Is Palantir still a good buy?
Palantir $Palantir(PLTR.US$ pulled in $533 million in sales for the second quarter, showing a 13% boost compared to last year. This figure fell short of our higher-consensus estimate of $547 million. Meanwhile, their billings grew by an impressive 52%, reaching $603 million. This surge might be linked to heightened interest in Palantir's offerings, largely catalyzed by the growing fascination among customers for AI. Similarly, Palantir saw a robust increase in their customer count, with a 38% rise, bringing the total count to 421.
Palantir's two main platforms, Gotham and Foundry, are aptly designed to assist both government entities and commercial clients in making the most of their data. As organizations increasingly tap into data to make informed business decisions, Palantir's platforms are poised for significant gains. We foresee this ongoing trend providing a tailwind that will help Palantir attract more clients and also increase revenues from existing ones.
The latest data indicates that Palantir's Government Revenue makes up 56.55% of their overall revenue, leaving the remaining 43.45% to be covered by Commercial Revenue.
A noteworthy point is the steady growth of Palantir's Commercial Revenue over the years, boasting a compound annual growth rate (CAGR) of 33.59% over the last three years. This clearly illustrates their success in generating income from their core commercial activities.
However, the company's stock has surged by more than 180% since the beginning of the year. This has resulted in a PS ratio (price-to-sales ratio) of over 18, while the overall revenue growth rate stands at only 13%. Consequently, the current consensus is that the stock is trading at a higher value than justified, indicating an overvaluation.
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Ohshimi : still bullish?