Latest news with #ShyamSankar
Forbes
13 hours ago
- Business
- Forbes
New Contracts To Drive Palantir Stock?
WASHINGTON, DC - APRIL 30: Shyam Sankar, CTO, Palantir Technologies speaks on stage during The Hill ... More & Valley Forum 2025 at The U.S. Capitol Visitor Center on April 30, 2025 in Washington, DC. (Photo byfor 137 Ventures/Founders Fund/Jacob Helberg ) Palantir Technologies (NASDAQ:PLTR) shares increased by approximately 7% during Friday's trading session after The New York Times revealed that the U.S. government is broadening its adoption of Palantir's main foundry tool throughout federal agencies. The company has witnessed more than $113 million in federal government expenditures since the new Trump administration took office, stemming from both existing contracts and new agreements with the Department of Homeland Security and the Pentagon. Palantir is reportedly also in discussions with the Social Security Administration and the Internal Revenue Service regarding the use of its technology. Additionally, the company secured a $795 million contract from the Department of Defense in late May. Although the company's expansion into the public sector is encouraging, we believe that the stock seems appealing yet unstable – rendering it a difficult choice at its current valuation of around $130. We consider the stock to be quite reactive to negative occurrences, given its exceedingly high valuation. Our assessment arrives from contrasting the current valuation of PLTR stock with its operational performance over recent years, along with its current and historical financial metrics. Our evaluation of Palantir Technologies using key indicators of Growth, Profitability, Financial Stability, and Downturn Resilience indicates that the company possesses a very strong operating performance and financial status, as elaborated below. That being said, if you're looking for potential gains with lower volatility than individual stocks, the Trefis High Quality portfolio serves as an alternative, having outperformed the S&P 500 and generated returns surpassing 91% since its inception. Based on what you pay for each dollar of sales or profit, PLTR stock appears quite pricey when compared to the overall market. • Palantir Technologies has a price-to-sales (P/S) ratio of 91.1 compared to a figure of 3.0 for the S&P 500 • Additionally, the firm's price-to-free cash flow (P/FCF) ratio is 212.7 in contrast to 20.5 for the S&P 500 • Furthermore, it has a price-to-earnings (P/E) ratio of 497.4 versus the benchmark's 26.4 Palantir Technologies' Revenues have increased significantly over recent years. • Palantir Technologies has experienced its top line expand at an average rate of 23.9% during the last 3 years (compared to a 5.5% increase for the S&P 500) • Its revenues have risen by 33.5% from $2.2 billion to $2.9 billion in the past 12 months (against a 5.5% increase for the S&P 500) • Additionally, its quarterly revenues increased by 39.3% to $828 million in the latest quarter from $608 million a year prior (in comparison to a 4.8% improvement for the S&P 500) Palantir Technologies' profit margins are greater than those of most companies within the Trefis coverage universe. • Palantir Technologies' Operating Income over the last four quarters amounted to $406 million, yielding a subpar Operating Margin of 13.0% (versus 13.2% for the S&P 500) • Palantir Technologies' Operating Cash Flow (OCF) during this timeframe was $1.3 billion, suggesting a remarkably high OCF Margin of 42.8% (as opposed to 14.9% for the S&P 500) • For the most recent four-quarter period, Palantir Technologies' Net Income was $571 million – indicating a high Net Income Margin of 18.3% (compared to 11.6% for the S&P 500) Palantir Technologies' balance sheet appears very robust. • Palantir Technologies' Debt level was $245 million at the end of the most recent quarter, while its market capitalization is $310 billion (as of 5/30/2025). This denotes a very strong Debt-to-Equity Ratio of 0.1%(compared to 19.9% for the S&P 500). [Note: A low Debt-to-Equity Ratio is favorable] • Cash (including cash equivalents) constitutes $5.4 billion of the $6.7 billion in Total Assets for Palantir Technologies. This results in a very strong Cash-to-Assets Ratio of 80.6% (versus 13.8% for the S&P 500) PLTR stock has performed significantly worse than the benchmark S&P 500 index during several recent downturns. While investors remain hopeful for a soft landing in the U.S. economy, one might wonder just how severe things could become if another recession were to occur. Our dashboard How Low Can Stocks Go During A Market Crash illustrates how key stocks perform during and after the last six market crashes. • PLTR stock experienced a decline of 84.6% from a high of $39.00 on January 27, 2021, to $6.00 on December 27, 2022, contrasted with a peak-to-trough decrease of 25.4% for the S&P 500 • The stock fully regained its pre-Crisis peak by October 3, 2024 • Since then, the stock has risen to a peak of $131.78 on June 1, 2025 • PLTR stock declined by 53.9% from a peak of $39.00 on January 27, 2021, to $17.96 on December 20, 2021, in contrast to a peak-to-trough drop of 33.9% for the S&P 500 • The stock fully regained its pre-Crisis peak by October 3, 2024 In conclusion, Palantir Technologies' performance across the specified parameters is as follows: • Growth: Extremely Strong • Profitability: Strong • Financial Stability: Extremely Strong • Downturn Resilience: Extremely Weak • Overall: Strong All in all, Palantir's robust recent growth and solid cash flow are commendable, but its exceedingly high valuation and susceptibility to downturns should cause investors to reflect before investing in the stock. Not too pleased with the erratic nature of PLTR stock? The Trefis High Quality (HQ) Portfolio, consisting of 30 stocks, has consistently outperformed the S&P 500 over the previous 4-year period. What's the reason? Collectively, HQ Portfolio stocks delivered superior returns with less risk compared to the benchmark index; a smoother ride is evident in HQ Portfolio performance metrics.
Yahoo
24-05-2025
- Business
- Yahoo
Palantir Technologies Inc. (PLTR) CEO Sells $50M in Shares as Execs Also Cut Holdings
Palantir Technologies Inc. (NASDAQ:PLTR) CEO Alex Karp has sold over $50 million in company shares this week, according to recent securities filings. The transactions, which took place between $125.26 and $127.70 per share, leave Karp with approximately 6.43 million PLTR shares, valued at around $787 million based on Thursday's closing price. The sales were part of automatic transactions to cover tax obligations related to vesting restricted stock units. Other senior executives also executed major stock sales: Chief Technology Officer Shyam Sankar sold about $21 million in shares, while co-founder and president Stephen Cohen offloaded roughly $43.5 million. These moves come as Palantir Technologies Inc. (NASDAQ:PLTR)'s stock continues to climb, recently surpassing Salesforce in market value and entering the ranks of the top 10 most valuable U.S. tech companies. Palantir Technologies Inc. (NASDAQ:PLTR)'s surge is fueled by strong demand for its artificial intelligence software and a wave of new government contracts, amid a broader push for federal efficiency. The stock has soared nearly 62% in 2025, outpacing major tech peers, though concerns about international growth linger. Despite the volatility, Karp remains bullish, telling CNBC, 'We're happy. We're going to partner with the world's best people and we're going to dominate.' While we acknowledge the potential of PLTR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PLTR and that has 100x upside potential, check out our report about this READ NEXT: and Disclosure: None.
Yahoo
24-05-2025
- Business
- Yahoo
Palantir Technologies Inc. (PLTR) CEO Sells $50M in Shares as Execs Also Cut Holdings
Palantir Technologies Inc. (NASDAQ:PLTR) CEO Alex Karp has sold over $50 million in company shares this week, according to recent securities filings. The transactions, which took place between $125.26 and $127.70 per share, leave Karp with approximately 6.43 million PLTR shares, valued at around $787 million based on Thursday's closing price. The sales were part of automatic transactions to cover tax obligations related to vesting restricted stock units. Other senior executives also executed major stock sales: Chief Technology Officer Shyam Sankar sold about $21 million in shares, while co-founder and president Stephen Cohen offloaded roughly $43.5 million. These moves come as Palantir Technologies Inc. (NASDAQ:PLTR)'s stock continues to climb, recently surpassing Salesforce in market value and entering the ranks of the top 10 most valuable U.S. tech companies. Palantir Technologies Inc. (NASDAQ:PLTR)'s surge is fueled by strong demand for its artificial intelligence software and a wave of new government contracts, amid a broader push for federal efficiency. The stock has soared nearly 62% in 2025, outpacing major tech peers, though concerns about international growth linger. Despite the volatility, Karp remains bullish, telling CNBC, 'We're happy. We're going to partner with the world's best people and we're going to dominate.' While we acknowledge the potential of PLTR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PLTR and that has 100x upside potential, check out our report about this READ NEXT: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
Can Palantir Stock Soar 245% to Be a Trillion-Dollar Company? This Wall Street Analyst Has a Surprising Answer.
Dan Ives at Wedbush Securities believes Palantir will be worth $1 trillion within two or three years as it continues to tap demand for artificial intelligence (AI). Palantir chief technology officer Shyam Sankar says the company is uniquely positioned to deliver on demand for AI due to its software architecture. Palantir trades at such a rich valuation multiple that its stock price could drop 70% and it would still be tied as the most expensive software stock on the market. 10 stocks we like better than Palantir Technologies › Palantir Technologies (NASDAQ: PLTR) has been one of the biggest winners of the artificial intelligence (AI) boom. It led the S&P 500 (SNPINDEX: ^GSPC) last year with a 340% gain, and it is currently the second-best performing stock in the index this year, with a 66% gain. Palantir is particularly popular with retail investors, many of whom admire CEO Alex Karp for his forthright communication and unapologetic viewpoints. But after tenfold returns in the last two years, valuation has become a serious concern for shareholders. Nevertheless, Dan Ives at Wedbush thinks Palantir will be a $1 trillion company in another two or three years, implying 245% upside from its current market value of $290 billion. It also implies a minimum return of 51% annually over the next three years. Is that realistic? Here's what investors should know. Palantir provides data analytics software that lets customers across the commercial and government sectors integrate information into an ontology, a framework that defines the relationship between digital and physical assets. Users can query the ontology data with analytical tools and machine learning models to find nuanced insights that improve decision-making over time. Palantir also provides an artificial intelligence platform called AIP that functions as a large language model orchestration tool, adding support for natural language processing to the core data analytics platforms. AIP lets users engage those platforms conversationally. For instance, a bank using Palantir to prevent fraud could tell the platform in plain language to flag and freeze any accounts that meet certain criteria. International Data Corp. (IDC) recently ranked Palantir as a market leader in decision intelligence software, and Forrester Research recognized the company as a technology leader in artificial intelligence and machine learning platforms. That puts Palantir in front of a big opportunity. AI platform sales are forecast to increase at 40% annually to $153 billion in 2028. Palantir looked strong in the first quarter. Customers increased 39% to 769, and the average spend per existing customer rose 24%. In turn, revenue increased 39% to $884 million, the seventh consecutive acceleration, due to especially strong sales growth in the government segment. Meanwhile, non-GAAP (generally accepted accounting principles) earnings jumped 62% to $0.13 per diluted share. Palantir attributed the strong performance to demand for AIP. "Our foundational investments in ontology and infrastructure have positioned us uniquely to deliver on AI demand," said chief technology officer Shyam Sankar. And the company has continued to capitalize on that demand since the quarter ended. NATO (North Atlantic Treaty Organization) recently purchased AI-enabled warfighting software from Palantir. Put simply, Palantir's business is firing on all cylinders. However, investors should never buy a stock without first considering valuation. Louie DiPalma at William Blair Research recently told Yahoo! Finance that Palantir is the most expensive software stock on the market. It traded at 64 times forward sales in early May (and has only become more expensive since then). Meanwhile, the next closest stock was CrowdStrike, at 18 times forward sales. "Palantir theoretically could fall 70% and it would still be tied as the most expensive name in its entire software peer group. So, the stock is not cheap," DiPalma explained. Investors need to keep that in mind when deciding whether to buy the stock. Personally, I think better opportunities will arise in the future, and I seriously doubt Palantir will be a trillion-dollar company within three years. But it may achieve that market value in five to 10 years. Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Trevor Jennewine has positions in CrowdStrike and Palantir Technologies. The Motley Fool has positions in and recommends CrowdStrike and Palantir Technologies. The Motley Fool has a disclosure policy. Can Palantir Stock Soar 245% to Be a Trillion-Dollar Company? This Wall Street Analyst Has a Surprising Answer. was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
21-05-2025
- Business
- Yahoo
Palantir (PLTR) Partners With Divergent to Expand On-Demand Manufacturing via Warp Speed
Palantir Technologies (PLTR, Financials) and Divergent Technologies announced a strategic partnership Tuesday to deliver on-demand digital manufacturing through Palantir's Warp Speed software platform. Warning! GuruFocus has detected 5 Warning Signs with SMCI. Palantir customers in defense and commercial sectors will gain access to Divergent's Adaptive Production System, or DAPS, which uses artificial intelligence-driven design, additive manufacturing, and robotic assembly to produce complex parts faster and at lower cost. The collaboration is intended to help customers identify and resolve supply chain vulnerabilities in real time by manufacturing critical parts directly within Palantir's platform. Divergent CEO Lukas Czinger said the integration enables Palantir customers to identify and solve production shortages and new product developments on unmatched timelines. Palantir Chief Technology Officer Shyam Sankar called DAPS a mind-bending example of advanced software meeting advanced manufacturing. Palantir's Warp Speed is used to support U.S. on-shoring of industrial production. The company earlier this year added a second cohort of customers using the platform. Investors may view this as a step toward increasing Palantir's footprint in the defense-tech ecosystem and strengthening its industrial applications. See insider trades for PLTR: Explore PLTR's financial summary. This article first appeared on GuruFocus.
