Palantir Technologies Share Forecast January 2022 – Time to Buy PLTR?
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Shares of public American software company Palantir Technologies (NYSE: PLTR) have closed on $16.01 as of January 14th (19:59 EST). Palantir’s commercial customers have grown quickly and the company has three products evolving out of a government first use-case. The company is controversial for some, as many people fear that Palantir possesses a portion of government personal data for citizens.
Palantir Technologies – Technical Analysis
The financial statement of Palantir Technologies indicates that the market cap of the company is at $32.097 billion with total assets worth $3.224 billion. Revenue for 2020 was at $1.09 billion with a profit margin of -107.25% compared to $742.55 million in 2019.
From a technical standpoint, we see that oscillators such as Relative Strength Index (14)(29.76) and Stochastic %K (14, 3, 3)(23.26) are neutral. On the other hand, moving averages such as Exponential Moving Average (10)(16.85), Simple Moving Average (10)(16.91), Exponential Moving Average (20)(17.60), Simple Moving Average (20)(17.77) and Exponential Moving Average (30)(18.30) are indicating a sell action.
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Recent Developments
In 2020, Palantir became one of four large technology firms to be involved with the NHS on supporting COVID-19 efforts through the provision of software from Palantir Foundry. The company developed Tiberius, a software for vaccine allocation used in the United States. After filing for an IPO in Jul 2020, the company went public on the New York Stock Exchange through a direct public offering on September 30, 2020. The U.S. Food and Drug Administration awarded the company a $44.4 million contract which boosted its shares by 21% in December 2020.
After starting off as a data analytics company, Palantir Technologies has now pivoted to provide its services to the civilian market. It mainly functions via its three offerings – Foundry, a data management platform that allows businesses to interpret information feeds; Gotham, which is used by governments to process real-time information and then present critical data; and Apollo which allows Foundry to run across multiple networks, whether on-premise data centres or cloud networks.
Most of Palantir’s contracts are large. During the third quarter, Palantir closed 54 deals of at least $1 million and 18 worth $10 million or more. Revenue for Q3 increased 36% to reach $392 million, representing a 50% increase since Q3 2020. In just nine months, Palantir was able to grow its commercial customer count by 135%, which was possible due to its expansion into civilian enterprises.
The company’s profitability has been stunted due to its massive stock-based compensation bill as it shelled out $184 million in stock to its employees. With a net margin of 21%, the company experienced a net loss margin of 26%. Palantir is now moving into a new market with cryptocurrency exchanges. Its Foundry platform helps organizations detect money laundering schemes and reduce fraud.
Should You Buy PLTR Shares?
Investors interested in Palantir technologies should always take a look at competitors in the space. In this case, Alteryx (NYSE:AYX) is its main competitor. Alteryx’s offering includes many data analytics tools but has lost earnings due to its cloud migration. The battle between the two companies can heat up as Alteryx completes its cloud migration.
Palantir has momentum on its side and will continue to grow customers and revenue rapidly in the coming years. However, it will take a while before the company is actually profitable. Palantir’s price movements also get affected by Reddit boards. Based on its long-term prospects, Palantir is definitely a company you can add to your portfolio.
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