Palantir: Risky And Expensive

seekingalpha2021-05-17

Summary Palantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with. The company's financial metrics and the nature of their ...

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SGpHANtom
·2021-05-20
You rarely/ never find a stock that's not risky and cheap. They usually come in a pair.Find me another company that guides 40% annual growth ( which I think they'll beat easily), with potential addressable market north of hundreds of billions, with almost no competition.
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TripleWin
·2021-05-19
Can buy?
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1
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BruceInvests
·2021-05-18
These articles are meant to mislead the retail investors, don’t trust them too much people, do your own researches and make your own judgement,happy investing! ??
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- Bustylibra:
  Looking forWard to the day wE get tO enjoy our Handsome profits
  2021-05-20
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- Bustylibra:
  Agreed! With such strong Backing from both the government and big corporations support,~$21 is still considered relatively cheap
  2021-05-19
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- 胡雁晶_deidre:
  [Grin]
  2021-05-19
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BigBeef
·2021-05-18
Yep. And 40 billion valuation is quite a stretch.
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Frosty4ever
·2021-05-18
He didn't mention there's a lot of stickiness for both government and corporate contacts despite being 'expensive'. They give real value hence the recontracts.
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- Bustylibra:
  Exactly
  2021-05-19
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Jerrywong76
·2021-05-18
That is the same thing they said about testla1 year ago
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2
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gukoh
·2021-05-17
Written by hedge fund to make you sell off? To the moon pltrrr
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ProsPaddles
·2021-05-17
No risk no gain! The amount of risk you take now will certainly pay off down the road.
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1
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JarenSin
·2021-05-17
It's risky but do you think the end result is worth iit?
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- YQ17:
  Yes
  2021-05-19
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dent
·2021-05-17
Please like and comment
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5
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- sgric:
  done
  2021-05-17
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- ray7:
  ?
  2021-05-17
  Reply
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- MarkJuan:
  Sure!
  2021-05-17
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jw321
·2021-05-17
help to comment pls
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- TheCSM:
  pls reply. thanks
  2021-05-19
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- sgric:
  done
  2021-05-17
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- MarkJuan:
  Appreciate a reply!
  2021-05-17
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es.T
·2021-05-17
Frothy
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This article will instead focus on the fundamentals and help investors understand the actual business behind the stock, and the risks of owning it -- and there are many.\nBusiness\nPalantir addresses a common problem faced by large organizations: unlocking the value of siloed data from disparate systems. The company sells an end-to-end software platform and consulting services to an addressable market sized at $119 billion.\nSince each large organization has a unique combination of legacy IT systems, unlocking the value of data requires expensive and time-consuming consulting projects to build custom software. This reality is why Palantir began as more of a consulting firm rather than a software firm (and it still is considered a consulting company by some investors).\nThe company would send consultants to connect, integrate and organize data from across the customer organization, creating a central operating system for data.\nThe company has two flagship platform offerings: Gotham and Foundry. The Gotham product is sold mainly to government customers while Foundry is sold to commercial customers. Both platforms are full-stack, vertically integrated, and deployable in the public and private cloud, on-premise or on classified networks (air-gapped networks), edge devices, laptops, and specialized hardware. Both platforms have specific user-facing applications for different industries.\nGotham, released in 2008, is a platform with multiple applications, including Graph, Gaia, Dossier, Stencil, Video, Table, Ava, Forward, and Mobile. Use cases include planning military missions, tax return analysis to uncover tax evaders, and mapping out criminal networks.\nFoundry, released in 2016, is also a platform with multiple applications, including Monocle, Contour, Object Explorer, Fusion, Workshop, Vertex, Code Authoring, Quiver, Code Workbooks, and Reports. Use cases include increasing aircraft design, trending defect detection in manufacturing plants, and risk management within financial institutions.\nUnderlying Gotham and Foundry is Apollo, a continuous delivery and product infrastructure platform which allows the company to deploy air-gapped and on-premise networks at approximately the same speed as in the field. This is important given the siloed nature of data within large customers, which could grind data integration to a halt.\nPricing for Palantir products is opaque. The company says they price based off of the estimated value Palantir expects its software platforms to deliver to the customer, and how much the customer would have to pay for a consulting firm to build a custom solution.\nSince 2018, the company has been investing in account-based sales force to bring in new customers and to expand within existing customers. The company's field sales force is only around 3-4% of headcount, so this number has room to move up.\nMarket Opportunity\nPalantir's management sizes their total addressable market is at $119 billion, which includes $63 billion from government and $56 billion from commercial.\nThe government market consists of $26 billion domestic and $37 billion international. The commercial market estimate is based potential customers: 6,000 enterprises with over $500 million in revenue and PLTR's estimated annual contract value per customer.\nThe company's addressable market is heavily dependent on domestic politics and geopolitics. The company's mission is to serve the U.S. and its allies, which obviously does not include selling into the large defense budgets of China and Russia. In addition, U.S. allies' desire to gain more sovereignty and reduce reliance on the U.S. may impede adoption of Palantir's platforms.\nDomestically, the company benefited significantly from the 1994 passing of the Federal Streaming Acquisition Act (FASA). Section 2377 requires the federal government to consider and acquire proven and available commercial items in the market \"to the maximum extend possible\". This rule was largely ignored until 2016 when Palantir successfully sued the US Army to enforce the law (Palantir v. United States).\nRisks\nThere are many risks associated with investing in Palantir, which I don't feel is appreciated by the market given the company's high valuation and retail adoration.\nPalantir is more of a service company that does not empower customers to maintain their own data/AI systems, which can be a problem for certain commercial customers. Palantir sells a \"full stack\" technology offering, which is appealing to government agencies but not commercial customers, who are accustomed to buying best-of-breed software.\nPalantir must host customer data in order to integrate it, which can be a problem in certain industries that are subject to privacy regulations.\nPalantir solutions are expensive with an average contract value of $5-6 million. High prices may limit Palantir's addressable market. Reliance on large deals also makes revenue growth lumpy and more difficult to predict.\nPalantir has significant customer concentration risk. In the S-1, the company disclosed that its top 20 customers accounted for 76% of revenue.\nPalantir's addressable market depends heavily on domestic and geopolitics. U.S. allies are increasingly seeking to reduce their reliance on the U.S. in both business (i.e. cracking down on US's tech giants) and defense and may be hesitant to give Palantir access to their most sensitive data.\nPalantir is opaque and discloses significantly fewer financial metrics to investors than peers. This is maybe due to the nature of its business, which deals with highly sensitive information, however, this leaves investors in the dark.\nPalantir may also face significant ESG problems, which is increasingly important as ESG investing is rapidly gaining in popularity. Not only is Palantir a defense contractor, but it also provides surveillance analytics and has a history of being marred by controversies.\nFinancials & Valuation\nPalantir's valuation has fluctuated wildly, reflecting the manic bull market we are in currently.\nWhen the company went public through a direct listing on 9/30/2020, the company traded at around 78 times forward consensus EPS and 12 times enterprise value to forward sales. The stock caught the attention of retail investors and traded to a peak of over 330 times forward EPS and over 47 times sales by January 2021. Currently, the stock is trading at 121 times forward EPS and 22 times forward sales. I frankly have no idea what the valuation of this company ought to be, and neither does the market.\nFor this nose-bleed valuation, you get an expected 35% revenue growth in 2021, a growth rate that bulls expect to be sustained for multiple years, and only modest EPS growth through 2023 as the company reported $0.19 in non-GAAP EPS in 2020 but is expected to only generate $0.26 by 2023. Note that GAAP EPS is still deep in the red.\nWhile often very expensive stocks are expected to easily beat consensus estimates, I'm not so sure about Palantir. From 2016 through 2020, the company only grew revenues by a compounded annual growth of 24%.\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with holding the stock.","kind":"news","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":130314142,"gmtCreate":1621512434886,"gmtModify":1704358824844,"author":{"id":"3554964479320407","authorId":"3554964479320407","name":"SGpHANtom","avatar":"https://static.tigerbbs.com/bb33f070d9bea74315c46e4e5e8cedf8","vip":1,"hat":"https://static.tigerbbs.com/b073a07f77dbe6b3bec6b12311fde6bd","crmLevel":6,"crmLevelSwitch":1,"idStr":"3554964479320407","authorIdStr":"3554964479320407"},"htmlText":"You rarely/ never find a stock that's not risky and cheap. They usually come in a pair.Find me another company that guides 40% annual growth ( which I think they'll beat easily), with potential addressable&nbsp;market north of hundreds of billions, with almost no competition.","listText":"You rarely/ never find a stock that's not risky and cheap. They usually come in a pair.Find me another company that guides 40% annual growth ( which I think they'll beat easily), with potential addressable&nbsp;market north of hundreds of billions, with almost no competition.","text":"You rarely/ never find a stock that's not risky and cheap. They usually come in a pair.Find me another company that guides 40% annual growth ( which I think they'll beat easily), with potential addressable market north of hundreds of billions, with almost no competition.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/130314142","repostId":1149212873,"repostType":2,"repost":{"id":"1149212873","kind":"news","pubTimestamp":1621240557,"share":"https://ttm.financial/m/news/1149212873?lang=&edition=fundamental","pubTime":"2021-05-17 16:35","market":"us","language":"en","title":"Palantir: Risky And Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=1149212873","media":"seekingalpha","summary":"Summary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and t","content":"Summary\n<ul>\n <li>Palantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.</li>\n <li>The company's financial metrics and the nature of their work are both shrouded in mystery.</li>\n <li>The company's addressable market may be limited by government and companies' willingness to give it access to sensitive data.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/1b5f30934b528b40d7581fde436747dc\" tg-width=\"1536\" tg-height=\"1024\">Photo by Anna Bliokh/E+ via Getty Images\nPalantir (PLTR) just reported a good quarter and plenty have been written about that and other short-term considerations. This article will instead focus on the fundamentals and help investors understand the actual business behind the stock, and the risks of owning it -- and there are many.\nBusiness\nPalantir addresses a common problem faced by large organizations: unlocking the value of siloed data from disparate systems. The company sells an end-to-end software platform and consulting services to an addressable market sized at $119 billion.\nSince each large organization has a unique combination of legacy IT systems, unlocking the value of data requires expensive and time-consuming consulting projects to build custom software. This reality is why Palantir began as more of a consulting firm rather than a software firm (and it still is considered a consulting company by some investors).\nThe company would send consultants to connect, integrate and organize data from across the customer organization, creating a central operating system for data.\nThe company has two flagship platform offerings: Gotham and Foundry. The Gotham product is sold mainly to government customers while Foundry is sold to commercial customers. Both platforms are full-stack, vertically integrated, and deployable in the public and private cloud, on-premise or on classified networks (air-gapped networks), edge devices, laptops, and specialized hardware. Both platforms have specific user-facing applications for different industries.\nGotham, released in 2008, is a platform with multiple applications, including Graph, Gaia, Dossier, Stencil, Video, Table, Ava, Forward, and Mobile. Use cases include planning military missions, tax return analysis to uncover tax evaders, and mapping out criminal networks.\nFoundry, released in 2016, is also a platform with multiple applications, including Monocle, Contour, Object Explorer, Fusion, Workshop, Vertex, Code Authoring, Quiver, Code Workbooks, and Reports. Use cases include increasing aircraft design, trending defect detection in manufacturing plants, and risk management within financial institutions.\nUnderlying Gotham and Foundry is Apollo, a continuous delivery and product infrastructure platform which allows the company to deploy air-gapped and on-premise networks at approximately the same speed as in the field. This is important given the siloed nature of data within large customers, which could grind data integration to a halt.\nPricing for Palantir products is opaque. The company says they price based off of the estimated value Palantir expects its software platforms to deliver to the customer, and how much the customer would have to pay for a consulting firm to build a custom solution.\nSince 2018, the company has been investing in account-based sales force to bring in new customers and to expand within existing customers. The company's field sales force is only around 3-4% of headcount, so this number has room to move up.\nMarket Opportunity\nPalantir's management sizes their total addressable market is at $119 billion, which includes $63 billion from government and $56 billion from commercial.\nThe government market consists of $26 billion domestic and $37 billion international. The commercial market estimate is based potential customers: 6,000 enterprises with over $500 million in revenue and PLTR's estimated annual contract value per customer.\nThe company's addressable market is heavily dependent on domestic politics and geopolitics. The company's mission is to serve the U.S. and its allies, which obviously does not include selling into the large defense budgets of China and Russia. In addition, U.S. allies' desire to gain more sovereignty and reduce reliance on the U.S. may impede adoption of Palantir's platforms.\nDomestically, the company benefited significantly from the 1994 passing of the Federal Streaming Acquisition Act (FASA). Section 2377 requires the federal government to consider and acquire proven and available commercial items in the market \"to the maximum extend possible\". This rule was largely ignored until 2016 when Palantir successfully sued the US Army to enforce the law (Palantir v. United States).\nRisks\nThere are many risks associated with investing in Palantir, which I don't feel is appreciated by the market given the company's high valuation and retail adoration.\nPalantir is more of a service company that does not empower customers to maintain their own data/AI systems, which can be a problem for certain commercial customers. Palantir sells a \"full stack\" technology offering, which is appealing to government agencies but not commercial customers, who are accustomed to buying best-of-breed software.\nPalantir must host customer data in order to integrate it, which can be a problem in certain industries that are subject to privacy regulations.\nPalantir solutions are expensive with an average contract value of $5-6 million. High prices may limit Palantir's addressable market. Reliance on large deals also makes revenue growth lumpy and more difficult to predict.\nPalantir has significant customer concentration risk. In the S-1, the company disclosed that its top 20 customers accounted for 76% of revenue.\nPalantir's addressable market depends heavily on domestic and geopolitics. U.S. allies are increasingly seeking to reduce their reliance on the U.S. in both business (i.e. cracking down on US's tech giants) and defense and may be hesitant to give Palantir access to their most sensitive data.\nPalantir is opaque and discloses significantly fewer financial metrics to investors than peers. This is maybe due to the nature of its business, which deals with highly sensitive information, however, this leaves investors in the dark.\nPalantir may also face significant ESG problems, which is increasingly important as ESG investing is rapidly gaining in popularity. Not only is Palantir a defense contractor, but it also provides surveillance analytics and has a history of being marred by&nbsp;controversies.\nFinancials &amp; Valuation\nPalantir's valuation has fluctuated wildly, reflecting the manic bull market we are in currently.\nWhen the company went public through a direct listing on 9/30/2020, the company traded at around 78 times forward consensus EPS and 12 times enterprise value to forward sales. The stock caught the attention of retail investors and traded to a peak of over 330 times forward EPS and over 47 times sales by January 2021. Currently, the stock is trading at 121 times forward EPS and 22 times forward sales. I frankly have no idea what the valuation of this company ought to be, and neither does the market.\nFor this nose-bleed valuation, you get an expected 35% revenue growth in 2021, a growth rate that bulls expect to be sustained for multiple years, and only modest EPS growth through 2023 as the company reported $0.19 in non-GAAP EPS in 2020 but is expected to only generate $0.26 by 2023. Note that GAAP EPS is still deep in the red.\nWhile often very expensive stocks are expected to easily beat consensus estimates, I'm not so sure about Palantir. From 2016 through 2020, the company only grew revenues by a compounded annual growth of 24%.\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with holding the stock.","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: Risky And Expensive</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: Risky And Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-17 16:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.\nThe company's financial metrics and the nature of their ...\n\n<a href=\"https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1149212873","content_text":"Summary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.\nThe company's financial metrics and the nature of their work are both shrouded in mystery.\nThe company's addressable market may be limited by government and companies' willingness to give it access to sensitive data.\n\nPhoto by Anna Bliokh/E+ via Getty Images\nPalantir (PLTR) just reported a good quarter and plenty have been written about that and other short-term considerations. This article will instead focus on the fundamentals and help investors understand the actual business behind the stock, and the risks of owning it -- and there are many.\nBusiness\nPalantir addresses a common problem faced by large organizations: unlocking the value of siloed data from disparate systems. The company sells an end-to-end software platform and consulting services to an addressable market sized at $119 billion.\nSince each large organization has a unique combination of legacy IT systems, unlocking the value of data requires expensive and time-consuming consulting projects to build custom software. This reality is why Palantir began as more of a consulting firm rather than a software firm (and it still is considered a consulting company by some investors).\nThe company would send consultants to connect, integrate and organize data from across the customer organization, creating a central operating system for data.\nThe company has two flagship platform offerings: Gotham and Foundry. The Gotham product is sold mainly to government customers while Foundry is sold to commercial customers. Both platforms are full-stack, vertically integrated, and deployable in the public and private cloud, on-premise or on classified networks (air-gapped networks), edge devices, laptops, and specialized hardware. Both platforms have specific user-facing applications for different industries.\nGotham, released in 2008, is a platform with multiple applications, including Graph, Gaia, Dossier, Stencil, Video, Table, Ava, Forward, and Mobile. Use cases include planning military missions, tax return analysis to uncover tax evaders, and mapping out criminal networks.\nFoundry, released in 2016, is also a platform with multiple applications, including Monocle, Contour, Object Explorer, Fusion, Workshop, Vertex, Code Authoring, Quiver, Code Workbooks, and Reports. Use cases include increasing aircraft design, trending defect detection in manufacturing plants, and risk management within financial institutions.\nUnderlying Gotham and Foundry is Apollo, a continuous delivery and product infrastructure platform which allows the company to deploy air-gapped and on-premise networks at approximately the same speed as in the field. This is important given the siloed nature of data within large customers, which could grind data integration to a halt.\nPricing for Palantir products is opaque. The company says they price based off of the estimated value Palantir expects its software platforms to deliver to the customer, and how much the customer would have to pay for a consulting firm to build a custom solution.\nSince 2018, the company has been investing in account-based sales force to bring in new customers and to expand within existing customers. The company's field sales force is only around 3-4% of headcount, so this number has room to move up.\nMarket Opportunity\nPalantir's management sizes their total addressable market is at $119 billion, which includes $63 billion from government and $56 billion from commercial.\nThe government market consists of $26 billion domestic and $37 billion international. The commercial market estimate is based potential customers: 6,000 enterprises with over $500 million in revenue and PLTR's estimated annual contract value per customer.\nThe company's addressable market is heavily dependent on domestic politics and geopolitics. The company's mission is to serve the U.S. and its allies, which obviously does not include selling into the large defense budgets of China and Russia. In addition, U.S. allies' desire to gain more sovereignty and reduce reliance on the U.S. may impede adoption of Palantir's platforms.\nDomestically, the company benefited significantly from the 1994 passing of the Federal Streaming Acquisition Act (FASA). Section 2377 requires the federal government to consider and acquire proven and available commercial items in the market \"to the maximum extend possible\". This rule was largely ignored until 2016 when Palantir successfully sued the US Army to enforce the law (Palantir v. United States).\nRisks\nThere are many risks associated with investing in Palantir, which I don't feel is appreciated by the market given the company's high valuation and retail adoration.\nPalantir is more of a service company that does not empower customers to maintain their own data/AI systems, which can be a problem for certain commercial customers. Palantir sells a \"full stack\" technology offering, which is appealing to government agencies but not commercial customers, who are accustomed to buying best-of-breed software.\nPalantir must host customer data in order to integrate it, which can be a problem in certain industries that are subject to privacy regulations.\nPalantir solutions are expensive with an average contract value of $5-6 million. High prices may limit Palantir's addressable market. Reliance on large deals also makes revenue growth lumpy and more difficult to predict.\nPalantir has significant customer concentration risk. In the S-1, the company disclosed that its top 20 customers accounted for 76% of revenue.\nPalantir's addressable market depends heavily on domestic and geopolitics. U.S. allies are increasingly seeking to reduce their reliance on the U.S. in both business (i.e. cracking down on US's tech giants) and defense and may be hesitant to give Palantir access to their most sensitive data.\nPalantir is opaque and discloses significantly fewer financial metrics to investors than peers. This is maybe due to the nature of its business, which deals with highly sensitive information, however, this leaves investors in the dark.\nPalantir may also face significant ESG problems, which is increasingly important as ESG investing is rapidly gaining in popularity. Not only is Palantir a defense contractor, but it also provides surveillance analytics and has a history of being marred by controversies.\nFinancials & Valuation\nPalantir's valuation has fluctuated wildly, reflecting the manic bull market we are in currently.\nWhen the company went public through a direct listing on 9/30/2020, the company traded at around 78 times forward consensus EPS and 12 times enterprise value to forward sales. The stock caught the attention of retail investors and traded to a peak of over 330 times forward EPS and over 47 times sales by January 2021. Currently, the stock is trading at 121 times forward EPS and 22 times forward sales. I frankly have no idea what the valuation of this company ought to be, and neither does the market.\nFor this nose-bleed valuation, you get an expected 35% revenue growth in 2021, a growth rate that bulls expect to be sustained for multiple years, and only modest EPS growth through 2023 as the company reported $0.19 in non-GAAP EPS in 2020 but is expected to only generate $0.26 by 2023. Note that GAAP EPS is still deep in the red.\nWhile often very expensive stocks are expected to easily beat consensus estimates, I'm not so sure about Palantir. From 2016 through 2020, the company only grew revenues by a compounded annual growth of 24%.\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with holding the stock.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":197939631,"gmtCreate":1621417340823,"gmtModify":1704357282137,"author":{"id":"3577489740102994","authorId":"3577489740102994","name":"TripleWin","avatar":"https://static.tigerbbs.com/36f6d7690fd546416bd6f74b156c218f","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3577489740102994","authorIdStr":"3577489740102994"},"htmlText":"Can buy?","listText":"Can buy?","text":"Can buy?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/197939631","repostId":1149212873,"repostType":2,"repost":{"id":"1149212873","kind":"news","pubTimestamp":1621240557,"share":"https://ttm.financial/m/news/1149212873?lang=&edition=fundamental","pubTime":"2021-05-17 16:35","market":"us","language":"en","title":"Palantir: Risky And Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=1149212873","media":"seekingalpha","summary":"Summary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and t","content":"Summary\n<ul>\n <li>Palantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.</li>\n <li>The company's financial metrics and the nature of their work are both shrouded in mystery.</li>\n <li>The company's addressable market may be limited by government and companies' willingness to give it access to sensitive data.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/1b5f30934b528b40d7581fde436747dc\" tg-width=\"1536\" tg-height=\"1024\">Photo by Anna Bliokh/E+ via Getty Images\nPalantir (PLTR) just reported a good quarter and plenty have been written about that and other short-term considerations. This article will instead focus on the fundamentals and help investors understand the actual business behind the stock, and the risks of owning it -- and there are many.\nBusiness\nPalantir addresses a common problem faced by large organizations: unlocking the value of siloed data from disparate systems. The company sells an end-to-end software platform and consulting services to an addressable market sized at $119 billion.\nSince each large organization has a unique combination of legacy IT systems, unlocking the value of data requires expensive and time-consuming consulting projects to build custom software. This reality is why Palantir began as more of a consulting firm rather than a software firm (and it still is considered a consulting company by some investors).\nThe company would send consultants to connect, integrate and organize data from across the customer organization, creating a central operating system for data.\nThe company has two flagship platform offerings: Gotham and Foundry. The Gotham product is sold mainly to government customers while Foundry is sold to commercial customers. Both platforms are full-stack, vertically integrated, and deployable in the public and private cloud, on-premise or on classified networks (air-gapped networks), edge devices, laptops, and specialized hardware. Both platforms have specific user-facing applications for different industries.\nGotham, released in 2008, is a platform with multiple applications, including Graph, Gaia, Dossier, Stencil, Video, Table, Ava, Forward, and Mobile. Use cases include planning military missions, tax return analysis to uncover tax evaders, and mapping out criminal networks.\nFoundry, released in 2016, is also a platform with multiple applications, including Monocle, Contour, Object Explorer, Fusion, Workshop, Vertex, Code Authoring, Quiver, Code Workbooks, and Reports. Use cases include increasing aircraft design, trending defect detection in manufacturing plants, and risk management within financial institutions.\nUnderlying Gotham and Foundry is Apollo, a continuous delivery and product infrastructure platform which allows the company to deploy air-gapped and on-premise networks at approximately the same speed as in the field. This is important given the siloed nature of data within large customers, which could grind data integration to a halt.\nPricing for Palantir products is opaque. The company says they price based off of the estimated value Palantir expects its software platforms to deliver to the customer, and how much the customer would have to pay for a consulting firm to build a custom solution.\nSince 2018, the company has been investing in account-based sales force to bring in new customers and to expand within existing customers. The company's field sales force is only around 3-4% of headcount, so this number has room to move up.\nMarket Opportunity\nPalantir's management sizes their total addressable market is at $119 billion, which includes $63 billion from government and $56 billion from commercial.\nThe government market consists of $26 billion domestic and $37 billion international. The commercial market estimate is based potential customers: 6,000 enterprises with over $500 million in revenue and PLTR's estimated annual contract value per customer.\nThe company's addressable market is heavily dependent on domestic politics and geopolitics. The company's mission is to serve the U.S. and its allies, which obviously does not include selling into the large defense budgets of China and Russia. In addition, U.S. allies' desire to gain more sovereignty and reduce reliance on the U.S. may impede adoption of Palantir's platforms.\nDomestically, the company benefited significantly from the 1994 passing of the Federal Streaming Acquisition Act (FASA). Section 2377 requires the federal government to consider and acquire proven and available commercial items in the market \"to the maximum extend possible\". This rule was largely ignored until 2016 when Palantir successfully sued the US Army to enforce the law (Palantir v. United States).\nRisks\nThere are many risks associated with investing in Palantir, which I don't feel is appreciated by the market given the company's high valuation and retail adoration.\nPalantir is more of a service company that does not empower customers to maintain their own data/AI systems, which can be a problem for certain commercial customers. Palantir sells a \"full stack\" technology offering, which is appealing to government agencies but not commercial customers, who are accustomed to buying best-of-breed software.\nPalantir must host customer data in order to integrate it, which can be a problem in certain industries that are subject to privacy regulations.\nPalantir solutions are expensive with an average contract value of $5-6 million. High prices may limit Palantir's addressable market. Reliance on large deals also makes revenue growth lumpy and more difficult to predict.\nPalantir has significant customer concentration risk. In the S-1, the company disclosed that its top 20 customers accounted for 76% of revenue.\nPalantir's addressable market depends heavily on domestic and geopolitics. U.S. allies are increasingly seeking to reduce their reliance on the U.S. in both business (i.e. cracking down on US's tech giants) and defense and may be hesitant to give Palantir access to their most sensitive data.\nPalantir is opaque and discloses significantly fewer financial metrics to investors than peers. This is maybe due to the nature of its business, which deals with highly sensitive information, however, this leaves investors in the dark.\nPalantir may also face significant ESG problems, which is increasingly important as ESG investing is rapidly gaining in popularity. Not only is Palantir a defense contractor, but it also provides surveillance analytics and has a history of being marred by&nbsp;controversies.\nFinancials &amp; Valuation\nPalantir's valuation has fluctuated wildly, reflecting the manic bull market we are in currently.\nWhen the company went public through a direct listing on 9/30/2020, the company traded at around 78 times forward consensus EPS and 12 times enterprise value to forward sales. The stock caught the attention of retail investors and traded to a peak of over 330 times forward EPS and over 47 times sales by January 2021. Currently, the stock is trading at 121 times forward EPS and 22 times forward sales. I frankly have no idea what the valuation of this company ought to be, and neither does the market.\nFor this nose-bleed valuation, you get an expected 35% revenue growth in 2021, a growth rate that bulls expect to be sustained for multiple years, and only modest EPS growth through 2023 as the company reported $0.19 in non-GAAP EPS in 2020 but is expected to only generate $0.26 by 2023. Note that GAAP EPS is still deep in the red.\nWhile often very expensive stocks are expected to easily beat consensus estimates, I'm not so sure about Palantir. From 2016 through 2020, the company only grew revenues by a compounded annual growth of 24%.\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with holding the stock.","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: Risky And Expensive</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: Risky And Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-17 16:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.\nThe company's financial metrics and the nature of their ...\n\n<a href=\"https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1149212873","content_text":"Summary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.\nThe company's financial metrics and the nature of their work are both shrouded in mystery.\nThe company's addressable market may be limited by government and companies' willingness to give it access to sensitive data.\n\nPhoto by Anna Bliokh/E+ via Getty Images\nPalantir (PLTR) just reported a good quarter and plenty have been written about that and other short-term considerations. This article will instead focus on the fundamentals and help investors understand the actual business behind the stock, and the risks of owning it -- and there are many.\nBusiness\nPalantir addresses a common problem faced by large organizations: unlocking the value of siloed data from disparate systems. The company sells an end-to-end software platform and consulting services to an addressable market sized at $119 billion.\nSince each large organization has a unique combination of legacy IT systems, unlocking the value of data requires expensive and time-consuming consulting projects to build custom software. This reality is why Palantir began as more of a consulting firm rather than a software firm (and it still is considered a consulting company by some investors).\nThe company would send consultants to connect, integrate and organize data from across the customer organization, creating a central operating system for data.\nThe company has two flagship platform offerings: Gotham and Foundry. The Gotham product is sold mainly to government customers while Foundry is sold to commercial customers. Both platforms are full-stack, vertically integrated, and deployable in the public and private cloud, on-premise or on classified networks (air-gapped networks), edge devices, laptops, and specialized hardware. Both platforms have specific user-facing applications for different industries.\nGotham, released in 2008, is a platform with multiple applications, including Graph, Gaia, Dossier, Stencil, Video, Table, Ava, Forward, and Mobile. Use cases include planning military missions, tax return analysis to uncover tax evaders, and mapping out criminal networks.\nFoundry, released in 2016, is also a platform with multiple applications, including Monocle, Contour, Object Explorer, Fusion, Workshop, Vertex, Code Authoring, Quiver, Code Workbooks, and Reports. Use cases include increasing aircraft design, trending defect detection in manufacturing plants, and risk management within financial institutions.\nUnderlying Gotham and Foundry is Apollo, a continuous delivery and product infrastructure platform which allows the company to deploy air-gapped and on-premise networks at approximately the same speed as in the field. This is important given the siloed nature of data within large customers, which could grind data integration to a halt.\nPricing for Palantir products is opaque. The company says they price based off of the estimated value Palantir expects its software platforms to deliver to the customer, and how much the customer would have to pay for a consulting firm to build a custom solution.\nSince 2018, the company has been investing in account-based sales force to bring in new customers and to expand within existing customers. The company's field sales force is only around 3-4% of headcount, so this number has room to move up.\nMarket Opportunity\nPalantir's management sizes their total addressable market is at $119 billion, which includes $63 billion from government and $56 billion from commercial.\nThe government market consists of $26 billion domestic and $37 billion international. The commercial market estimate is based potential customers: 6,000 enterprises with over $500 million in revenue and PLTR's estimated annual contract value per customer.\nThe company's addressable market is heavily dependent on domestic politics and geopolitics. The company's mission is to serve the U.S. and its allies, which obviously does not include selling into the large defense budgets of China and Russia. In addition, U.S. allies' desire to gain more sovereignty and reduce reliance on the U.S. may impede adoption of Palantir's platforms.\nDomestically, the company benefited significantly from the 1994 passing of the Federal Streaming Acquisition Act (FASA). Section 2377 requires the federal government to consider and acquire proven and available commercial items in the market \"to the maximum extend possible\". This rule was largely ignored until 2016 when Palantir successfully sued the US Army to enforce the law (Palantir v. United States).\nRisks\nThere are many risks associated with investing in Palantir, which I don't feel is appreciated by the market given the company's high valuation and retail adoration.\nPalantir is more of a service company that does not empower customers to maintain their own data/AI systems, which can be a problem for certain commercial customers. Palantir sells a \"full stack\" technology offering, which is appealing to government agencies but not commercial customers, who are accustomed to buying best-of-breed software.\nPalantir must host customer data in order to integrate it, which can be a problem in certain industries that are subject to privacy regulations.\nPalantir solutions are expensive with an average contract value of $5-6 million. High prices may limit Palantir's addressable market. Reliance on large deals also makes revenue growth lumpy and more difficult to predict.\nPalantir has significant customer concentration risk. In the S-1, the company disclosed that its top 20 customers accounted for 76% of revenue.\nPalantir's addressable market depends heavily on domestic and geopolitics. U.S. allies are increasingly seeking to reduce their reliance on the U.S. in both business (i.e. cracking down on US's tech giants) and defense and may be hesitant to give Palantir access to their most sensitive data.\nPalantir is opaque and discloses significantly fewer financial metrics to investors than peers. This is maybe due to the nature of its business, which deals with highly sensitive information, however, this leaves investors in the dark.\nPalantir may also face significant ESG problems, which is increasingly important as ESG investing is rapidly gaining in popularity. Not only is Palantir a defense contractor, but it also provides surveillance analytics and has a history of being marred by controversies.\nFinancials & Valuation\nPalantir's valuation has fluctuated wildly, reflecting the manic bull market we are in currently.\nWhen the company went public through a direct listing on 9/30/2020, the company traded at around 78 times forward consensus EPS and 12 times enterprise value to forward sales. The stock caught the attention of retail investors and traded to a peak of over 330 times forward EPS and over 47 times sales by January 2021. Currently, the stock is trading at 121 times forward EPS and 22 times forward sales. I frankly have no idea what the valuation of this company ought to be, and neither does the market.\nFor this nose-bleed valuation, you get an expected 35% revenue growth in 2021, a growth rate that bulls expect to be sustained for multiple years, and only modest EPS growth through 2023 as the company reported $0.19 in non-GAAP EPS in 2020 but is expected to only generate $0.26 by 2023. Note that GAAP EPS is still deep in the red.\nWhile often very expensive stocks are expected to easily beat consensus estimates, I'm not so sure about Palantir. From 2016 through 2020, the company only grew revenues by a compounded annual growth of 24%.\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with holding the stock.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":194399161,"gmtCreate":1621340261753,"gmtModify":1704356040750,"author":{"id":"3561411454660142","authorId":"3561411454660142","name":"BruceInvests","avatar":"https://static.tigerbbs.com/10405fa513601c345286a388991d53d8","vip":1,"crmLevel":6,"crmLevelSwitch":0,"idStr":"3561411454660142","authorIdStr":"3561411454660142"},"htmlText":"These articles are&nbsp;meant to mislead the retail investors, don’t trust them too much people, do your own researches and make your own judgement,happy investing! ??","listText":"These articles are&nbsp;meant to mislead the retail investors, don’t trust them too much people, do your own researches and make your own judgement,happy investing! ??","text":"These articles are meant to mislead the retail investors, don’t trust them too much people, do your own researches and make your own judgement,happy investing! ??","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":3,"repostSize":0,"link":"https://ttm.financial/post/194399161","repostId":1149212873,"repostType":2,"repost":{"id":"1149212873","kind":"news","pubTimestamp":1621240557,"share":"https://ttm.financial/m/news/1149212873?lang=&edition=fundamental","pubTime":"2021-05-17 16:35","market":"us","language":"en","title":"Palantir: Risky And Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=1149212873","media":"seekingalpha","summary":"Summary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and t","content":"Summary\n<ul>\n <li>Palantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.</li>\n <li>The company's financial metrics and the nature of their work are both shrouded in mystery.</li>\n <li>The company's addressable market may be limited by government and companies' willingness to give it access to sensitive data.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/1b5f30934b528b40d7581fde436747dc\" tg-width=\"1536\" tg-height=\"1024\">Photo by Anna Bliokh/E+ via Getty Images\nPalantir (PLTR) just reported a good quarter and plenty have been written about that and other short-term considerations. This article will instead focus on the fundamentals and help investors understand the actual business behind the stock, and the risks of owning it -- and there are many.\nBusiness\nPalantir addresses a common problem faced by large organizations: unlocking the value of siloed data from disparate systems. The company sells an end-to-end software platform and consulting services to an addressable market sized at $119 billion.\nSince each large organization has a unique combination of legacy IT systems, unlocking the value of data requires expensive and time-consuming consulting projects to build custom software. This reality is why Palantir began as more of a consulting firm rather than a software firm (and it still is considered a consulting company by some investors).\nThe company would send consultants to connect, integrate and organize data from across the customer organization, creating a central operating system for data.\nThe company has two flagship platform offerings: Gotham and Foundry. The Gotham product is sold mainly to government customers while Foundry is sold to commercial customers. Both platforms are full-stack, vertically integrated, and deployable in the public and private cloud, on-premise or on classified networks (air-gapped networks), edge devices, laptops, and specialized hardware. Both platforms have specific user-facing applications for different industries.\nGotham, released in 2008, is a platform with multiple applications, including Graph, Gaia, Dossier, Stencil, Video, Table, Ava, Forward, and Mobile. Use cases include planning military missions, tax return analysis to uncover tax evaders, and mapping out criminal networks.\nFoundry, released in 2016, is also a platform with multiple applications, including Monocle, Contour, Object Explorer, Fusion, Workshop, Vertex, Code Authoring, Quiver, Code Workbooks, and Reports. Use cases include increasing aircraft design, trending defect detection in manufacturing plants, and risk management within financial institutions.\nUnderlying Gotham and Foundry is Apollo, a continuous delivery and product infrastructure platform which allows the company to deploy air-gapped and on-premise networks at approximately the same speed as in the field. This is important given the siloed nature of data within large customers, which could grind data integration to a halt.\nPricing for Palantir products is opaque. The company says they price based off of the estimated value Palantir expects its software platforms to deliver to the customer, and how much the customer would have to pay for a consulting firm to build a custom solution.\nSince 2018, the company has been investing in account-based sales force to bring in new customers and to expand within existing customers. The company's field sales force is only around 3-4% of headcount, so this number has room to move up.\nMarket Opportunity\nPalantir's management sizes their total addressable market is at $119 billion, which includes $63 billion from government and $56 billion from commercial.\nThe government market consists of $26 billion domestic and $37 billion international. The commercial market estimate is based potential customers: 6,000 enterprises with over $500 million in revenue and PLTR's estimated annual contract value per customer.\nThe company's addressable market is heavily dependent on domestic politics and geopolitics. The company's mission is to serve the U.S. and its allies, which obviously does not include selling into the large defense budgets of China and Russia. In addition, U.S. allies' desire to gain more sovereignty and reduce reliance on the U.S. may impede adoption of Palantir's platforms.\nDomestically, the company benefited significantly from the 1994 passing of the Federal Streaming Acquisition Act (FASA). Section 2377 requires the federal government to consider and acquire proven and available commercial items in the market \"to the maximum extend possible\". This rule was largely ignored until 2016 when Palantir successfully sued the US Army to enforce the law (Palantir v. United States).\nRisks\nThere are many risks associated with investing in Palantir, which I don't feel is appreciated by the market given the company's high valuation and retail adoration.\nPalantir is more of a service company that does not empower customers to maintain their own data/AI systems, which can be a problem for certain commercial customers. Palantir sells a \"full stack\" technology offering, which is appealing to government agencies but not commercial customers, who are accustomed to buying best-of-breed software.\nPalantir must host customer data in order to integrate it, which can be a problem in certain industries that are subject to privacy regulations.\nPalantir solutions are expensive with an average contract value of $5-6 million. High prices may limit Palantir's addressable market. Reliance on large deals also makes revenue growth lumpy and more difficult to predict.\nPalantir has significant customer concentration risk. In the S-1, the company disclosed that its top 20 customers accounted for 76% of revenue.\nPalantir's addressable market depends heavily on domestic and geopolitics. U.S. allies are increasingly seeking to reduce their reliance on the U.S. in both business (i.e. cracking down on US's tech giants) and defense and may be hesitant to give Palantir access to their most sensitive data.\nPalantir is opaque and discloses significantly fewer financial metrics to investors than peers. This is maybe due to the nature of its business, which deals with highly sensitive information, however, this leaves investors in the dark.\nPalantir may also face significant ESG problems, which is increasingly important as ESG investing is rapidly gaining in popularity. Not only is Palantir a defense contractor, but it also provides surveillance analytics and has a history of being marred by&nbsp;controversies.\nFinancials &amp; Valuation\nPalantir's valuation has fluctuated wildly, reflecting the manic bull market we are in currently.\nWhen the company went public through a direct listing on 9/30/2020, the company traded at around 78 times forward consensus EPS and 12 times enterprise value to forward sales. The stock caught the attention of retail investors and traded to a peak of over 330 times forward EPS and over 47 times sales by January 2021. Currently, the stock is trading at 121 times forward EPS and 22 times forward sales. I frankly have no idea what the valuation of this company ought to be, and neither does the market.\nFor this nose-bleed valuation, you get an expected 35% revenue growth in 2021, a growth rate that bulls expect to be sustained for multiple years, and only modest EPS growth through 2023 as the company reported $0.19 in non-GAAP EPS in 2020 but is expected to only generate $0.26 by 2023. Note that GAAP EPS is still deep in the red.\nWhile often very expensive stocks are expected to easily beat consensus estimates, I'm not so sure about Palantir. From 2016 through 2020, the company only grew revenues by a compounded annual growth of 24%.\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with holding the stock.","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: Risky And Expensive</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: Risky And Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-17 16:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.\nThe company's financial metrics and the nature of their ...\n\n<a href=\"https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1149212873","content_text":"Summary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.\nThe company's financial metrics and the nature of their work are both shrouded in mystery.\nThe company's addressable market may be limited by government and companies' willingness to give it access to sensitive data.\n\nPhoto by Anna Bliokh/E+ via Getty Images\nPalantir (PLTR) just reported a good quarter and plenty have been written about that and other short-term considerations. This article will instead focus on the fundamentals and help investors understand the actual business behind the stock, and the risks of owning it -- and there are many.\nBusiness\nPalantir addresses a common problem faced by large organizations: unlocking the value of siloed data from disparate systems. The company sells an end-to-end software platform and consulting services to an addressable market sized at $119 billion.\nSince each large organization has a unique combination of legacy IT systems, unlocking the value of data requires expensive and time-consuming consulting projects to build custom software. This reality is why Palantir began as more of a consulting firm rather than a software firm (and it still is considered a consulting company by some investors).\nThe company would send consultants to connect, integrate and organize data from across the customer organization, creating a central operating system for data.\nThe company has two flagship platform offerings: Gotham and Foundry. The Gotham product is sold mainly to government customers while Foundry is sold to commercial customers. Both platforms are full-stack, vertically integrated, and deployable in the public and private cloud, on-premise or on classified networks (air-gapped networks), edge devices, laptops, and specialized hardware. Both platforms have specific user-facing applications for different industries.\nGotham, released in 2008, is a platform with multiple applications, including Graph, Gaia, Dossier, Stencil, Video, Table, Ava, Forward, and Mobile. Use cases include planning military missions, tax return analysis to uncover tax evaders, and mapping out criminal networks.\nFoundry, released in 2016, is also a platform with multiple applications, including Monocle, Contour, Object Explorer, Fusion, Workshop, Vertex, Code Authoring, Quiver, Code Workbooks, and Reports. Use cases include increasing aircraft design, trending defect detection in manufacturing plants, and risk management within financial institutions.\nUnderlying Gotham and Foundry is Apollo, a continuous delivery and product infrastructure platform which allows the company to deploy air-gapped and on-premise networks at approximately the same speed as in the field. This is important given the siloed nature of data within large customers, which could grind data integration to a halt.\nPricing for Palantir products is opaque. The company says they price based off of the estimated value Palantir expects its software platforms to deliver to the customer, and how much the customer would have to pay for a consulting firm to build a custom solution.\nSince 2018, the company has been investing in account-based sales force to bring in new customers and to expand within existing customers. The company's field sales force is only around 3-4% of headcount, so this number has room to move up.\nMarket Opportunity\nPalantir's management sizes their total addressable market is at $119 billion, which includes $63 billion from government and $56 billion from commercial.\nThe government market consists of $26 billion domestic and $37 billion international. The commercial market estimate is based potential customers: 6,000 enterprises with over $500 million in revenue and PLTR's estimated annual contract value per customer.\nThe company's addressable market is heavily dependent on domestic politics and geopolitics. The company's mission is to serve the U.S. and its allies, which obviously does not include selling into the large defense budgets of China and Russia. In addition, U.S. allies' desire to gain more sovereignty and reduce reliance on the U.S. may impede adoption of Palantir's platforms.\nDomestically, the company benefited significantly from the 1994 passing of the Federal Streaming Acquisition Act (FASA). Section 2377 requires the federal government to consider and acquire proven and available commercial items in the market \"to the maximum extend possible\". This rule was largely ignored until 2016 when Palantir successfully sued the US Army to enforce the law (Palantir v. United States).\nRisks\nThere are many risks associated with investing in Palantir, which I don't feel is appreciated by the market given the company's high valuation and retail adoration.\nPalantir is more of a service company that does not empower customers to maintain their own data/AI systems, which can be a problem for certain commercial customers. Palantir sells a \"full stack\" technology offering, which is appealing to government agencies but not commercial customers, who are accustomed to buying best-of-breed software.\nPalantir must host customer data in order to integrate it, which can be a problem in certain industries that are subject to privacy regulations.\nPalantir solutions are expensive with an average contract value of $5-6 million. High prices may limit Palantir's addressable market. Reliance on large deals also makes revenue growth lumpy and more difficult to predict.\nPalantir has significant customer concentration risk. In the S-1, the company disclosed that its top 20 customers accounted for 76% of revenue.\nPalantir's addressable market depends heavily on domestic and geopolitics. U.S. allies are increasingly seeking to reduce their reliance on the U.S. in both business (i.e. cracking down on US's tech giants) and defense and may be hesitant to give Palantir access to their most sensitive data.\nPalantir is opaque and discloses significantly fewer financial metrics to investors than peers. This is maybe due to the nature of its business, which deals with highly sensitive information, however, this leaves investors in the dark.\nPalantir may also face significant ESG problems, which is increasingly important as ESG investing is rapidly gaining in popularity. Not only is Palantir a defense contractor, but it also provides surveillance analytics and has a history of being marred by controversies.\nFinancials & Valuation\nPalantir's valuation has fluctuated wildly, reflecting the manic bull market we are in currently.\nWhen the company went public through a direct listing on 9/30/2020, the company traded at around 78 times forward consensus EPS and 12 times enterprise value to forward sales. The stock caught the attention of retail investors and traded to a peak of over 330 times forward EPS and over 47 times sales by January 2021. Currently, the stock is trading at 121 times forward EPS and 22 times forward sales. I frankly have no idea what the valuation of this company ought to be, and neither does the market.\nFor this nose-bleed valuation, you get an expected 35% revenue growth in 2021, a growth rate that bulls expect to be sustained for multiple years, and only modest EPS growth through 2023 as the company reported $0.19 in non-GAAP EPS in 2020 but is expected to only generate $0.26 by 2023. Note that GAAP EPS is still deep in the red.\nWhile often very expensive stocks are expected to easily beat consensus estimates, I'm not so sure about Palantir. From 2016 through 2020, the company only grew revenues by a compounded annual growth of 24%.\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with holding the stock.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4392781,"gmtCreate":1621525422317,"gmtModify":1680789955401,"authorId":3580382876614706,"author":{"id":3580382876614706,"idStr":"3580382876614706","authorId":3580382876614706,"name":"Bustylibra","avatar":"https://static.tigerbbs.com/ee53d184a3c50326ddcb4185c2a74ccb","vip":1,"currentWearingBadge":{"badgeId":"44212b71d0be4ec88898348dbe882e03-1","templateUuid":"44212b71d0be4ec88898348dbe882e03","name":"Boss Tiger","description":"The transaction amount of the securities account reaches $100,000","bigImgUrl":"https://static.tigerbbs.com/c8dfc27c1ee0e25db1c93e9d0b641101","smallImgUrl":"https://static.tigerbbs.com/f43908c142f8a33c78f5bdf0e2897488","grayImgUrl":"https://static.tigerbbs.com/82165ff19cb8a786e8919f92acee5213","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.11.13","exceedPercentage":"60.06%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1101},"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":194399161,"type":1,"supId":4369611,"prevId":0,"content":"Looking forWard to the day wE get tO enjoy our Handsome profits","text":"Looking forWard to the day wE get tO enjoy our Handsome profits","html":"Looking forWard to the day wE get tO enjoy our Handsome profits"},{"id":4369611,"gmtCreate":1621357162276,"gmtModify":1680789544173,"authorId":3580382876614706,"author":{"id":3580382876614706,"idStr":"3580382876614706","authorId":3580382876614706,"name":"Bustylibra","avatar":"https://static.tigerbbs.com/ee53d184a3c50326ddcb4185c2a74ccb","vip":1,"currentWearingBadge":{"badgeId":"44212b71d0be4ec88898348dbe882e03-1","templateUuid":"44212b71d0be4ec88898348dbe882e03","name":"Boss Tiger","description":"The transaction amount of the securities account reaches $100,000","bigImgUrl":"https://static.tigerbbs.com/c8dfc27c1ee0e25db1c93e9d0b641101","smallImgUrl":"https://static.tigerbbs.com/f43908c142f8a33c78f5bdf0e2897488","grayImgUrl":"https://static.tigerbbs.com/82165ff19cb8a786e8919f92acee5213","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.11.13","exceedPercentage":"60.06%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1101},"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":194399161,"type":1,"supId":0,"prevId":0,"content":"Agreed! With such strong Backing from both the government and big corporations support,~$21 is still considered relatively cheap","text":"Agreed! With such strong Backing from both the government and big corporations support,~$21 is still considered relatively cheap","html":"Agreed! With such strong Backing from both the government and big corporations support,~$21 is still considered relatively cheap"},{"id":4369690,"gmtCreate":1621358061658,"gmtModify":1680789543248,"authorId":3581079326476330,"author":{"id":3581079326476330,"idStr":"3581079326476330","authorId":3581079326476330,"name":"胡雁晶_deidre","avatar":"https://static.tigerbbs.com/d3d2ba009a118bfb3b949c2324f68346","vip":1,"currentWearingBadge":{"badgeId":"4e86300037264823b9bb00ff44fc0f19-2","templateUuid":"4e86300037264823b9bb00ff44fc0f19","name":"Live trading challenger","description":"for 4 months ","bigImgUrl":"https://community-static.tradeup.com/news/555a9001c6de2ba066c0850c80b6475a","smallImgUrl":"https://community-static.tradeup.com/news/acd8d1536c6533b9c274771f100401c4","grayImgUrl":"https://community-static.tradeup.com/news/1c254e1fa3d75a472d0f55ebb1dd1ff4","redirectLinkEnabled":0,"redirectLink":"https://www.tigerbrokers.com.sg/activity/market/2023/stock-contest?adcode=StockContest2023","hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.02.03","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":5600},"crmLevel":2,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":194399161,"type":1,"supId":4369611,"prevId":0,"content":"[Grin]","text":"[Grin]","html":"[Grin]"}],"langContent":"EN"},{"id":195485884,"gmtCreate":1621308063348,"gmtModify":1704355539614,"author":{"id":"3575863302540813","authorId":"3575863302540813","name":"BigBeef","avatar":"https://static.tigerbbs.com/bab462817cab7b3a5ed25a7a7a74ed1e","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3575863302540813","authorIdStr":"3575863302540813"},"htmlText":"Yep. And 40 billion valuation is quite a stretch.","listText":"Yep. And 40 billion valuation is quite a stretch.","text":"Yep. And 40 billion valuation is quite a stretch.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/195485884","repostId":1149212873,"repostType":2,"repost":{"id":"1149212873","kind":"news","pubTimestamp":1621240557,"share":"https://ttm.financial/m/news/1149212873?lang=&edition=fundamental","pubTime":"2021-05-17 16:35","market":"us","language":"en","title":"Palantir: Risky And Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=1149212873","media":"seekingalpha","summary":"Summary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and t","content":"Summary\n<ul>\n <li>Palantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.</li>\n <li>The company's financial metrics and the nature of their work are both shrouded in mystery.</li>\n <li>The company's addressable market may be limited by government and companies' willingness to give it access to sensitive data.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/1b5f30934b528b40d7581fde436747dc\" tg-width=\"1536\" tg-height=\"1024\">Photo by Anna Bliokh/E+ via Getty Images\nPalantir (PLTR) just reported a good quarter and plenty have been written about that and other short-term considerations. This article will instead focus on the fundamentals and help investors understand the actual business behind the stock, and the risks of owning it -- and there are many.\nBusiness\nPalantir addresses a common problem faced by large organizations: unlocking the value of siloed data from disparate systems. The company sells an end-to-end software platform and consulting services to an addressable market sized at $119 billion.\nSince each large organization has a unique combination of legacy IT systems, unlocking the value of data requires expensive and time-consuming consulting projects to build custom software. This reality is why Palantir began as more of a consulting firm rather than a software firm (and it still is considered a consulting company by some investors).\nThe company would send consultants to connect, integrate and organize data from across the customer organization, creating a central operating system for data.\nThe company has two flagship platform offerings: Gotham and Foundry. The Gotham product is sold mainly to government customers while Foundry is sold to commercial customers. Both platforms are full-stack, vertically integrated, and deployable in the public and private cloud, on-premise or on classified networks (air-gapped networks), edge devices, laptops, and specialized hardware. Both platforms have specific user-facing applications for different industries.\nGotham, released in 2008, is a platform with multiple applications, including Graph, Gaia, Dossier, Stencil, Video, Table, Ava, Forward, and Mobile. Use cases include planning military missions, tax return analysis to uncover tax evaders, and mapping out criminal networks.\nFoundry, released in 2016, is also a platform with multiple applications, including Monocle, Contour, Object Explorer, Fusion, Workshop, Vertex, Code Authoring, Quiver, Code Workbooks, and Reports. Use cases include increasing aircraft design, trending defect detection in manufacturing plants, and risk management within financial institutions.\nUnderlying Gotham and Foundry is Apollo, a continuous delivery and product infrastructure platform which allows the company to deploy air-gapped and on-premise networks at approximately the same speed as in the field. This is important given the siloed nature of data within large customers, which could grind data integration to a halt.\nPricing for Palantir products is opaque. The company says they price based off of the estimated value Palantir expects its software platforms to deliver to the customer, and how much the customer would have to pay for a consulting firm to build a custom solution.\nSince 2018, the company has been investing in account-based sales force to bring in new customers and to expand within existing customers. The company's field sales force is only around 3-4% of headcount, so this number has room to move up.\nMarket Opportunity\nPalantir's management sizes their total addressable market is at $119 billion, which includes $63 billion from government and $56 billion from commercial.\nThe government market consists of $26 billion domestic and $37 billion international. The commercial market estimate is based potential customers: 6,000 enterprises with over $500 million in revenue and PLTR's estimated annual contract value per customer.\nThe company's addressable market is heavily dependent on domestic politics and geopolitics. The company's mission is to serve the U.S. and its allies, which obviously does not include selling into the large defense budgets of China and Russia. In addition, U.S. allies' desire to gain more sovereignty and reduce reliance on the U.S. may impede adoption of Palantir's platforms.\nDomestically, the company benefited significantly from the 1994 passing of the Federal Streaming Acquisition Act (FASA). Section 2377 requires the federal government to consider and acquire proven and available commercial items in the market \"to the maximum extend possible\". This rule was largely ignored until 2016 when Palantir successfully sued the US Army to enforce the law (Palantir v. United States).\nRisks\nThere are many risks associated with investing in Palantir, which I don't feel is appreciated by the market given the company's high valuation and retail adoration.\nPalantir is more of a service company that does not empower customers to maintain their own data/AI systems, which can be a problem for certain commercial customers. Palantir sells a \"full stack\" technology offering, which is appealing to government agencies but not commercial customers, who are accustomed to buying best-of-breed software.\nPalantir must host customer data in order to integrate it, which can be a problem in certain industries that are subject to privacy regulations.\nPalantir solutions are expensive with an average contract value of $5-6 million. High prices may limit Palantir's addressable market. Reliance on large deals also makes revenue growth lumpy and more difficult to predict.\nPalantir has significant customer concentration risk. In the S-1, the company disclosed that its top 20 customers accounted for 76% of revenue.\nPalantir's addressable market depends heavily on domestic and geopolitics. U.S. allies are increasingly seeking to reduce their reliance on the U.S. in both business (i.e. cracking down on US's tech giants) and defense and may be hesitant to give Palantir access to their most sensitive data.\nPalantir is opaque and discloses significantly fewer financial metrics to investors than peers. This is maybe due to the nature of its business, which deals with highly sensitive information, however, this leaves investors in the dark.\nPalantir may also face significant ESG problems, which is increasingly important as ESG investing is rapidly gaining in popularity. Not only is Palantir a defense contractor, but it also provides surveillance analytics and has a history of being marred by&nbsp;controversies.\nFinancials &amp; Valuation\nPalantir's valuation has fluctuated wildly, reflecting the manic bull market we are in currently.\nWhen the company went public through a direct listing on 9/30/2020, the company traded at around 78 times forward consensus EPS and 12 times enterprise value to forward sales. The stock caught the attention of retail investors and traded to a peak of over 330 times forward EPS and over 47 times sales by January 2021. Currently, the stock is trading at 121 times forward EPS and 22 times forward sales. I frankly have no idea what the valuation of this company ought to be, and neither does the market.\nFor this nose-bleed valuation, you get an expected 35% revenue growth in 2021, a growth rate that bulls expect to be sustained for multiple years, and only modest EPS growth through 2023 as the company reported $0.19 in non-GAAP EPS in 2020 but is expected to only generate $0.26 by 2023. Note that GAAP EPS is still deep in the red.\nWhile often very expensive stocks are expected to easily beat consensus estimates, I'm not so sure about Palantir. From 2016 through 2020, the company only grew revenues by a compounded annual growth of 24%.\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with holding the stock.","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: Risky And Expensive</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: Risky And Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-17 16:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.\nThe company's financial metrics and the nature of their ...\n\n<a href=\"https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1149212873","content_text":"Summary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.\nThe company's financial metrics and the nature of their work are both shrouded in mystery.\nThe company's addressable market may be limited by government and companies' willingness to give it access to sensitive data.\n\nPhoto by Anna Bliokh/E+ via Getty Images\nPalantir (PLTR) just reported a good quarter and plenty have been written about that and other short-term considerations. This article will instead focus on the fundamentals and help investors understand the actual business behind the stock, and the risks of owning it -- and there are many.\nBusiness\nPalantir addresses a common problem faced by large organizations: unlocking the value of siloed data from disparate systems. The company sells an end-to-end software platform and consulting services to an addressable market sized at $119 billion.\nSince each large organization has a unique combination of legacy IT systems, unlocking the value of data requires expensive and time-consuming consulting projects to build custom software. This reality is why Palantir began as more of a consulting firm rather than a software firm (and it still is considered a consulting company by some investors).\nThe company would send consultants to connect, integrate and organize data from across the customer organization, creating a central operating system for data.\nThe company has two flagship platform offerings: Gotham and Foundry. The Gotham product is sold mainly to government customers while Foundry is sold to commercial customers. Both platforms are full-stack, vertically integrated, and deployable in the public and private cloud, on-premise or on classified networks (air-gapped networks), edge devices, laptops, and specialized hardware. Both platforms have specific user-facing applications for different industries.\nGotham, released in 2008, is a platform with multiple applications, including Graph, Gaia, Dossier, Stencil, Video, Table, Ava, Forward, and Mobile. Use cases include planning military missions, tax return analysis to uncover tax evaders, and mapping out criminal networks.\nFoundry, released in 2016, is also a platform with multiple applications, including Monocle, Contour, Object Explorer, Fusion, Workshop, Vertex, Code Authoring, Quiver, Code Workbooks, and Reports. Use cases include increasing aircraft design, trending defect detection in manufacturing plants, and risk management within financial institutions.\nUnderlying Gotham and Foundry is Apollo, a continuous delivery and product infrastructure platform which allows the company to deploy air-gapped and on-premise networks at approximately the same speed as in the field. This is important given the siloed nature of data within large customers, which could grind data integration to a halt.\nPricing for Palantir products is opaque. The company says they price based off of the estimated value Palantir expects its software platforms to deliver to the customer, and how much the customer would have to pay for a consulting firm to build a custom solution.\nSince 2018, the company has been investing in account-based sales force to bring in new customers and to expand within existing customers. The company's field sales force is only around 3-4% of headcount, so this number has room to move up.\nMarket Opportunity\nPalantir's management sizes their total addressable market is at $119 billion, which includes $63 billion from government and $56 billion from commercial.\nThe government market consists of $26 billion domestic and $37 billion international. The commercial market estimate is based potential customers: 6,000 enterprises with over $500 million in revenue and PLTR's estimated annual contract value per customer.\nThe company's addressable market is heavily dependent on domestic politics and geopolitics. The company's mission is to serve the U.S. and its allies, which obviously does not include selling into the large defense budgets of China and Russia. In addition, U.S. allies' desire to gain more sovereignty and reduce reliance on the U.S. may impede adoption of Palantir's platforms.\nDomestically, the company benefited significantly from the 1994 passing of the Federal Streaming Acquisition Act (FASA). Section 2377 requires the federal government to consider and acquire proven and available commercial items in the market \"to the maximum extend possible\". This rule was largely ignored until 2016 when Palantir successfully sued the US Army to enforce the law (Palantir v. United States).\nRisks\nThere are many risks associated with investing in Palantir, which I don't feel is appreciated by the market given the company's high valuation and retail adoration.\nPalantir is more of a service company that does not empower customers to maintain their own data/AI systems, which can be a problem for certain commercial customers. Palantir sells a \"full stack\" technology offering, which is appealing to government agencies but not commercial customers, who are accustomed to buying best-of-breed software.\nPalantir must host customer data in order to integrate it, which can be a problem in certain industries that are subject to privacy regulations.\nPalantir solutions are expensive with an average contract value of $5-6 million. High prices may limit Palantir's addressable market. Reliance on large deals also makes revenue growth lumpy and more difficult to predict.\nPalantir has significant customer concentration risk. In the S-1, the company disclosed that its top 20 customers accounted for 76% of revenue.\nPalantir's addressable market depends heavily on domestic and geopolitics. U.S. allies are increasingly seeking to reduce their reliance on the U.S. in both business (i.e. cracking down on US's tech giants) and defense and may be hesitant to give Palantir access to their most sensitive data.\nPalantir is opaque and discloses significantly fewer financial metrics to investors than peers. This is maybe due to the nature of its business, which deals with highly sensitive information, however, this leaves investors in the dark.\nPalantir may also face significant ESG problems, which is increasingly important as ESG investing is rapidly gaining in popularity. Not only is Palantir a defense contractor, but it also provides surveillance analytics and has a history of being marred by controversies.\nFinancials & Valuation\nPalantir's valuation has fluctuated wildly, reflecting the manic bull market we are in currently.\nWhen the company went public through a direct listing on 9/30/2020, the company traded at around 78 times forward consensus EPS and 12 times enterprise value to forward sales. The stock caught the attention of retail investors and traded to a peak of over 330 times forward EPS and over 47 times sales by January 2021. Currently, the stock is trading at 121 times forward EPS and 22 times forward sales. I frankly have no idea what the valuation of this company ought to be, and neither does the market.\nFor this nose-bleed valuation, you get an expected 35% revenue growth in 2021, a growth rate that bulls expect to be sustained for multiple years, and only modest EPS growth through 2023 as the company reported $0.19 in non-GAAP EPS in 2020 but is expected to only generate $0.26 by 2023. Note that GAAP EPS is still deep in the red.\nWhile often very expensive stocks are expected to easily beat consensus estimates, I'm not so sure about Palantir. From 2016 through 2020, the company only grew revenues by a compounded annual growth of 24%.\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with holding the stock.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":195638624,"gmtCreate":1621291721668,"gmtModify":1704355100950,"author":{"id":"3583106134648492","authorId":"3583106134648492","name":"Frosty4ever","avatar":"https://community-static.tradeup.com/news/58fdf90023b13bdabb45b46bb0d645e1","vip":1,"hat":"https://static.tigerbbs.com/b073a07f77dbe6b3bec6b12311fde6bd","crmLevel":4,"crmLevelSwitch":1,"idStr":"3583106134648492","authorIdStr":"3583106134648492"},"htmlText":"He didn't mention there's a lot of stickiness for both government and corporate contacts despite being 'expensive'. They give real value&nbsp;hence the recontracts.&nbsp;","listText":"He didn't mention there's a lot of stickiness for both government and corporate contacts despite being 'expensive'. They give real value&nbsp;hence the recontracts.&nbsp;","text":"He didn't mention there's a lot of stickiness for both government and corporate contacts despite being 'expensive'. They give real value hence the recontracts.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/195638624","repostId":1149212873,"repostType":2,"repost":{"id":"1149212873","kind":"news","pubTimestamp":1621240557,"share":"https://ttm.financial/m/news/1149212873?lang=&edition=fundamental","pubTime":"2021-05-17 16:35","market":"us","language":"en","title":"Palantir: Risky And Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=1149212873","media":"seekingalpha","summary":"Summary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and t","content":"Summary\n<ul>\n <li>Palantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.</li>\n <li>The company's financial metrics and the nature of their work are both shrouded in mystery.</li>\n <li>The company's addressable market may be limited by government and companies' willingness to give it access to sensitive data.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/1b5f30934b528b40d7581fde436747dc\" tg-width=\"1536\" tg-height=\"1024\">Photo by Anna Bliokh/E+ via Getty Images\nPalantir (PLTR) just reported a good quarter and plenty have been written about that and other short-term considerations. This article will instead focus on the fundamentals and help investors understand the actual business behind the stock, and the risks of owning it -- and there are many.\nBusiness\nPalantir addresses a common problem faced by large organizations: unlocking the value of siloed data from disparate systems. The company sells an end-to-end software platform and consulting services to an addressable market sized at $119 billion.\nSince each large organization has a unique combination of legacy IT systems, unlocking the value of data requires expensive and time-consuming consulting projects to build custom software. This reality is why Palantir began as more of a consulting firm rather than a software firm (and it still is considered a consulting company by some investors).\nThe company would send consultants to connect, integrate and organize data from across the customer organization, creating a central operating system for data.\nThe company has two flagship platform offerings: Gotham and Foundry. The Gotham product is sold mainly to government customers while Foundry is sold to commercial customers. Both platforms are full-stack, vertically integrated, and deployable in the public and private cloud, on-premise or on classified networks (air-gapped networks), edge devices, laptops, and specialized hardware. Both platforms have specific user-facing applications for different industries.\nGotham, released in 2008, is a platform with multiple applications, including Graph, Gaia, Dossier, Stencil, Video, Table, Ava, Forward, and Mobile. Use cases include planning military missions, tax return analysis to uncover tax evaders, and mapping out criminal networks.\nFoundry, released in 2016, is also a platform with multiple applications, including Monocle, Contour, Object Explorer, Fusion, Workshop, Vertex, Code Authoring, Quiver, Code Workbooks, and Reports. Use cases include increasing aircraft design, trending defect detection in manufacturing plants, and risk management within financial institutions.\nUnderlying Gotham and Foundry is Apollo, a continuous delivery and product infrastructure platform which allows the company to deploy air-gapped and on-premise networks at approximately the same speed as in the field. This is important given the siloed nature of data within large customers, which could grind data integration to a halt.\nPricing for Palantir products is opaque. The company says they price based off of the estimated value Palantir expects its software platforms to deliver to the customer, and how much the customer would have to pay for a consulting firm to build a custom solution.\nSince 2018, the company has been investing in account-based sales force to bring in new customers and to expand within existing customers. The company's field sales force is only around 3-4% of headcount, so this number has room to move up.\nMarket Opportunity\nPalantir's management sizes their total addressable market is at $119 billion, which includes $63 billion from government and $56 billion from commercial.\nThe government market consists of $26 billion domestic and $37 billion international. The commercial market estimate is based potential customers: 6,000 enterprises with over $500 million in revenue and PLTR's estimated annual contract value per customer.\nThe company's addressable market is heavily dependent on domestic politics and geopolitics. The company's mission is to serve the U.S. and its allies, which obviously does not include selling into the large defense budgets of China and Russia. In addition, U.S. allies' desire to gain more sovereignty and reduce reliance on the U.S. may impede adoption of Palantir's platforms.\nDomestically, the company benefited significantly from the 1994 passing of the Federal Streaming Acquisition Act (FASA). Section 2377 requires the federal government to consider and acquire proven and available commercial items in the market \"to the maximum extend possible\". This rule was largely ignored until 2016 when Palantir successfully sued the US Army to enforce the law (Palantir v. United States).\nRisks\nThere are many risks associated with investing in Palantir, which I don't feel is appreciated by the market given the company's high valuation and retail adoration.\nPalantir is more of a service company that does not empower customers to maintain their own data/AI systems, which can be a problem for certain commercial customers. Palantir sells a \"full stack\" technology offering, which is appealing to government agencies but not commercial customers, who are accustomed to buying best-of-breed software.\nPalantir must host customer data in order to integrate it, which can be a problem in certain industries that are subject to privacy regulations.\nPalantir solutions are expensive with an average contract value of $5-6 million. High prices may limit Palantir's addressable market. Reliance on large deals also makes revenue growth lumpy and more difficult to predict.\nPalantir has significant customer concentration risk. In the S-1, the company disclosed that its top 20 customers accounted for 76% of revenue.\nPalantir's addressable market depends heavily on domestic and geopolitics. U.S. allies are increasingly seeking to reduce their reliance on the U.S. in both business (i.e. cracking down on US's tech giants) and defense and may be hesitant to give Palantir access to their most sensitive data.\nPalantir is opaque and discloses significantly fewer financial metrics to investors than peers. This is maybe due to the nature of its business, which deals with highly sensitive information, however, this leaves investors in the dark.\nPalantir may also face significant ESG problems, which is increasingly important as ESG investing is rapidly gaining in popularity. Not only is Palantir a defense contractor, but it also provides surveillance analytics and has a history of being marred by&nbsp;controversies.\nFinancials &amp; Valuation\nPalantir's valuation has fluctuated wildly, reflecting the manic bull market we are in currently.\nWhen the company went public through a direct listing on 9/30/2020, the company traded at around 78 times forward consensus EPS and 12 times enterprise value to forward sales. The stock caught the attention of retail investors and traded to a peak of over 330 times forward EPS and over 47 times sales by January 2021. Currently, the stock is trading at 121 times forward EPS and 22 times forward sales. I frankly have no idea what the valuation of this company ought to be, and neither does the market.\nFor this nose-bleed valuation, you get an expected 35% revenue growth in 2021, a growth rate that bulls expect to be sustained for multiple years, and only modest EPS growth through 2023 as the company reported $0.19 in non-GAAP EPS in 2020 but is expected to only generate $0.26 by 2023. Note that GAAP EPS is still deep in the red.\nWhile often very expensive stocks are expected to easily beat consensus estimates, I'm not so sure about Palantir. From 2016 through 2020, the company only grew revenues by a compounded annual growth of 24%.\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with holding the stock.","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: Risky And Expensive</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: Risky And Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-17 16:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.\nThe company's financial metrics and the nature of their ...\n\n<a href=\"https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1149212873","content_text":"Summary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.\nThe company's financial metrics and the nature of their work are both shrouded in mystery.\nThe company's addressable market may be limited by government and companies' willingness to give it access to sensitive data.\n\nPhoto by Anna Bliokh/E+ via Getty Images\nPalantir (PLTR) just reported a good quarter and plenty have been written about that and other short-term considerations. This article will instead focus on the fundamentals and help investors understand the actual business behind the stock, and the risks of owning it -- and there are many.\nBusiness\nPalantir addresses a common problem faced by large organizations: unlocking the value of siloed data from disparate systems. The company sells an end-to-end software platform and consulting services to an addressable market sized at $119 billion.\nSince each large organization has a unique combination of legacy IT systems, unlocking the value of data requires expensive and time-consuming consulting projects to build custom software. This reality is why Palantir began as more of a consulting firm rather than a software firm (and it still is considered a consulting company by some investors).\nThe company would send consultants to connect, integrate and organize data from across the customer organization, creating a central operating system for data.\nThe company has two flagship platform offerings: Gotham and Foundry. The Gotham product is sold mainly to government customers while Foundry is sold to commercial customers. Both platforms are full-stack, vertically integrated, and deployable in the public and private cloud, on-premise or on classified networks (air-gapped networks), edge devices, laptops, and specialized hardware. Both platforms have specific user-facing applications for different industries.\nGotham, released in 2008, is a platform with multiple applications, including Graph, Gaia, Dossier, Stencil, Video, Table, Ava, Forward, and Mobile. Use cases include planning military missions, tax return analysis to uncover tax evaders, and mapping out criminal networks.\nFoundry, released in 2016, is also a platform with multiple applications, including Monocle, Contour, Object Explorer, Fusion, Workshop, Vertex, Code Authoring, Quiver, Code Workbooks, and Reports. Use cases include increasing aircraft design, trending defect detection in manufacturing plants, and risk management within financial institutions.\nUnderlying Gotham and Foundry is Apollo, a continuous delivery and product infrastructure platform which allows the company to deploy air-gapped and on-premise networks at approximately the same speed as in the field. This is important given the siloed nature of data within large customers, which could grind data integration to a halt.\nPricing for Palantir products is opaque. The company says they price based off of the estimated value Palantir expects its software platforms to deliver to the customer, and how much the customer would have to pay for a consulting firm to build a custom solution.\nSince 2018, the company has been investing in account-based sales force to bring in new customers and to expand within existing customers. The company's field sales force is only around 3-4% of headcount, so this number has room to move up.\nMarket Opportunity\nPalantir's management sizes their total addressable market is at $119 billion, which includes $63 billion from government and $56 billion from commercial.\nThe government market consists of $26 billion domestic and $37 billion international. The commercial market estimate is based potential customers: 6,000 enterprises with over $500 million in revenue and PLTR's estimated annual contract value per customer.\nThe company's addressable market is heavily dependent on domestic politics and geopolitics. The company's mission is to serve the U.S. and its allies, which obviously does not include selling into the large defense budgets of China and Russia. In addition, U.S. allies' desire to gain more sovereignty and reduce reliance on the U.S. may impede adoption of Palantir's platforms.\nDomestically, the company benefited significantly from the 1994 passing of the Federal Streaming Acquisition Act (FASA). Section 2377 requires the federal government to consider and acquire proven and available commercial items in the market \"to the maximum extend possible\". This rule was largely ignored until 2016 when Palantir successfully sued the US Army to enforce the law (Palantir v. United States).\nRisks\nThere are many risks associated with investing in Palantir, which I don't feel is appreciated by the market given the company's high valuation and retail adoration.\nPalantir is more of a service company that does not empower customers to maintain their own data/AI systems, which can be a problem for certain commercial customers. Palantir sells a \"full stack\" technology offering, which is appealing to government agencies but not commercial customers, who are accustomed to buying best-of-breed software.\nPalantir must host customer data in order to integrate it, which can be a problem in certain industries that are subject to privacy regulations.\nPalantir solutions are expensive with an average contract value of $5-6 million. High prices may limit Palantir's addressable market. Reliance on large deals also makes revenue growth lumpy and more difficult to predict.\nPalantir has significant customer concentration risk. In the S-1, the company disclosed that its top 20 customers accounted for 76% of revenue.\nPalantir's addressable market depends heavily on domestic and geopolitics. U.S. allies are increasingly seeking to reduce their reliance on the U.S. in both business (i.e. cracking down on US's tech giants) and defense and may be hesitant to give Palantir access to their most sensitive data.\nPalantir is opaque and discloses significantly fewer financial metrics to investors than peers. This is maybe due to the nature of its business, which deals with highly sensitive information, however, this leaves investors in the dark.\nPalantir may also face significant ESG problems, which is increasingly important as ESG investing is rapidly gaining in popularity. Not only is Palantir a defense contractor, but it also provides surveillance analytics and has a history of being marred by controversies.\nFinancials & Valuation\nPalantir's valuation has fluctuated wildly, reflecting the manic bull market we are in currently.\nWhen the company went public through a direct listing on 9/30/2020, the company traded at around 78 times forward consensus EPS and 12 times enterprise value to forward sales. The stock caught the attention of retail investors and traded to a peak of over 330 times forward EPS and over 47 times sales by January 2021. Currently, the stock is trading at 121 times forward EPS and 22 times forward sales. I frankly have no idea what the valuation of this company ought to be, and neither does the market.\nFor this nose-bleed valuation, you get an expected 35% revenue growth in 2021, a growth rate that bulls expect to be sustained for multiple years, and only modest EPS growth through 2023 as the company reported $0.19 in non-GAAP EPS in 2020 but is expected to only generate $0.26 by 2023. Note that GAAP EPS is still deep in the red.\nWhile often very expensive stocks are expected to easily beat consensus estimates, I'm not so sure about Palantir. From 2016 through 2020, the company only grew revenues by a compounded annual growth of 24%.\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with holding the stock.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4369613,"gmtCreate":1621357171980,"gmtModify":1680789544014,"authorId":3580382876614706,"author":{"id":3580382876614706,"idStr":"3580382876614706","authorId":3580382876614706,"name":"Bustylibra","avatar":"https://static.tigerbbs.com/ee53d184a3c50326ddcb4185c2a74ccb","vip":1,"currentWearingBadge":{"badgeId":"44212b71d0be4ec88898348dbe882e03-1","templateUuid":"44212b71d0be4ec88898348dbe882e03","name":"Boss Tiger","description":"The transaction amount of the securities account reaches $100,000","bigImgUrl":"https://static.tigerbbs.com/c8dfc27c1ee0e25db1c93e9d0b641101","smallImgUrl":"https://static.tigerbbs.com/f43908c142f8a33c78f5bdf0e2897488","grayImgUrl":"https://static.tigerbbs.com/82165ff19cb8a786e8919f92acee5213","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.11.13","exceedPercentage":"60.06%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1101},"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":195638624,"type":1,"supId":0,"prevId":0,"content":"Exactly","text":"Exactly","html":"Exactly"}],"langContent":"EN"},{"id":195883485,"gmtCreate":1621271743547,"gmtModify":1704354994579,"author":{"id":"3567209468158570","authorId":"3567209468158570","name":"Jerrywong76","avatar":"https://static.tigerbbs.com/cb628024b8bf8a62db30a806c6571a54","vip":1,"crmLevel":7,"crmLevelSwitch":0,"idStr":"3567209468158570","authorIdStr":"3567209468158570"},"htmlText":"That is the same thing they said about testla1 year ago","listText":"That is the same thing they said about testla1 year ago","text":"That is the same thing they said about testla1 year ago","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/195883485","repostId":1149212873,"repostType":2,"repost":{"id":"1149212873","kind":"news","pubTimestamp":1621240557,"share":"https://ttm.financial/m/news/1149212873?lang=&edition=fundamental","pubTime":"2021-05-17 16:35","market":"us","language":"en","title":"Palantir: Risky And Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=1149212873","media":"seekingalpha","summary":"Summary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and t","content":"Summary\n<ul>\n <li>Palantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.</li>\n <li>The company's financial metrics and the nature of their work are both shrouded in mystery.</li>\n <li>The company's addressable market may be limited by government and companies' willingness to give it access to sensitive data.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/1b5f30934b528b40d7581fde436747dc\" tg-width=\"1536\" tg-height=\"1024\">Photo by Anna Bliokh/E+ via Getty Images\nPalantir (PLTR) just reported a good quarter and plenty have been written about that and other short-term considerations. This article will instead focus on the fundamentals and help investors understand the actual business behind the stock, and the risks of owning it -- and there are many.\nBusiness\nPalantir addresses a common problem faced by large organizations: unlocking the value of siloed data from disparate systems. The company sells an end-to-end software platform and consulting services to an addressable market sized at $119 billion.\nSince each large organization has a unique combination of legacy IT systems, unlocking the value of data requires expensive and time-consuming consulting projects to build custom software. This reality is why Palantir began as more of a consulting firm rather than a software firm (and it still is considered a consulting company by some investors).\nThe company would send consultants to connect, integrate and organize data from across the customer organization, creating a central operating system for data.\nThe company has two flagship platform offerings: Gotham and Foundry. The Gotham product is sold mainly to government customers while Foundry is sold to commercial customers. Both platforms are full-stack, vertically integrated, and deployable in the public and private cloud, on-premise or on classified networks (air-gapped networks), edge devices, laptops, and specialized hardware. Both platforms have specific user-facing applications for different industries.\nGotham, released in 2008, is a platform with multiple applications, including Graph, Gaia, Dossier, Stencil, Video, Table, Ava, Forward, and Mobile. Use cases include planning military missions, tax return analysis to uncover tax evaders, and mapping out criminal networks.\nFoundry, released in 2016, is also a platform with multiple applications, including Monocle, Contour, Object Explorer, Fusion, Workshop, Vertex, Code Authoring, Quiver, Code Workbooks, and Reports. Use cases include increasing aircraft design, trending defect detection in manufacturing plants, and risk management within financial institutions.\nUnderlying Gotham and Foundry is Apollo, a continuous delivery and product infrastructure platform which allows the company to deploy air-gapped and on-premise networks at approximately the same speed as in the field. This is important given the siloed nature of data within large customers, which could grind data integration to a halt.\nPricing for Palantir products is opaque. The company says they price based off of the estimated value Palantir expects its software platforms to deliver to the customer, and how much the customer would have to pay for a consulting firm to build a custom solution.\nSince 2018, the company has been investing in account-based sales force to bring in new customers and to expand within existing customers. The company's field sales force is only around 3-4% of headcount, so this number has room to move up.\nMarket Opportunity\nPalantir's management sizes their total addressable market is at $119 billion, which includes $63 billion from government and $56 billion from commercial.\nThe government market consists of $26 billion domestic and $37 billion international. The commercial market estimate is based potential customers: 6,000 enterprises with over $500 million in revenue and PLTR's estimated annual contract value per customer.\nThe company's addressable market is heavily dependent on domestic politics and geopolitics. The company's mission is to serve the U.S. and its allies, which obviously does not include selling into the large defense budgets of China and Russia. In addition, U.S. allies' desire to gain more sovereignty and reduce reliance on the U.S. may impede adoption of Palantir's platforms.\nDomestically, the company benefited significantly from the 1994 passing of the Federal Streaming Acquisition Act (FASA). Section 2377 requires the federal government to consider and acquire proven and available commercial items in the market \"to the maximum extend possible\". This rule was largely ignored until 2016 when Palantir successfully sued the US Army to enforce the law (Palantir v. United States).\nRisks\nThere are many risks associated with investing in Palantir, which I don't feel is appreciated by the market given the company's high valuation and retail adoration.\nPalantir is more of a service company that does not empower customers to maintain their own data/AI systems, which can be a problem for certain commercial customers. Palantir sells a \"full stack\" technology offering, which is appealing to government agencies but not commercial customers, who are accustomed to buying best-of-breed software.\nPalantir must host customer data in order to integrate it, which can be a problem in certain industries that are subject to privacy regulations.\nPalantir solutions are expensive with an average contract value of $5-6 million. High prices may limit Palantir's addressable market. Reliance on large deals also makes revenue growth lumpy and more difficult to predict.\nPalantir has significant customer concentration risk. In the S-1, the company disclosed that its top 20 customers accounted for 76% of revenue.\nPalantir's addressable market depends heavily on domestic and geopolitics. U.S. allies are increasingly seeking to reduce their reliance on the U.S. in both business (i.e. cracking down on US's tech giants) and defense and may be hesitant to give Palantir access to their most sensitive data.\nPalantir is opaque and discloses significantly fewer financial metrics to investors than peers. This is maybe due to the nature of its business, which deals with highly sensitive information, however, this leaves investors in the dark.\nPalantir may also face significant ESG problems, which is increasingly important as ESG investing is rapidly gaining in popularity. Not only is Palantir a defense contractor, but it also provides surveillance analytics and has a history of being marred by&nbsp;controversies.\nFinancials &amp; Valuation\nPalantir's valuation has fluctuated wildly, reflecting the manic bull market we are in currently.\nWhen the company went public through a direct listing on 9/30/2020, the company traded at around 78 times forward consensus EPS and 12 times enterprise value to forward sales. The stock caught the attention of retail investors and traded to a peak of over 330 times forward EPS and over 47 times sales by January 2021. Currently, the stock is trading at 121 times forward EPS and 22 times forward sales. I frankly have no idea what the valuation of this company ought to be, and neither does the market.\nFor this nose-bleed valuation, you get an expected 35% revenue growth in 2021, a growth rate that bulls expect to be sustained for multiple years, and only modest EPS growth through 2023 as the company reported $0.19 in non-GAAP EPS in 2020 but is expected to only generate $0.26 by 2023. Note that GAAP EPS is still deep in the red.\nWhile often very expensive stocks are expected to easily beat consensus estimates, I'm not so sure about Palantir. From 2016 through 2020, the company only grew revenues by a compounded annual growth of 24%.\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with holding the stock.","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: Risky And Expensive</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: Risky And Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-17 16:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.\nThe company's financial metrics and the nature of their ...\n\n<a href=\"https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1149212873","content_text":"Summary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.\nThe company's financial metrics and the nature of their work are both shrouded in mystery.\nThe company's addressable market may be limited by government and companies' willingness to give it access to sensitive data.\n\nPhoto by Anna Bliokh/E+ via Getty Images\nPalantir (PLTR) just reported a good quarter and plenty have been written about that and other short-term considerations. This article will instead focus on the fundamentals and help investors understand the actual business behind the stock, and the risks of owning it -- and there are many.\nBusiness\nPalantir addresses a common problem faced by large organizations: unlocking the value of siloed data from disparate systems. The company sells an end-to-end software platform and consulting services to an addressable market sized at $119 billion.\nSince each large organization has a unique combination of legacy IT systems, unlocking the value of data requires expensive and time-consuming consulting projects to build custom software. This reality is why Palantir began as more of a consulting firm rather than a software firm (and it still is considered a consulting company by some investors).\nThe company would send consultants to connect, integrate and organize data from across the customer organization, creating a central operating system for data.\nThe company has two flagship platform offerings: Gotham and Foundry. The Gotham product is sold mainly to government customers while Foundry is sold to commercial customers. Both platforms are full-stack, vertically integrated, and deployable in the public and private cloud, on-premise or on classified networks (air-gapped networks), edge devices, laptops, and specialized hardware. Both platforms have specific user-facing applications for different industries.\nGotham, released in 2008, is a platform with multiple applications, including Graph, Gaia, Dossier, Stencil, Video, Table, Ava, Forward, and Mobile. Use cases include planning military missions, tax return analysis to uncover tax evaders, and mapping out criminal networks.\nFoundry, released in 2016, is also a platform with multiple applications, including Monocle, Contour, Object Explorer, Fusion, Workshop, Vertex, Code Authoring, Quiver, Code Workbooks, and Reports. Use cases include increasing aircraft design, trending defect detection in manufacturing plants, and risk management within financial institutions.\nUnderlying Gotham and Foundry is Apollo, a continuous delivery and product infrastructure platform which allows the company to deploy air-gapped and on-premise networks at approximately the same speed as in the field. This is important given the siloed nature of data within large customers, which could grind data integration to a halt.\nPricing for Palantir products is opaque. The company says they price based off of the estimated value Palantir expects its software platforms to deliver to the customer, and how much the customer would have to pay for a consulting firm to build a custom solution.\nSince 2018, the company has been investing in account-based sales force to bring in new customers and to expand within existing customers. The company's field sales force is only around 3-4% of headcount, so this number has room to move up.\nMarket Opportunity\nPalantir's management sizes their total addressable market is at $119 billion, which includes $63 billion from government and $56 billion from commercial.\nThe government market consists of $26 billion domestic and $37 billion international. The commercial market estimate is based potential customers: 6,000 enterprises with over $500 million in revenue and PLTR's estimated annual contract value per customer.\nThe company's addressable market is heavily dependent on domestic politics and geopolitics. The company's mission is to serve the U.S. and its allies, which obviously does not include selling into the large defense budgets of China and Russia. In addition, U.S. allies' desire to gain more sovereignty and reduce reliance on the U.S. may impede adoption of Palantir's platforms.\nDomestically, the company benefited significantly from the 1994 passing of the Federal Streaming Acquisition Act (FASA). Section 2377 requires the federal government to consider and acquire proven and available commercial items in the market \"to the maximum extend possible\". This rule was largely ignored until 2016 when Palantir successfully sued the US Army to enforce the law (Palantir v. United States).\nRisks\nThere are many risks associated with investing in Palantir, which I don't feel is appreciated by the market given the company's high valuation and retail adoration.\nPalantir is more of a service company that does not empower customers to maintain their own data/AI systems, which can be a problem for certain commercial customers. Palantir sells a \"full stack\" technology offering, which is appealing to government agencies but not commercial customers, who are accustomed to buying best-of-breed software.\nPalantir must host customer data in order to integrate it, which can be a problem in certain industries that are subject to privacy regulations.\nPalantir solutions are expensive with an average contract value of $5-6 million. High prices may limit Palantir's addressable market. Reliance on large deals also makes revenue growth lumpy and more difficult to predict.\nPalantir has significant customer concentration risk. In the S-1, the company disclosed that its top 20 customers accounted for 76% of revenue.\nPalantir's addressable market depends heavily on domestic and geopolitics. U.S. allies are increasingly seeking to reduce their reliance on the U.S. in both business (i.e. cracking down on US's tech giants) and defense and may be hesitant to give Palantir access to their most sensitive data.\nPalantir is opaque and discloses significantly fewer financial metrics to investors than peers. This is maybe due to the nature of its business, which deals with highly sensitive information, however, this leaves investors in the dark.\nPalantir may also face significant ESG problems, which is increasingly important as ESG investing is rapidly gaining in popularity. Not only is Palantir a defense contractor, but it also provides surveillance analytics and has a history of being marred by controversies.\nFinancials & Valuation\nPalantir's valuation has fluctuated wildly, reflecting the manic bull market we are in currently.\nWhen the company went public through a direct listing on 9/30/2020, the company traded at around 78 times forward consensus EPS and 12 times enterprise value to forward sales. The stock caught the attention of retail investors and traded to a peak of over 330 times forward EPS and over 47 times sales by January 2021. Currently, the stock is trading at 121 times forward EPS and 22 times forward sales. I frankly have no idea what the valuation of this company ought to be, and neither does the market.\nFor this nose-bleed valuation, you get an expected 35% revenue growth in 2021, a growth rate that bulls expect to be sustained for multiple years, and only modest EPS growth through 2023 as the company reported $0.19 in non-GAAP EPS in 2020 but is expected to only generate $0.26 by 2023. Note that GAAP EPS is still deep in the red.\nWhile often very expensive stocks are expected to easily beat consensus estimates, I'm not so sure about Palantir. From 2016 through 2020, the company only grew revenues by a compounded annual growth of 24%.\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with holding the stock.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":195160047,"gmtCreate":1621262860289,"gmtModify":1704354869339,"author":{"id":"3554765702294271","authorId":"3554765702294271","name":"gukoh","avatar":"https://static.tigerbbs.com/17d4c9cd4ce6c220f57ca9cfc9bb02c6","vip":1,"hat":"https://static.tigerbbs.com/0a8758340a08196056f8bc1e54805193","crmLevel":4,"crmLevelSwitch":1,"idStr":"3554765702294271","authorIdStr":"3554765702294271"},"htmlText":"Written by hedge fund to make you sell off? To the moon pltrrr","listText":"Written by hedge fund to make you sell off? To the moon pltrrr","text":"Written by hedge fund to make you sell off? To the moon pltrrr","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/195160047","repostId":1149212873,"repostType":2,"repost":{"id":"1149212873","kind":"news","pubTimestamp":1621240557,"share":"https://ttm.financial/m/news/1149212873?lang=&edition=fundamental","pubTime":"2021-05-17 16:35","market":"us","language":"en","title":"Palantir: Risky And Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=1149212873","media":"seekingalpha","summary":"Summary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and t","content":"Summary\n<ul>\n <li>Palantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.</li>\n <li>The company's financial metrics and the nature of their work are both shrouded in mystery.</li>\n <li>The company's addressable market may be limited by government and companies' willingness to give it access to sensitive data.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/1b5f30934b528b40d7581fde436747dc\" tg-width=\"1536\" tg-height=\"1024\">Photo by Anna Bliokh/E+ via Getty Images\nPalantir (PLTR) just reported a good quarter and plenty have been written about that and other short-term considerations. This article will instead focus on the fundamentals and help investors understand the actual business behind the stock, and the risks of owning it -- and there are many.\nBusiness\nPalantir addresses a common problem faced by large organizations: unlocking the value of siloed data from disparate systems. The company sells an end-to-end software platform and consulting services to an addressable market sized at $119 billion.\nSince each large organization has a unique combination of legacy IT systems, unlocking the value of data requires expensive and time-consuming consulting projects to build custom software. This reality is why Palantir began as more of a consulting firm rather than a software firm (and it still is considered a consulting company by some investors).\nThe company would send consultants to connect, integrate and organize data from across the customer organization, creating a central operating system for data.\nThe company has two flagship platform offerings: Gotham and Foundry. The Gotham product is sold mainly to government customers while Foundry is sold to commercial customers. Both platforms are full-stack, vertically integrated, and deployable in the public and private cloud, on-premise or on classified networks (air-gapped networks), edge devices, laptops, and specialized hardware. Both platforms have specific user-facing applications for different industries.\nGotham, released in 2008, is a platform with multiple applications, including Graph, Gaia, Dossier, Stencil, Video, Table, Ava, Forward, and Mobile. Use cases include planning military missions, tax return analysis to uncover tax evaders, and mapping out criminal networks.\nFoundry, released in 2016, is also a platform with multiple applications, including Monocle, Contour, Object Explorer, Fusion, Workshop, Vertex, Code Authoring, Quiver, Code Workbooks, and Reports. Use cases include increasing aircraft design, trending defect detection in manufacturing plants, and risk management within financial institutions.\nUnderlying Gotham and Foundry is Apollo, a continuous delivery and product infrastructure platform which allows the company to deploy air-gapped and on-premise networks at approximately the same speed as in the field. This is important given the siloed nature of data within large customers, which could grind data integration to a halt.\nPricing for Palantir products is opaque. The company says they price based off of the estimated value Palantir expects its software platforms to deliver to the customer, and how much the customer would have to pay for a consulting firm to build a custom solution.\nSince 2018, the company has been investing in account-based sales force to bring in new customers and to expand within existing customers. The company's field sales force is only around 3-4% of headcount, so this number has room to move up.\nMarket Opportunity\nPalantir's management sizes their total addressable market is at $119 billion, which includes $63 billion from government and $56 billion from commercial.\nThe government market consists of $26 billion domestic and $37 billion international. The commercial market estimate is based potential customers: 6,000 enterprises with over $500 million in revenue and PLTR's estimated annual contract value per customer.\nThe company's addressable market is heavily dependent on domestic politics and geopolitics. The company's mission is to serve the U.S. and its allies, which obviously does not include selling into the large defense budgets of China and Russia. In addition, U.S. allies' desire to gain more sovereignty and reduce reliance on the U.S. may impede adoption of Palantir's platforms.\nDomestically, the company benefited significantly from the 1994 passing of the Federal Streaming Acquisition Act (FASA). Section 2377 requires the federal government to consider and acquire proven and available commercial items in the market \"to the maximum extend possible\". This rule was largely ignored until 2016 when Palantir successfully sued the US Army to enforce the law (Palantir v. United States).\nRisks\nThere are many risks associated with investing in Palantir, which I don't feel is appreciated by the market given the company's high valuation and retail adoration.\nPalantir is more of a service company that does not empower customers to maintain their own data/AI systems, which can be a problem for certain commercial customers. Palantir sells a \"full stack\" technology offering, which is appealing to government agencies but not commercial customers, who are accustomed to buying best-of-breed software.\nPalantir must host customer data in order to integrate it, which can be a problem in certain industries that are subject to privacy regulations.\nPalantir solutions are expensive with an average contract value of $5-6 million. High prices may limit Palantir's addressable market. Reliance on large deals also makes revenue growth lumpy and more difficult to predict.\nPalantir has significant customer concentration risk. In the S-1, the company disclosed that its top 20 customers accounted for 76% of revenue.\nPalantir's addressable market depends heavily on domestic and geopolitics. U.S. allies are increasingly seeking to reduce their reliance on the U.S. in both business (i.e. cracking down on US's tech giants) and defense and may be hesitant to give Palantir access to their most sensitive data.\nPalantir is opaque and discloses significantly fewer financial metrics to investors than peers. This is maybe due to the nature of its business, which deals with highly sensitive information, however, this leaves investors in the dark.\nPalantir may also face significant ESG problems, which is increasingly important as ESG investing is rapidly gaining in popularity. Not only is Palantir a defense contractor, but it also provides surveillance analytics and has a history of being marred by&nbsp;controversies.\nFinancials &amp; Valuation\nPalantir's valuation has fluctuated wildly, reflecting the manic bull market we are in currently.\nWhen the company went public through a direct listing on 9/30/2020, the company traded at around 78 times forward consensus EPS and 12 times enterprise value to forward sales. The stock caught the attention of retail investors and traded to a peak of over 330 times forward EPS and over 47 times sales by January 2021. Currently, the stock is trading at 121 times forward EPS and 22 times forward sales. I frankly have no idea what the valuation of this company ought to be, and neither does the market.\nFor this nose-bleed valuation, you get an expected 35% revenue growth in 2021, a growth rate that bulls expect to be sustained for multiple years, and only modest EPS growth through 2023 as the company reported $0.19 in non-GAAP EPS in 2020 but is expected to only generate $0.26 by 2023. Note that GAAP EPS is still deep in the red.\nWhile often very expensive stocks are expected to easily beat consensus estimates, I'm not so sure about Palantir. From 2016 through 2020, the company only grew revenues by a compounded annual growth of 24%.\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with holding the stock.","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: Risky And Expensive</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: Risky And Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-17 16:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.\nThe company's financial metrics and the nature of their ...\n\n<a href=\"https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1149212873","content_text":"Summary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.\nThe company's financial metrics and the nature of their work are both shrouded in mystery.\nThe company's addressable market may be limited by government and companies' willingness to give it access to sensitive data.\n\nPhoto by Anna Bliokh/E+ via Getty Images\nPalantir (PLTR) just reported a good quarter and plenty have been written about that and other short-term considerations. This article will instead focus on the fundamentals and help investors understand the actual business behind the stock, and the risks of owning it -- and there are many.\nBusiness\nPalantir addresses a common problem faced by large organizations: unlocking the value of siloed data from disparate systems. The company sells an end-to-end software platform and consulting services to an addressable market sized at $119 billion.\nSince each large organization has a unique combination of legacy IT systems, unlocking the value of data requires expensive and time-consuming consulting projects to build custom software. This reality is why Palantir began as more of a consulting firm rather than a software firm (and it still is considered a consulting company by some investors).\nThe company would send consultants to connect, integrate and organize data from across the customer organization, creating a central operating system for data.\nThe company has two flagship platform offerings: Gotham and Foundry. The Gotham product is sold mainly to government customers while Foundry is sold to commercial customers. Both platforms are full-stack, vertically integrated, and deployable in the public and private cloud, on-premise or on classified networks (air-gapped networks), edge devices, laptops, and specialized hardware. Both platforms have specific user-facing applications for different industries.\nGotham, released in 2008, is a platform with multiple applications, including Graph, Gaia, Dossier, Stencil, Video, Table, Ava, Forward, and Mobile. Use cases include planning military missions, tax return analysis to uncover tax evaders, and mapping out criminal networks.\nFoundry, released in 2016, is also a platform with multiple applications, including Monocle, Contour, Object Explorer, Fusion, Workshop, Vertex, Code Authoring, Quiver, Code Workbooks, and Reports. Use cases include increasing aircraft design, trending defect detection in manufacturing plants, and risk management within financial institutions.\nUnderlying Gotham and Foundry is Apollo, a continuous delivery and product infrastructure platform which allows the company to deploy air-gapped and on-premise networks at approximately the same speed as in the field. This is important given the siloed nature of data within large customers, which could grind data integration to a halt.\nPricing for Palantir products is opaque. The company says they price based off of the estimated value Palantir expects its software platforms to deliver to the customer, and how much the customer would have to pay for a consulting firm to build a custom solution.\nSince 2018, the company has been investing in account-based sales force to bring in new customers and to expand within existing customers. The company's field sales force is only around 3-4% of headcount, so this number has room to move up.\nMarket Opportunity\nPalantir's management sizes their total addressable market is at $119 billion, which includes $63 billion from government and $56 billion from commercial.\nThe government market consists of $26 billion domestic and $37 billion international. The commercial market estimate is based potential customers: 6,000 enterprises with over $500 million in revenue and PLTR's estimated annual contract value per customer.\nThe company's addressable market is heavily dependent on domestic politics and geopolitics. The company's mission is to serve the U.S. and its allies, which obviously does not include selling into the large defense budgets of China and Russia. In addition, U.S. allies' desire to gain more sovereignty and reduce reliance on the U.S. may impede adoption of Palantir's platforms.\nDomestically, the company benefited significantly from the 1994 passing of the Federal Streaming Acquisition Act (FASA). Section 2377 requires the federal government to consider and acquire proven and available commercial items in the market \"to the maximum extend possible\". This rule was largely ignored until 2016 when Palantir successfully sued the US Army to enforce the law (Palantir v. United States).\nRisks\nThere are many risks associated with investing in Palantir, which I don't feel is appreciated by the market given the company's high valuation and retail adoration.\nPalantir is more of a service company that does not empower customers to maintain their own data/AI systems, which can be a problem for certain commercial customers. Palantir sells a \"full stack\" technology offering, which is appealing to government agencies but not commercial customers, who are accustomed to buying best-of-breed software.\nPalantir must host customer data in order to integrate it, which can be a problem in certain industries that are subject to privacy regulations.\nPalantir solutions are expensive with an average contract value of $5-6 million. High prices may limit Palantir's addressable market. Reliance on large deals also makes revenue growth lumpy and more difficult to predict.\nPalantir has significant customer concentration risk. In the S-1, the company disclosed that its top 20 customers accounted for 76% of revenue.\nPalantir's addressable market depends heavily on domestic and geopolitics. U.S. allies are increasingly seeking to reduce their reliance on the U.S. in both business (i.e. cracking down on US's tech giants) and defense and may be hesitant to give Palantir access to their most sensitive data.\nPalantir is opaque and discloses significantly fewer financial metrics to investors than peers. This is maybe due to the nature of its business, which deals with highly sensitive information, however, this leaves investors in the dark.\nPalantir may also face significant ESG problems, which is increasingly important as ESG investing is rapidly gaining in popularity. Not only is Palantir a defense contractor, but it also provides surveillance analytics and has a history of being marred by controversies.\nFinancials & Valuation\nPalantir's valuation has fluctuated wildly, reflecting the manic bull market we are in currently.\nWhen the company went public through a direct listing on 9/30/2020, the company traded at around 78 times forward consensus EPS and 12 times enterprise value to forward sales. The stock caught the attention of retail investors and traded to a peak of over 330 times forward EPS and over 47 times sales by January 2021. Currently, the stock is trading at 121 times forward EPS and 22 times forward sales. I frankly have no idea what the valuation of this company ought to be, and neither does the market.\nFor this nose-bleed valuation, you get an expected 35% revenue growth in 2021, a growth rate that bulls expect to be sustained for multiple years, and only modest EPS growth through 2023 as the company reported $0.19 in non-GAAP EPS in 2020 but is expected to only generate $0.26 by 2023. Note that GAAP EPS is still deep in the red.\nWhile often very expensive stocks are expected to easily beat consensus estimates, I'm not so sure about Palantir. From 2016 through 2020, the company only grew revenues by a compounded annual growth of 24%.\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with holding the stock.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":195384658,"gmtCreate":1621258212074,"gmtModify":1704354737596,"author":{"id":"3571919991986405","authorId":"3571919991986405","name":"ProsPaddles","avatar":"https://static.tigerbbs.com/5743775abc150fab8749a749f0511b63","vip":1,"crmLevel":5,"crmLevelSwitch":0,"idStr":"3571919991986405","authorIdStr":"3571919991986405"},"htmlText":"No risk no gain! The amount of risk you take now will certainly pay off down the road.&nbsp;","listText":"No risk no gain! The amount of risk you take now will certainly pay off down the road.&nbsp;","text":"No risk no gain! The amount of risk you take now will certainly pay off down the road.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/195384658","repostId":1149212873,"repostType":2,"repost":{"id":"1149212873","kind":"news","pubTimestamp":1621240557,"share":"https://ttm.financial/m/news/1149212873?lang=&edition=fundamental","pubTime":"2021-05-17 16:35","market":"us","language":"en","title":"Palantir: Risky And Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=1149212873","media":"seekingalpha","summary":"Summary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and t","content":"Summary\n<ul>\n <li>Palantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.</li>\n <li>The company's financial metrics and the nature of their work are both shrouded in mystery.</li>\n <li>The company's addressable market may be limited by government and companies' willingness to give it access to sensitive data.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/1b5f30934b528b40d7581fde436747dc\" tg-width=\"1536\" tg-height=\"1024\">Photo by Anna Bliokh/E+ via Getty Images\nPalantir (PLTR) just reported a good quarter and plenty have been written about that and other short-term considerations. This article will instead focus on the fundamentals and help investors understand the actual business behind the stock, and the risks of owning it -- and there are many.\nBusiness\nPalantir addresses a common problem faced by large organizations: unlocking the value of siloed data from disparate systems. The company sells an end-to-end software platform and consulting services to an addressable market sized at $119 billion.\nSince each large organization has a unique combination of legacy IT systems, unlocking the value of data requires expensive and time-consuming consulting projects to build custom software. This reality is why Palantir began as more of a consulting firm rather than a software firm (and it still is considered a consulting company by some investors).\nThe company would send consultants to connect, integrate and organize data from across the customer organization, creating a central operating system for data.\nThe company has two flagship platform offerings: Gotham and Foundry. The Gotham product is sold mainly to government customers while Foundry is sold to commercial customers. Both platforms are full-stack, vertically integrated, and deployable in the public and private cloud, on-premise or on classified networks (air-gapped networks), edge devices, laptops, and specialized hardware. Both platforms have specific user-facing applications for different industries.\nGotham, released in 2008, is a platform with multiple applications, including Graph, Gaia, Dossier, Stencil, Video, Table, Ava, Forward, and Mobile. Use cases include planning military missions, tax return analysis to uncover tax evaders, and mapping out criminal networks.\nFoundry, released in 2016, is also a platform with multiple applications, including Monocle, Contour, Object Explorer, Fusion, Workshop, Vertex, Code Authoring, Quiver, Code Workbooks, and Reports. Use cases include increasing aircraft design, trending defect detection in manufacturing plants, and risk management within financial institutions.\nUnderlying Gotham and Foundry is Apollo, a continuous delivery and product infrastructure platform which allows the company to deploy air-gapped and on-premise networks at approximately the same speed as in the field. This is important given the siloed nature of data within large customers, which could grind data integration to a halt.\nPricing for Palantir products is opaque. The company says they price based off of the estimated value Palantir expects its software platforms to deliver to the customer, and how much the customer would have to pay for a consulting firm to build a custom solution.\nSince 2018, the company has been investing in account-based sales force to bring in new customers and to expand within existing customers. The company's field sales force is only around 3-4% of headcount, so this number has room to move up.\nMarket Opportunity\nPalantir's management sizes their total addressable market is at $119 billion, which includes $63 billion from government and $56 billion from commercial.\nThe government market consists of $26 billion domestic and $37 billion international. The commercial market estimate is based potential customers: 6,000 enterprises with over $500 million in revenue and PLTR's estimated annual contract value per customer.\nThe company's addressable market is heavily dependent on domestic politics and geopolitics. The company's mission is to serve the U.S. and its allies, which obviously does not include selling into the large defense budgets of China and Russia. In addition, U.S. allies' desire to gain more sovereignty and reduce reliance on the U.S. may impede adoption of Palantir's platforms.\nDomestically, the company benefited significantly from the 1994 passing of the Federal Streaming Acquisition Act (FASA). Section 2377 requires the federal government to consider and acquire proven and available commercial items in the market \"to the maximum extend possible\". This rule was largely ignored until 2016 when Palantir successfully sued the US Army to enforce the law (Palantir v. United States).\nRisks\nThere are many risks associated with investing in Palantir, which I don't feel is appreciated by the market given the company's high valuation and retail adoration.\nPalantir is more of a service company that does not empower customers to maintain their own data/AI systems, which can be a problem for certain commercial customers. Palantir sells a \"full stack\" technology offering, which is appealing to government agencies but not commercial customers, who are accustomed to buying best-of-breed software.\nPalantir must host customer data in order to integrate it, which can be a problem in certain industries that are subject to privacy regulations.\nPalantir solutions are expensive with an average contract value of $5-6 million. High prices may limit Palantir's addressable market. Reliance on large deals also makes revenue growth lumpy and more difficult to predict.\nPalantir has significant customer concentration risk. In the S-1, the company disclosed that its top 20 customers accounted for 76% of revenue.\nPalantir's addressable market depends heavily on domestic and geopolitics. U.S. allies are increasingly seeking to reduce their reliance on the U.S. in both business (i.e. cracking down on US's tech giants) and defense and may be hesitant to give Palantir access to their most sensitive data.\nPalantir is opaque and discloses significantly fewer financial metrics to investors than peers. This is maybe due to the nature of its business, which deals with highly sensitive information, however, this leaves investors in the dark.\nPalantir may also face significant ESG problems, which is increasingly important as ESG investing is rapidly gaining in popularity. Not only is Palantir a defense contractor, but it also provides surveillance analytics and has a history of being marred by&nbsp;controversies.\nFinancials &amp; Valuation\nPalantir's valuation has fluctuated wildly, reflecting the manic bull market we are in currently.\nWhen the company went public through a direct listing on 9/30/2020, the company traded at around 78 times forward consensus EPS and 12 times enterprise value to forward sales. The stock caught the attention of retail investors and traded to a peak of over 330 times forward EPS and over 47 times sales by January 2021. Currently, the stock is trading at 121 times forward EPS and 22 times forward sales. I frankly have no idea what the valuation of this company ought to be, and neither does the market.\nFor this nose-bleed valuation, you get an expected 35% revenue growth in 2021, a growth rate that bulls expect to be sustained for multiple years, and only modest EPS growth through 2023 as the company reported $0.19 in non-GAAP EPS in 2020 but is expected to only generate $0.26 by 2023. Note that GAAP EPS is still deep in the red.\nWhile often very expensive stocks are expected to easily beat consensus estimates, I'm not so sure about Palantir. From 2016 through 2020, the company only grew revenues by a compounded annual growth of 24%.\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with holding the stock.","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: Risky And Expensive</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: Risky And Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-17 16:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.\nThe company's financial metrics and the nature of their ...\n\n<a href=\"https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1149212873","content_text":"Summary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.\nThe company's financial metrics and the nature of their work are both shrouded in mystery.\nThe company's addressable market may be limited by government and companies' willingness to give it access to sensitive data.\n\nPhoto by Anna Bliokh/E+ via Getty Images\nPalantir (PLTR) just reported a good quarter and plenty have been written about that and other short-term considerations. This article will instead focus on the fundamentals and help investors understand the actual business behind the stock, and the risks of owning it -- and there are many.\nBusiness\nPalantir addresses a common problem faced by large organizations: unlocking the value of siloed data from disparate systems. The company sells an end-to-end software platform and consulting services to an addressable market sized at $119 billion.\nSince each large organization has a unique combination of legacy IT systems, unlocking the value of data requires expensive and time-consuming consulting projects to build custom software. This reality is why Palantir began as more of a consulting firm rather than a software firm (and it still is considered a consulting company by some investors).\nThe company would send consultants to connect, integrate and organize data from across the customer organization, creating a central operating system for data.\nThe company has two flagship platform offerings: Gotham and Foundry. The Gotham product is sold mainly to government customers while Foundry is sold to commercial customers. Both platforms are full-stack, vertically integrated, and deployable in the public and private cloud, on-premise or on classified networks (air-gapped networks), edge devices, laptops, and specialized hardware. Both platforms have specific user-facing applications for different industries.\nGotham, released in 2008, is a platform with multiple applications, including Graph, Gaia, Dossier, Stencil, Video, Table, Ava, Forward, and Mobile. Use cases include planning military missions, tax return analysis to uncover tax evaders, and mapping out criminal networks.\nFoundry, released in 2016, is also a platform with multiple applications, including Monocle, Contour, Object Explorer, Fusion, Workshop, Vertex, Code Authoring, Quiver, Code Workbooks, and Reports. Use cases include increasing aircraft design, trending defect detection in manufacturing plants, and risk management within financial institutions.\nUnderlying Gotham and Foundry is Apollo, a continuous delivery and product infrastructure platform which allows the company to deploy air-gapped and on-premise networks at approximately the same speed as in the field. This is important given the siloed nature of data within large customers, which could grind data integration to a halt.\nPricing for Palantir products is opaque. The company says they price based off of the estimated value Palantir expects its software platforms to deliver to the customer, and how much the customer would have to pay for a consulting firm to build a custom solution.\nSince 2018, the company has been investing in account-based sales force to bring in new customers and to expand within existing customers. The company's field sales force is only around 3-4% of headcount, so this number has room to move up.\nMarket Opportunity\nPalantir's management sizes their total addressable market is at $119 billion, which includes $63 billion from government and $56 billion from commercial.\nThe government market consists of $26 billion domestic and $37 billion international. The commercial market estimate is based potential customers: 6,000 enterprises with over $500 million in revenue and PLTR's estimated annual contract value per customer.\nThe company's addressable market is heavily dependent on domestic politics and geopolitics. The company's mission is to serve the U.S. and its allies, which obviously does not include selling into the large defense budgets of China and Russia. In addition, U.S. allies' desire to gain more sovereignty and reduce reliance on the U.S. may impede adoption of Palantir's platforms.\nDomestically, the company benefited significantly from the 1994 passing of the Federal Streaming Acquisition Act (FASA). Section 2377 requires the federal government to consider and acquire proven and available commercial items in the market \"to the maximum extend possible\". This rule was largely ignored until 2016 when Palantir successfully sued the US Army to enforce the law (Palantir v. United States).\nRisks\nThere are many risks associated with investing in Palantir, which I don't feel is appreciated by the market given the company's high valuation and retail adoration.\nPalantir is more of a service company that does not empower customers to maintain their own data/AI systems, which can be a problem for certain commercial customers. Palantir sells a \"full stack\" technology offering, which is appealing to government agencies but not commercial customers, who are accustomed to buying best-of-breed software.\nPalantir must host customer data in order to integrate it, which can be a problem in certain industries that are subject to privacy regulations.\nPalantir solutions are expensive with an average contract value of $5-6 million. High prices may limit Palantir's addressable market. Reliance on large deals also makes revenue growth lumpy and more difficult to predict.\nPalantir has significant customer concentration risk. In the S-1, the company disclosed that its top 20 customers accounted for 76% of revenue.\nPalantir's addressable market depends heavily on domestic and geopolitics. U.S. allies are increasingly seeking to reduce their reliance on the U.S. in both business (i.e. cracking down on US's tech giants) and defense and may be hesitant to give Palantir access to their most sensitive data.\nPalantir is opaque and discloses significantly fewer financial metrics to investors than peers. This is maybe due to the nature of its business, which deals with highly sensitive information, however, this leaves investors in the dark.\nPalantir may also face significant ESG problems, which is increasingly important as ESG investing is rapidly gaining in popularity. Not only is Palantir a defense contractor, but it also provides surveillance analytics and has a history of being marred by controversies.\nFinancials & Valuation\nPalantir's valuation has fluctuated wildly, reflecting the manic bull market we are in currently.\nWhen the company went public through a direct listing on 9/30/2020, the company traded at around 78 times forward consensus EPS and 12 times enterprise value to forward sales. The stock caught the attention of retail investors and traded to a peak of over 330 times forward EPS and over 47 times sales by January 2021. Currently, the stock is trading at 121 times forward EPS and 22 times forward sales. I frankly have no idea what the valuation of this company ought to be, and neither does the market.\nFor this nose-bleed valuation, you get an expected 35% revenue growth in 2021, a growth rate that bulls expect to be sustained for multiple years, and only modest EPS growth through 2023 as the company reported $0.19 in non-GAAP EPS in 2020 but is expected to only generate $0.26 by 2023. Note that GAAP EPS is still deep in the red.\nWhile often very expensive stocks are expected to easily beat consensus estimates, I'm not so sure about Palantir. From 2016 through 2020, the company only grew revenues by a compounded annual growth of 24%.\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with holding the stock.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":195904164,"gmtCreate":1621245404558,"gmtModify":1704354546458,"author":{"id":"3574228744527117","authorId":"3574228744527117","name":"JarenSin","avatar":"https://static.tigerbbs.com/34e62412266232d31a80955037ebc419","vip":1,"hat":"https://static.tigerbbs.com/c5ad23bb360296300b77bdc994657095","crmLevel":3,"crmLevelSwitch":0,"idStr":"3574228744527117","authorIdStr":"3574228744527117"},"htmlText":"It's risky but do you think the end result is worth iit?","listText":"It's risky but do you think the end result is worth iit?","text":"It's risky but do you think the end result is worth iit?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/195904164","repostId":1149212873,"repostType":4,"repost":{"id":"1149212873","kind":"news","pubTimestamp":1621240557,"share":"https://ttm.financial/m/news/1149212873?lang=&edition=fundamental","pubTime":"2021-05-17 16:35","market":"us","language":"en","title":"Palantir: Risky And Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=1149212873","media":"seekingalpha","summary":"Summary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and t","content":"Summary\n<ul>\n <li>Palantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.</li>\n <li>The company's financial metrics and the nature of their work are both shrouded in mystery.</li>\n <li>The company's addressable market may be limited by government and companies' willingness to give it access to sensitive data.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/1b5f30934b528b40d7581fde436747dc\" tg-width=\"1536\" tg-height=\"1024\">Photo by Anna Bliokh/E+ via Getty Images\nPalantir (PLTR) just reported a good quarter and plenty have been written about that and other short-term considerations. This article will instead focus on the fundamentals and help investors understand the actual business behind the stock, and the risks of owning it -- and there are many.\nBusiness\nPalantir addresses a common problem faced by large organizations: unlocking the value of siloed data from disparate systems. The company sells an end-to-end software platform and consulting services to an addressable market sized at $119 billion.\nSince each large organization has a unique combination of legacy IT systems, unlocking the value of data requires expensive and time-consuming consulting projects to build custom software. This reality is why Palantir began as more of a consulting firm rather than a software firm (and it still is considered a consulting company by some investors).\nThe company would send consultants to connect, integrate and organize data from across the customer organization, creating a central operating system for data.\nThe company has two flagship platform offerings: Gotham and Foundry. The Gotham product is sold mainly to government customers while Foundry is sold to commercial customers. Both platforms are full-stack, vertically integrated, and deployable in the public and private cloud, on-premise or on classified networks (air-gapped networks), edge devices, laptops, and specialized hardware. Both platforms have specific user-facing applications for different industries.\nGotham, released in 2008, is a platform with multiple applications, including Graph, Gaia, Dossier, Stencil, Video, Table, Ava, Forward, and Mobile. Use cases include planning military missions, tax return analysis to uncover tax evaders, and mapping out criminal networks.\nFoundry, released in 2016, is also a platform with multiple applications, including Monocle, Contour, Object Explorer, Fusion, Workshop, Vertex, Code Authoring, Quiver, Code Workbooks, and Reports. Use cases include increasing aircraft design, trending defect detection in manufacturing plants, and risk management within financial institutions.\nUnderlying Gotham and Foundry is Apollo, a continuous delivery and product infrastructure platform which allows the company to deploy air-gapped and on-premise networks at approximately the same speed as in the field. This is important given the siloed nature of data within large customers, which could grind data integration to a halt.\nPricing for Palantir products is opaque. The company says they price based off of the estimated value Palantir expects its software platforms to deliver to the customer, and how much the customer would have to pay for a consulting firm to build a custom solution.\nSince 2018, the company has been investing in account-based sales force to bring in new customers and to expand within existing customers. The company's field sales force is only around 3-4% of headcount, so this number has room to move up.\nMarket Opportunity\nPalantir's management sizes their total addressable market is at $119 billion, which includes $63 billion from government and $56 billion from commercial.\nThe government market consists of $26 billion domestic and $37 billion international. The commercial market estimate is based potential customers: 6,000 enterprises with over $500 million in revenue and PLTR's estimated annual contract value per customer.\nThe company's addressable market is heavily dependent on domestic politics and geopolitics. The company's mission is to serve the U.S. and its allies, which obviously does not include selling into the large defense budgets of China and Russia. In addition, U.S. allies' desire to gain more sovereignty and reduce reliance on the U.S. may impede adoption of Palantir's platforms.\nDomestically, the company benefited significantly from the 1994 passing of the Federal Streaming Acquisition Act (FASA). Section 2377 requires the federal government to consider and acquire proven and available commercial items in the market \"to the maximum extend possible\". This rule was largely ignored until 2016 when Palantir successfully sued the US Army to enforce the law (Palantir v. United States).\nRisks\nThere are many risks associated with investing in Palantir, which I don't feel is appreciated by the market given the company's high valuation and retail adoration.\nPalantir is more of a service company that does not empower customers to maintain their own data/AI systems, which can be a problem for certain commercial customers. Palantir sells a \"full stack\" technology offering, which is appealing to government agencies but not commercial customers, who are accustomed to buying best-of-breed software.\nPalantir must host customer data in order to integrate it, which can be a problem in certain industries that are subject to privacy regulations.\nPalantir solutions are expensive with an average contract value of $5-6 million. High prices may limit Palantir's addressable market. Reliance on large deals also makes revenue growth lumpy and more difficult to predict.\nPalantir has significant customer concentration risk. In the S-1, the company disclosed that its top 20 customers accounted for 76% of revenue.\nPalantir's addressable market depends heavily on domestic and geopolitics. U.S. allies are increasingly seeking to reduce their reliance on the U.S. in both business (i.e. cracking down on US's tech giants) and defense and may be hesitant to give Palantir access to their most sensitive data.\nPalantir is opaque and discloses significantly fewer financial metrics to investors than peers. This is maybe due to the nature of its business, which deals with highly sensitive information, however, this leaves investors in the dark.\nPalantir may also face significant ESG problems, which is increasingly important as ESG investing is rapidly gaining in popularity. Not only is Palantir a defense contractor, but it also provides surveillance analytics and has a history of being marred by&nbsp;controversies.\nFinancials &amp; Valuation\nPalantir's valuation has fluctuated wildly, reflecting the manic bull market we are in currently.\nWhen the company went public through a direct listing on 9/30/2020, the company traded at around 78 times forward consensus EPS and 12 times enterprise value to forward sales. The stock caught the attention of retail investors and traded to a peak of over 330 times forward EPS and over 47 times sales by January 2021. Currently, the stock is trading at 121 times forward EPS and 22 times forward sales. I frankly have no idea what the valuation of this company ought to be, and neither does the market.\nFor this nose-bleed valuation, you get an expected 35% revenue growth in 2021, a growth rate that bulls expect to be sustained for multiple years, and only modest EPS growth through 2023 as the company reported $0.19 in non-GAAP EPS in 2020 but is expected to only generate $0.26 by 2023. Note that GAAP EPS is still deep in the red.\nWhile often very expensive stocks are expected to easily beat consensus estimates, I'm not so sure about Palantir. From 2016 through 2020, the company only grew revenues by a compounded annual growth of 24%.\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with holding the stock.","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: Risky And Expensive</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: Risky And Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-17 16:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.\nThe company's financial metrics and the nature of their ...\n\n<a href=\"https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1149212873","content_text":"Summary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.\nThe company's financial metrics and the nature of their work are both shrouded in mystery.\nThe company's addressable market may be limited by government and companies' willingness to give it access to sensitive data.\n\nPhoto by Anna Bliokh/E+ via Getty Images\nPalantir (PLTR) just reported a good quarter and plenty have been written about that and other short-term considerations. This article will instead focus on the fundamentals and help investors understand the actual business behind the stock, and the risks of owning it -- and there are many.\nBusiness\nPalantir addresses a common problem faced by large organizations: unlocking the value of siloed data from disparate systems. The company sells an end-to-end software platform and consulting services to an addressable market sized at $119 billion.\nSince each large organization has a unique combination of legacy IT systems, unlocking the value of data requires expensive and time-consuming consulting projects to build custom software. This reality is why Palantir began as more of a consulting firm rather than a software firm (and it still is considered a consulting company by some investors).\nThe company would send consultants to connect, integrate and organize data from across the customer organization, creating a central operating system for data.\nThe company has two flagship platform offerings: Gotham and Foundry. The Gotham product is sold mainly to government customers while Foundry is sold to commercial customers. Both platforms are full-stack, vertically integrated, and deployable in the public and private cloud, on-premise or on classified networks (air-gapped networks), edge devices, laptops, and specialized hardware. Both platforms have specific user-facing applications for different industries.\nGotham, released in 2008, is a platform with multiple applications, including Graph, Gaia, Dossier, Stencil, Video, Table, Ava, Forward, and Mobile. Use cases include planning military missions, tax return analysis to uncover tax evaders, and mapping out criminal networks.\nFoundry, released in 2016, is also a platform with multiple applications, including Monocle, Contour, Object Explorer, Fusion, Workshop, Vertex, Code Authoring, Quiver, Code Workbooks, and Reports. Use cases include increasing aircraft design, trending defect detection in manufacturing plants, and risk management within financial institutions.\nUnderlying Gotham and Foundry is Apollo, a continuous delivery and product infrastructure platform which allows the company to deploy air-gapped and on-premise networks at approximately the same speed as in the field. This is important given the siloed nature of data within large customers, which could grind data integration to a halt.\nPricing for Palantir products is opaque. The company says they price based off of the estimated value Palantir expects its software platforms to deliver to the customer, and how much the customer would have to pay for a consulting firm to build a custom solution.\nSince 2018, the company has been investing in account-based sales force to bring in new customers and to expand within existing customers. The company's field sales force is only around 3-4% of headcount, so this number has room to move up.\nMarket Opportunity\nPalantir's management sizes their total addressable market is at $119 billion, which includes $63 billion from government and $56 billion from commercial.\nThe government market consists of $26 billion domestic and $37 billion international. The commercial market estimate is based potential customers: 6,000 enterprises with over $500 million in revenue and PLTR's estimated annual contract value per customer.\nThe company's addressable market is heavily dependent on domestic politics and geopolitics. The company's mission is to serve the U.S. and its allies, which obviously does not include selling into the large defense budgets of China and Russia. In addition, U.S. allies' desire to gain more sovereignty and reduce reliance on the U.S. may impede adoption of Palantir's platforms.\nDomestically, the company benefited significantly from the 1994 passing of the Federal Streaming Acquisition Act (FASA). Section 2377 requires the federal government to consider and acquire proven and available commercial items in the market \"to the maximum extend possible\". This rule was largely ignored until 2016 when Palantir successfully sued the US Army to enforce the law (Palantir v. United States).\nRisks\nThere are many risks associated with investing in Palantir, which I don't feel is appreciated by the market given the company's high valuation and retail adoration.\nPalantir is more of a service company that does not empower customers to maintain their own data/AI systems, which can be a problem for certain commercial customers. Palantir sells a \"full stack\" technology offering, which is appealing to government agencies but not commercial customers, who are accustomed to buying best-of-breed software.\nPalantir must host customer data in order to integrate it, which can be a problem in certain industries that are subject to privacy regulations.\nPalantir solutions are expensive with an average contract value of $5-6 million. High prices may limit Palantir's addressable market. Reliance on large deals also makes revenue growth lumpy and more difficult to predict.\nPalantir has significant customer concentration risk. In the S-1, the company disclosed that its top 20 customers accounted for 76% of revenue.\nPalantir's addressable market depends heavily on domestic and geopolitics. U.S. allies are increasingly seeking to reduce their reliance on the U.S. in both business (i.e. cracking down on US's tech giants) and defense and may be hesitant to give Palantir access to their most sensitive data.\nPalantir is opaque and discloses significantly fewer financial metrics to investors than peers. This is maybe due to the nature of its business, which deals with highly sensitive information, however, this leaves investors in the dark.\nPalantir may also face significant ESG problems, which is increasingly important as ESG investing is rapidly gaining in popularity. Not only is Palantir a defense contractor, but it also provides surveillance analytics and has a history of being marred by controversies.\nFinancials & Valuation\nPalantir's valuation has fluctuated wildly, reflecting the manic bull market we are in currently.\nWhen the company went public through a direct listing on 9/30/2020, the company traded at around 78 times forward consensus EPS and 12 times enterprise value to forward sales. The stock caught the attention of retail investors and traded to a peak of over 330 times forward EPS and over 47 times sales by January 2021. Currently, the stock is trading at 121 times forward EPS and 22 times forward sales. I frankly have no idea what the valuation of this company ought to be, and neither does the market.\nFor this nose-bleed valuation, you get an expected 35% revenue growth in 2021, a growth rate that bulls expect to be sustained for multiple years, and only modest EPS growth through 2023 as the company reported $0.19 in non-GAAP EPS in 2020 but is expected to only generate $0.26 by 2023. Note that GAAP EPS is still deep in the red.\nWhile often very expensive stocks are expected to easily beat consensus estimates, I'm not so sure about Palantir. From 2016 through 2020, the company only grew revenues by a compounded annual growth of 24%.\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with holding the stock.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4374470,"gmtCreate":1621393412708,"gmtModify":1680789619736,"authorId":3579605390417452,"author":{"id":3579605390417452,"idStr":"3579605390417452","authorId":3579605390417452,"name":"YQ17","avatar":"https://static.tigerbbs.com/27a39a8720408cb33a5ee4fb46fdc580","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":195904164,"type":1,"supId":0,"prevId":0,"content":"Yes","text":"Yes","html":"Yes"}],"langContent":"EN"},{"id":195029863,"gmtCreate":1621241264252,"gmtModify":1704354479211,"author":{"id":"3574392084255465","authorId":"3574392084255465","name":"dent","avatar":"https://static.tigerbbs.com/e54b2a08f8905d05e3d00b78582bf531","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3574392084255465","authorIdStr":"3574392084255465"},"htmlText":"Please like and comment","listText":"Please like and comment","text":"Please like and comment","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":3,"repostSize":0,"link":"https://ttm.financial/post/195029863","repostId":1149212873,"repostType":4,"repost":{"id":"1149212873","kind":"news","pubTimestamp":1621240557,"share":"https://ttm.financial/m/news/1149212873?lang=&edition=fundamental","pubTime":"2021-05-17 16:35","market":"us","language":"en","title":"Palantir: Risky And Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=1149212873","media":"seekingalpha","summary":"Summary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and t","content":"Summary\n<ul>\n <li>Palantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.</li>\n <li>The company's financial metrics and the nature of their work are both shrouded in mystery.</li>\n <li>The company's addressable market may be limited by government and companies' willingness to give it access to sensitive data.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/1b5f30934b528b40d7581fde436747dc\" tg-width=\"1536\" tg-height=\"1024\">Photo by Anna Bliokh/E+ via Getty Images\nPalantir (PLTR) just reported a good quarter and plenty have been written about that and other short-term considerations. This article will instead focus on the fundamentals and help investors understand the actual business behind the stock, and the risks of owning it -- and there are many.\nBusiness\nPalantir addresses a common problem faced by large organizations: unlocking the value of siloed data from disparate systems. The company sells an end-to-end software platform and consulting services to an addressable market sized at $119 billion.\nSince each large organization has a unique combination of legacy IT systems, unlocking the value of data requires expensive and time-consuming consulting projects to build custom software. This reality is why Palantir began as more of a consulting firm rather than a software firm (and it still is considered a consulting company by some investors).\nThe company would send consultants to connect, integrate and organize data from across the customer organization, creating a central operating system for data.\nThe company has two flagship platform offerings: Gotham and Foundry. The Gotham product is sold mainly to government customers while Foundry is sold to commercial customers. Both platforms are full-stack, vertically integrated, and deployable in the public and private cloud, on-premise or on classified networks (air-gapped networks), edge devices, laptops, and specialized hardware. Both platforms have specific user-facing applications for different industries.\nGotham, released in 2008, is a platform with multiple applications, including Graph, Gaia, Dossier, Stencil, Video, Table, Ava, Forward, and Mobile. Use cases include planning military missions, tax return analysis to uncover tax evaders, and mapping out criminal networks.\nFoundry, released in 2016, is also a platform with multiple applications, including Monocle, Contour, Object Explorer, Fusion, Workshop, Vertex, Code Authoring, Quiver, Code Workbooks, and Reports. Use cases include increasing aircraft design, trending defect detection in manufacturing plants, and risk management within financial institutions.\nUnderlying Gotham and Foundry is Apollo, a continuous delivery and product infrastructure platform which allows the company to deploy air-gapped and on-premise networks at approximately the same speed as in the field. This is important given the siloed nature of data within large customers, which could grind data integration to a halt.\nPricing for Palantir products is opaque. The company says they price based off of the estimated value Palantir expects its software platforms to deliver to the customer, and how much the customer would have to pay for a consulting firm to build a custom solution.\nSince 2018, the company has been investing in account-based sales force to bring in new customers and to expand within existing customers. The company's field sales force is only around 3-4% of headcount, so this number has room to move up.\nMarket Opportunity\nPalantir's management sizes their total addressable market is at $119 billion, which includes $63 billion from government and $56 billion from commercial.\nThe government market consists of $26 billion domestic and $37 billion international. The commercial market estimate is based potential customers: 6,000 enterprises with over $500 million in revenue and PLTR's estimated annual contract value per customer.\nThe company's addressable market is heavily dependent on domestic politics and geopolitics. The company's mission is to serve the U.S. and its allies, which obviously does not include selling into the large defense budgets of China and Russia. In addition, U.S. allies' desire to gain more sovereignty and reduce reliance on the U.S. may impede adoption of Palantir's platforms.\nDomestically, the company benefited significantly from the 1994 passing of the Federal Streaming Acquisition Act (FASA). Section 2377 requires the federal government to consider and acquire proven and available commercial items in the market \"to the maximum extend possible\". This rule was largely ignored until 2016 when Palantir successfully sued the US Army to enforce the law (Palantir v. United States).\nRisks\nThere are many risks associated with investing in Palantir, which I don't feel is appreciated by the market given the company's high valuation and retail adoration.\nPalantir is more of a service company that does not empower customers to maintain their own data/AI systems, which can be a problem for certain commercial customers. Palantir sells a \"full stack\" technology offering, which is appealing to government agencies but not commercial customers, who are accustomed to buying best-of-breed software.\nPalantir must host customer data in order to integrate it, which can be a problem in certain industries that are subject to privacy regulations.\nPalantir solutions are expensive with an average contract value of $5-6 million. High prices may limit Palantir's addressable market. Reliance on large deals also makes revenue growth lumpy and more difficult to predict.\nPalantir has significant customer concentration risk. In the S-1, the company disclosed that its top 20 customers accounted for 76% of revenue.\nPalantir's addressable market depends heavily on domestic and geopolitics. U.S. allies are increasingly seeking to reduce their reliance on the U.S. in both business (i.e. cracking down on US's tech giants) and defense and may be hesitant to give Palantir access to their most sensitive data.\nPalantir is opaque and discloses significantly fewer financial metrics to investors than peers. This is maybe due to the nature of its business, which deals with highly sensitive information, however, this leaves investors in the dark.\nPalantir may also face significant ESG problems, which is increasingly important as ESG investing is rapidly gaining in popularity. Not only is Palantir a defense contractor, but it also provides surveillance analytics and has a history of being marred by&nbsp;controversies.\nFinancials &amp; Valuation\nPalantir's valuation has fluctuated wildly, reflecting the manic bull market we are in currently.\nWhen the company went public through a direct listing on 9/30/2020, the company traded at around 78 times forward consensus EPS and 12 times enterprise value to forward sales. The stock caught the attention of retail investors and traded to a peak of over 330 times forward EPS and over 47 times sales by January 2021. Currently, the stock is trading at 121 times forward EPS and 22 times forward sales. I frankly have no idea what the valuation of this company ought to be, and neither does the market.\nFor this nose-bleed valuation, you get an expected 35% revenue growth in 2021, a growth rate that bulls expect to be sustained for multiple years, and only modest EPS growth through 2023 as the company reported $0.19 in non-GAAP EPS in 2020 but is expected to only generate $0.26 by 2023. Note that GAAP EPS is still deep in the red.\nWhile often very expensive stocks are expected to easily beat consensus estimates, I'm not so sure about Palantir. From 2016 through 2020, the company only grew revenues by a compounded annual growth of 24%.\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with holding the stock.","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: Risky And Expensive</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: Risky And Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-17 16:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.\nThe company's financial metrics and the nature of their ...\n\n<a href=\"https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1149212873","content_text":"Summary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.\nThe company's financial metrics and the nature of their work are both shrouded in mystery.\nThe company's addressable market may be limited by government and companies' willingness to give it access to sensitive data.\n\nPhoto by Anna Bliokh/E+ via Getty Images\nPalantir (PLTR) just reported a good quarter and plenty have been written about that and other short-term considerations. This article will instead focus on the fundamentals and help investors understand the actual business behind the stock, and the risks of owning it -- and there are many.\nBusiness\nPalantir addresses a common problem faced by large organizations: unlocking the value of siloed data from disparate systems. The company sells an end-to-end software platform and consulting services to an addressable market sized at $119 billion.\nSince each large organization has a unique combination of legacy IT systems, unlocking the value of data requires expensive and time-consuming consulting projects to build custom software. This reality is why Palantir began as more of a consulting firm rather than a software firm (and it still is considered a consulting company by some investors).\nThe company would send consultants to connect, integrate and organize data from across the customer organization, creating a central operating system for data.\nThe company has two flagship platform offerings: Gotham and Foundry. The Gotham product is sold mainly to government customers while Foundry is sold to commercial customers. Both platforms are full-stack, vertically integrated, and deployable in the public and private cloud, on-premise or on classified networks (air-gapped networks), edge devices, laptops, and specialized hardware. Both platforms have specific user-facing applications for different industries.\nGotham, released in 2008, is a platform with multiple applications, including Graph, Gaia, Dossier, Stencil, Video, Table, Ava, Forward, and Mobile. Use cases include planning military missions, tax return analysis to uncover tax evaders, and mapping out criminal networks.\nFoundry, released in 2016, is also a platform with multiple applications, including Monocle, Contour, Object Explorer, Fusion, Workshop, Vertex, Code Authoring, Quiver, Code Workbooks, and Reports. Use cases include increasing aircraft design, trending defect detection in manufacturing plants, and risk management within financial institutions.\nUnderlying Gotham and Foundry is Apollo, a continuous delivery and product infrastructure platform which allows the company to deploy air-gapped and on-premise networks at approximately the same speed as in the field. This is important given the siloed nature of data within large customers, which could grind data integration to a halt.\nPricing for Palantir products is opaque. The company says they price based off of the estimated value Palantir expects its software platforms to deliver to the customer, and how much the customer would have to pay for a consulting firm to build a custom solution.\nSince 2018, the company has been investing in account-based sales force to bring in new customers and to expand within existing customers. The company's field sales force is only around 3-4% of headcount, so this number has room to move up.\nMarket Opportunity\nPalantir's management sizes their total addressable market is at $119 billion, which includes $63 billion from government and $56 billion from commercial.\nThe government market consists of $26 billion domestic and $37 billion international. The commercial market estimate is based potential customers: 6,000 enterprises with over $500 million in revenue and PLTR's estimated annual contract value per customer.\nThe company's addressable market is heavily dependent on domestic politics and geopolitics. The company's mission is to serve the U.S. and its allies, which obviously does not include selling into the large defense budgets of China and Russia. In addition, U.S. allies' desire to gain more sovereignty and reduce reliance on the U.S. may impede adoption of Palantir's platforms.\nDomestically, the company benefited significantly from the 1994 passing of the Federal Streaming Acquisition Act (FASA). Section 2377 requires the federal government to consider and acquire proven and available commercial items in the market \"to the maximum extend possible\". This rule was largely ignored until 2016 when Palantir successfully sued the US Army to enforce the law (Palantir v. United States).\nRisks\nThere are many risks associated with investing in Palantir, which I don't feel is appreciated by the market given the company's high valuation and retail adoration.\nPalantir is more of a service company that does not empower customers to maintain their own data/AI systems, which can be a problem for certain commercial customers. Palantir sells a \"full stack\" technology offering, which is appealing to government agencies but not commercial customers, who are accustomed to buying best-of-breed software.\nPalantir must host customer data in order to integrate it, which can be a problem in certain industries that are subject to privacy regulations.\nPalantir solutions are expensive with an average contract value of $5-6 million. High prices may limit Palantir's addressable market. Reliance on large deals also makes revenue growth lumpy and more difficult to predict.\nPalantir has significant customer concentration risk. In the S-1, the company disclosed that its top 20 customers accounted for 76% of revenue.\nPalantir's addressable market depends heavily on domestic and geopolitics. U.S. allies are increasingly seeking to reduce their reliance on the U.S. in both business (i.e. cracking down on US's tech giants) and defense and may be hesitant to give Palantir access to their most sensitive data.\nPalantir is opaque and discloses significantly fewer financial metrics to investors than peers. This is maybe due to the nature of its business, which deals with highly sensitive information, however, this leaves investors in the dark.\nPalantir may also face significant ESG problems, which is increasingly important as ESG investing is rapidly gaining in popularity. Not only is Palantir a defense contractor, but it also provides surveillance analytics and has a history of being marred by controversies.\nFinancials & Valuation\nPalantir's valuation has fluctuated wildly, reflecting the manic bull market we are in currently.\nWhen the company went public through a direct listing on 9/30/2020, the company traded at around 78 times forward consensus EPS and 12 times enterprise value to forward sales. The stock caught the attention of retail investors and traded to a peak of over 330 times forward EPS and over 47 times sales by January 2021. Currently, the stock is trading at 121 times forward EPS and 22 times forward sales. I frankly have no idea what the valuation of this company ought to be, and neither does the market.\nFor this nose-bleed valuation, you get an expected 35% revenue growth in 2021, a growth rate that bulls expect to be sustained for multiple years, and only modest EPS growth through 2023 as the company reported $0.19 in non-GAAP EPS in 2020 but is expected to only generate $0.26 by 2023. Note that GAAP EPS is still deep in the red.\nWhile often very expensive stocks are expected to easily beat consensus estimates, I'm not so sure about Palantir. From 2016 through 2020, the company only grew revenues by a compounded annual growth of 24%.\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with holding the stock.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4353818,"gmtCreate":1621241586170,"gmtModify":1680789265631,"authorId":3575769796360828,"author":{"id":3575769796360828,"idStr":"3575769796360828","authorId":3575769796360828,"name":"sgric","avatar":"https://static.tigerbbs.com/198d8594ee7383133c0f7a33a9a49909","vip":1,"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":195029863,"type":1,"supId":4353803,"prevId":0,"content":"done","text":"done","html":"done"},{"id":4353921,"gmtCreate":1621242248665,"gmtModify":1680789264090,"authorId":3573661710609035,"author":{"id":3573661710609035,"idStr":"3573661710609035","authorId":3573661710609035,"name":"ray7","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":195029863,"type":1,"supId":0,"prevId":0,"content":"?","text":"?","html":"?"},{"id":4353803,"gmtCreate":1621241433773,"gmtModify":1680789263075,"authorId":3574854199678785,"author":{"id":3574854199678785,"idStr":"3574854199678785","authorId":3574854199678785,"name":"MarkJuan","avatar":"https://static.tigerbbs.com/90cb9375bf12207de12cb272883acaa8","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":195029863,"type":1,"supId":0,"prevId":0,"content":"Sure!","text":"Sure!","html":"Sure!"}],"langContent":"EN"},{"id":195065337,"gmtCreate":1621240895929,"gmtModify":1704354472599,"author":{"id":"3574053691106982","authorId":"3574053691106982","name":"jw321","avatar":"https://static.tigerbbs.com/1263b51c7856e75fbd5cf4072078ca6e","vip":1,"crmLevel":3,"crmLevelSwitch":0,"idStr":"3574053691106982","authorIdStr":"3574053691106982"},"htmlText":"help to comment pls","listText":"help to comment pls","text":"help to comment pls","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":3,"repostSize":0,"link":"https://ttm.financial/post/195065337","repostId":1149212873,"repostType":4,"repost":{"id":"1149212873","kind":"news","pubTimestamp":1621240557,"share":"https://ttm.financial/m/news/1149212873?lang=&edition=fundamental","pubTime":"2021-05-17 16:35","market":"us","language":"en","title":"Palantir: Risky And Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=1149212873","media":"seekingalpha","summary":"Summary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and t","content":"Summary\n<ul>\n <li>Palantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.</li>\n <li>The company's financial metrics and the nature of their work are both shrouded in mystery.</li>\n <li>The company's addressable market may be limited by government and companies' willingness to give it access to sensitive data.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/1b5f30934b528b40d7581fde436747dc\" tg-width=\"1536\" tg-height=\"1024\">Photo by Anna Bliokh/E+ via Getty Images\nPalantir (PLTR) just reported a good quarter and plenty have been written about that and other short-term considerations. This article will instead focus on the fundamentals and help investors understand the actual business behind the stock, and the risks of owning it -- and there are many.\nBusiness\nPalantir addresses a common problem faced by large organizations: unlocking the value of siloed data from disparate systems. The company sells an end-to-end software platform and consulting services to an addressable market sized at $119 billion.\nSince each large organization has a unique combination of legacy IT systems, unlocking the value of data requires expensive and time-consuming consulting projects to build custom software. This reality is why Palantir began as more of a consulting firm rather than a software firm (and it still is considered a consulting company by some investors).\nThe company would send consultants to connect, integrate and organize data from across the customer organization, creating a central operating system for data.\nThe company has two flagship platform offerings: Gotham and Foundry. The Gotham product is sold mainly to government customers while Foundry is sold to commercial customers. Both platforms are full-stack, vertically integrated, and deployable in the public and private cloud, on-premise or on classified networks (air-gapped networks), edge devices, laptops, and specialized hardware. Both platforms have specific user-facing applications for different industries.\nGotham, released in 2008, is a platform with multiple applications, including Graph, Gaia, Dossier, Stencil, Video, Table, Ava, Forward, and Mobile. Use cases include planning military missions, tax return analysis to uncover tax evaders, and mapping out criminal networks.\nFoundry, released in 2016, is also a platform with multiple applications, including Monocle, Contour, Object Explorer, Fusion, Workshop, Vertex, Code Authoring, Quiver, Code Workbooks, and Reports. Use cases include increasing aircraft design, trending defect detection in manufacturing plants, and risk management within financial institutions.\nUnderlying Gotham and Foundry is Apollo, a continuous delivery and product infrastructure platform which allows the company to deploy air-gapped and on-premise networks at approximately the same speed as in the field. This is important given the siloed nature of data within large customers, which could grind data integration to a halt.\nPricing for Palantir products is opaque. The company says they price based off of the estimated value Palantir expects its software platforms to deliver to the customer, and how much the customer would have to pay for a consulting firm to build a custom solution.\nSince 2018, the company has been investing in account-based sales force to bring in new customers and to expand within existing customers. The company's field sales force is only around 3-4% of headcount, so this number has room to move up.\nMarket Opportunity\nPalantir's management sizes their total addressable market is at $119 billion, which includes $63 billion from government and $56 billion from commercial.\nThe government market consists of $26 billion domestic and $37 billion international. The commercial market estimate is based potential customers: 6,000 enterprises with over $500 million in revenue and PLTR's estimated annual contract value per customer.\nThe company's addressable market is heavily dependent on domestic politics and geopolitics. The company's mission is to serve the U.S. and its allies, which obviously does not include selling into the large defense budgets of China and Russia. In addition, U.S. allies' desire to gain more sovereignty and reduce reliance on the U.S. may impede adoption of Palantir's platforms.\nDomestically, the company benefited significantly from the 1994 passing of the Federal Streaming Acquisition Act (FASA). Section 2377 requires the federal government to consider and acquire proven and available commercial items in the market \"to the maximum extend possible\". This rule was largely ignored until 2016 when Palantir successfully sued the US Army to enforce the law (Palantir v. United States).\nRisks\nThere are many risks associated with investing in Palantir, which I don't feel is appreciated by the market given the company's high valuation and retail adoration.\nPalantir is more of a service company that does not empower customers to maintain their own data/AI systems, which can be a problem for certain commercial customers. Palantir sells a \"full stack\" technology offering, which is appealing to government agencies but not commercial customers, who are accustomed to buying best-of-breed software.\nPalantir must host customer data in order to integrate it, which can be a problem in certain industries that are subject to privacy regulations.\nPalantir solutions are expensive with an average contract value of $5-6 million. High prices may limit Palantir's addressable market. Reliance on large deals also makes revenue growth lumpy and more difficult to predict.\nPalantir has significant customer concentration risk. In the S-1, the company disclosed that its top 20 customers accounted for 76% of revenue.\nPalantir's addressable market depends heavily on domestic and geopolitics. U.S. allies are increasingly seeking to reduce their reliance on the U.S. in both business (i.e. cracking down on US's tech giants) and defense and may be hesitant to give Palantir access to their most sensitive data.\nPalantir is opaque and discloses significantly fewer financial metrics to investors than peers. This is maybe due to the nature of its business, which deals with highly sensitive information, however, this leaves investors in the dark.\nPalantir may also face significant ESG problems, which is increasingly important as ESG investing is rapidly gaining in popularity. Not only is Palantir a defense contractor, but it also provides surveillance analytics and has a history of being marred by&nbsp;controversies.\nFinancials &amp; Valuation\nPalantir's valuation has fluctuated wildly, reflecting the manic bull market we are in currently.\nWhen the company went public through a direct listing on 9/30/2020, the company traded at around 78 times forward consensus EPS and 12 times enterprise value to forward sales. The stock caught the attention of retail investors and traded to a peak of over 330 times forward EPS and over 47 times sales by January 2021. Currently, the stock is trading at 121 times forward EPS and 22 times forward sales. I frankly have no idea what the valuation of this company ought to be, and neither does the market.\nFor this nose-bleed valuation, you get an expected 35% revenue growth in 2021, a growth rate that bulls expect to be sustained for multiple years, and only modest EPS growth through 2023 as the company reported $0.19 in non-GAAP EPS in 2020 but is expected to only generate $0.26 by 2023. Note that GAAP EPS is still deep in the red.\nWhile often very expensive stocks are expected to easily beat consensus estimates, I'm not so sure about Palantir. From 2016 through 2020, the company only grew revenues by a compounded annual growth of 24%.\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with holding the stock.","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: Risky And Expensive</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: Risky And Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-17 16:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.\nThe company's financial metrics and the nature of their ...\n\n<a href=\"https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1149212873","content_text":"Summary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.\nThe company's financial metrics and the nature of their work are both shrouded in mystery.\nThe company's addressable market may be limited by government and companies' willingness to give it access to sensitive data.\n\nPhoto by Anna Bliokh/E+ via Getty Images\nPalantir (PLTR) just reported a good quarter and plenty have been written about that and other short-term considerations. This article will instead focus on the fundamentals and help investors understand the actual business behind the stock, and the risks of owning it -- and there are many.\nBusiness\nPalantir addresses a common problem faced by large organizations: unlocking the value of siloed data from disparate systems. The company sells an end-to-end software platform and consulting services to an addressable market sized at $119 billion.\nSince each large organization has a unique combination of legacy IT systems, unlocking the value of data requires expensive and time-consuming consulting projects to build custom software. This reality is why Palantir began as more of a consulting firm rather than a software firm (and it still is considered a consulting company by some investors).\nThe company would send consultants to connect, integrate and organize data from across the customer organization, creating a central operating system for data.\nThe company has two flagship platform offerings: Gotham and Foundry. The Gotham product is sold mainly to government customers while Foundry is sold to commercial customers. Both platforms are full-stack, vertically integrated, and deployable in the public and private cloud, on-premise or on classified networks (air-gapped networks), edge devices, laptops, and specialized hardware. Both platforms have specific user-facing applications for different industries.\nGotham, released in 2008, is a platform with multiple applications, including Graph, Gaia, Dossier, Stencil, Video, Table, Ava, Forward, and Mobile. Use cases include planning military missions, tax return analysis to uncover tax evaders, and mapping out criminal networks.\nFoundry, released in 2016, is also a platform with multiple applications, including Monocle, Contour, Object Explorer, Fusion, Workshop, Vertex, Code Authoring, Quiver, Code Workbooks, and Reports. Use cases include increasing aircraft design, trending defect detection in manufacturing plants, and risk management within financial institutions.\nUnderlying Gotham and Foundry is Apollo, a continuous delivery and product infrastructure platform which allows the company to deploy air-gapped and on-premise networks at approximately the same speed as in the field. This is important given the siloed nature of data within large customers, which could grind data integration to a halt.\nPricing for Palantir products is opaque. The company says they price based off of the estimated value Palantir expects its software platforms to deliver to the customer, and how much the customer would have to pay for a consulting firm to build a custom solution.\nSince 2018, the company has been investing in account-based sales force to bring in new customers and to expand within existing customers. The company's field sales force is only around 3-4% of headcount, so this number has room to move up.\nMarket Opportunity\nPalantir's management sizes their total addressable market is at $119 billion, which includes $63 billion from government and $56 billion from commercial.\nThe government market consists of $26 billion domestic and $37 billion international. The commercial market estimate is based potential customers: 6,000 enterprises with over $500 million in revenue and PLTR's estimated annual contract value per customer.\nThe company's addressable market is heavily dependent on domestic politics and geopolitics. The company's mission is to serve the U.S. and its allies, which obviously does not include selling into the large defense budgets of China and Russia. In addition, U.S. allies' desire to gain more sovereignty and reduce reliance on the U.S. may impede adoption of Palantir's platforms.\nDomestically, the company benefited significantly from the 1994 passing of the Federal Streaming Acquisition Act (FASA). Section 2377 requires the federal government to consider and acquire proven and available commercial items in the market \"to the maximum extend possible\". This rule was largely ignored until 2016 when Palantir successfully sued the US Army to enforce the law (Palantir v. United States).\nRisks\nThere are many risks associated with investing in Palantir, which I don't feel is appreciated by the market given the company's high valuation and retail adoration.\nPalantir is more of a service company that does not empower customers to maintain their own data/AI systems, which can be a problem for certain commercial customers. Palantir sells a \"full stack\" technology offering, which is appealing to government agencies but not commercial customers, who are accustomed to buying best-of-breed software.\nPalantir must host customer data in order to integrate it, which can be a problem in certain industries that are subject to privacy regulations.\nPalantir solutions are expensive with an average contract value of $5-6 million. High prices may limit Palantir's addressable market. Reliance on large deals also makes revenue growth lumpy and more difficult to predict.\nPalantir has significant customer concentration risk. In the S-1, the company disclosed that its top 20 customers accounted for 76% of revenue.\nPalantir's addressable market depends heavily on domestic and geopolitics. U.S. allies are increasingly seeking to reduce their reliance on the U.S. in both business (i.e. cracking down on US's tech giants) and defense and may be hesitant to give Palantir access to their most sensitive data.\nPalantir is opaque and discloses significantly fewer financial metrics to investors than peers. This is maybe due to the nature of its business, which deals with highly sensitive information, however, this leaves investors in the dark.\nPalantir may also face significant ESG problems, which is increasingly important as ESG investing is rapidly gaining in popularity. Not only is Palantir a defense contractor, but it also provides surveillance analytics and has a history of being marred by controversies.\nFinancials & Valuation\nPalantir's valuation has fluctuated wildly, reflecting the manic bull market we are in currently.\nWhen the company went public through a direct listing on 9/30/2020, the company traded at around 78 times forward consensus EPS and 12 times enterprise value to forward sales. The stock caught the attention of retail investors and traded to a peak of over 330 times forward EPS and over 47 times sales by January 2021. Currently, the stock is trading at 121 times forward EPS and 22 times forward sales. I frankly have no idea what the valuation of this company ought to be, and neither does the market.\nFor this nose-bleed valuation, you get an expected 35% revenue growth in 2021, a growth rate that bulls expect to be sustained for multiple years, and only modest EPS growth through 2023 as the company reported $0.19 in non-GAAP EPS in 2020 but is expected to only generate $0.26 by 2023. Note that GAAP EPS is still deep in the red.\nWhile often very expensive stocks are expected to easily beat consensus estimates, I'm not so sure about Palantir. From 2016 through 2020, the company only grew revenues by a compounded annual growth of 24%.\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with holding the stock.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4373639,"gmtCreate":1621389150662,"gmtModify":1680789610719,"authorId":3576144409995554,"author":{"id":3576144409995554,"idStr":"3576144409995554","authorId":3576144409995554,"name":"TheCSM","avatar":"https://static.tigerbbs.com/6efc7d366993c14843b768fab99c5631","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":195065337,"type":1,"supId":0,"prevId":0,"content":"pls reply. thanks","text":"pls reply. thanks","html":"pls reply. thanks"},{"id":4353819,"gmtCreate":1621241593896,"gmtModify":1680789264963,"authorId":3575769796360828,"author":{"id":3575769796360828,"idStr":"3575769796360828","authorId":3575769796360828,"name":"sgric","avatar":"https://static.tigerbbs.com/198d8594ee7383133c0f7a33a9a49909","vip":1,"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":195065337,"type":1,"supId":4353805,"prevId":0,"content":"done","text":"done","html":"done"},{"id":4353805,"gmtCreate":1621241447322,"gmtModify":1680789261731,"authorId":3574854199678785,"author":{"id":3574854199678785,"idStr":"3574854199678785","authorId":3574854199678785,"name":"MarkJuan","avatar":"https://static.tigerbbs.com/90cb9375bf12207de12cb272883acaa8","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":195065337,"type":1,"supId":0,"prevId":0,"content":"Appreciate a reply!","text":"Appreciate a reply!","html":"Appreciate a reply!"}],"langContent":"EN"},{"id":195066478,"gmtCreate":1621240736394,"gmtModify":1704354470777,"author":{"id":"3581857937661016","authorId":"3581857937661016","name":"es.T","avatar":"https://static.tigerbbs.com/a6aa04fec0e75ff23c4317cddaaf08cb","vip":1,"crmLevel":3,"crmLevelSwitch":0,"idStr":"3581857937661016","authorIdStr":"3581857937661016"},"htmlText":"Frothy&nbsp;","listText":"Frothy&nbsp;","text":"Frothy","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/195066478","repostId":1149212873,"repostType":4,"repost":{"id":"1149212873","kind":"news","pubTimestamp":1621240557,"share":"https://ttm.financial/m/news/1149212873?lang=&edition=fundamental","pubTime":"2021-05-17 16:35","market":"us","language":"en","title":"Palantir: Risky And Expensive","url":"https://stock-news.laohu8.com/highlight/detail?id=1149212873","media":"seekingalpha","summary":"Summary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and t","content":"Summary\n<ul>\n <li>Palantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.</li>\n <li>The company's financial metrics and the nature of their work are both shrouded in mystery.</li>\n <li>The company's addressable market may be limited by government and companies' willingness to give it access to sensitive data.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/1b5f30934b528b40d7581fde436747dc\" tg-width=\"1536\" tg-height=\"1024\">Photo by Anna Bliokh/E+ via Getty Images\nPalantir (PLTR) just reported a good quarter and plenty have been written about that and other short-term considerations. This article will instead focus on the fundamentals and help investors understand the actual business behind the stock, and the risks of owning it -- and there are many.\nBusiness\nPalantir addresses a common problem faced by large organizations: unlocking the value of siloed data from disparate systems. The company sells an end-to-end software platform and consulting services to an addressable market sized at $119 billion.\nSince each large organization has a unique combination of legacy IT systems, unlocking the value of data requires expensive and time-consuming consulting projects to build custom software. This reality is why Palantir began as more of a consulting firm rather than a software firm (and it still is considered a consulting company by some investors).\nThe company would send consultants to connect, integrate and organize data from across the customer organization, creating a central operating system for data.\nThe company has two flagship platform offerings: Gotham and Foundry. The Gotham product is sold mainly to government customers while Foundry is sold to commercial customers. Both platforms are full-stack, vertically integrated, and deployable in the public and private cloud, on-premise or on classified networks (air-gapped networks), edge devices, laptops, and specialized hardware. Both platforms have specific user-facing applications for different industries.\nGotham, released in 2008, is a platform with multiple applications, including Graph, Gaia, Dossier, Stencil, Video, Table, Ava, Forward, and Mobile. Use cases include planning military missions, tax return analysis to uncover tax evaders, and mapping out criminal networks.\nFoundry, released in 2016, is also a platform with multiple applications, including Monocle, Contour, Object Explorer, Fusion, Workshop, Vertex, Code Authoring, Quiver, Code Workbooks, and Reports. Use cases include increasing aircraft design, trending defect detection in manufacturing plants, and risk management within financial institutions.\nUnderlying Gotham and Foundry is Apollo, a continuous delivery and product infrastructure platform which allows the company to deploy air-gapped and on-premise networks at approximately the same speed as in the field. This is important given the siloed nature of data within large customers, which could grind data integration to a halt.\nPricing for Palantir products is opaque. The company says they price based off of the estimated value Palantir expects its software platforms to deliver to the customer, and how much the customer would have to pay for a consulting firm to build a custom solution.\nSince 2018, the company has been investing in account-based sales force to bring in new customers and to expand within existing customers. The company's field sales force is only around 3-4% of headcount, so this number has room to move up.\nMarket Opportunity\nPalantir's management sizes their total addressable market is at $119 billion, which includes $63 billion from government and $56 billion from commercial.\nThe government market consists of $26 billion domestic and $37 billion international. The commercial market estimate is based potential customers: 6,000 enterprises with over $500 million in revenue and PLTR's estimated annual contract value per customer.\nThe company's addressable market is heavily dependent on domestic politics and geopolitics. The company's mission is to serve the U.S. and its allies, which obviously does not include selling into the large defense budgets of China and Russia. In addition, U.S. allies' desire to gain more sovereignty and reduce reliance on the U.S. may impede adoption of Palantir's platforms.\nDomestically, the company benefited significantly from the 1994 passing of the Federal Streaming Acquisition Act (FASA). Section 2377 requires the federal government to consider and acquire proven and available commercial items in the market \"to the maximum extend possible\". This rule was largely ignored until 2016 when Palantir successfully sued the US Army to enforce the law (Palantir v. United States).\nRisks\nThere are many risks associated with investing in Palantir, which I don't feel is appreciated by the market given the company's high valuation and retail adoration.\nPalantir is more of a service company that does not empower customers to maintain their own data/AI systems, which can be a problem for certain commercial customers. Palantir sells a \"full stack\" technology offering, which is appealing to government agencies but not commercial customers, who are accustomed to buying best-of-breed software.\nPalantir must host customer data in order to integrate it, which can be a problem in certain industries that are subject to privacy regulations.\nPalantir solutions are expensive with an average contract value of $5-6 million. High prices may limit Palantir's addressable market. Reliance on large deals also makes revenue growth lumpy and more difficult to predict.\nPalantir has significant customer concentration risk. In the S-1, the company disclosed that its top 20 customers accounted for 76% of revenue.\nPalantir's addressable market depends heavily on domestic and geopolitics. U.S. allies are increasingly seeking to reduce their reliance on the U.S. in both business (i.e. cracking down on US's tech giants) and defense and may be hesitant to give Palantir access to their most sensitive data.\nPalantir is opaque and discloses significantly fewer financial metrics to investors than peers. This is maybe due to the nature of its business, which deals with highly sensitive information, however, this leaves investors in the dark.\nPalantir may also face significant ESG problems, which is increasingly important as ESG investing is rapidly gaining in popularity. Not only is Palantir a defense contractor, but it also provides surveillance analytics and has a history of being marred by&nbsp;controversies.\nFinancials &amp; Valuation\nPalantir's valuation has fluctuated wildly, reflecting the manic bull market we are in currently.\nWhen the company went public through a direct listing on 9/30/2020, the company traded at around 78 times forward consensus EPS and 12 times enterprise value to forward sales. The stock caught the attention of retail investors and traded to a peak of over 330 times forward EPS and over 47 times sales by January 2021. Currently, the stock is trading at 121 times forward EPS and 22 times forward sales. I frankly have no idea what the valuation of this company ought to be, and neither does the market.\nFor this nose-bleed valuation, you get an expected 35% revenue growth in 2021, a growth rate that bulls expect to be sustained for multiple years, and only modest EPS growth through 2023 as the company reported $0.19 in non-GAAP EPS in 2020 but is expected to only generate $0.26 by 2023. Note that GAAP EPS is still deep in the red.\nWhile often very expensive stocks are expected to easily beat consensus estimates, I'm not so sure about Palantir. From 2016 through 2020, the company only grew revenues by a compounded annual growth of 24%.\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with holding the stock.","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: Risky And Expensive</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: Risky And Expensive\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-17 16:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.\nThe company's financial metrics and the nature of their ...\n\n<a href=\"https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4429166-palantir-stock-pltr-risky-and-expensive","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1149212873","content_text":"Summary\n\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with.\nThe company's financial metrics and the nature of their work are both shrouded in mystery.\nThe company's addressable market may be limited by government and companies' willingness to give it access to sensitive data.\n\nPhoto by Anna Bliokh/E+ via Getty Images\nPalantir (PLTR) just reported a good quarter and plenty have been written about that and other short-term considerations. This article will instead focus on the fundamentals and help investors understand the actual business behind the stock, and the risks of owning it -- and there are many.\nBusiness\nPalantir addresses a common problem faced by large organizations: unlocking the value of siloed data from disparate systems. The company sells an end-to-end software platform and consulting services to an addressable market sized at $119 billion.\nSince each large organization has a unique combination of legacy IT systems, unlocking the value of data requires expensive and time-consuming consulting projects to build custom software. This reality is why Palantir began as more of a consulting firm rather than a software firm (and it still is considered a consulting company by some investors).\nThe company would send consultants to connect, integrate and organize data from across the customer organization, creating a central operating system for data.\nThe company has two flagship platform offerings: Gotham and Foundry. The Gotham product is sold mainly to government customers while Foundry is sold to commercial customers. Both platforms are full-stack, vertically integrated, and deployable in the public and private cloud, on-premise or on classified networks (air-gapped networks), edge devices, laptops, and specialized hardware. Both platforms have specific user-facing applications for different industries.\nGotham, released in 2008, is a platform with multiple applications, including Graph, Gaia, Dossier, Stencil, Video, Table, Ava, Forward, and Mobile. Use cases include planning military missions, tax return analysis to uncover tax evaders, and mapping out criminal networks.\nFoundry, released in 2016, is also a platform with multiple applications, including Monocle, Contour, Object Explorer, Fusion, Workshop, Vertex, Code Authoring, Quiver, Code Workbooks, and Reports. Use cases include increasing aircraft design, trending defect detection in manufacturing plants, and risk management within financial institutions.\nUnderlying Gotham and Foundry is Apollo, a continuous delivery and product infrastructure platform which allows the company to deploy air-gapped and on-premise networks at approximately the same speed as in the field. This is important given the siloed nature of data within large customers, which could grind data integration to a halt.\nPricing for Palantir products is opaque. The company says they price based off of the estimated value Palantir expects its software platforms to deliver to the customer, and how much the customer would have to pay for a consulting firm to build a custom solution.\nSince 2018, the company has been investing in account-based sales force to bring in new customers and to expand within existing customers. The company's field sales force is only around 3-4% of headcount, so this number has room to move up.\nMarket Opportunity\nPalantir's management sizes their total addressable market is at $119 billion, which includes $63 billion from government and $56 billion from commercial.\nThe government market consists of $26 billion domestic and $37 billion international. The commercial market estimate is based potential customers: 6,000 enterprises with over $500 million in revenue and PLTR's estimated annual contract value per customer.\nThe company's addressable market is heavily dependent on domestic politics and geopolitics. The company's mission is to serve the U.S. and its allies, which obviously does not include selling into the large defense budgets of China and Russia. In addition, U.S. allies' desire to gain more sovereignty and reduce reliance on the U.S. may impede adoption of Palantir's platforms.\nDomestically, the company benefited significantly from the 1994 passing of the Federal Streaming Acquisition Act (FASA). Section 2377 requires the federal government to consider and acquire proven and available commercial items in the market \"to the maximum extend possible\". This rule was largely ignored until 2016 when Palantir successfully sued the US Army to enforce the law (Palantir v. United States).\nRisks\nThere are many risks associated with investing in Palantir, which I don't feel is appreciated by the market given the company's high valuation and retail adoration.\nPalantir is more of a service company that does not empower customers to maintain their own data/AI systems, which can be a problem for certain commercial customers. Palantir sells a \"full stack\" technology offering, which is appealing to government agencies but not commercial customers, who are accustomed to buying best-of-breed software.\nPalantir must host customer data in order to integrate it, which can be a problem in certain industries that are subject to privacy regulations.\nPalantir solutions are expensive with an average contract value of $5-6 million. High prices may limit Palantir's addressable market. Reliance on large deals also makes revenue growth lumpy and more difficult to predict.\nPalantir has significant customer concentration risk. In the S-1, the company disclosed that its top 20 customers accounted for 76% of revenue.\nPalantir's addressable market depends heavily on domestic and geopolitics. U.S. allies are increasingly seeking to reduce their reliance on the U.S. in both business (i.e. cracking down on US's tech giants) and defense and may be hesitant to give Palantir access to their most sensitive data.\nPalantir is opaque and discloses significantly fewer financial metrics to investors than peers. This is maybe due to the nature of its business, which deals with highly sensitive information, however, this leaves investors in the dark.\nPalantir may also face significant ESG problems, which is increasingly important as ESG investing is rapidly gaining in popularity. Not only is Palantir a defense contractor, but it also provides surveillance analytics and has a history of being marred by controversies.\nFinancials & Valuation\nPalantir's valuation has fluctuated wildly, reflecting the manic bull market we are in currently.\nWhen the company went public through a direct listing on 9/30/2020, the company traded at around 78 times forward consensus EPS and 12 times enterprise value to forward sales. The stock caught the attention of retail investors and traded to a peak of over 330 times forward EPS and over 47 times sales by January 2021. Currently, the stock is trading at 121 times forward EPS and 22 times forward sales. I frankly have no idea what the valuation of this company ought to be, and neither does the market.\nFor this nose-bleed valuation, you get an expected 35% revenue growth in 2021, a growth rate that bulls expect to be sustained for multiple years, and only modest EPS growth through 2023 as the company reported $0.19 in non-GAAP EPS in 2020 but is expected to only generate $0.26 by 2023. Note that GAAP EPS is still deep in the red.\nWhile often very expensive stocks are expected to easily beat consensus estimates, I'm not so sure about Palantir. From 2016 through 2020, the company only grew revenues by a compounded annual growth of 24%.\nPalantir's high valuation is hard to justify given growth rate, lack of transparency, and the large number of risks associated with holding the stock.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":21,"commentSize":12,"repostSize":0,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false}}