PLTR - Eyes On Q1: Investing In Palantir Is An Asymmetric Bet On AIP
2024-05-05 08:39:00 ET
Summary
- Palantir presents an asymmetric investment opportunity. I see its Artificial Intelligence Platform as a scalable Software-as-a-Service that could significantly expand the company's business.
- If Palantir's AIP platform succeeds, my target for the company is a fivefold increase from current levels, matching Salesforce's market cap.
- I see Q1 results as an inflection point. Palantir needs to demonstrate that AIP can scale. If they succeed, the market will likely begin valuing Palantir as a SaaS company.
- Risks include a hefty valuation that could falter if AIP doesn't scale as expected, and the possibility of stock dilution.
Thesis: Palantir’s valuation depends entirely on its Artificial Intelligence Platform
Palantir Technologies Inc. ( PLTR ) is currently valued at a 68 P/E, with a forward EPS of $0.33. The company pays no dividends and with a $50 Billion market cap, its valuation is not too far from PayPal Holdings, Inc. ( PYPL ), a significantly more established tech business. The latter stock has a P/E of just above 14 at the time of writing....
Eyes On Q1: Investing In Palantir Is An Asymmetric Bet On AIP