🚨 Palantir Stock: Game OVER! (This is CRAZY) #pltr #palantir #pltrstockprediction
Summary
TLDRIn this video, SC from Mest discusses Palantir Technologies' stock performance, highlighting its approach to an all-time high at over $32 per share. The company has shown significant growth since December 2022, with a robust balance sheet and potential. The video delves into Palantir's cost bases, institutional investments, and recent contracts, such as the Army Titan prototype. It also addresses the AI bubble debate, valuation concerns, and the company's future growth prospects, suggesting a target price of over $80 per share, contingent on continued profitability and institutional interest.
Takeaways
- 📈 Palantir Technologies (PALER) is approaching an all-time high, currently trading just over $32 a share, with significant momentum since December 2022.
- 💹 The company has shown consistent growth, turning profitable in the last quarter of 2022 and generating over $134 million in net profit for the second quarter of 2024.
- 💼 Palantir has a strong balance sheet and is attracting institutional investors, with the number of institutional holders around 1,200, indicating growing interest since the company's profitability increase.
- 🏦 Notable institutional investors such as Norbank, BlackRock, and Citadel Advisors have made significant purchases in the second quarter of 2024, while others like Renaissance Technologies have reduced their holdings.
- 🤖 Palantir's Chairman, Peter Thiel, compares the current AI revolution to the internet boom of 1999, suggesting a potential bubble but also emphasizing the long-term impact of AI on various industries.
- 📊 The company's valuation is considered high, with a forward earnings multiple of over 92 times and a sales multiple of over 31 times on a trailing basis, indicating potentially expensive stock.
- 📈 Despite high valuation, Palantir is expected to have a growth rate of 275% in 2024, which could justify its current valuation if sustained over time.
- 💰 The company recently won a $174 million contract for the Army Titan next-gen intelligence hub, which could be a significant catalyst for future growth.
- 🚀 There is speculation about Palantir being added to the S&P 500, which could provide a further boost to the stock's momentum.
- 📉 While there is optimism, the video also cautions about the risks associated with growth investing, especially considering the high valuation and the potential for multiple compression.
- 📚 The presenter suggests a fair value for Palantir in the range of $18 to $20, and plans to dollar-cost average into the stock at these levels.
Q & A
What is the current share price of Palantir Technologies mentioned in the video?
-The current share price of Palantir Technologies mentioned in the video is just over $32.
What is the all-time high share price for Palantir Technologies?
-The all-time high share price for Palantir Technologies is just over $44, almost $45.
How much has Palantir's stock price increased since December 2022?
-Palantir's stock price has increased by 49% since December 2022.
What was the net profit for Palantir in the second quarter of 2024?
-The net profit for Palantir in the second quarter of 2024 was over $134 million.
What is the position cost distribution for Palantir investors as mentioned in the video?
-The position cost distribution shows that 98-99% of Palantir investors are currently in the green and profitable.
What is the average cost for all Palantir shareholders?
-The average cost for all Palantir shareholders is just over $25.74.
How many institutional holders does Palantir have according to the video?
-According to the video, Palantir has about 1,200 institutional holders.
Which institutions made significant purchases in Palantir in the second quarter of 2024?
-Significant purchases were made by Norbank, BlackRock, De Shaw, and Citadel Advisors.
What is the potential future target price for Palantir if it continues to grow its bottom line profit by over 50% and trades at a 50 times P multiple?
-The potential future target price for Palantir in this scenario is over $80 per share.
What is the Army Titan prototype contract that Palantir won, and what does it involve?
-Palantir won a $174 million contract from the U.S. Army for the Titan next-gen intelligence Hub, which involves data fusion, AI and machine learning for rapid data analysis, sensor to shooter acceleration, and situational awareness for battlefield environments.
What is the potential catalyst for Palantir mentioned by the Twitter handle go carp?
-The potential catalyst mentioned by go carp is the possibility of Palantir being added to the S&P 500, which could drive more momentum for the stock.
What is the potential total return for Palantir if it reaches the mentioned future target price of $80 per share?
-The potential total return for Palantir if it reaches the future target price of $80 per share is over 145%.
Outlines
📈 Palantir's Stock Update and Momentum
This paragraph introduces a video update on Palantir Technologies' stock performance, highlighting its approach to an all-time high, currently trading just over $32 a share. The company has shown significant growth since December 2022, with a 49% increase and a strong balance sheet. The presenter discusses Palantir's shift to profitability in the last quarter of 2022, generating a net profit of over $134 million. The video promises an in-depth analysis of the company's fundamentals, institutional investments, and future potential.
💹 Institutional Interest and Valuation Insights
The second paragraph delves into the institutional buying trends for Palantir, noting an acceleration in purchases since the fourth quarter of 2022, aligning with the company's increased profitability. It details significant share acquisitions by major institutions like Norges Bank, BlackRock, and Citadel Advisors, while also mentioning notable sales by others such as Renaissance Technologies. The presenter discusses Palantir's valuation, considering its high growth rate and future expectations, and addresses the potential for an AI bubble, arguing that established companies with strong fundamentals are not in bubble territory.
🤖 Palantir's AI Potential and Contract Wins
This paragraph focuses on Palantir's chairman and co-founder Peter Thiel's perspective on AI's potential, comparing the current AI landscape to the internet boom of 1999. It discusses the company's high valuation and growth expectations, with a detailed analysis of its financial ratios and future earnings potential. The presenter also highlights Palantir's recent contract win for the Army Titan prototype, a next-gen intelligence hub, and hints at upcoming contracts worth up to $1.5 billion, emphasizing Palantir's role in AI-driven defense technology.
🚀 Upcoming Catalysts and Investment Strategy
The final paragraph outlines potential catalysts for Palantir's growth, including the possibility of being added to the S&P 500, anticipated rate cuts, government contract awards, and strong quarterly performance. It discusses the presenter's personal investment strategy, advocating for dollar-cost averaging and selective buying around certain price levels. The paragraph concludes with a reminder of the importance of objective analysis despite the optimism surrounding Palantir, acknowledging the risks associated with growth investing.
Mindmap
Keywords
💡Palen Tier Stock
💡All-Time High
💡Momentum
💡Balance Sheet
💡Profitability
💡Institutional Investors
💡Artificial Intelligence (AI)
💡Valuation
💡Growth Rate
💡Dollar-Cost Averaging
💡Resistance Level
Highlights
Palen Tier stock is approaching an all-time high, currently trading just over $32 a share.
The company has experienced significant momentum since December 2022, with a 49% increase.
Palen has a strong balance sheet and significant growth potential.
A shift in the company's fundamentals occurred in the last quarter of 2022, moving from losses to profitability.
Palen generated over $134 million in net profit in the second quarter of 2024.
99% of Palen's investors are now profitable, with the average cost for shareholders at just over $25.74.
Institutional interest in Palen has increased, with the number of institutional holders at about 1,200.
Notable institutional purchases include Norway's largest Sovereign fund, Black Rock, and Citadel Advisors.
Palen's chairman, Peter Teal, compares the current AI revolution to the internet boom of 1999.
Palen's valuation is considered high, with a forward earnings multiple over 92 times.
The company is expected to show a growth rate of 275% in 2024.
Palen won a $174 million contract from the U.S. Army for the Titan next-gen intelligence hub.
The Titan system is designed for data fusion, AI analysis, and enhancing battlefield situational awareness.
Recent news suggests potential $1.5 billion worth of contracts for the production of Titan systems.
Palen's stock may be added to the S&P 500, which could be a significant catalyst for the stock.
The company's future growth and potential government contracts are key factors for investor optimism.
Palen's stock is considered a growth stock with risks, but also significant potential for upside.
Transcripts
what's up everyone it's SC with mest so
in this video we are going to be talking
about palen tier stock this is going to
be a full update on this company as we
get closer and closer to getting up to a
new all-time high as palen here right
now trading at just over
$32 a share so we are very very close to
brand new alltime high which sits at
just over 44 almost $45 and now paler is
only down less than 30% from that
breakout moment so incredible amounts of
momentum here coming in from this
company since December 2022 it's up a
whopping
49% excellent balance sheet significant
amounts of potential I've done several
videos over the last three years on this
company and more recently breaking down
peners earnings and including Alex
carp's um overall messaging with the
company and of course mentioning how the
best for the company is not behind us
but instead in the future so that's
exactly what we're going to discuss in
this video as you come over here to
paler again the quarterly shift happened
in the last quarter of 2022 as you come
over to fundamental analysis and you'll
take a look at the overall numbers on a
quarterly basis for the company going
back let's say 16 quarters and gross
profit again consistent growth here
quarter over quarter but this right here
is really where the shift happened for
the company from losses over to actual
profitability and they haven't looked
back back ever since they continue to
push higher and higher generating over
$134 million in net profit bottom line
income for the company in the most
second quarter 2024 so we got huge
updates to break down here so make sure
that you drop a like And subscribe to
the channel and also share these updates
with your friends family other Traders
and investors that can benefit from this
as well so first things first let's talk
a little bit about paler cost bases so
this is going to be the position cost
distribution for pener now we have a
whopping 98
99% of investors are now in the green
and profitable for palen here it's very
very good to see that that is all of
this is actually green so all most of
the Traders and investors 99% in fact
are profitable now on this investment
makes a lot of sense because we're very
close to alltime highs there's still a
very small sliver of investors sitting
at well over uh $32 a share but it's
only a matter of time I feel in my
opinion where paler is going to break
out to well over $40 new alltime highs
and the average cost right now for all
paler shareholders sitting at just over
$25.74 so it's kind of crazy to see that
99% we've actually seen this number down
to 1% of shares profitable when it was
trading in the low sixes I believe so if
you come over uh it was trading in the
low sixes over here uh and then of
course pushing up to um $32 is a huge
milestone for the company as we already
know uh now coming over to some all of
the institutional purchases so this
right here is the buy sell institutions
and you can see that on a more recent
quarterly basis that number has been
accelerated more specifically since the
fourth quarter of 2022 as you can see
over here and that again is perfectly
aligned with the fourth quarter of 2022
as profitability has increased more and
more companies and more and more
institutional investors have gotten more
interested on palen here so really what
I want you to focus is on the green bar
and you can see that how it has been
accelerating higher as more and more
institutions have gotten involved
roughly around 1,200 so number of
Institutions institutional holders for
paler is about 1,200 and this is exactly
why I've mentioned before that paler had
such a Negative sentiment because the
company was not profitable and this is
what bottom line institutions and and
hedge funds and Pension funds and
different banks look for right they want
to see profitability they want to see
cash flow and positive net income and
that's when they're going to start
stepping in and that's what happened
that's the switch that happened for the
company in the fourth quarter 2024 now
this right here are some of the big
purchases in the second quarter
2024 so nor bank which is the Norway's
largest Sovereign fund uh $24 estimated
average price this is a new position
buying over 11 million shares for pen
here in the second quarter 2024 Black
Rock estimated price of $21 42 6%
increase adding another 7 million shares
and de Shaw about just under $15 adding
another 6 million shares and Citadel
advisors as we already learned Ken
Griffin adding over 1,1 140% or another
five million shares so these right here
were the big big purchases and they were
nothing compared to the big sales and
one of the main ones was of course
Renaissance Technologies which I also
broke down in one of my previous videos
basically getting rid of almost 8
million shares or 16 a. half% draw down
so again they're not completely out of
the stock but they definitely did exit
about 16% uh we did have Cube research
Technologies Millennium management they
were the ones that were actually selling
off quite aggressively two Sigma
advisers also selling about 5 million
shares or completely selling out of
their positions and cu resarch
technology also selling all of their
position with Millennium management down
over 50% selling 7 million shares but
all in all we have seen institutional
involvement increasing over time as the
company has gotten more and more
profitable now this right here was also
an interview from palen's chairman and
co-founder Peter teal and how he
mentions that right now what we're
witnessing with artificial intelligence
is very similar to what we looked at for
internet back in 1999 right so it could
be seen as a bit of a bubble it could be
seen as some that we haven't really
fully figured out but we know that it's
going to be playing out for decades to
come it is a brand new technology that's
going to revolutionize how we engage
with the digital services and technology
in general and more specifically data
and that is going to change everything
right the way we interact the way we you
know do work the way our productivity is
uh but of course right now there's a lot
of big concerns that this could be a
potential AI bubble because a lot of
stocks are moving higher and again
trading at very expensive valuations
because of the artificial intelligence
idea or the concept behind it but for me
personally as I mentioned before that
you can make a case for let's say higher
valuations for certain companies but at
the end of the day they're not
particularly in a bubble territory
because these are companies that have
very strong cash flows profitable
companies we've got very good revenues
very good growth and excellent balance
sheets as well so a bubble is something
that is non-existent right so back in
the 1999 2000 many of many of the
companies were in a bubble because they
didn't really have anything they only
had a business business model or they
only had a concept or an idea and
nothing to show for it no revenues no
cash flows no earnings nothing but in in
today's day and age a lot of these
companies that are implementing the
power of AI are already wellestablished
companies including paler but again you
can make case for why paler trading at a
very expensive valuation uh at the
moment so if you come over to the ratios
uh you'll notice that paler valuation is
indeed you know very very high at over
92 times forward earnings multiple and a
little bit over 31 times sales on a
triling basis and just over 26 times 27
times forward um price sales multiple is
expensive right so one can definitely
make a case for y palen here is an
expensive stock but at the same time
they also do have very very high growth
rate expectations for the future so
we're looking at
275% growth in 2024 by the way if you
want to access this entire platform link
is going to be down below this is our
very own money vest platform that you
can um take advantage of uh with the 16%
annual discount that does expired at the
end of this month but we've got 275% for
for 2024 then 20% 20% just a little bit
over 19% 22% 21% so on a compounded
annual basis I've also plugged that in
you'll notice that the P multiple comes
down from 95 down to about 30 as the
growth rate is over 42% on a compound
basis for palen over the next seven
years which again you can make a case
for why paleno could still very well be
a bit more undervalued at these levels
if we come over to our analyzer tab come
over to the discounted earnings multiple
model hit autofill by the way working on
a brand new case analysis model as well
which is going to be available next week
uh where you can pretty much do bare
case base case and bull case analysis on
on individual stocks but let's say that
paler is able to grow their bottom line
profit net income for the next seven
years by over 40% and we give them a
multiple which is close to 40 that keeps
a PEG ratio at close to one 12% discount
rate 10% margin of safety and let's say
uh you know little to no dilution of 0%
for the company as they have already
done a lot of dilution let's say moving
forward they don't do any dilution which
makes the company still a little bit
more on the overvalued side by almost
50% so yes valuation is high for palent
here because if you take a look let's
say just go over to 70 times P multiple
and a growth rate of over 50% let's see
what the numbers end up looking like now
now it's undervalued so it's going to be
closer to let's say 50 so if you apply a
50 and 50 now we're pretty much at where
the price is so fair value ends up at
$32.76 and the current share price of
$32 as well so if you come down see more
this is going to be that Grid or that
pretty much that table which essentially
is going to show us how the company's uh
forecasted future looks like so right
now net income $314 million and if the
company's able to grow their net income
to over 3.5 3.6 billion that's a
compounded annual growth rate of over
50% um and the shares outstanding
staying constant at 2.2 billion that's
when uh we're going to be looking at an
earnings per share of
$161 with almost 20 times forward
multiple uh sets us up for a fair value
which is exactly where it is right now
and a future Target price of well over
$80 per share so $80 would be that
future price Target considering that uh
paler is able to grow their bottom line
profit by over 50% and also trade at a
50 times P multiple and that's going to
be a total return of over 145% but I'll
leave it up to you guys to really decide
whether that is um acceptable or whether
that is the most possible outcome or not
so
you know our our our job here is to be
very objective and understanding of the
fact that yes this company is fantastic
it's got a lot of potential no doubt
about it there's artificial intelligence
and also a huge Catalyst that come
online uh more recently is the Army
Titan prototype which as we know that
paler won about $174 million contract
from the army of the United States for
this Titan next gen intelligence Hub
which the key features for this is going
to be data Fusion combining information
from various sources Like Satellites
drones and ground sensors Ai and machine
learning so leveraging those
Technologies to rapidly analyze vast
amounts of data sensor to Shooter
accelerating the process of identifying
targets and delivering precise fire and
situational awareness providing realtime
insights into the battlefield
environment as we know that paler is
very much focused on the Warfare and the
battlefield um sector as well and Titan
acts as a central Hub that collects
analyzes and shares critical
intelligence with troops on the ground
enabling faster decision-making and more
effective operations so this right here
was the $ 178 million contract that
paler 1 with the Army Titan and building
10 prototypes and now there's actually
some news this broke out very very
recently as early as I think yesterday
where this Twitter handle go carp
essentially mentioned breaking code red
Titan update uh $1.5 billion worth of
contracts coming up and that's going to
be the Titan production scop of work
production of Titan systems performance
software updates and provide initial
support systems cost1 to$ 1.5 billion
scheduled between fiscal year 26 and 30
2031 with 94 Titan prototypes 36 Titan
Advance um and that is going to I think
the initial ones are going to go from
2025 to 2026 and then more coming online
between 2026 and 2031 so this is all um
you know significant Market that paler
has the potential to capture so coming
back over to our discussion on valuation
look um I am very optimistic on paler I
believe that paler has got a potential
for growth here in the 30 to 40% range
over the next five to seven years and it
can also trade somewhere between you
know 40 to 50 times P multiple
considering there's so much optimism and
there's just just a growth stock that
more and more institutional investors
are getting involved in so if you go
with somewhat reasonable numbers here
40% growth rate and a p multiple of
let's say uh you know 40 as well and if
you hit enter uh we're going to be
sitting at roughly around $16 to $20
right $20 if I remove the uh margin of
safety considering that the company's
got so much cash and practically no debt
we're sitting at just under $18 so $18
to $20 continues to be a level where
where it's a fair value where I would be
a lot more aggressive now that doesn't
mean that that's the only price that I'm
going to be waiting for um to to buy
because I have been picking up palen
here I picked up palen here last week
and I will continue to buy more shares
in smaller quantities right I'm talking
50 shares 100 shares here and there but
I'm talking if you want to buy in the
thousands of shares that would be the
level where I would feel a lot more
comfortable in and around like that 208
to $20 range now does paler come down to
that level great if it doesn't like I
said I'll continue to dollar cost
average in smaller quantities for this
compy moving forward so if you come over
to the weekly time frame this is the
overall chart of consistent higher highs
and higher lows as we discussed now it's
coming up to its resistance so this
right here somewhere between $29 and $35
is going to be that resistance also
aligned with this higher high over here
and uh that's going to be the next
potential Target that we're going to be
watching for palen here sitting roughly
around $ 35 to $36 for this company so
on The Daily time frame very very
significant momentum I did pick up palen
here on Monday August 5th at $20 a share
or closer to 2 $1 wherever it opened it
opened at around uh 2174 so that's where
I picked it up and of course buying a
little bit more in the 30s will Contin
to dollar cost average like I said at
these levels in smaller quantities but
majority of my buying will once again be
in and around these levels at where it
was just literally two weeks ago two
weeks ago Palance here was at around $20
and that's where I would feel a lot more
comfortable in dollar cost averaging and
buying a little bit more aggressively
but that being said nice 52% rally since
then and the next Target is going to be
all the way up to $ 37 $36 kind of
aligned with this higher high for paler
and we're still very much within the
context of this uptrend of very nice
consistent uptrend of higher highs and
higher lows over here very strong
support sitting roughly like I said at
$920 and the resistance is going to stay
put right over there for Palante here
we've also got the volume by Price
breakdown and uh that puts our support
for palant here let me just update that
for the recent numbers uh and that sets
us roughly around here at around $24 $25
that's where the majority of the volume
sits for palant here now we're coming up
to the same resistance that we have
tested from back in
2021 so big updates for pener I feel
like next week could also carry us
forward in this momentum getting up to
$35 $36 but again we can't get ahead of
ourselves with the RSI of course
approaching those overbought levels so
is the macd the price itself seems a bit
more overextended after a 50% rally and
of course not to mention the valuation
is starting to get a little bit Bonkers
at over 100 times earnings and over 30
times sales so it really comes down to
the type of investor right this may not
be a stock that appeals to a lot of
value investor that are more focused on
the present and the current valuation
this is let's be honest palen here at
the end of the day is a growth company
and Depends very much on future growth
and if that were to continue uh then of
course there is potential for more
upside uh but that also carries
significant amount of risk right growth
investing very much focuses on the
future and that carries risk if the
future is not exactly what the company
was expecting or investors were
expecting then of course there's that
risk of multiple compression and the
price is coming down but that's a risk
that I personally feel comfortable
taking on for a company like paler that
has in my opinion a ton of potential
with AI and everything that they're
doing over the long term as well one
last thing I want to mention is that
this person so Bay Ray on Twitter also
posted that imagine a world where
September 6th comes in and uh it is
announced that paler will be added to
the S&P 500 so that right there can be a
huge potential Catalyst for more
momentum on paler uh we then we roll
into the fomc meeting where we get a
rate cut 25 to 50 basis points September
18 so that's been larg anticipated there
next ending the fiscal year where paler
gets load of government contracts last
minute before the next fiscal year
starts October 1st and then paler has
over a 30% growth year-over-year in
quarter three continuing increasing
Revenue growth and finally we roll into
the elections and more rate Cuts
followed by a blowout quarter in fourth
quarter for palente these are all
putting together the perfect picture
that paler investors most likely want to
hear and $40 end of the year doesn't
sound so insane if you ask me so that is
again a possibility considering so much
momentum so much optim optimism around
this company so let me know your
thoughts down in the comment section
below but despite all of this Euphoria I
still want all of us to be very
objective in our understanding of the
valuation and how palen here does trade
at a pretty significant you know
valuation expensive valuation to say but
that that shouldn't stop at least the
growth investors from looking into this
company dollar cost averaging in smaller
quantities like I am right now and being
a little bit more aggressive in the 20s
for palente so hope you all enjoyed this
video found it helpful make sure you
drop a like And subscribe to the channel
share this video with other paler in ERS
and as always happy investing I'll see
you all in the next video
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