6% YoY a year ago.It is apparent from these developments that PLTR's AI Bootcamp strategy has been highly successful in winning new customers, as observed in the higher overall customer count at 593 (+39 QoQ/ +172 YoY).This in top of the improved cross-selling to existing customers, given the higher Net Retention Dollar of 114% in FQ2'24 (+3 points QoQ/ +6 from FQ4'23 levels of 108%).Most importantly, PLTR's boot camp strategy during the generative AI boom has directly contributed to the SaaS company's excellent Rule of 40 results at 64% by the latest quarter (+7 points QoQ/ +26 YoY), thanks to the accelerated sales growth at 27% (+6 points QoQ/ +14 YoY) and richer adj operating margin at 37% (+1 points QoQ/ +12 YoY).Moving forward, we believe that the SaaS company may be able to continue generating robust performance metrics ahead, significantly aided by its highly strategic partnership with Microsoft (MSFT).It is important for us to highlight that both PLTR and MSFT's Azure boast \"the highest possible DoD Impact Level 6 (IL6) provisional authorization (PA) at the high confidentiality and high integrity (H-H-x) information categorization.\"These developments imply that PLTR will be able to leverage on Azure's existing Large Language Models and OpenAI's GPT-4 capabilities, while being integrated into the Federal government's highly classified cloud data, naturally driving further growth opportunities for the former's government segment.With the US government comprising $278M (+8% QoQ/ +24% YoY) or the equivalent 41% (+0.5 points QoQ/ -1.1 YoY) of the SaaS company's overall FQ2'24 revenues, it is undeniable that the US Federal contracts remain the backbone of its overall prospects.The next few years are likely to bring forth significant growth opportunities as well, attributed to the higher defense spending as geopolitical hostilities intensify in Gaza and Ukraine.PLTR's inflection is further observed in the raised FY2024 guidance, with revenues of $2.746B (+23.6% YoY) and adj income from operations of $970M (+53.2% YoY) at the midpoint.This is up from the original guidance of $2.66B (+19.8% YoY) and $842M (+33% YoY) offered in the FQ4'23 earnings call, respectively.The raised guidance is not overly aggressive indeed, based on PLTR's H1'24 numbers of $1.31B (+24.7% YoY) and $480.02M (+84.6% YoY), with it demonstrating the management's confidence about generating robust and profitable growth ahead, with another raise and beat performance likely in FQ3'24.With these numbers well-supported by the growing multi-year Remaining Performance Obligation of $1.37B (+5.3% QoQ/ +41.2% YoY), we believe the stock continues to offer a compelling high-growth investment thesis.The Consensus Forward EstimatesTIKR TerminalAs a result of the raised FY2024 guidance, it is unsurprising that the consensus have already raised their forward estimates, with PLTR expected to generate an accelerated top/ bottom-line growth at a CAGR of +21.3%/ +28.4% through FY2026.This is compared to the original estimates of +20.3%/ +23.2% and historical top-line growth of +30.1% between FY2018 and FY2023, respectively.PLTR ValuationsOn the other hand, it is undeniable that PLTR may be expensive at FWD P/E valuations of 90.29x, compared to its 1Y mean of 66.90x and 3Y mean of 69.54x.Even when compared to its AI SaaS peers, it is apparent that PLTR is trading at a premium, including Google (GOOG) at FWD P/E of 21.63x with the projected adj EPS growth of +19.6% through FY2026, Adobe (ADBE) at 30.47x/ +14%, Microsoft at 31.75x/ +15.1%, Nvidia (NVDA) at 45.70x/ +49.3%, and with the rare exception being CrowdStrike (CRWD) at 66.94x/ +24.1%, respectively.If we are to do the same exercise with its direct competitors, including BigBear.ai (BBAI) at FWD Price/ Sales of 1.83x with the projected revenue growth of +18% through FY2026, C3.ai (AI) at 8.30x/ +20.8%, and SoundHound AI (SOUN) at 21.59x/ +82.1%, we believe that PLTR at 26.04x/ +21.3% appears to be on the expensive side.Given PLTR's relatively premium valuation, we believe that there is a minimal margin of safety at current levels indeed.So, Is PLTR Stock A Buy, Sell, or Hold?PLTR 4Y Stock PriceTradingViewFor now, PLTR's uptrend has been impressive since the December 2022 bottom, with it consistently charting higher highs and higher lows despite the recent market rotation from high-growth stocks.For context, we had offered a long-term price target of $26.70 in our previous article, based on the consensus FY2026 adj EPS estimates of $0.47 and the 2022/ 2023 P/E mean of 57x.Based on the consensus raised FY2026 adj EPS estimates of $0.53 and the same P/E, we are looking at an updated long-term price target of $30.20, with it implying a minimal margin of safety at current levels.On the one hand, PLTR's short interest continues to moderate to 2.85% by the time of writing, down from the previous article levels of 3.52%, with it implying lower volatility from short sellers.On the other hand, as the stock prices reached new peaks of over $30s, nearing those observed during the February 2021 peaks, it is unsurprising that insiders have been unlocking great gains at current levels with $240M sold in Q2'24 (+30.4% QoQ/ +788% YoY).While market sentiments surrounding high-growth stocks appear to have normalized after the great correction in July 2024 with the CBOE Volatility Index also moderating, we maintain our belief that there remains a minimal upside potential at current levels.Based on PLTR's historical trading pattern, the stock is likely to pull back to its uptrend support levels of $24s in the near-term.As a result of the potential capital losses, we are downgrading our Buy rating to Hold (Neutral) rating instead. Interested long-term investors may consider waiting for the pullback before adding for an improved dollar cost average.Likewise, traders may consider following insiders and taking part of their gains off the table, before coming back in later.For now, do not chase PLTR over the cliff.","news_type":1},"isVote":1,"tweetType":1,"viewCount":164,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":199829394473000,"gmtCreate":1689828056518,"gmtModify":1689829620561,"author":{"id":"3582712972054494","authorId":"3582712972054494","name":"Tonykhoo","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582712972054494","authorIdStr":"3582712972054494"},"themes":[],"htmlText":"The author does not have any credibility","listText":"The author does not have any credibility","text":"The author does not have any credibility","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/199829394473000","repostId":"2352050694","repostType":2,"repost":{"id":"2352050694","pubTimestamp":1689824031,"share":"https://ttm.financial/m/news/2352050694?lang=&edition=fundamental","pubTime":"2023-07-20 11:33","market":"us","language":"en","title":"Tesla: Consider Selling The News?","url":"https://stock-news.laohu8.com/highlight/detail?id=2352050694","media":"Seeking Alpha","summary":"Tesla: Consider Selling The News (NASDAQ:TSLA)","content":"<html><head></head><body><h2 id=\"id_3062389901\" style=\"text-align: left;\">Summary</h2><ul><li><p>Tesla, Inc. Q2 earnings beat estimates, but margins continued to compress and free cash flows were weak, leading to suggestions that selling shares to lock in gains could be a good move.</p></li><li><p>Despite record deliveries and revenue growth, the company&#39;s gross margins dropped from 25% to 18% during Q2.</p></li><li><p>Tesla&#39;s energy business performed well, with storage deployment up 200% YoY, but this was not enough to offset falling gross margins in the automotive business.</p></li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/f95882ca5c26944bd571917c1cf125e3\" alt=\"Justin Sullivan\" title=\"Justin Sullivan\" tg-width=\"750\" tg-height=\"515\"/><span>Justin Sullivan</span></p><h2 id=\"id_3430076673\" style=\"text-align: left;\">Article Thesis</h2><p style=\"text-align: left;\"><strong>Tesla, Inc.</strong> (NASDAQ:TSLA) reported its second quarter earnings results on Wednesday afternoon. While the company beat estimates on both lines, margin compression continued and free cash flows were pretty weak. Due to a very high valuation, I believe that selling shares in order to lock in gains makes sense.</p><h2 id=\"id_2832312125\" style=\"text-align: left;\">What Happened?</h2><p style=\"text-align: left;\">On Wednesday afternoon, Tesla, Inc. reported its second-quarter earnings results, which can be seen here. The headline numbers looked like this:</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/dda02d5a34ba894a1df155753aaded78\" alt=\"Seeking Alpha\" title=\"Seeking Alpha\" tg-width=\"640\" tg-height=\"263\"/><span>Seeking Alpha</span></p><p style=\"text-align: left;\">The electric vehicle (&#34;EV&#34;) player beat estimates on both lines, which naturally was a positive surprise. Record deliveries had been announced in early July already, thus this was not a surprise any longer. The company&#39;s revenue growth rate was very attractive, but that was, at least partially, due to the easy comparison to the weak results from the previous year&#39;s second quarter. On a quarter-to-quarter basis, revenues were up around 7% -- which is still very meaningful, but which annualizes to around 30%. This implies that Tesla will experience a significant growth slowdown once the comparison to the previous year&#39;s quarters becomes tougher again. Or, seen differently, growth is slowing down -- although it is still well north of the growth that legacy auto players are experiencing.</p><h2 id=\"id_2980243369\" style=\"text-align: left;\">Margins Continue To Compress, Free Cash Generation Is Weak</h2><p style=\"text-align: left;\">When we look beyond the headline numbers, there were a couple of things in Tesla&#39;s report that did not look great at all. Let&#39;s start with Tesla&#39;s margins, which continued to compress. Tesla bulls have, in the past, argued that the company had massive competitive advantages due to its high margins and that this would warrant a premium valuation versus other automobile companies. The high margins were, according to some Tesla bulls, the result of an excellent operational structure and highly advantaged production technologies. But it seems that these tailwinds have either vanished, or, alternatively, they never existed in the first place, and Tesla was just benefitting from a demand overhang in the EV space.</p><p style=\"text-align: left;\">Over the last couple of quarters, Tesla&#39;s margins have only been moving in one direction -- downward:</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a934ba79e0c6fe76f504c963143ac488\" alt=\"Tesla presentation\" title=\"Tesla presentation\" tg-width=\"640\" tg-height=\"166\"/><span>Tesla presentation</span></p><p style=\"text-align: left;\">We see that gross margins have dropped from an impressive 25% to just 18% during the second quarter, which implies a hefty 700 base point margin hit. Even worse, margins continued to decline on a sequential basis, which implies that further margin contraction is possible -- we have not passed the nadir yet. While operating margins declined by a little less in absolute terms, dropping 500 base points over the last year, the operating margin decline, in relative terms, was extraordinary, as Tesla&#39;s operating margin dropped by 34%. This means that Tesla now has to generate revenues that are 52% higher than one year ago in order to generate the same amount of operating profit [1/0.66]. This, in turn, explains why Tesla&#39;s operating profits are <em>down</em> year over year, despite the substantial increase in the company&#39;s revenues and deliveries over the last year.</p><p style=\"text-align: left;\">While the year-over-year decline has not been very high during the second quarter, it looks like we could see more substantial profit declines during the second half of this year. H2 of 2022 was better profit-wise compared to the first half of 2022, which means that the comparison will become harder for Tesla in H2 of 2023. Since Tesla has experienced a profit decline during the second quarter despite a relatively easy comparison, a more substantial profit decline during Q3 and/or Q4 would not be surprising, I believe.</p><p style=\"text-align: left;\">Operating income did also fall versus the first quarter, despite higher deliveries. To me, this suggests that Tesla&#39;s strategy of lowering the price of its vehicles in order to sell more vehicles is not generating any value for shareholders -- deliveries climb, but when profits are declining, that&#39;s not really helping anyone (at least not investors, which should care about profit).</p><p style=\"text-align: left;\">Tesla has a very clean balance sheet, but the cash flow picture is far from good. Despite profits being much higher, the company generated just $1 billion of free cash flow during the second quarter, and around $1.4 billion during the first half -- that&#39;s a little less than $3 billion annualized, which is far from appealing, considering Tesla is valued at well north of $900 billion. If H2 is comparable to the first half of the current year, Tesla trades at a 300x free cash flow multiple, which is, I believe, incredibly expensive. In other words, for every $1 investors put into Tesla stock, they have a claim on one-third of a cent of free cash flow. Considering that $1 dollar put into short-term treasuries generates around $0.05 per month in interest, the cash flow yield of Tesla stock is pretty weak (and this does not yet factor in that Tesla doesn&#39;t even pay out any of the free cash flow it generates).</p><p style=\"text-align: left;\">There were also some positives in Tesla&#39;s report, of course. While solar deployment was very weak (down 40% year over year), the other, more important, part of Tesla&#39;s energy business performed well. The company deployed 3.7 GWh of storage, which was up more than 200% year over year -- which is a very strong growth rate for sure. While the energy business showed a much weaker revenue growth rate of 74%, that was still strong in absolute terms. The energy business is profitable on a gross cost basis, before factoring in operating expenses, as the gross margin of this unit was 18% during the second quarter. This represents an improvement versus the previous quarter, during which Tesla Energy&#39;s gross margin was 11%.</p><p style=\"text-align: left;\">Unfortunately, the gross margin improvement in the energy business is not sizeable enough to offset the headwinds from falling gross margins in the automotive business, which is why the company-wide gross margin dropped, as shown earlier. Still, if Tesla is able to ramp up the energy business at a compelling pace in the coming quarters while also growing the gross margin over time, this should have a positive impact on Tesla&#39;s company-wide financial results.</p><p style=\"text-align: left;\">While the energy business is small for now (around 7% of Tesla&#39;s automobile revenues), it&#39;s a fast-growing unit with long-term potential, although there are also some uncertainties -- we don&#39;t know yet how large this market will ultimately become, and which company will win out.</p><h2 id=\"id_576248438\" style=\"text-align: left;\">Do New Models Justify This Valuation?</h2><p style=\"text-align: left;\">Tesla has gotten a lot of attention in the recent past due to speculation about a $25,000 model that could be manufactured in Mexico, while Tesla also has manufactured the first Cybertruck this summer. How impactful these models will become is up for debate. It is pretty clear that a $25,000 model has a substantial addressable market, as not too many people can (or want to) buy an EV for a much higher price. This holds especially true in emerging markets.</p><p style=\"text-align: left;\">But on the other hand, there is not a lot of charging infrastructure in some emerging markets, and a $25,000 price may still be too high for many consumers around the world. It is also highly likely that selling a vehicle for a price of $25,000 would not help boost Tesla&#39;s margins -- in general, higher-end vehicles have higher margins than lower-end vehicles. This explains why some of Tesla&#39;s competitors, such as Mercedes-Benz Group (OTCPK:MBGYY), are getting rid of some of their lower-end models in order to focus on higher-end models, as this is where these companies are generating much higher margins. Mercedes, which has been moving in the opposite direction of Tesla when it comes to focusing on profit instead of volume, has higher gross margins than Tesla.</p><p style=\"text-align: left;\">Tesla could presumably sell a very substantial number of vehicles at $25,000 per car. However, it is far from guaranteed that this would boost Tesla&#39;s profits -- after all, we have seen earlier that volume growth does not translate into earnings growth, and may even go hand in hand with a profit decline (see the Q2 numbers).</p><p style=\"text-align: left;\">The Cybertruck will be sold at a substantially higher price and should generate higher margins. But we still don&#39;t know yet how profitable this vehicle will be for Tesla, as the manufacturing process is rather different from Tesla&#39;s other vehicles, and since there are many consumers that don&#39;t like the Cybertruck&#39;s unconventional design.</p><p style=\"text-align: left;\">Looking at Wall Street estimates, the profit outlook isn&#39;t great for Tesla:</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7d18b2536dfbdec909ab065307fcb315\" alt=\"Seeking Alpha\" title=\"Seeking Alpha\" tg-width=\"640\" tg-height=\"112\"/><span>Seeking Alpha</span></p><p style=\"text-align: left;\">There were barely any EPS upward revisions over the last quarter, while many analysts have lowered their estimates due to the margin pressure Tesla is experiencing. Not even the company&#39;s revenue estimates are moving in the right direction. Earnings per share are forecasted to decline by double digits this year, and while Tesla profits are forecasted to improve in 2024 and beyond, Tesla still looks quite expensive even when we look at profit estimates for the coming years. Tesla trades at 46x 2026&#39;s earnings per share estimate, for example -- that&#39;s three years from now, and still, the earnings yield is just 2%.</p><h2 id=\"id_3530739842\" style=\"text-align: left;\">Final Thoughts</h2><p style=\"text-align: left;\">Tesla beat headline estimates, but the underlying margin picture isn&#39;t pretty. Free cash generation remains rather weak as well, especially compared to the very high market capitalization. Tesla has rallied massively year-to-date (congrats to those that bought at the lows), but I believe it is not a good investment at current prices. Locking in gains today could make sense, which is why I rate Tesla a sell today -- a 300x free cash flow multiple for an automobile company with declining margins and declining profits is just too expensive.</p><p style=\"text-align: left;\">Editor&#39;s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.</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>Tesla: Consider Selling The News?</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: Consider Selling The News?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-07-20 11:33 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4618210-tesla-sell-the-news><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryTesla, Inc. Q2 earnings beat estimates, but margins continued to compress and free cash flows were weak, leading to suggestions that selling shares to lock in gains could be a good move.Despite...</p>\n\n<a href=\"https://seekingalpha.com/article/4618210-tesla-sell-the-news\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","BK4511":"特斯拉概念","BK4548":"巴美列捷福持仓","LU0823414478.USD":"法巴经典能源转换基金","TSLA":"特斯拉","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","LU0689472784.USD":"安联收益及增长基金Cl AM AT Acc","LU2087621335.USD":"ALLSPRING GLOBAL FACTOR ENHANCED EQUITY \"A\" (USD) ACC","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU1429558221.USD":"Natixis Loomis Sayles US Growth Equity RA USD","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","BK4581":"高盛持仓","LU1435385759.SGD":"Natixis Loomis Sayles US Growth Equity RA SGD-H","LU1839511570.USD":"WELLS FARGO GLOBAL FACTOR ENHANCED EQUITY \"I\" (USD) ACC","LU1861559042.SGD":"日兴方舟颠覆性创新基金B SGD","LU2063271972.USD":"富兰克林创新领域基金","LU1548497426.USD":"安联环球人工智能AT Acc","LU1861558580.USD":"日兴方舟颠覆性创新基金B","LU0820561818.USD":"安联收益及增长平衡基金Cl AM DIS","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓","LU2249611893.SGD":"BNP PARIBAS ENERGY TRANSITION \"CRH\" (SGD) ACC","LU1551013425.SGD":"Allianz Income and Growth Cl AMg2 DIS H2-SGD","BK4555":"新能源车","BK4533":"AQR资本管理(全球第二大对冲基金)","LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","LU0316494557.USD":"FRANKLIN GLOBAL FUNDAMENTAL STRATEGIES \"A\" ACC","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","LU1861215975.USD":"贝莱德新一代科技基金 A2","BK4527":"明星科技股","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","LU2326559502.SGD":"Natixis Loomis Sayles US Growth Equity P/A SGD-H","LU0823411888.USD":"法巴消费创新基金 Cap","LU1852331112.SGD":"Blackrock World Technology Fund A2 SGD-H","BK4588":"碎股","BK4550":"红杉资本持仓","LU0082616367.USD":"摩根大通美国科技A（dist）","LU1551013342.USD":"Allianz Income and Growth Cl AMg2 DIS USD","LU0097036916.USD":"贝莱德美国增长A2 USD","LU0056508442.USD":"贝莱德世界科技基金A2","BK4574":"无人驾驶","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","BK4551":"寇图资本持仓","IE00BSNM7G36.USD":"NEUBERGER BERMAN SYSTEMATIC GLOBAL SUSTAINABLE VALUE \"A\" (USD) ACC"},"source_url":"https://seekingalpha.com/article/4618210-tesla-sell-the-news","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2352050694","content_text":"SummaryTesla, Inc. Q2 earnings beat estimates, but margins continued to compress and free cash flows were weak, leading to suggestions that selling shares to lock in gains could be a good move.Despite record deliveries and revenue growth, the company's gross margins dropped from 25% to 18% during Q2.Tesla's energy business performed well, with storage deployment up 200% YoY, but this was not enough to offset falling gross margins in the automotive business.Justin SullivanArticle ThesisTesla, Inc. (NASDAQ:TSLA) reported its second quarter earnings results on Wednesday afternoon. While the company beat estimates on both lines, margin compression continued and free cash flows were pretty weak. Due to a very high valuation, I believe that selling shares in order to lock in gains makes sense.What Happened?On Wednesday afternoon, Tesla, Inc. reported its second-quarter earnings results, which can be seen here. The headline numbers looked like this:Seeking AlphaThe electric vehicle (\"EV\") player beat estimates on both lines, which naturally was a positive surprise. Record deliveries had been announced in early July already, thus this was not a surprise any longer. The company's revenue growth rate was very attractive, but that was, at least partially, due to the easy comparison to the weak results from the previous year's second quarter. On a quarter-to-quarter basis, revenues were up around 7% -- which is still very meaningful, but which annualizes to around 30%. This implies that Tesla will experience a significant growth slowdown once the comparison to the previous year's quarters becomes tougher again. Or, seen differently, growth is slowing down -- although it is still well north of the growth that legacy auto players are experiencing.Margins Continue To Compress, Free Cash Generation Is WeakWhen we look beyond the headline numbers, there were a couple of things in Tesla's report that did not look great at all. Let's start with Tesla's margins, which continued to compress. Tesla bulls have, in the past, argued that the company had massive competitive advantages due to its high margins and that this would warrant a premium valuation versus other automobile companies. The high margins were, according to some Tesla bulls, the result of an excellent operational structure and highly advantaged production technologies. But it seems that these tailwinds have either vanished, or, alternatively, they never existed in the first place, and Tesla was just benefitting from a demand overhang in the EV space.Over the last couple of quarters, Tesla's margins have only been moving in one direction -- downward:Tesla presentationWe see that gross margins have dropped from an impressive 25% to just 18% during the second quarter, which implies a hefty 700 base point margin hit. Even worse, margins continued to decline on a sequential basis, which implies that further margin contraction is possible -- we have not passed the nadir yet. While operating margins declined by a little less in absolute terms, dropping 500 base points over the last year, the operating margin decline, in relative terms, was extraordinary, as Tesla's operating margin dropped by 34%. This means that Tesla now has to generate revenues that are 52% higher than one year ago in order to generate the same amount of operating profit [1/0.66]. This, in turn, explains why Tesla's operating profits are down year over year, despite the substantial increase in the company's revenues and deliveries over the last year.While the year-over-year decline has not been very high during the second quarter, it looks like we could see more substantial profit declines during the second half of this year. H2 of 2022 was better profit-wise compared to the first half of 2022, which means that the comparison will become harder for Tesla in H2 of 2023. Since Tesla has experienced a profit decline during the second quarter despite a relatively easy comparison, a more substantial profit decline during Q3 and/or Q4 would not be surprising, I believe.Operating income did also fall versus the first quarter, despite higher deliveries. To me, this suggests that Tesla's strategy of lowering the price of its vehicles in order to sell more vehicles is not generating any value for shareholders -- deliveries climb, but when profits are declining, that's not really helping anyone (at least not investors, which should care about profit).Tesla has a very clean balance sheet, but the cash flow picture is far from good. Despite profits being much higher, the company generated just $1 billion of free cash flow during the second quarter, and around $1.4 billion during the first half -- that's a little less than $3 billion annualized, which is far from appealing, considering Tesla is valued at well north of $900 billion. If H2 is comparable to the first half of the current year, Tesla trades at a 300x free cash flow multiple, which is, I believe, incredibly expensive. In other words, for every $1 investors put into Tesla stock, they have a claim on one-third of a cent of free cash flow. Considering that $1 dollar put into short-term treasuries generates around $0.05 per month in interest, the cash flow yield of Tesla stock is pretty weak (and this does not yet factor in that Tesla doesn't even pay out any of the free cash flow it generates).There were also some positives in Tesla's report, of course. While solar deployment was very weak (down 40% year over year), the other, more important, part of Tesla's energy business performed well. The company deployed 3.7 GWh of storage, which was up more than 200% year over year -- which is a very strong growth rate for sure. While the energy business showed a much weaker revenue growth rate of 74%, that was still strong in absolute terms. The energy business is profitable on a gross cost basis, before factoring in operating expenses, as the gross margin of this unit was 18% during the second quarter. This represents an improvement versus the previous quarter, during which Tesla Energy's gross margin was 11%.Unfortunately, the gross margin improvement in the energy business is not sizeable enough to offset the headwinds from falling gross margins in the automotive business, which is why the company-wide gross margin dropped, as shown earlier. Still, if Tesla is able to ramp up the energy business at a compelling pace in the coming quarters while also growing the gross margin over time, this should have a positive impact on Tesla's company-wide financial results.While the energy business is small for now (around 7% of Tesla's automobile revenues), it's a fast-growing unit with long-term potential, although there are also some uncertainties -- we don't know yet how large this market will ultimately become, and which company will win out.Do New Models Justify This Valuation?Tesla has gotten a lot of attention in the recent past due to speculation about a $25,000 model that could be manufactured in Mexico, while Tesla also has manufactured the first Cybertruck this summer. How impactful these models will become is up for debate. It is pretty clear that a $25,000 model has a substantial addressable market, as not too many people can (or want to) buy an EV for a much higher price. This holds especially true in emerging markets.But on the other hand, there is not a lot of charging infrastructure in some emerging markets, and a $25,000 price may still be too high for many consumers around the world. It is also highly likely that selling a vehicle for a price of $25,000 would not help boost Tesla's margins -- in general, higher-end vehicles have higher margins than lower-end vehicles. This explains why some of Tesla's competitors, such as Mercedes-Benz Group (OTCPK:MBGYY), are getting rid of some of their lower-end models in order to focus on higher-end models, as this is where these companies are generating much higher margins. Mercedes, which has been moving in the opposite direction of Tesla when it comes to focusing on profit instead of volume, has higher gross margins than Tesla.Tesla could presumably sell a very substantial number of vehicles at $25,000 per car. However, it is far from guaranteed that this would boost Tesla's profits -- after all, we have seen earlier that volume growth does not translate into earnings growth, and may even go hand in hand with a profit decline (see the Q2 numbers).The Cybertruck will be sold at a substantially higher price and should generate higher margins. But we still don't know yet how profitable this vehicle will be for Tesla, as the manufacturing process is rather different from Tesla's other vehicles, and since there are many consumers that don't like the Cybertruck's unconventional design.Looking at Wall Street estimates, the profit outlook isn't great for Tesla:Seeking AlphaThere were barely any EPS upward revisions over the last quarter, while many analysts have lowered their estimates due to the margin pressure Tesla is experiencing. Not even the company's revenue estimates are moving in the right direction. Earnings per share are forecasted to decline by double digits this year, and while Tesla profits are forecasted to improve in 2024 and beyond, Tesla still looks quite expensive even when we look at profit estimates for the coming years. Tesla trades at 46x 2026's earnings per share estimate, for example -- that's three years from now, and still, the earnings yield is just 2%.Final ThoughtsTesla beat headline estimates, but the underlying margin picture isn't pretty. Free cash generation remains rather weak as well, especially compared to the very high market capitalization. Tesla has rallied massively year-to-date (congrats to those that bought at the lows), but I believe it is not a good investment at current prices. Locking in gains today could make sense, which is why I rate Tesla a sell today -- a 300x free cash flow multiple for an automobile company with declining margins and declining profits is just too expensive.Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.","news_type":1},"isVote":1,"tweetType":1,"viewCount":315,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":351417391546496,"gmtCreate":1726833836393,"gmtModify":1726836904133,"author":{"id":"3582712972054494","authorId":"3582712972054494","name":"Tonykhoo","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582712972054494","authorIdStr":"3582712972054494"},"themes":[],"htmlText":"Isnt HK = China ?&nbsp;","listText":"Isnt HK = China ?&nbsp;","text":"Isnt HK = China ?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/351417391546496","repostId":"2468658038","repostType":2,"repost":{"id":"2468658038","pubTimestamp":1726797653,"share":"https://ttm.financial/m/news/2468658038?lang=&edition=fundamental","pubTime":"2024-09-20 10:00","market":"nz","language":"en","title":"DBS Sees Wealth Fees Doubling by 2027 as the Rich Head to Asia","url":"https://stock-news.laohu8.com/highlight/detail?id=2468658038","media":"Bloomberg","summary":"DBS Group Holdings Ltd. aims to double fees from wealth management by 2027 as more of the world’s affluent investors shift their assets to Asia.","content":"<html><head></head><body><p> <a href=\"https://laohu8.com/S/D05.SI\">DBS Group Holdings</a> aims to double fees from wealth management by 2027 as more of the world’s affluent investors shift their assets to Asia.</p><p>DBS’s income from servicing rich clients rose to more than S$2 billion ($1.5 billion) last year, doubling from 2015. It expects the same pace of increase in half that period as well-heeled people and family offices from various parts of the world head to Asia to park their money, said Shee Tse Koon, head of consumer and wealth banking at DBS.</p><p>“Given the trajectory and traction we have had over the past years, our aim going forward is that by 2027 we want to double our wealth fees,” Shee said in an interview with Bloomberg News this week. Wealthy clients of Southeast Asia’s largest bank usually invest their cash to improve returns and many have also tapped DBS for their trust and legacy planning needs, he said.</p><p>Shee’s optimism underscores the significance of rising wealth fees that boosted DBS’s income in recent years and will likely cushion its earnings with global interest rates set to decline. DBS is now the third-largest private bank in Asia, excluding China, only behind UBS Group AG and HSBC Holdings Plc, according to rankings by Asian Private Banker. </p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/3cb8dca0d31fce408d9bfcf95b20a9b3\" tg-width=\"442\" tg-height=\"237\"/></p><p>The assets of DBS clients, including those at the private bank and lower-rung tiers, reached S$396 billion as of June. That is set to exceed S$500 billion by 2027 with the number of clients investing and buying insurance products expected to quadruple, Shee said without specifying the numbers. The bank also handles a third of Singapore’s 1,650 single family offices, he said.</p><p>Singapore saw a $120 billion surge in financial assets booked from overseas last year, with China being the top source of new wealth in absolute terms, according to a Boston Consulting Group report published in July. Shee said there’s been “a good mix” of assets from North and South Asia, the Middle East and Europe with no particularly dominant region. </p><p>The bank has grown its relationship manager headcount by around 20% since the middle of 2023, Shee said, adding that hiring continues and that they’re still working out future headcount. DBS had 730 relationship managers as of 2023, up 12% from a year ago and the second highest in Asia, excluding China, according to Asian Private Banker.</p><p>DBS has two booking centers — Singapore and Hong Kong — for its wealthy clients across the regions. While the bank is seeing more traction from clients in Dubai, India and London, Shee said there is “no compelling reason” for now to consider the United Arab Emirates city as its third booking hub.</p><p>DBS, like other banks, has grappled with ensuring that assets of its clients are clean. In July, the bank was fined HKD10 million ($1.3 million) by the Hong Kong Monetary Authority for lapses including failure to continuously monitor business relationships and to establish the source of wealth of high-risk customers between 2012 and 2019. In Singapore, DBS had some S$100 million exposure to clients who were convicted this year in the city-state’s largest money-laundering case where more than S$3 billion of assets were seized.</p><p>DBS is constantly investing in both technology and people to detect misconduct and illicit flows, Shee said. It’s also boosting its surveillance and monitoring systems to keep pace with emerging criminal trends, he added. </p><p>“The whole point is how you balance between being effective in anti-money laundering and risk management and yet remain efficient and open for business,” he said.</p><p>Other highlights from the interview:</p><ul style=\"\"><li><p>DBS is open to additional partnerships in India where it has more than 500 branches. The bank is already working with local firms in areas like term insurance and mutual funds distribution</p></li><li><p>Following acquisition of $Citigroup Inc(C-N)$.’s retail business in Taiwan, DBS is seeing strong business especially in credit cards</p></li><li><p>More than half of DBS relationship managers are using generative-artificial intelligence in an early phase of a pilot project that helps them prepare investment conversations with clients</p></li></ul><p></p></body></html>","source":"bnn_bloomberg_highlight","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>DBS Sees Wealth Fees Doubling by 2027 as the Rich Head to Asia</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\">\nDBS Sees Wealth Fees Doubling by 2027 as the Rich Head to Asia\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-09-20 10:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.bloomberg.com/news/articles/2024-09-19/dbs-sees-wealth-fees-doubling-by-2027-as-the-rich-head-to-asia><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>DBS Group Holdings aims to double fees from wealth management by 2027 as more of the world’s affluent investors shift their assets to Asia.DBS’s income from servicing rich clients rose to more than S$...</p>\n\n<a href=\"https://www.bloomberg.com/news/articles/2024-09-19/dbs-sees-wealth-fees-doubling-by-2027-as-the-rich-head-to-asia\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0048597586.USD":"富达亚洲焦点A","IE00BKZH1Z71.USD":"BNY MELLON ASIAN INCOME \"B\" (USD) ACC","LU2257852520.SGD":"JPMorgan Funds - 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It expects the same pace of increase in half that period as well-heeled people and family offices from various parts of the world head to Asia to park their money, said Shee Tse Koon, head of consumer and wealth banking at DBS.“Given the trajectory and traction we have had over the past years, our aim going forward is that by 2027 we want to double our wealth fees,” Shee said in an interview with Bloomberg News this week. Wealthy clients of Southeast Asia’s largest bank usually invest their cash to improve returns and many have also tapped DBS for their trust and legacy planning needs, he said.Shee’s optimism underscores the significance of rising wealth fees that boosted DBS’s income in recent years and will likely cushion its earnings with global interest rates set to decline. DBS is now the third-largest private bank in Asia, excluding China, only behind UBS Group AG and HSBC Holdings Plc, according to rankings by Asian Private Banker. The assets of DBS clients, including those at the private bank and lower-rung tiers, reached S$396 billion as of June. That is set to exceed S$500 billion by 2027 with the number of clients investing and buying insurance products expected to quadruple, Shee said without specifying the numbers. The bank also handles a third of Singapore’s 1,650 single family offices, he said.Singapore saw a $120 billion surge in financial assets booked from overseas last year, with China being the top source of new wealth in absolute terms, according to a Boston Consulting Group report published in July. Shee said there’s been “a good mix” of assets from North and South Asia, the Middle East and Europe with no particularly dominant region. The bank has grown its relationship manager headcount by around 20% since the middle of 2023, Shee said, adding that hiring continues and that they’re still working out future headcount. DBS had 730 relationship managers as of 2023, up 12% from a year ago and the second highest in Asia, excluding China, according to Asian Private Banker.DBS has two booking centers — Singapore and Hong Kong — for its wealthy clients across the regions. While the bank is seeing more traction from clients in Dubai, India and London, Shee said there is “no compelling reason” for now to consider the United Arab Emirates city as its third booking hub.DBS, like other banks, has grappled with ensuring that assets of its clients are clean. In July, the bank was fined HKD10 million ($1.3 million) by the Hong Kong Monetary Authority for lapses including failure to continuously monitor business relationships and to establish the source of wealth of high-risk customers between 2012 and 2019. In Singapore, DBS had some S$100 million exposure to clients who were convicted this year in the city-state’s largest money-laundering case where more than S$3 billion of assets were seized.DBS is constantly investing in both technology and people to detect misconduct and illicit flows, Shee said. It’s also boosting its surveillance and monitoring systems to keep pace with emerging criminal trends, he added. “The whole point is how you balance between being effective in anti-money laundering and risk management and yet remain efficient and open for business,” he said.Other highlights from the interview:DBS is open to additional partnerships in India where it has more than 500 branches. The bank is already working with local firms in areas like term insurance and mutual funds distributionFollowing acquisition of $Citigroup Inc(C-N)$.’s retail business in Taiwan, DBS is seeing strong business especially in credit cardsMore than half of DBS relationship managers are using generative-artificial intelligence in an early phase of a pilot project that helps them prepare investment conversations with clients","news_type":1},"isVote":1,"tweetType":1,"viewCount":27,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":300860266229792,"gmtCreate":1714468235009,"gmtModify":1714468395403,"author":{"id":"3582712972054494","authorId":"3582712972054494","name":"Tonykhoo","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582712972054494","authorIdStr":"3582712972054494"},"themes":[],"htmlText":"Well fargo cannot be trusted&nbsp;","listText":"Well fargo cannot be trusted&nbsp;","text":"Well fargo cannot be trusted","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/300860266229792","repostId":"2431848642","repostType":2,"repost":{"id":"2431848642","pubTimestamp":1714465356,"share":"https://ttm.financial/m/news/2431848642?lang=&edition=fundamental","pubTime":"2024-04-30 16:22","market":"fut","language":"en","title":"Tesla's Big Rally on China Developments Is Called Overdone by Wells Fargo","url":"https://stock-news.laohu8.com/highlight/detail?id=2431848642","media":"seekingalpha","summary":"Tesla (NASDAQ:TSLA) saw a big rally on Monday, with shares up as much as 18% after Elon Musk's surprise visit to China and the announcement of an expansion of the company's partnership with Baidu (BID","content":"<html><head></head><body><p>Tesla (NASDAQ:TSLA) saw a big rally on Monday, with shares up 15% after Elon Musk&#39;s surprise visit to China and the announcement of an expansion of the company&#39;s partnership with Baidu (BIDU).</p><p>Wells Fargo analyst Colin Langan said he was surprised by the big share price move on Monday, given the firm sees limited EPS impact and with deal details far from certain.</p><p>&#34;The partnership with Baidu helped ease China regulators&#39; concerns over data security. However, there&#39;re no details of the partnership in terms of economics &amp; data sharing. Also, TSLA&#39;s FSD system is vision-only with decisions that are not dependent on mapping, so Baidu&#39;s role in the FSD tech is unclear.&#34;</p><p>Langan also warned that there could be restrictions on sharing data, which could limit Tesla&#39;s (TSLA) ability to leverage the tech progress it has seen in the U.S.</p><p>There is also the glaring point that Chinese electric vehicle makers are fast followers and could undercut Tesla (TSLA) on pricing. Advanced driver-assistance systems are already going mainstream in China, with XPeng (XPEV) and Xiaomi (OTCPK:XIACF) two of the notable players. Li Auto (LI) and BYD Company (OTCPK:BYDDF) also have advanced driver-assistance systems plans of their own.</p><p>Morgan Stanley went in a different direction with the Tesla (TSLA) developments. Notably, analyst Adam Jonas said investor concerns about the focus of Elon Musk on Tesla (TSLA) could be alleviated after the China trip. Jonas said achieving a potential détente with the Chinese government on such areas as autonomous driving/FSD is surprising and deserves greater research and understanding.</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>Tesla's Big Rally on China Developments Is Called Overdone by Wells Fargo</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\">\nTesla's Big Rally on China Developments Is Called Overdone by Wells Fargo\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-04-30 16:22 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/news/4095786-teslas-big-rally-on-china-developments-is-called-overdone-by-wells-fargo><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Tesla (NASDAQ:TSLA) saw a big rally on Monday, with shares up 15% after Elon Musk's surprise visit to China and the announcement of an expansion of the company's partnership with Baidu (BIDU).Wells ...</p>\n\n<a href=\"https://seekingalpha.com/news/4095786-teslas-big-rally-on-china-developments-is-called-overdone-by-wells-fargo\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"89888":"百度集团-SWR","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","BIDU":"百度","LU1861559042.SGD":"日兴方舟颠覆性创新基金B SGD","XPEV":"小鹏汽车","BK4559":"巴菲特持仓","LU0823411888.USD":"法巴消费创新基金 Cap","IE00B0JY6N72.USD":"PINEBRIDGE GLOBAL EMERGING MARKETS FOCUS EQUITY \"A\" (USD) ACC","LU1989772840.SGD":"CPR Invest - Climate Action A2 Acc SGD-H","LU0348735423.USD":"ALLIANZ HONG KONG EQUITY \"A\" (USD) INC","LU0856984785.SGD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED GROWTH \"ACH\" (SGDHDG) ACC","LU1551013342.USD":"Allianz Income and Growth Cl AMg2 DIS USD","BK4550":"红杉资本持仓","SG9999014674.SGD":"Nikko AM All China Equity A SGD","XIACF":"Xiaomi Corp.","TSLA":"特斯拉","BK1587":"次新股","IE00B19Z3B42.SGD":"Legg Mason ClearBridge - Value A Acc SGD","BK4552":"Archegos爆仓风波概念","LU1989772923.USD":"CPR Invest - Climate Action A2 Acc USD-H","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","BK4551":"寇图资本持仓","BK4207":"综合性银行","LU1280957306.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQUITIES \"AUP\" (USD) INC","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","LU2249611893.SGD":"BNP PARIBAS ENERGY TRANSITION \"CRH\" (SGD) ACC","EVS.SI":"MSCI China Electric Vehicles and Future Mobility ETF-NikkoAM","LU0348825331.USD":"ALLIANZ CHINA EQUITY \"A\" (USD) INC","LU0823426308.USD":"法巴中国股票基金","LU0310800965.SGD":"FTIF - Templeton Global Balanced A Acc SGD","LU0106831901.USD":"贝莱德世界金融基金A2","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","LU2039709279.SGD":"MANULIFE GF DRAGON GROWTH \"AA\" (SGDHDG) INC","LU0287142896.SGD":"Fidelity China Focus A-SGD","09888":"百度集团-SW","LU0163747925.USD":"EASTSPRING INVESTMENTS ASIAN EQUITY A ACC","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","LU0417516902.SGD":"Allianz China Equity Cl AT Acc SGD","LU1861558580.USD":"日兴方舟颠覆性创新基金B","LI":"理想汽车","LU1074936037.SGD":"JPMorgan Funds - US Value A (acc) SGD","BYDDF":"BYD Co., Ltd.","LU0043850808.USD":"HSBC GIF ASIA EX JAPAN EQUITY \"AD\" INC","TSLL":"Direxion Daily TSLA Bull 2X Shares","LU1115378108.SGD":"Eastspring Investments - Global Emerging Markets Dynamic AS SGD","LU1668664300.SGD":"Blackrock World Financials A2 SGD-H","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","BK4555":"新能源车","LU0943347566.SGD":"安联收益及增长平衡基金AM H2-SGD","BK1588":"回港中概股"},"source_url":"https://seekingalpha.com/news/4095786-teslas-big-rally-on-china-developments-is-called-overdone-by-wells-fargo","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2431848642","content_text":"Tesla (NASDAQ:TSLA) saw a big rally on Monday, with shares up 15% after Elon Musk's surprise visit to China and the announcement of an expansion of the company's partnership with Baidu (BIDU).Wells Fargo analyst Colin Langan said he was surprised by the big share price move on Monday, given the firm sees limited EPS impact and with deal details far from certain.\"The partnership with Baidu helped ease China regulators' concerns over data security. However, there're no details of the partnership in terms of economics & data sharing. Also, TSLA's FSD system is vision-only with decisions that are not dependent on mapping, so Baidu's role in the FSD tech is unclear.\"Langan also warned that there could be restrictions on sharing data, which could limit Tesla's (TSLA) ability to leverage the tech progress it has seen in the U.S.There is also the glaring point that Chinese electric vehicle makers are fast followers and could undercut Tesla (TSLA) on pricing. Advanced driver-assistance systems are already going mainstream in China, with XPeng (XPEV) and Xiaomi (OTCPK:XIACF) two of the notable players. Li Auto (LI) and BYD Company (OTCPK:BYDDF) also have advanced driver-assistance systems plans of their own.Morgan Stanley went in a different direction with the Tesla (TSLA) developments. Notably, analyst Adam Jonas said investor concerns about the focus of Elon Musk on Tesla (TSLA) could be alleviated after the China trip. Jonas said achieving a potential détente with the Chinese government on such areas as autonomous driving/FSD is surprising and deserves greater research and understanding.","news_type":1},"isVote":1,"tweetType":1,"viewCount":192,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":284192333799704,"gmtCreate":1710398902822,"gmtModify":1710399219829,"author":{"id":"3582712972054494","authorId":"3582712972054494","name":"Tonykhoo","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582712972054494","authorIdStr":"3582712972054494"},"themes":[],"htmlText":"Holding on to 13.5k since $15","listText":"Holding on to 13.5k since $15","text":"Holding on to 13.5k since $15","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/284192333799704","repostId":"2419163746","repostType":2,"repost":{"id":"2419163746","pubTimestamp":1710396000,"share":"https://ttm.financial/m/news/2419163746?lang=&edition=fundamental","pubTime":"2024-03-14 14:00","market":"us","language":"en","title":"Palantir: Why I Am Not Selling","url":"https://stock-news.laohu8.com/highlight/detail?id=2419163746","media":"Seeking Alpha","summary":"$Palantir Technologies Inc.(PLTR)$'s Q4 2023 revenue grew by 20% YoY to $608.4 million, driven by streamlined go-to-market and increased customer acquisition in the U.S. commercial sector.Palantir exp","content":"<html><head></head><body><ul style=\"\"><li><p><a href=\"https://laohu8.com/S/PLTR\">Palantir Technologies Inc.</a>&#39;s Q4 2023 revenue grew by 20% YoY to $608.4 million, driven by streamlined go-to-market and increased customer acquisition in the U.S. commercial sector.</p></li><li><p>Palantir expects upward growth of at least 40% in the U.S. commercial segment for the year, highlighting strong revenue momentum.</p></li><li><p>Despite anticipating a market correction, the long-term outlook for Palantir Technologies remains positive, supported by solid fundamentals and aggressive growth strategies.</p></li><li><p>Following the strong bull run YTD, a pullback in Palantir Technologies is necessary before breaking into new highs.</p></li></ul><h2 id=\"id_3566456717\">Investment Thesis</h2><p>Since our in-depth analysis of <a href=\"https://laohu8.com/S/PLTR\">Palantir Technologies Inc.</a> in February 2022, when we first presented a bullish stance on the stock, the company has remarkably validated our conviction, richly rewarding patient investors.</p><p>Our confidence was well-placed; since doubling down on our position, PLTR has delivered a staggering return of over 230% in less than 17 months. This exceptional performance is underpinned by consecutive profitability milestones, robust growth metrics, impressive conversion rates, and the impactful deployment of AI capabilities, all contributing to a sustained bull run.</p><p>However, despite the significant gains, we anticipate a necessary pullback correction before PLTR reaches new heights. This expected correction should be viewed not as a deterrent, but as a potential opportunity for investors to enter or increase their positions in anticipation of further growth.</p><p>Therefore, our long-term investment thesis remains intact, underpinned by Palantir&#39;s solid fundamentals, strategic growth initiatives, and the broadening application of its AI technologies.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/044c0989cab46968f91e82f129c09235\" title=\"Data by YCharts\" tg-width=\"635\" tg-height=\"439\"/><span>Data by YCharts</span></p><h2 id=\"id_420075811\">Powering Growth and Diversification in the Commercial Sector</h2><p>Artificial intelligence platforms (AIP) momentum drives new customer conversions and existing customer expansions. The transformative effect of AIP on the business is best highlighted in the U.S. commercial bookings and backlog. Palantir experienced noteworthy achievements in the U.S. commercial sector, the most significant being shorter times to conversion and expansion (from a prototype to a product in months).</p><p>By the 31st of December 2023, PLTR had 497 customers, with the commercial segment reporting high customer count growth of 14% quarter-over-quarter, while the government segment remained flat. The commercial segment experienced significant growth, with fourth-quarter revenue increasing by 32% year-over-year (YoY) and full-year revenue growing by 20%, <strong>exceeding $1 billion</strong> for the first time.</p><p>Additionally, the US Commercial revenue in Q4 surged by 70% YoY, reaching $131 million. With a revamped go-to-market strategy and piloting approach followed by significantly compressed sales cycles, the U.S. customer count grew by 55% YoY to 221, reflecting a robust market presence. This acceleration is attributed to a surge in demand, resulting in the highest commercial Total Contract Value (TCV) booked in a quarter, showcasing a 156% growth YoY. Hence, the strategic expansion and increased demand in the U.S. contributed majorly to this growth.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/7e3f3d334334b2a0f85573e224db1d8a\" title=\"Author\" tg-width=\"1024\" tg-height=\"768\"/><span>Author</span></p><p>Palantir&#39;s accelerated customer acquisition process stems from three key drivers. First, boot camps are rapidly transitioning into paying customers. In Palantir boot camps, participants and potential users <strong>learn how to apply AI</strong> to mission-critical operations within their organizations. They progress from having no prior knowledge to building practical use cases.</p><p>Once they feel empowered by Palantir&#39;s AI capabilities, the majority of them will convert into paying customers. Second, there&#39;s growth among existing customers and those with longstanding engagements with Palantir. Third, the introduction of AIP has further fueled this momentum. Despite these gains, Palantir recognizes that they have merely scratched the surface of their total addressable market, or TAM; they&#39;re only just getting started.</p><p>The firm also reported a meaningful increase in their US commercial TCV on a dollar-weighted duration basis, up 107% YoY and 42% sequentially. In the fourth quarter, TCV booked was 1.15 billion, up 192% YoY and 38% sequentially. Net dollar retention was 108%, an increase of 100 basis points from last quarter. They ended the fourth quarter with $3.9 billion in total remaining deal value, an increase of 5% sequentially. AIP boosted Palantir&#39;s total addressable market, with the TCV in the U.S. commercial segment reaching $343 million, showcasing a remarkable 107% growth YoY.</p><p>Additionally, Palantir remains an outlier among its peers, as the <strong>company&#39;s average revenue per customer</strong> (ARPC) remains off the chart compared to its peers, delivering a staggering ARPC of $4.5 million. The top 20 high-value customers drive most of Palantir&#39;s revenue. However, reliance on these customers is slowly <strong>declining</strong>, signifying the company&#39;s effort to serve an expansive and diverse market. On the positive side, the top 20 customers&#39; contribution to total revenue dropped to 49.4% based on TTM as of December 2023, compared to 57.1% in FY21. As a result, the average revenue per customer of PLTR dropped below $5 million based on the latest TTM revenue, compared to $6.5 million in FY21.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/7330b3dbe0063739a11a0feb0b9f4d4c\" title=\"Author\" tg-width=\"1024\" tg-height=\"768\"/><span>Author</span></p><p>Finally, Palantir&#39;s remaining performance obligations (RPO) recovery also suggests improving revenue growth in the coming quarters. The company&#39;s net dollar retention remains above 100.0%, which indicates that the PLTR platform&#39;s stickiness has remained intact. Net dollar retention does not include revenue from new customers they acquired in the past 12 months and, therefore, <strong>does not yet fully capture the acceleration</strong> in their U.S. commercial business.</p><h2 id=\"id_3060580783\">AIP Upgrade: Seamless LLM Integration for Quicker Decisions and Market Expansion</h2><p>Palantir Technologies has recently enhanced its AIP platform by integrating large language models (LLMs), augmenting user-friendliness and power. AIP facilitates the seamless connection of LLMs with user data, aiding decision-making. The AIP Bootcamp expedites customer onboarding, contributing to remarkably swift time-to-market.</p><p>Integrating LLMs with Foundry through AIP significantly broadens the accessibility of deploying use cases, expanding the addressable market. While the company is observing initial momentum, it acknowledges that it is still at the initial stage of capturing this expanded market. Palantir has successfully covered nearly 200 use cases from AIP Boot camps, underscoring the potential of this approach, with a focus on data integration as a core value-driving principle.</p><p>AIP enables the integration of diverse data types, such as video conferences, incident response calls, Slack rooms, PDFs, images, video, and audio, leveraging the power of LLMs and ontology. The acceleration in AIP customer engagement is anticipated to continue, fueled by its adaptability and versatility.</p><p>The recent quarter saw Palantir signing multiple U.S. commercial deals, where AIP played a pivotal role in driving various deal archetypes. New customers attending boot camps swiftly signing enterprise contracts, AIP-driven conversions of ongoing pilots, and expansions in existing accounts are illustrative examples. Internationally, AIP reinforces partnerships in Continental Europe and fosters growth in select markets.</p><p>Lastly, Palantir&#39;s focus on enhancing product usability and charisma through AI-driven developments, particularly in LLMs, marks a convergence aimed at broadening Foundry&#39;s market appeal. Current research and development efforts are directed toward deploying software, models, and assets at the edge, aligning with the growing market trend of edge computing - positioning Palantir favorably to secure a substantial share in this evolving landscape.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/6f3ab05e66d0cabae9105e27861c0d0e\" alt=\"LLM - Palantir Defense\" title=\"LLM - Palantir Defense\" tg-width=\"640\" tg-height=\"359\"/><span>LLM - Palantir Defense</span></p><h2 id=\"id_3599242473\">Turning Complex Challenges into Competitive Advantage with AIP Bootcamps</h2><p>Rather than rejecting projects with risky and resource-intensive installation requirements, Palantir actively seeks them out. They&#39;ve obtained strict government clearances, manage complex data environments, offer cloud-agnostic integration, and don&#39;t shy away from long sales cycles. These are substantial barriers to entry for competitors.</p><p>Still, their fundamental competition is their own customers&#39; internal software development. AIP Bootcamp makes platform onboarding much easier and forcefully addresses this competitive risk. Bootcamp teaches end-users how to use AIP effectively.</p><p>Additionally, Palantir is strategically intensifying efforts to convert boot camps into enterprise deals, evident in the noteworthy impact on sales cycles and the accelerated rate of new customer acquisition. In Q4, U.S. commercial saw a sequential rise of 22%, a substantial increase compared to 12% and 4% in Q3 and Q2, respectively.</p><p>The success stories include new customers attending boot camps and promptly signing enterprise contracts, demonstrating the efficacy of this conversion strategy. Cold outreaches leading to boot camps and subsequent enterprise agreements highlight the streamlined approach.</p><p>AIP-driven conversions of ongoing pilots constitute another facet of Palantir&#39;s successful strategy. Companies engaged in a pilot, during which AIP was introduced, ultimately converted to enterprise agreements. Moreover, AIP has been instrumental in driving expansions within existing key accounts. Demonstrating speed to value at boot camps, Palantir showcased its ability to deliver new use cases atop existing ontologies in as little as 24 hours, contributing significantly to successful agreements.</p><p>In tandem with the emphasis on boot camps, Palantir is strategically deepening its distribution channels to swiftly capitalize on opportunities in specific regions, focusing on expanding its presence in Japan. Hence, these strategic maneuvers underscore Palantir&#39;s commitment to driving efficient conversions, expanding market reach, and solidifying its position as a leader in the data integration landscape.</p><h2 id=\"id_2288010704\">How Palantir&#39;s Self-Selling Software Soars Beyond the Aviation Industry</h2><p>Palantir&#39;s greatest strength is product-led acquisition. They have dedicated support agents for each deployment. Then, they let the software sell itself by deepening existing relationships or cross-selling to businesses that work with their customers. The prime example is Skywise, initially built for Airbus SE (OTCPK:EADSF) but which has expanded throughout the airline industry.</p><p>Skywise is an aviation platform that is the central operating system of the airline industry. Adoption has been swift. Since June 2017, Skywise has expanded from zero to more than one hundred airlines. Each one is now an existing or potential customer - this is a product-led acquisition - something that will be an industry-agnostic tailwind for PLTR growth in the coming years.</p><p>When other airlines saw the benefits of PLTR software, they swiftly engaged with the company. No outbound sales efforts were needed because the platform sold itself. This platform initially grew from a single customer relationship with Airbus.</p><p>The platform&#39;s ability to garner new clients without outbound sales efforts, relying on the software&#39;s intrinsic value, underscores the effectiveness of Palantir&#39;s strategic approach and positions the company favorably for sustained expansion across diverse sectors.</p><h2 id=\"id_129334450\">Unlocking Value Beyond the Surface</h2><p>Despite the initial impression that Palantir is trading at elevated multiples, a more in-depth analysis reveals a nuanced perspective. About a year ago, the company achieved a significant milestone by transitioning to profitability. While its valuation might appear high initially, it likely reflects the market&#39;s recognition of PLTR&#39;s improved margin and, critically, the substantial potential of AIP.</p><p>This potential can extend the company&#39;s market reach beyond government contracts, venturing into diverse use cases within the commercial segment. Palantir&#39;s substantial government contracts and growing presence in pivotal industries like defense, healthcare, and finance, bolstered by strategic partnerships, further underscore its considerable long-term potential in the market.</p><p>Rule of 40 analysis holds significance for software or SaaS companies, signifying that those attaining a combined score of 40.0% in revenue growth and margin (with EBITDA margin in this instance) are more likely to achieve sustainable growth. PLTR can exceed the 40.0% threshold (sum of growth and margin) by revitalizing its revenue growth beyond 30.0% and continuing the upward trend in profitability margin.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/905e373641d072897f210cca42db058b\" alt=\"Author\" title=\"Author\" tg-width=\"1024\" tg-height=\"768\"/><span>Author</span></p><h2 id=\"id_353816885\">Takeaway</h2><p>Palantir Technologies Inc. has outperformed expectations, delivering impressive returns and highlighting its strategic prowess and robust growth in the AI sector. Despite anticipating a market correction, the long-term outlook for PLTR remains positive, supported by solid fundamentals and aggressive growth strategies.</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: Why I Am Not Selling</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\">\nPalantir: Why I Am Not Selling\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-03-14 14:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4677924-palantir-why-i-am-not-selling><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Palantir Technologies Inc.'s Q4 2023 revenue grew by 20% YoY to $608.4 million, driven by streamlined go-to-market and increased customer acquisition in the U.S. commercial sector.Palantir expects ...</p>\n\n<a href=\"https://seekingalpha.com/article/4677924-palantir-why-i-am-not-selling\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4543":"AI","BK4097":"系统软件","BK4547":"WSB热门概念","BK4585":"ETF&股票定投概念","BK4588":"碎股","BK4023":"应用软件","BK4192":"特殊消费者服务","PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4677924-palantir-why-i-am-not-selling","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2419163746","content_text":"Palantir Technologies Inc.'s Q4 2023 revenue grew by 20% YoY to $608.4 million, driven by streamlined go-to-market and increased customer acquisition in the U.S. commercial sector.Palantir expects upward growth of at least 40% in the U.S. commercial segment for the year, highlighting strong revenue momentum.Despite anticipating a market correction, the long-term outlook for Palantir Technologies remains positive, supported by solid fundamentals and aggressive growth strategies.Following the strong bull run YTD, a pullback in Palantir Technologies is necessary before breaking into new highs.Investment ThesisSince our in-depth analysis of Palantir Technologies Inc. in February 2022, when we first presented a bullish stance on the stock, the company has remarkably validated our conviction, richly rewarding patient investors.Our confidence was well-placed; since doubling down on our position, PLTR has delivered a staggering return of over 230% in less than 17 months. This exceptional performance is underpinned by consecutive profitability milestones, robust growth metrics, impressive conversion rates, and the impactful deployment of AI capabilities, all contributing to a sustained bull run.However, despite the significant gains, we anticipate a necessary pullback correction before PLTR reaches new heights. This expected correction should be viewed not as a deterrent, but as a potential opportunity for investors to enter or increase their positions in anticipation of further growth.Therefore, our long-term investment thesis remains intact, underpinned by Palantir's solid fundamentals, strategic growth initiatives, and the broadening application of its AI technologies.Data by YChartsPowering Growth and Diversification in the Commercial SectorArtificial intelligence platforms (AIP) momentum drives new customer conversions and existing customer expansions. The transformative effect of AIP on the business is best highlighted in the U.S. commercial bookings and backlog. Palantir experienced noteworthy achievements in the U.S. commercial sector, the most significant being shorter times to conversion and expansion (from a prototype to a product in months).By the 31st of December 2023, PLTR had 497 customers, with the commercial segment reporting high customer count growth of 14% quarter-over-quarter, while the government segment remained flat. The commercial segment experienced significant growth, with fourth-quarter revenue increasing by 32% year-over-year (YoY) and full-year revenue growing by 20%, exceeding $1 billion for the first time.Additionally, the US Commercial revenue in Q4 surged by 70% YoY, reaching $131 million. With a revamped go-to-market strategy and piloting approach followed by significantly compressed sales cycles, the U.S. customer count grew by 55% YoY to 221, reflecting a robust market presence. This acceleration is attributed to a surge in demand, resulting in the highest commercial Total Contract Value (TCV) booked in a quarter, showcasing a 156% growth YoY. Hence, the strategic expansion and increased demand in the U.S. contributed majorly to this growth.AuthorPalantir's accelerated customer acquisition process stems from three key drivers. First, boot camps are rapidly transitioning into paying customers. In Palantir boot camps, participants and potential users learn how to apply AI to mission-critical operations within their organizations. They progress from having no prior knowledge to building practical use cases.Once they feel empowered by Palantir's AI capabilities, the majority of them will convert into paying customers. Second, there's growth among existing customers and those with longstanding engagements with Palantir. Third, the introduction of AIP has further fueled this momentum. Despite these gains, Palantir recognizes that they have merely scratched the surface of their total addressable market, or TAM; they're only just getting started.The firm also reported a meaningful increase in their US commercial TCV on a dollar-weighted duration basis, up 107% YoY and 42% sequentially. In the fourth quarter, TCV booked was 1.15 billion, up 192% YoY and 38% sequentially. Net dollar retention was 108%, an increase of 100 basis points from last quarter. They ended the fourth quarter with $3.9 billion in total remaining deal value, an increase of 5% sequentially. AIP boosted Palantir's total addressable market, with the TCV in the U.S. commercial segment reaching $343 million, showcasing a remarkable 107% growth YoY.Additionally, Palantir remains an outlier among its peers, as the company's average revenue per customer (ARPC) remains off the chart compared to its peers, delivering a staggering ARPC of $4.5 million. The top 20 high-value customers drive most of Palantir's revenue. However, reliance on these customers is slowly declining, signifying the company's effort to serve an expansive and diverse market. On the positive side, the top 20 customers' contribution to total revenue dropped to 49.4% based on TTM as of December 2023, compared to 57.1% in FY21. As a result, the average revenue per customer of PLTR dropped below $5 million based on the latest TTM revenue, compared to $6.5 million in FY21.AuthorFinally, Palantir's remaining performance obligations (RPO) recovery also suggests improving revenue growth in the coming quarters. The company's net dollar retention remains above 100.0%, which indicates that the PLTR platform's stickiness has remained intact. Net dollar retention does not include revenue from new customers they acquired in the past 12 months and, therefore, does not yet fully capture the acceleration in their U.S. commercial business.AIP Upgrade: Seamless LLM Integration for Quicker Decisions and Market ExpansionPalantir Technologies has recently enhanced its AIP platform by integrating large language models (LLMs), augmenting user-friendliness and power. AIP facilitates the seamless connection of LLMs with user data, aiding decision-making. The AIP Bootcamp expedites customer onboarding, contributing to remarkably swift time-to-market.Integrating LLMs with Foundry through AIP significantly broadens the accessibility of deploying use cases, expanding the addressable market. While the company is observing initial momentum, it acknowledges that it is still at the initial stage of capturing this expanded market. Palantir has successfully covered nearly 200 use cases from AIP Boot camps, underscoring the potential of this approach, with a focus on data integration as a core value-driving principle.AIP enables the integration of diverse data types, such as video conferences, incident response calls, Slack rooms, PDFs, images, video, and audio, leveraging the power of LLMs and ontology. The acceleration in AIP customer engagement is anticipated to continue, fueled by its adaptability and versatility.The recent quarter saw Palantir signing multiple U.S. commercial deals, where AIP played a pivotal role in driving various deal archetypes. New customers attending boot camps swiftly signing enterprise contracts, AIP-driven conversions of ongoing pilots, and expansions in existing accounts are illustrative examples. Internationally, AIP reinforces partnerships in Continental Europe and fosters growth in select markets.Lastly, Palantir's focus on enhancing product usability and charisma through AI-driven developments, particularly in LLMs, marks a convergence aimed at broadening Foundry's market appeal. Current research and development efforts are directed toward deploying software, models, and assets at the edge, aligning with the growing market trend of edge computing - positioning Palantir favorably to secure a substantial share in this evolving landscape.LLM - Palantir DefenseTurning Complex Challenges into Competitive Advantage with AIP BootcampsRather than rejecting projects with risky and resource-intensive installation requirements, Palantir actively seeks them out. They've obtained strict government clearances, manage complex data environments, offer cloud-agnostic integration, and don't shy away from long sales cycles. These are substantial barriers to entry for competitors.Still, their fundamental competition is their own customers' internal software development. AIP Bootcamp makes platform onboarding much easier and forcefully addresses this competitive risk. Bootcamp teaches end-users how to use AIP effectively.Additionally, Palantir is strategically intensifying efforts to convert boot camps into enterprise deals, evident in the noteworthy impact on sales cycles and the accelerated rate of new customer acquisition. In Q4, U.S. commercial saw a sequential rise of 22%, a substantial increase compared to 12% and 4% in Q3 and Q2, respectively.The success stories include new customers attending boot camps and promptly signing enterprise contracts, demonstrating the efficacy of this conversion strategy. Cold outreaches leading to boot camps and subsequent enterprise agreements highlight the streamlined approach.AIP-driven conversions of ongoing pilots constitute another facet of Palantir's successful strategy. Companies engaged in a pilot, during which AIP was introduced, ultimately converted to enterprise agreements. Moreover, AIP has been instrumental in driving expansions within existing key accounts. Demonstrating speed to value at boot camps, Palantir showcased its ability to deliver new use cases atop existing ontologies in as little as 24 hours, contributing significantly to successful agreements.In tandem with the emphasis on boot camps, Palantir is strategically deepening its distribution channels to swiftly capitalize on opportunities in specific regions, focusing on expanding its presence in Japan. Hence, these strategic maneuvers underscore Palantir's commitment to driving efficient conversions, expanding market reach, and solidifying its position as a leader in the data integration landscape.How Palantir's Self-Selling Software Soars Beyond the Aviation IndustryPalantir's greatest strength is product-led acquisition. They have dedicated support agents for each deployment. Then, they let the software sell itself by deepening existing relationships or cross-selling to businesses that work with their customers. The prime example is Skywise, initially built for Airbus SE (OTCPK:EADSF) but which has expanded throughout the airline industry.Skywise is an aviation platform that is the central operating system of the airline industry. Adoption has been swift. Since June 2017, Skywise has expanded from zero to more than one hundred airlines. Each one is now an existing or potential customer - this is a product-led acquisition - something that will be an industry-agnostic tailwind for PLTR growth in the coming years.When other airlines saw the benefits of PLTR software, they swiftly engaged with the company. No outbound sales efforts were needed because the platform sold itself. This platform initially grew from a single customer relationship with Airbus.The platform's ability to garner new clients without outbound sales efforts, relying on the software's intrinsic value, underscores the effectiveness of Palantir's strategic approach and positions the company favorably for sustained expansion across diverse sectors.Unlocking Value Beyond the SurfaceDespite the initial impression that Palantir is trading at elevated multiples, a more in-depth analysis reveals a nuanced perspective. About a year ago, the company achieved a significant milestone by transitioning to profitability. While its valuation might appear high initially, it likely reflects the market's recognition of PLTR's improved margin and, critically, the substantial potential of AIP.This potential can extend the company's market reach beyond government contracts, venturing into diverse use cases within the commercial segment. Palantir's substantial government contracts and growing presence in pivotal industries like defense, healthcare, and finance, bolstered by strategic partnerships, further underscore its considerable long-term potential in the market.Rule of 40 analysis holds significance for software or SaaS companies, signifying that those attaining a combined score of 40.0% in revenue growth and margin (with EBITDA margin in this instance) are more likely to achieve sustainable growth. PLTR can exceed the 40.0% threshold (sum of growth and margin) by revitalizing its revenue growth beyond 30.0% and continuing the upward trend in profitability margin.AuthorTakeawayPalantir Technologies Inc. has outperformed expectations, delivering impressive returns and highlighting its strategic prowess and robust growth in the AI sector. Despite anticipating a market correction, the long-term outlook for PLTR remains positive, supported by solid fundamentals and aggressive growth strategies.","news_type":1},"isVote":1,"tweetType":1,"viewCount":180,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"lives":[]}