- I am upgrading Palantir’s stock to a “buy” as I had previously underestimated profitability expansion potential, despite high valuation and expected volatility.
- I believe that Palantir will likely beat its Q3 FY24 revenue and earnings target, driven by strong AIP demand and strategic government contracts keeping the trend of revenue acceleration alive.
- While Palantir’s forward revenue multiple is high compared to peers, despite similar revenue growth rates into FY26, its potential for profitability expansion could justify a price target of $61.
- However, risks include potential volatility from polarized investor sentiment and reliance on continued demand and controlled operating expenses.
Introduction & investment thesis
I last wrote about Palantir (NYSE:PLTR) in September, where I discussed that the stock’s outperformance is tied to it beating its Q2 FY24 earnings target, where it demonstrated exceptional strength. I am Amrita and I write primarily about growth software stocks. T recently joined The REIT Forum and if you are looking for more investment ideas like this one, get them exclusively at The REIT Forum with access to our subscriber only portfolios.
Amrita runs a boutique family office fund in beautiful Vancouver, where she leads the investment strategy for the family fund. The fund’s objective is to invest capital in sustainable, growth-driven companies that maximize shareholder equity by meeting their growth-oriented goals. In addition, she also started her own award-winning newsletter, The Pragmatic Optimist which focuses on portfolio strategy, valuation, and macroeconomics in concert with her husband Uttam Dey who is also a contributor on Seeking Alpha. Prior to cofounding her fund, Amrita worked for 5 years in high-growth supply-chain start-ups in downtown San Francisco, where she led strategy. During her time in the Bay Area, she also worked with venture capital firms and start-ups, where her efforts led her to grow the user acquisition business. During this time, she was introduced to investment portfolios and was able to maximize returns for clients during the pandemic. The cornerstone of Amritas work rests on democratizing financial literacy for everyone and breaking down financial jargon and complex macroeconomic concepts into formats that are easily digestible but more empowering than the typical investment thesis. Her newsletter has been featured as the Top Newsletter in Finance on popular newsletter platforms and she aims to bring her ideas to Seeking Alpha as well.
READ FULL ARTICLE HERE!
