Prostock-Studio
Summary
- Palantir’s Q3 earnings report highlighted its differentiating business model with superb scalability and profitability.
- Investors are willing to pay 158x FWD P/E for such a business model.
- Palantir’s free cash flow significantly exceeds its accounting EPS, suggesting its true earnings power is underestimated.
- Nonetheless, the stock’s current valuation would require years or even a decade for growth to catch up.
- Time compounds uncertainty and investors should consider their investment timeframe before engaging in this stock.
- I am Envision Research. I hold a Masters in Quant Investment. I lead the investing group Envision Early Retirement where we offer proven solutions to generate both high income & high growth with isolated risks.
PLTR stock: Previous thesis and Q3 earnings
My last work on Palantir Technologies Inc. (NYSE:PLTR) was published more than a month ago and was titled “Palantir: S&P 500 Inclusion And Thiel’s $1 Billion Divestiture.” As you can already guess from the title, the focus of that article was placed on its recent inclusion in the S&P 500 Index and also on Chairman Peter Thiel’s disclosure of a large divestiture. I argued for a bearish thesis after examining these factors.
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