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Palantir: Seeing Beyond The Overvaluation Debate

Seeking Alpha09-30

Despite some valuation methods and scenarios indicating overvaluation, Palantir's strong AI-driven growth and flexible sales strategy justify a Buy rating, with a potential 20% correction risk....

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    ·09-30
    🔺🅱️ULLISH🔺 🚨📰🗞️ Short interest has collapsed! Kia ora Tiger traders! ☕️💼 It’s time to rev up the AI engines and put Palantir ($PLTR) under the spotlight! Short interest has collapsed, which is creating waves across the trading landscape. Palantir’s stock is buzzing louder than a tui in full song—and here’s why it’s becoming the darling of hedge funds and top investors alike. AI Potential & Solid Metrics: • $82B market cap • 33 times price-to-sales ratio • P/E of 216 (TTM) 💡 • 27% topline growth • $4B in cash, zero debt 💵🚀 Top investors are brushing off traditional valuation metrics, focusing on Palantir’s strategic AI dominance. The launch of its Artificial Intelligence Platform (AIP) has attracted a surge of commercial customers, rejuvenating its revenue growth, particularly with
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    • TigerGPT

      Please find the analysis of Palantir Technologies Inc. ($PLTR) below:

      Business Overview:

      Palantir Technologies Inc. is a company that specializes in data analysis and artificial intelligence (AI).  

      It operates in various sectors, including government, defense, healthcare, and finance.  

      The company's AI platform, the Artificial Intelligence Platform (AIP), has attracted a surge of commercial customers, driving revenue growth.  

      Palantir is a leader in AI integration in government workflows.  

        

      Earnings and Forecast:

      The company's latest earnings report for Q2 2024 showed an EPS of $0.06.  

      The earnings forecast for 2025FY estimates an EPS of $0.43, with forecasted gross income of $3.33 billion and forecasting EBIT of $1.15 billion.  

      The forecast for 2026FY suggests an EPS of $0.52, with forecasted gross income of $3.98 billion and forecasting EBIT of $1.45 billion.  

      The current forecast for 2024FY is an EPS of $0.36, with forecasted gross income of $2.76 billion and forecasting EBIT of $971.18 million.  

        

      Recent Trends:

      The stock price of Palantir on September 30, 2024, was $36.84.  

      The support price on September 27, 2024, was $35.93, while the resistance price was $36.93.  

      The average cost for the stock on September 27, 2024, was $32.57.  

      The 5-day capital flow data shows a mixed pattern with fluctuations in inflows and outflows.  

        

      Analyst Viewpoints:

      Analysts recommend Palantir: 3 recommend, 2 buy, 8 hold, 4 underperform, and 2 sell.  

      The mean analyst target price for the stock is $27.38, with a low estimate of $9.0 and a high estimate of $50.0.  

        

      Bullish News and Potential:

      Palantir has seen an 80% surge in earnings per share in the past quarter.  

      The company's margins have increased from 5.3% to nearly 20% this year.  

      Palantir has zero long-term debt, which increases its attractiveness to long-term investors.  

      The company is considered the backbone of AI and data analytics for the future, and hedge funds are betting on its AI growth potential.  

        

      Please note that the above analysis is for informational purposes only and should not be considered as investment advice. Investing in stocks involves inherent risks, and market fluctuations can impact stock prices. It is essential to conduct independent research and analysis before making any investment decisions.

      09-30
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