Is Palantir in Trouble for Q3? PLTR Stock Overview: Capital IQ

Palantir's Q3 earnings report for 2021 is coming up in a little more than a month. Here's what I'm thinking at this point...

TAGS: #Palantir #PLTR #PalantirVision

Until next time,
Jackson

Disclaimer: This is not financial advice, please invest responsibly.

[erikbrown]

Apologies in advance for the length. Hope you'll find time to read this. You and Tom do great work, and I truly appreciate you both. But this Boomer (CPA) respectfully thinks you're wrong on a few key points herein. First, IMO the ratio of commercial revenue to government revenue is overemphasized. Yes, strong growth in commercial business is vitally important to PLTR's future, but if commercial revenue grew by 100% year after year while government revenue was growing by 150%, the change in your ratio would be mistakenly interpreted as a negative trend. That ratio is what Palantir's Ted Mabrey *might* call "useless data". It matters more how much / how fast each side is growing (commercial and government), independent and irrespective irrespective of the other side. Next when you say government spending is "much more unpredictable", I would argue the exact opposite. There is nothing more permanent than a temporary government program. A quick search tells me government spending as a percentage of GDP grew from 7% in 1902 to 40% currently. IF government spending as a pct. of GDP is increasing (it is), it follows that private sector spending as a pct. of GDP is decreasing (an alarming trend in my view, and I'm sure Tom's Grandpa would agree, but I digress). When the economy goes into recession, the private sector tightens their belt. But government spending invariably increases - especially when the private sector is in recession. When tax revenue falls short they print more dollars, sell more bonds, and spend spend spend. How much is the latest "infrastructure" spending spree proposal? And it's not just the U.S. Treasury. Don't forget their accomplices at the Fed. Wall Street knows how predictable the Fed is. They even have a term for it, "the Greenspan Put" (now it's the Powell Put). Last point: a couple thoughts on "seasonality". I don't know what PLTR is specifically referring to, but I could probably hazard a few guesses. First - budget season - corporations set budgets for capital expenditures in the coming fiscal year four or five months in advance of the start of the next fiscal year. They rarely deviate from those budgets. In fact, they cannot if their debt arrangements include CapEx spending restrictions - which are common. So once a CapEx budget is set, there's about a nine or ten month period during which they have little choice but to tell prospective vendors that any new projects must wait until the next budget cycle. I don't have stats on the distribution of fiscal year ends, but I'd be willing to bet there are a few months that are more popular than all the others combined (e.g. December). Thanks again for your terrific content!

[mariofrancoDR]

My impression is that they are focused in growing the business... not hyping the stock. This is a marathon, not a sprint event.

[robinsongalvan]

I’ll be here buying 2 or 3 shears every time that goes under 22. This is a good company. I have like 2000 dollars in Palantir, some people lose that in a hand of blackjack.

[AlexEvdokimov-pj]

Thank you man for your work
Watching you from Russia
Greetings from Russian PLTR Investors community, we appreciate your work

[anthonya]

I must say I'm a little perturbed that it went up almost $3 pre-market and barely held for day.

[emerica]

Man you just missed the SOMPO partnership by a few hours. Can't wait for the next vid :) watching the SOMPO partnership video gave me goosebumps. PLTR will change the world

[brendalee]

I like this company, been a little frustrated that the stock doesn't seem to budge but plan to hold long term.

[gaurawbajpai]

Very few people provide the honest opinion about companies and stocks, thanks for your honest opinion and research

[konradlllstaufer]

Thank you for your work.
Greetings from Germany.

[NominalTopic]

Looks like Palantir is practicing how best to scale their products *down*!
(Also, the audio level is killing me…but great video)

[KrayzieRoach]

i was so hyped to sell my call options the day after the news and all it really did was jump like 50 cents during trading hours from one day to the next. hoping for another surge by Jan 2022

[sixkings]

New $90 million contract with veterans affairs over 4 years.
The deal will give the VA new tools to integrate data from across its health and benefits systems into its Common Operating Platform (COP), a move Palantir says will give leaders deeper insights into the services the department offers veterans. The value of the deal is $90 million over four years, according to Palantir.

[abrahamfesliyan]

actually i think they have a certain pay structure. meaning they might get more payments toward the end of the year for some of their contracts? i could be wrong

[Dinguskon]

Kind of unrelated but I miss the quite Jackson voice over from back in the investing opportunity days. Still appreciate the channel though. Thank you Jackson

[ArnyTrezzi]

Could "Rest of the world" be mainly Japan? SOMPO, Fujitsu...

[TheMrSlyxx]

These little chats are a bit dry and boring. Mostly because you just say this might happen or they may not hit this goal. What about an in depth dive into all the companies PLTR has invested into, and how they can affect PLTR's profit margin? I haven't seen anyone try to tackle this.

[bestonlinenameever]

Is January 2020, pre IPO, gov vs commercial and country break down data anywhere close to relevant on October 7, 2021?

[danielloya]

Why would revenue growth be bearish? Palantir has talked about their business model extensively and how they move clients from one category to the next and increase revenues from existing clients.

[tradingsimplified]

It appears PLTR is reversing. Fingers crossed

[defendingtroy]

except the wejo partnership, no partnership with big/sizeable company has been announced for the last 3 months. I guess the bears will challenge the growth of the commercial sector in the next earning.