🚨 Palantir Stock: Game OVER! (This is CRAZY) #pltr #palantir #pltrstockprediction

Summary

In 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

00:00

📈 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.

05:02

💹 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.

10:03

🤖 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.

15:04

🚀 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.

Keywords

💡Palen Tier Stock

Palen Tier Stock refers to the shares of a company named Palen, which is the main subject of the video. The term 'tier' might be a typographical error for 'tier' as in 'stock tier', which could imply a level or category of stock quality. The video discusses the performance and potential of Palen's stock, highlighting its approach to an all-time high value.

💡All-Time High

An all-time high is the highest price that a security, such as a stock, has ever reached. In the context of the video, Palen's stock is nearing its all-time high, indicating strong market performance and investor interest. The script mentions Palen's current trading price is close to its previous peak, which is just over $44.

💡Momentum

Momentum, in finance, refers to the rate at which the price of a security is increasing or decreasing. The video script speaks of 'incredible amounts of momentum' for Palen, suggesting that the company's stock is experiencing a rapid increase in value, likely due to positive market sentiment and strong financial performance.

💡Balance Sheet

A balance sheet is a financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time. The script mentions Palen's 'excellent balance sheet', which implies that the company has a strong financial position with assets exceeding its liabilities, contributing to investor confidence.

💡Profitability

Profitability refers to the ability of a business to generate profit. The video discusses Palen's shift from losses to profitability, indicating a significant improvement in the company's financial health. This shift is a key factor attracting institutional investors, as mentioned in the script.

💡Institutional Investors

Institutional investors are organizations such as banks, insurance companies, pension funds, and mutual funds that invest in stocks and other securities. The script notes an increase in institutional interest in Palen, with many institutions buying shares, which is a positive signal for the company's stock.

💡Artificial Intelligence (AI)

Artificial Intelligence refers to the simulation of human intelligence in machines that are programmed to think like humans and mimic their actions. The video mentions AI as a key area of focus for Palen, suggesting that the company's growth and potential are tied to advancements in this technology.

💡Valuation

Valuation is the process of determining the value of an asset or a company, often in the context of an investment decision. The script discusses Palen's high valuation, using metrics like price-to-earnings and price-to-sales ratios, to assess whether the stock is overvalued or undervalued.

💡Growth Rate

Growth rate refers to the rate at which a company's profits or revenue is increasing over time. The video anticipates a high growth rate for Palen, projecting significant increases in net income over the next several years, which is a key factor in determining the company's future value.

💡Dollar-Cost Averaging

Dollar-cost averaging is an investment strategy where an investor consistently buys a fixed dollar amount of a particular investment, regardless of its price. The script suggests that investors should consider this strategy for Palen, buying shares in smaller quantities at different price points to reduce the impact of market volatility.

💡Resistance Level

In technical analysis, a resistance level is a price at which a security's price tends to stop rising and start falling. The script identifies a resistance level for Palen's stock, indicating a price range where selling pressure is expected to be strong, potentially leading to a reversal in the stock's upward trend.

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