Palantir Technologies Inc
The Tech industry has always been the investors’ choice to diversify their portfolios. They can have stock of companies with the potential to grow quickly and offers great dividends. Many investors are eyeing companies, like Palantir Technologies (PLTR), that can have a great potential to grow.
Palantir Technologies (PLTR) is a big name in the tech industry. The company was founded in 2013 by the following people:
- Alex Karp
- Joe Lonsdale
- Nathan Gettings
- Peter Thiel
- Stephen Cohen
Various projects have fueled the growth of this company. Most notably, the Palantir Gotham is a top project of the company that the department for counter-terrorism in the United States Intelligence Community (USIC) uses. Previously, the Recovery Accountability and Transparency Board and Information Warfare Monitor also used Palantir Gotham.
In the early years of the PLTR, it only served federal government agencies. However, it has expanded its customer base and offers services to local governments, the healthcare industry, and companies in the financial sector. Palantir Technologies (PLTR) posted the following numbers for 2021:
- Net income: $-520.379 million
- Operating income: $ -488.494 million
- Revenue: $1.541 billion
- Total assets: $3.247 billion
- Total equity: $2.291 billion
According to Forbes, Palantir Technologies had a valuation of $9 billion in the first quarter of 2014. This valuation made it the most valuable privately-owned company in Silicon Valley. Thiel retained a significant portion of the company’s ownership by 2014.
The company did not plan to go public, and Karp announced in 2013 that Palantir would not be launching an IPO anytime soon. However, the company started to consider going public in 2018. In the second quarter of 2020, Palantir announced that they were filing for an IPO.
Palantir Technologies listed itself on the NYSE (New York Stock Exchange) in September 2020.
- 1 Palantir Technologies Inc
Palantir Technologies Inc Statistical Overview
Stock Forecast 2022
As of May 2022, the company’s share prices have plummeted from around $17 to $8 from the start of the year. The stock price has seen a massive drop of 50% in its value, especially after the end of the first quarter. One of the primary reasons is the sell-off of the tech stocks that have led to a drop in a bearish trend.
Many tech companies are witnessing a considerable loss in their value as tech investors continue to pull out their investments. Consequently, the sell-off of tech stocks became one of the most vital external factors that led to the downfall of the company’s share value in the last couple of weeks.
However, the downward trajectory of the company started even before 2022. The stock price went from $24 in the last week of November 2020 to $12 in March 2021. It impacted the investors who lost more than 22.25% in November and 6.04% in December 2021 in the PLTR value.
By the third week of Jan 2022, the company’s stock continued to go down as shares continued to sell their holdings. A contributing factor to the sell-off of the Palantir stock is primarily the end of the Bull Run in the NASDAQ 100. Tech companies saw a significant rise in their value over the last couple of years.
The index, which consists mainly of tech-based companies, saw a growth rate of around 30% in the previous year. However, it is now contracting and saw a decrease of approximately 13% only in January 2022. Subsequently, it caused the PLTR stock to lose its value throughout 2022.
Experts and stock analysts have mixed assumptions regarding the share price of Palantir Technologies Inc in 2022. So, before you decide to invest in the company, you need to know what the experts think. It will help you make a sound decision on whether to invest in the company or not.
As per the experts of CNN, they predict the median value of Palantir Technologies Inc to be around $11. The highest estimate for the PLTR share value by these experts is $16, which shows an increase of 37% from its current price of approximately $8. On the other hand, the estimation for the lowest value by experts at CNN is $6.
Contrary to CNN’s analysts, the Wallet Investor predicts the stock to decline over the next few years. Their algorithm forecast that the Palantir share price will be zero in the next few years.
A vital element to keep in mind is that you should perform your due diligence before investing in any stock. It will help you understand whether it is worth investing in the company. Also, it is better to keep an eye on the new updates regarding technological developments coming up from the company.
Stock Forecast 2021
Palantir Technologies Inc went public in September 2020 at an IPO price of $10. Throughout the last few months of 2020, the company’s stock prices dwindled since investors were not confident about Palantir’s prospects. However, the share price skyrocketed at the beginning of 2021, reaching an all-time high value of around $34.
The primary reason for this growth is that the U.S. Food and Drug Administration awarded a contract worth $44.4 million to the company in December 2020. As a result, it led to a massive surge in the company’s stock price at the beginning of 2021.
Additionally, the company’s total revenues also saw significant growth in the third quarter of 2021. The revenue growth was 36% from last year, reaching $392m. Acquiring new customers and more contracts with governmental organizations were the reasons for the increase in revenue.
However, the loss of investor confidence accelerated the fall in the PLTR share price by the end of 2021. The company suffered a significant hit as its share price dropped from $27.5 in August 2021 to $12.77 on 31st December 2021. This downward trajectory of the company’s value continued in 2022.
How to Invest in Palantir Technologies Inc Stocks?
Investing in any company in the tech industry requires due diligence. You need to conduct extensive research to know about the company’s prospects to help the share price increase in the long run.
Professional investors conduct quantitative research, check the cash flow statements, gauge the income streams, and learn about the competition to know about the stock price. It helps them get a better idea about the company they want to invest in, ensuring they make the right choice.
The ideal approach is to go through the quarterly and annual reports of Palantir technologies. You can understand the company’s performance from the previous year and how it will play out in the long run. Whatever companies you want to invest in, you need to have a reputable online broker like eToro.
The smooth online process will help you invest in Palantir Technologies. You can also access the different educational materials available to learn about the company’s financials. Consequently, spending time on these research materials will help you make the right investment decisions.
In addition, you need to have a clear strategy regarding investing in Palantir Technologies. It will help you understand the right time to buy the share low and sell it at a higher price.
So, if you want to start your journey today, you can create an eToro account. Here is a step-by-step guide to help you with the simple registration process.
Step 1: Open an Account
The first step entails choosing the account opening option on the main page. You will get an application form online that requires you to fill in the basic information. All the details you fill in are safe, and you won’t have to go through too much hassle to fill out the form.
Step 2: Upload ID
The next step is to submit the identification documents to meet the KYC and AML regulations. The eToro platform will verify these documents and open an account to trade on the stock market. You can buy and sell the Palantir share conveniently using the app.
You would only need to submit your utility bill, valid passport or driver’s license, and bank account statement. Therefore, you won’t have to worry about finding and gathering documents from different sources.
Step 3: Make a Deposit
After opening the account, you need to have some funds to start trading on the stock market. You can deposit the money through your debit/credit card, PayPal account, or wire bank transfer to buy the PLTR shares.
Step 4: Search for Stock
If you have any other stocks in your mind or want to research more about different companies in the other sectors, you can use the search option. The eToro platform allows you to find great stocks and access its financial statements.
You can also benefit from the stop-loss options to limit the loss you want to incur on your investment. The stop-loss option allows you to set a price limit on which you want to sell the stocks. You can set a profit and loss limit where the platform will automatically sell the share once it reaches that limit.
It has managed to increase its revenue by expanding its customer base, which is evident from the financial reports for the 3rd quarter of 2021. However, the company has numerous challenges that it would have to deal with first to improve the share value over time.