PLTR: From Universally Loved To Universally Hated
If you trade stocks long enough you better develop a sense of humor. Exhibit A: Palantir (PLTR) which reported 3Q22 earnings this morning. Last year my neighbor was bragging to me about how much money he was making in PLTR. It was one of the most loved stocks among retail investors. A year later and it’s untouchable. And yet PLTR goes on doing what it does, running its business, controlling what it can control. And there will come a time when it is loved again.
Because PLTR is a promising company that isn’t going anywhere. 3Q22 revenue was +22% to $478 million and they earned 1 cent/share on an adjusted basis. Free cash flow for the quarter was $37 billion and they have a fortress balance sheet with $2.4 billion in cash and no debt. Consider these numbers in the context of PLTR as still in its high growth phase. As with PayPal (PYPL) which I wrote about Friday PLTR is likely to produce good returns for long term investors from this point. I’m not saying the stock has bottomed. I’m saying there is real value here at this price.