Palantir Technologies Share Price Forecast December 2021 – Time to Buy PLTR?
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Shares of Data Analytics Specialist Palantir Technologies (NYSE: PZLTR) are in the red today after closing $17.96 as of December 20th (19:59 EST). The shares experienced another drop on Monday after the share price closed out the daily session down roughly 5.8%.
Palantir Technologies – Technical Analysis
According to the financial statement released by Palantir, the current market cap stands at $36.007 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.
Oscillators such as Relative Strength Index (14)(33.24), Stochastic %K (14, 3, 3)(17.84), Commodity Channel Index (20)(−125.45), Average Directional Index (14)(39.49) and Awesome Oscillator(−2.94) are neutral. Moving averages such as Exponential Moving Average (10)(18.87), Simple Moving Average (10)(18.87), Exponential Moving Average (20)(19.72), Simple Moving Average (20)(19.53) and Exponential Moving Average (30)(20.52) are indicating a sell action.
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Recent Developments
Palantir Technologies helps its clients make data-driven decisions by gathering and organizing data from disparate sources. It has the Gotham platform for government clients and the Foundry platform for enterprise clients. It uses a third software program, Apollo to update the software of both the above platforms.
Various reports have indicated that the company’s Gotham platform was used by the United States army to track down Osama Bin Laden back in 2011. It has also been used to track down and deport undocumented immigrants in recent years by the U.S. Immigration and Customs Enforcement (ICE). This has led the company to boldly claim that it will become the US. Government’s default operating system for data.
Palantir Technologies has experienced growth at a rapid pace which has allowed it to expand sales at an annual rate exceeding 30% from 2021 through 2025. Sales increased by 36% year over year in Q3. The company has also increased its free cash flow target for this year from more than $300 million to more than $400 million.
This has put the company’s market cap of $36 billion to be valued at roughly 23.6 times this year’s expected sales. If Palantir continues to add new public and private customers and increase spending by providing additional services to clients, share prices could see a massive upside. However, if investors continue the current trend of shying away from risky growth stocks, the company can experience volatile trading in the near future.
According to a press release published on Monday, Palantir Technologies has struck a new multi-year partnership with Dewpoint Therapeutics. Dewpoint Therapeutics operates in the US and develops drugs for genetic diseases, cancer, inflammation, and Neurodegeneration. It implements condensate biology to create medicines. As a result of the partnership, Palantir’s Foundry analytics platform will be used to help power Dewpoint’s initiatives for developing treatments and cures for challenging diseases. However, the company lost ground amid momentum for the broader market despite announcing the addition of a new enterprise client.
Should You Buy PLTR Shares?
Investors have a lot of reasons to be optimistic about the PLTR share price. Government clients accounted for 56% of its revenue while the remaining 44% came from commercial clients. Bolstered by the double-digit percentage growth experienced by both segments, the company expects its annual revenue to grow more than 30% each year from 2021 to 2025.
While the company isn’t profitable yet, its adjusted operating margins have been expanding over the past year. While the shares aren’t cheap at nearly 20 times next year’s sales, there are a lot of signs that it could grow considering government agencies and large companies access its AI-powered data mining tools. Considering this, you can easily add PLTR shares to your portfolio.
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