Palantir, Normalizing (UPDATED POST 10-Q)
$PLTR reported its Q1 of FY12/23 today after the bell. Our take (NOW INCLUDES RPO DATA).
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All About The Ten
Palantir is, repeat after us, just an enterprise software company. It is not the savior of the West, the defender of freedoms, the route to a fitter and happier future, or anything else that its apparently spontaneous army of fanbois claim it to be. Just an enterprise software company. To be fair, as the rate of insider sales slowed, the fanboi army quietened. Perhaps now the stock can be just treated as what it is. Which is, once again, an enterprise software company.
The company reported its Q1 earnings today with a healthy beat vs. management’s guide. The quarter was really very good and we believe the stock under-reacted. Yes, it’s up 25%+ on the day but in truth PLTR has dumped in recent weeks with other high beta names and so a 25% bump to this level is just reflective of how much the stock had sold off already. We believe the stock has plenty of juice in it for the next couple years.
Below we walk through fundamental analysis, technical analysis, and provide our medium-term stock price target and ideas on risk management. This is for our Premium and Pro members only.