2024-03-05 22:26:04 ET
Summary
- Palantir's Q4 FY2023 significantly beat consensus estimates for both EPS and revenue, causing PLTR stock to rise sharply on the news. How much is left? Read on.
- The company's AIP bootcamps have been successful in capitalizing on the growing demand for AI in business. It's now the "pearl" of the company when it comes to revenue expansion.
- There should be even more growth drivers as soon as the company completes work on the Mission Manager project and begins its mass commercialization.
- I can't upgrade PLTR stock because it trades today at 46 times FY2027 earnings, which makes the stock too overvalued even assuming stronger EPS growth than Wall Street expects today.
- I am therefore maintaining my "Hold" rating, as I do not know when the stock price will settle at a realistic level.
Introduction
I have been covering Palantir Technologies Inc. ( PLTR ) here on Seeking Alpha since October 2021: I initially rated the stock as a 'Sell' due to its overvaluation and seemingly limited growth at the time. My bearish calls were successful for about a year - until market expectations shifted towards rapid growth through AI (and not only), which allowed PLTR stock to recover quickly. I upgraded the stock to "Hold" in February 2023 and have written about the company once a quarter since then, coming to either neutral or pessimistic conclusions (mostly neutral). In my most recent article on PLTR , I concluded that the company's business is indeed growing very fast and with high quality - so it became tough to remain bearish. At the moment, PLTR's stock price is approaching the 3-year highs, having risen 43% year-to-date:
Read the full article on Seeking Alpha
For further details see:
Why Palantir's Promising Future Might Not Mean Big Returns