Palantir Technologies Stock: Irrational Exuberance

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Palantir Technologies Stock: Irrational Exuberance

seekingalpha02-06

Palantir Technologies stock soared after hours after posting Q4 results and 2024 guidance that exceeded market expectations.However, I think that the market and PLTR management are irrationally ...

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As I write this, the stock is up by 17.28%. Clearly, there must have been blowout results and guidance, right? Unfortunately, I cannot seem to find anything in the numbers to justify this sort of market response - especially given the already bloated valuation - other than some enthusiastic cheerleading from the company's CEO Alex Karp. In this article, I will dig into the numbers and valuation and reiterate why I am still bearish on the stock after the latest earnings numbers. PLTR Stock Q4: The Good The U.S. commercial business continues to boom, with revenue growing by a whopping 70% year-over-year and 12% quarter-over-quarter. That being said, the International business continued to weigh on overall commercial growth, bringing down the overall commercial business revenue growth to just 32% year-over-year (though this was still quite an impressive number). The US commercial customer count also grew by a whopping 22% quarter-over-quarter, reflecting the incredible momentum in this business right now. Overall revenue growth also accelerated from the previous quarter, improving from 16.8% year-over-year in Q3 to 20% year-over-year in Q4, and the company posted its fourth consecutive quarter of GAAP operating profitability and fifth straight quarter of GAAP profitability. Management also hyped up the company's growth during the earnings call. Chief Revenue Officer and Chief Legal Officer Ryan Taylor kicked things off by saying: 2023 was a tremendous year of opportunity and growth for our company, with US commercial at the forefront... I've never before seen the level of customer enthusiasm and demand that we are currently seeing from AIP in US commercial. Chief Technology Officer Shyam Sankar then joined in, stating: the expanding addressable market, driven by AIP, is propelling growth both through new customer acquisitions and expansions with existing customers...Growth is being driven by the incredible dynamism of the US commercial market, and US government will follow. Chief Financial Officer Dave Glazer commented: We had an exceptionally strong fourth quarter Last, but not least, CEO Alex Karp - never short of superlatives to describe his company - exclaimed: There's really so much to say. Obviously, our performance in US commercial is extraordinary, some would say bombastic. The numbers that just fly off the screen are the 70% year-on-year growth in Q4. The number numbers that I almost had to turn the page when I saw them were the -- over 100 contracts, over $1 million, 37 over $5 million, and 21, roughly, over $10 million. There is -- it's almost inconceivable to do that many contracts given the way our product used to be...I foresee a very, very strong year, especially in US commercial. PLTR Stock Q4: The Bad That being said, regardless of how cool, innovative, or popular their products are, the much-hyped growth from PLTR is still not showing up in the numbers. Even more troubling is the fact that it is not showing up in the guidance either. As management admitted on the earnings call: monetization of these efforts will take time. While I think PLTR is a wonderful company and has truly innovative and powerful software, price is what you pay and value is what you get. While we will dig into the valuation numbers in a minute, first I want to comment that the growth numbers simply do not justify management's rhetoric. Q4 was labeled an \"exceptionally strong quarter\" for the company's growth, yet its revenue growth rate was a pedestrian 20% for a company that is trading at such a sky-high valuation multiple. If that is a significant outperformance for the company, there is no way that it justifies the reaction it is getting from Mr. Market right now. For those who say that management is simply being conservative in its guidance of 20.9% revenue growth in 2024, keep in mind that this was the same management team that - shortly after it went public in late 2020 and into 2021 - was hyping up its guidance for over $4 billion in 2025 revenue. They have since conspicuously failed to mention that guidance anymore and are likely going to come in about $800 million shy of the low end of that number. Is AI a legitimate technology and is it a growth engine for PLTR? Undoubtedly, yes it is. However, PLTR's revenue growth continues to decline. In 2020, its revenue growth was a whopping 47.2%, in 2021 it was 41.1%, in 2022 there was a steep decline to 23.6% growth, and then this year growth declined yet again to 17%. Management thinks they can re-accelerate growth in 2024 on the strength of AI demand, but even then they only think they can roughly recover only half of the growth deceleration over the past year alone. If AI is truly all that management is cracking it up to be, they should be growing at much higher rates right now, especially given that their company does not have the same economies of scale benefits that many other software companies have. PLTR Stock: The Valuation PLTR stock is priced for very robust growth in the years to come given its lofty 57.8x P/NTM Earnings ratio and 44.12x EV/NTM EBITDA ratio. However, as we just discussed, there are just not enough pieces of evidence yet of strong enough growth to justify this sort of valuation. Wall Street analysts are also pretty torn on this stock, with only 4 Buys, 1 Outperform, 5 Holds, 3 Underperforms, and 5 Sells, making Wall Street slightly bearish on average. Looking at their consensus estimates for revenue and normalized earnings per share growth through 2027, it isn't hard to figure out why. They expect revenue to grow at a relatively strong 23.7% CAGR, which certainly puts PLTR into the growth category. However, this number ends up not being all that impressive when you see that the company's EBITDA margins have not expanded much at all over time and in fact have shrunk over the past few years from 31.7% in 2021 to ~29% in 2023. The EPS outlook isn't much more impressive, either, with analysts expecting margins to only expand at a 3.1% CAGR through 2027, implying relatively modest economies of scale. As a result, EPS is expected to be $0.66 in 2027, which would imply a ~30x P/E ratio at the current stock price. Keep in mind as well that analysts are forecasting PLTR's revenue growth to slow to 15.5% in 2027 from the 20% expected of the company this year. Does a company without any meaningful economies of scale deserve to trade well above 30x earnings with a mid-teens revenue growth rate and likely an EPS growth rate that is only a few hundred basis points higher? I think it is hard to make the case for that, especially given that the market seems to think that we will have interest rates that are higher for longer at this point. As a result, we think that PLTR is unlikely to see any meaningful price appreciation by the end of the next four years as it will likely trade around $20 at that point. PLTR Stock: The Verdict PLTR produced solid Q4 results and provided strong 2024 guidance. Moreover, management sounded as confident and bullish as ever on the earnings call. However, the 2023 results and the 2024 guidance reflect a continued stagnation of the growth rate over the past several years and a lack of true growth acceleration from the ongoing AI boom that Mr. Market has been giving PLTR stock so much credit for over the past three quarters: Data by YCharts  As a result, we think that PLTR's current valuation is unjustified and rate it a Sell as we do not see much long-term appreciation potential until management can prove that its business is truly accelerating its growth engine back into a 35-45% CAGR range and/or the stock price falls meaningfully from here.","kind":null,"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":271136112881952,"gmtCreate":1707233136477,"gmtModify":1707235041739,"author":{"id":"3577704055258521","authorId":"3577704055258521","name":"ipsail","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"authorIdStr":"3577704055258521","idStr":"3577704055258521"},"htmlText":"Shut up&nbsp;","listText":"Shut up&nbsp;","text":"Shut up","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/271136112881952","repostId":2409408472,"repostType":2,"repost":{"id":"2409408472","pubTimestamp":1707221700,"share":"https://ttm.financial/m/news/2409408472?lang=&edition=fundamental","pubTime":"2024-02-06 20:15","market":"us","language":"en","title":"Palantir Technologies Stock: Irrational Exuberance","url":"https://stock-news.laohu8.com/highlight/detail?id=2409408472","media":"seekingalpha","summary":"Palantir Technologies stock soared after hours after posting Q4 results and 2024 guidance that exceeded market expectations.However, I think that the market and PLTR management are irrationally exuber","content":"<html><body><ul><li>Palantir Technologies stock soared after hours after posting Q4 results and 2024 guidance that exceeded market expectations.</li><li>However, I think that the market and PLTR management are irrationally exuberant about the business.</li><li>I detail why PLTR stock is likely going to disappoint investors over the coming four years.</li></ul><p><figure><picture><img loading=\"lazy\" src=\"https://media.gettyimages.com/id/1415627631/photo/friends-celebrating-with-sparkers-in-the-street-at-night.jpg?b=1&amp;s=170667a&amp;w=0&amp;k=20&amp;c=YkXENT_povlx0hKAETzMSLe00TmvtIQ6-3CsNUN6bOg=\"/></picture><figcaption><p>FG Trade/E+ via Getty Images</p></figcaption></figure></p> <p>Palantir Technologies (<span>NYSE:PLTR</span>) stock soared after hours following posting its Q4 results and 2024 guidance that clearly exceeded market expectations. As I write this, the stock is up by 17.28%. Clearly, there must have been blowout results and<span> guidance, right? Unfortunately, I cannot seem to find anything in the numbers to justify this sort of market response - especially given the already bloated valuation - other than some enthusiastic cheerleading from the company's CEO Alex Karp.</span></p> <p>In this article, I will dig into the numbers and valuation and reiterate why I am still bearish on the stock after the latest earnings numbers.</p> <h2>PLTR Stock Q4: The Good</h2> <p>The U.S. commercial business continues to boom, with revenue growing by a whopping 70% year-over-year and 12% quarter-over-quarter. That being said, the International business continued to weigh on overall commercial growth, bringing down the overall<span> commercial business revenue growth to just 32% year-over-year (though this was still quite an impressive number). The US commercial customer count also grew by a whopping 22% quarter-over-quarter, reflecting the incredible momentum in this business right now.</span></p> <p>Overall revenue growth also accelerated from the previous quarter, improving from 16.8% year-over-year in Q3 to 20% year-over-year in Q4, and the company posted its fourth consecutive quarter of GAAP operating profitability and fifth straight quarter of GAAP profitability.</p> <p>Management also hyped up the company's growth during the earnings call. Chief Revenue Officer and Chief Legal Officer Ryan Taylor kicked things off by saying:</p> <blockquote><p><em>2023 was a tremendous year of opportunity and growth for our company, with US commercial at the forefront... I've never before seen the level of customer enthusiasm and demand that we are currently seeing from AIP in US commercial.</em></p></blockquote> <p>Chief Technology Officer Shyam Sankar then joined in, stating:</p> <blockquote><p><em>the expanding addressable market, driven by AIP, is propelling growth both through new customer acquisitions and expansions with existing customers...Growth is being driven by the incredible dynamism of the US commercial market, and US government will follow.</em></p></blockquote> <p>Chief Financial Officer Dave Glazer commented:</p> <blockquote><p><em>We had an exceptionally strong fourth quarter</em></p></blockquote> <p>Last, but not least, CEO Alex Karp - never short of superlatives to describe his company - exclaimed:</p> <blockquote><p><em>There's really so much to say. Obviously, our performance in US commercial is extraordinary, some would say bombastic. The numbers that just fly off the screen are the 70% year-on-year growth in Q4. The number numbers that I almost had to turn the page when I saw them were the -- over 100 contracts, over $1 million, 37 over $5 million, and 21, roughly, over $10 million. There is -- it's almost inconceivable to do that many contracts given the way our product used to be...I foresee a very, very strong year, especially in US commercial.</em></p></blockquote> <h2>PLTR Stock Q4: The Bad</h2> <p>That being said, regardless of how cool, innovative, or popular their products are, the much-hyped growth from PLTR is still not showing up in the numbers. Even more troubling is the fact that it is not showing up in the guidance either. As management admitted on the earnings call:</p> <blockquote><p><em>monetization of these efforts will take time.</em></p></blockquote> <p>While I think PLTR is a wonderful company and has truly innovative and powerful software, price is what you pay and value is what you get. While we will dig into the valuation numbers in a minute, first I want to comment that the growth numbers simply do not justify management's rhetoric. Q4 was labeled an \"exceptionally strong quarter\" for the company's growth, yet its revenue growth rate was a pedestrian 20% for a company that is trading at such a sky-high valuation multiple. If that is a significant outperformance for the company, there is no way that it justifies the reaction it is getting from Mr. Market right now.</p> <p>For those who say that management is simply being conservative in its guidance of 20.9% revenue growth in 2024, keep in mind that this was the same management team that - shortly after it went public in late 2020 and into 2021 - was hyping up its guidance for over $4 billion in 2025 revenue. They have since conspicuously failed to mention that guidance anymore and are likely going to come in about $800 million shy of the low end of that number.</p> <p>Is AI a legitimate technology and is it a growth engine for PLTR? Undoubtedly, yes it is. However, PLTR's revenue growth continues to decline. In 2020, its revenue growth was a whopping 47.2%, in 2021 it was 41.1%, in 2022 there was a steep decline to 23.6% growth, and then this year growth declined yet again to 17%. Management thinks they can re-accelerate growth in 2024 on the strength of AI demand, but even then they only think they can roughly recover only half of the growth deceleration over the past year alone. If AI is truly all that management is cracking it up to be, they should be growing at much higher rates right now, especially given that their company does not have the same economies of scale benefits that many other software companies have.</p> <h2>PLTR Stock: The Valuation</h2> <p>PLTR stock is priced for very robust growth in the years to come given its lofty 57.8x P/NTM Earnings ratio and 44.12x EV/NTM EBITDA ratio. However, as we just discussed, there are just not enough pieces of evidence yet of strong enough growth to justify this sort of valuation.</p> <p>Wall Street analysts are also pretty torn on this stock, with only 4 Buys, 1 Outperform, 5 Holds, 3 Underperforms, and 5 Sells, making Wall Street slightly bearish on average. Looking at their consensus estimates for revenue and normalized earnings per share growth through 2027, it isn't hard to figure out why. They expect revenue to grow at a relatively strong 23.7% CAGR, which certainly puts PLTR into the growth category. However, this number ends up not being all that impressive when you see that the company's EBITDA margins have not expanded much at all over time and in fact have shrunk over the past few years from 31.7% in 2021 to ~29% in 2023.</p> <p>The EPS outlook isn't much more impressive, either, with analysts expecting margins to only expand at a 3.1% CAGR through 2027, implying relatively modest economies of scale. As a result, EPS is expected to be $0.66 in 2027, which would imply a ~30x P/E ratio at the current stock price. Keep in mind as well that analysts are forecasting PLTR's revenue growth to slow to 15.5% in 2027 from the 20% expected of the company this year. Does a company without any meaningful economies of scale deserve to trade well above 30x earnings with a mid-teens revenue growth rate and likely an EPS growth rate that is only a few hundred basis points higher?</p> <p>I think it is hard to make the case for that, especially given that the market seems to think that we will have interest rates that are higher for longer at this point. As a result, we think that PLTR is unlikely to see any meaningful price appreciation by the end of the next four years as it will likely trade around $20 at that point.</p> <h2>PLTR Stock: The Verdict</h2> <p>PLTR produced solid Q4 results and provided strong 2024 guidance. Moreover, management sounded as confident and bullish as ever on the earnings call. However, the 2023 results and the 2024 guidance reflect a continued stagnation of the growth rate over the past several years and a lack of true growth acceleration from the ongoing AI boom that Mr. Market has been giving PLTR stock so much credit for over the past three quarters:</p> <p><figure><img height=\"366\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2024/2/5/saupload_eb8ead649f8180259d32b376beb81cd8.png\" width=\"635\"/><figcaption>Data by YCharts</figcaption></figure></p> <div></div> <p>As a result, we think that PLTR's current valuation is unjustified and rate it a Sell as we do not see much long-term appreciation potential until management can prove that its business is truly accelerating its growth engine back into a 35-45% CAGR range and/or the stock price falls meaningfully from here.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Palantir Technologies Stock: Irrational Exuberance</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPalantir Technologies Stock: Irrational Exuberance\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-02-06 20:15 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4667743-palantir-technologies-stock-irrational-exuberance><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Palantir Technologies stock soared after hours after posting Q4 results and 2024 guidance that exceeded market expectations.However, I think that the market and PLTR management are irrationally ...</p>\n\n<a href=\"https://seekingalpha.com/article/4667743-palantir-technologies-stock-irrational-exuberance\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4588":"碎股","PLTR":"Palantir Technologies Inc.","BK4543":"AI","BK4547":"WSB热门概念","BK4585":"ETF&股票定投概念","BK4023":"应用软件"},"source_url":"https://seekingalpha.com/article/4667743-palantir-technologies-stock-irrational-exuberance","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2409408472","content_text":"Palantir Technologies stock soared after hours after posting Q4 results and 2024 guidance that exceeded market expectations.However, I think that the market and PLTR management are irrationally exuberant about the business.I detail why PLTR stock is likely going to disappoint investors over the coming four years.FG Trade/E+ via Getty Images Palantir Technologies (NYSE:PLTR) stock soared after hours following posting its Q4 results and 2024 guidance that clearly exceeded market expectations. As I write this, the stock is up by 17.28%. Clearly, there must have been blowout results and guidance, right? Unfortunately, I cannot seem to find anything in the numbers to justify this sort of market response - especially given the already bloated valuation - other than some enthusiastic cheerleading from the company's CEO Alex Karp. In this article, I will dig into the numbers and valuation and reiterate why I am still bearish on the stock after the latest earnings numbers. PLTR Stock Q4: The Good The U.S. commercial business continues to boom, with revenue growing by a whopping 70% year-over-year and 12% quarter-over-quarter. That being said, the International business continued to weigh on overall commercial growth, bringing down the overall commercial business revenue growth to just 32% year-over-year (though this was still quite an impressive number). The US commercial customer count also grew by a whopping 22% quarter-over-quarter, reflecting the incredible momentum in this business right now. Overall revenue growth also accelerated from the previous quarter, improving from 16.8% year-over-year in Q3 to 20% year-over-year in Q4, and the company posted its fourth consecutive quarter of GAAP operating profitability and fifth straight quarter of GAAP profitability. Management also hyped up the company's growth during the earnings call. Chief Revenue Officer and Chief Legal Officer Ryan Taylor kicked things off by saying: 2023 was a tremendous year of opportunity and growth for our company, with US commercial at the forefront... I've never before seen the level of customer enthusiasm and demand that we are currently seeing from AIP in US commercial. Chief Technology Officer Shyam Sankar then joined in, stating: the expanding addressable market, driven by AIP, is propelling growth both through new customer acquisitions and expansions with existing customers...Growth is being driven by the incredible dynamism of the US commercial market, and US government will follow. Chief Financial Officer Dave Glazer commented: We had an exceptionally strong fourth quarter Last, but not least, CEO Alex Karp - never short of superlatives to describe his company - exclaimed: There's really so much to say. Obviously, our performance in US commercial is extraordinary, some would say bombastic. The numbers that just fly off the screen are the 70% year-on-year growth in Q4. The number numbers that I almost had to turn the page when I saw them were the -- over 100 contracts, over $1 million, 37 over $5 million, and 21, roughly, over $10 million. There is -- it's almost inconceivable to do that many contracts given the way our product used to be...I foresee a very, very strong year, especially in US commercial. PLTR Stock Q4: The Bad That being said, regardless of how cool, innovative, or popular their products are, the much-hyped growth from PLTR is still not showing up in the numbers. Even more troubling is the fact that it is not showing up in the guidance either. As management admitted on the earnings call: monetization of these efforts will take time. While I think PLTR is a wonderful company and has truly innovative and powerful software, price is what you pay and value is what you get. While we will dig into the valuation numbers in a minute, first I want to comment that the growth numbers simply do not justify management's rhetoric. Q4 was labeled an \"exceptionally strong quarter\" for the company's growth, yet its revenue growth rate was a pedestrian 20% for a company that is trading at such a sky-high valuation multiple. If that is a significant outperformance for the company, there is no way that it justifies the reaction it is getting from Mr. Market right now. For those who say that management is simply being conservative in its guidance of 20.9% revenue growth in 2024, keep in mind that this was the same management team that - shortly after it went public in late 2020 and into 2021 - was hyping up its guidance for over $4 billion in 2025 revenue. They have since conspicuously failed to mention that guidance anymore and are likely going to come in about $800 million shy of the low end of that number. Is AI a legitimate technology and is it a growth engine for PLTR? Undoubtedly, yes it is. However, PLTR's revenue growth continues to decline. In 2020, its revenue growth was a whopping 47.2%, in 2021 it was 41.1%, in 2022 there was a steep decline to 23.6% growth, and then this year growth declined yet again to 17%. Management thinks they can re-accelerate growth in 2024 on the strength of AI demand, but even then they only think they can roughly recover only half of the growth deceleration over the past year alone. If AI is truly all that management is cracking it up to be, they should be growing at much higher rates right now, especially given that their company does not have the same economies of scale benefits that many other software companies have. PLTR Stock: The Valuation PLTR stock is priced for very robust growth in the years to come given its lofty 57.8x P/NTM Earnings ratio and 44.12x EV/NTM EBITDA ratio. However, as we just discussed, there are just not enough pieces of evidence yet of strong enough growth to justify this sort of valuation. Wall Street analysts are also pretty torn on this stock, with only 4 Buys, 1 Outperform, 5 Holds, 3 Underperforms, and 5 Sells, making Wall Street slightly bearish on average. Looking at their consensus estimates for revenue and normalized earnings per share growth through 2027, it isn't hard to figure out why. They expect revenue to grow at a relatively strong 23.7% CAGR, which certainly puts PLTR into the growth category. However, this number ends up not being all that impressive when you see that the company's EBITDA margins have not expanded much at all over time and in fact have shrunk over the past few years from 31.7% in 2021 to ~29% in 2023. The EPS outlook isn't much more impressive, either, with analysts expecting margins to only expand at a 3.1% CAGR through 2027, implying relatively modest economies of scale. As a result, EPS is expected to be $0.66 in 2027, which would imply a ~30x P/E ratio at the current stock price. Keep in mind as well that analysts are forecasting PLTR's revenue growth to slow to 15.5% in 2027 from the 20% expected of the company this year. Does a company without any meaningful economies of scale deserve to trade well above 30x earnings with a mid-teens revenue growth rate and likely an EPS growth rate that is only a few hundred basis points higher? I think it is hard to make the case for that, especially given that the market seems to think that we will have interest rates that are higher for longer at this point. As a result, we think that PLTR is unlikely to see any meaningful price appreciation by the end of the next four years as it will likely trade around $20 at that point. PLTR Stock: The Verdict PLTR produced solid Q4 results and provided strong 2024 guidance. Moreover, management sounded as confident and bullish as ever on the earnings call. However, the 2023 results and the 2024 guidance reflect a continued stagnation of the growth rate over the past several years and a lack of true growth acceleration from the ongoing AI boom that Mr. Market has been giving PLTR stock so much credit for over the past three quarters: Data by YCharts  As a result, we think that PLTR's current valuation is unjustified and rate it a Sell as we do not see much long-term appreciation potential until management can prove that its business is truly accelerating its growth engine back into a 35-45% CAGR range and/or the stock price falls meaningfully from here.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":0,"commentSize":1,"repostSize":1,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}