Last two posts we wrote up on interesting companies ended in implosion. The Citron report on Nikola (https://markets.businessinsider.com/news/stocks/nikola-stock-price-citron-hindenburg-allegations-investor-selling-short-report-2020-9) with videos showing a truck rolling down a steep road was nothing short of comical. Was it a long term investment idea? Maybe not so much. Did we trade the stock on momentum and exit with profits? Indeed. Luckin’ Coffee went the same route when fraud was exposed.
Palantir Technologies, however, is a phenomenal long term investment as well as a very tradeable-momentum stock. The degenerates on WSB apparently love it. $PLTR is in the data space and builds software platforms for analysts to draw insights and improve operations across information silos of a business. They have two solidified platforms; Gotham and Foundry. The key is that $PLTR operates within both the government and public market; announcing many deals with various governments, institutions, agencies, and private organizations. TTM revenues have topped $1.4Bn and growth is expected in excess of 25% now through 2025. The most recent ER for 2021 Q3 (https://www.cnbc.com/2021/11/09/palantir-pltr-q3-2021-earnings.html) was a beat on expectations and guidance was raised but the stock got hammered. What should the street even expect from a company trading at 35X sales?
NierCapital maintains a substantial position in $PLTR and we see long term growth continuing to beat expectations. Data is the new oil. Palantir continues to announce new contracts and partnerships ranging in the $10M mark. Additionally the management team is exceptional; Peter Thiel was a part of the PayPal mafia and has a track record worth betting on; and the CEO Alex Karp is not your ordinary exec, even in his interviews he tells the public to invest in $PLTR with a long term vision or its not for you.
The stock currently trades at 23$ and appears to love this $20-28 range. Technical charting shows a volume shelf at the $25.52 level which can act as a launch pad… or a wall. Low level support is around $20.55 range and the resistance level of $29.29 will be proving grounds in time to come. The stock currently trades below all major moving averages which can warn investors, yet this is no ordinary growth stock. If growth continues at current CAGR, we see $PLTR reaching $3.99Bn in TTM revenues by 2025. With a strong valuation approach and growth in diluted-EPS over the next few years; we see $PLTR holding a 25x sales valuation taking the market capitalization to $100Bn in 2025 driving a 2.3x change in stock price. We hold a target price of $52.50.
Nier Capital Group 