To The Moon

Hey tiger friends, I wanted to talk about $Palantir Technologies Inc.(PLTR)$, a company I've been bullish on for a while now. It's no secret the past month and a half have been rough on the stock, but I wanted to share some recent developments and my overall perspective on its future.

There have been some interesting milestones for Palantir recently, both positive and negative. Back in early April, right before the market correction began, Palantir announced a collaboration with $Oracle(ORCL)$ to deliver cloud and AI services to businesses and governments. This strategic alliance combines Palantir's expertise in AI and decision-making platforms with Oracle's expansive cloud and AI infrastructure reach. This has the potential to be a game-changer for both companies, creating a powerful one-two punch for clients. Yesterday, Palantir received an "awardable" vendor designation for the Department of Defense's AI marketplace. This means two of Palantir's core platforms are now readily available to government clients, potentially accelerating adoption within the DoD. This is a significant win for Palantir, solidifying its position as a trusted provider for mission-critical AI solutions.

Palantir is set to release its first-quarter earnings on May 6th. Analysts are anticipating year-over-year revenue growth of 19%, and interestingly, all seven analysts who have adjusted their estimates recently have increased their profitability expectations. This suggests growing confidence in Palantir's financial performance.

PLTR Daily Chart

While the news itself is encouraging, the stock price hasn't reflected that lately. PLTR is currently trading near its 100-day moving average, and the broader market weakness certainly hasn't helped. However, it's important to consider Palantir's improving financials. Operating cash flow and free cash flow are both significantly up year-over-year, demonstrating the company's ability to generate substantial cash. This financial strength is a key factor in my long-term bullishness on Palantir.

Net operating Cash Flow for 2023 and 2022

Free Cash Flow for 2023 and 2022

Let's be honest, I'm long PLTR, so I definitely have a bias. But even acknowledging that, I firmly believe in Palantir's long-term potential. The company is a leader in AI and data analytics, and the recent partnerships and DoD approval are strong validations of their technology and capabilities. The stock price may be down in the short term, but the long-term outlook remains promising, in my view.

There are certainly some short-term concerns to be aware of. The overall market weakness could continue to put pressure on the stock price. If that happens, and the price dips down to fill the gap near $17.87, I see that as a potential buying opportunity for long-term investors who are comfortable with some volatility. For now, I would like to see if the price can hold around 20.20-21.

This is just my analysis of the situation, and it's important to do your own research before making any investment decisions. However, I hope this information provides some additional insights into Palantir's recent developments and my overall perspective on the company's future.

PLTR

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Disclaimer: It's important to remember that this analysis reflects my views and is not financial advice. Before making any investment decisions, it's essential to conduct your own research and consider your risk tolerance.