Palantir Earnings: What I predict, and what I am doing about it!

Summary

In this analysis of Palantir's upcoming earnings, the speaker shares insights on their substantial investment, having acquired shares at various prices since 2021. They expect earnings to surpass analyst estimates due to conservative guidance and strong net dollar retention, which they predict will improve this quarter. The speaker emphasizes Palantir's growth potential, particularly in the U.S. commercial sector, and outlines their strategy of selling covered calls while holding onto shares for long-term gains. Overall, they remain bullish on the company's prospects despite current high valuations.

Takeaways

• 📈 The speaker is highly invested in Palantir, holding a significant position bought at prices ranging from $5 to $26.
• 💡 Palantir has experienced a 150% increase year-to-date, but some analysts suggest it may be overvalued.
• 🔍 The speaker believes Palantir's growth is justified despite high price-to-earnings ratios, due to the company's potential and execution.
• 📊 Earnings expectations for Palantir are set at 9 cents per share with revenue projections of $701 million.
• 🚀 The speaker predicts Palantir will beat these earnings estimates, citing conservative guidance from the company.
• 💵 Net dollar retention is crucial; the speaker anticipates it will improve to around 115-116%, contributing to revenue growth.
• 🏢 Customer count is growing, with an anticipated 41% year-over-year increase, particularly in the US commercial sector.
• 📅 The speaker has strategically sold long-term options and plans to hold onto most shares for long-term growth.
• 🧠 The speaker emphasizes patience in investment, focusing on Palantir's future potential rather than short-term fluctuations.
• 🤔 The speaker encourages other investors to consider their own strategies regarding buying, holding, or selling Palantir shares.

Q & A

What is the investor's average cost basis for their Palantir shares?

The investor's average cost basis for Palantir shares is around $12.

What are the earnings and revenue expectations for Palantir as per analysts?

Analysts expect Palantir to report earnings of 9 cents per share and revenue of $701 million.

Why does the investor believe Palantir will exceed analysts' expectations?

The investor believes Palantir will exceed expectations due to conservative guidance and improvements in net dollar retention.

What is net dollar retention, and why is it important for Palantir?

Net dollar retention measures how much existing customers increase their spending on contracts. It’s important for Palantir as it indicates revenue growth from current clients.

What net dollar retention rate does the investor anticipate for this quarter?

The investor anticipates the net dollar retention rate will be around 115-116% this quarter.

How has the customer count changed for Palantir?

The investor notes that Palantir's customer count is expected to grow by 41% year-over-year, particularly in the U.S. commercial sector.

What investment strategy is the speaker using for their Palantir shares?

The speaker is using a strategy of selling covered calls to generate additional premium while holding the majority of their shares for the long term.

What significant growth does the investor predict for Palantir's revenue?

The investor predicts a 30% year-over-year revenue growth, estimating it will reach approximately $725 million.

What sentiment does the investor express regarding Palantir's long-term prospects?

The investor expresses a strong belief in Palantir's long-term prospects, indicating they plan to hold their shares for the next decade or more.

How does the investor feel about taking profits from their investments in Palantir?

The investor acknowledges that taking profits is valid but emphasizes the importance of individual strategy, encouraging others to evaluate their positions carefully.