Palantir: I Am More Optimistic (Ratings Upgrade)


  • My initial valuation of Palantir was too pessimistic, overlooking the higher likelihood of growth the AIP bootcamps have made clear.
  • I am more convinced they possess a moat, being a technological disruptor and enjoying hard-to-replace trust with governments.
  • The biggest issue is what happens with share dilution and buybacks, and too much stock-based compensation could undermine FCF per share.

Successful businessman in the office.

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In my initial thesis on Palantir Technologies Inc. (NYSE:PLTR), I expressed concern about the potential for a long-term correction in the stock price or poor returns, such that it might be better to put one’s

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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