I Sold My Palantir Stock --- Was That a Mistake? --- $PLTR

I Sold My Palantir Stock --- Was That a Mistake? --- $PLTR //// Let me show you how to sift through Palantir’s income statement and statement of cash flows to understand their financials really well. We can run my discounted cash flow model together to see if the stock is a buy or a sell. We are also analyzing the financial ratios to see how they compare to their competitors. We will look at the debt of the company and equity. We will also calculate the WACC (weighted average cost of capital) so we can discount the future cash flows. Let's also look to see if the company is paying a dividend.

0:00 Opening
0:23 High Level Company Detail
1:40 Financial Review
8:17 Capital Structure
8:36 Valuation Results
9:27 More info
11:44 Financial Ratios
13:49 Competitor Analysis
14:39 Closing

This video is not investment advice. It is for entertainment purposes only. It is my opinion using publicly available information. Seek a duly licensed professional for investment advice.

- Palantir specializes in big data analytics. Big data analytics is the use of advanced analytic techniques against very large, diverse data sets from different sources.

- It conducts counter-terrorism analytics with US Intelligence & the Department of Defense. They also work with companies like L3Harris & Huntington Ingalls. Some of its clients are Morgan Stanley, Merck, Airbus, and Chrysler. An example of something they do is helping car manufacturers manage logistics and operations. It works with the The National Health Service in the UK. They also work with The National Institutes of Health which is a part of the U.S. Department of Health and Human Services. Its Foundry divisions connects various departments for analytical purposes. It helps fintech companies reduce money laundering from crypto transactions.

- The company is headquartered in Denver, CO and was founded in 2003

- The ticker trades on the NYSE, Vienna, Deutsche Borse, Xetra, Mexican Bolsa, Bulgaria & Sao Paulo Stock Exchange

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Discounted cash flow (DCF) is a valuation method used to estimate the value of an investment based on its future cash flows. DCF analysis attempts to figure out the value of an investment today, based on projections of how much money it will generate in the future.

This video is not investment advice. It is for entertainment purposes only. It is my opinion using publicly available information. Seek a duly licensed professional for investment advice.

[egotron]

You are by far the most detailed explainer from all of my subscriptions. You worth more! Good job!

[severalmalfunctions]

Finally, a complete, no BS, DD on companies with explanations and insights step-by-step. I must say I disagree with some points you made (the 21% of revenue to cash flow for example, I think Palantir has much better numbers), but that's okay, otherwise all projections would be the same and the market wouldn't be a market because everyone thought the same. This was the kind of channel I have been lookind for ages to find. Thanks and please keep up the awesome work.

[Dazzlingstreak]

mind numbing number crunching. Your diligence is scary awesome! Subbed!

[MayerKyle]

Appreciate the transparency and the depth of the video (and all of your videos). It's a good lesson that just because something has dropped 50%+ doesn't mean that it necessarily represents a good buying opportunity. Long road ahead.

[anderson]

Another great comprehensive take - thank you

[langforc]

Great plan. Buy high and sell low, before earnings… I’m loading up this company has a massive upside. I’m sorry you cannot see it.

[dchungmanson]

i watched at least 10 KOLs on PLTR Youtube over the last 16 months, I kept buying the stock from $22 to 15 .
Almost all the KOL s sort of withered away with new ones coming in . You are the best in every way so cool and analytical .I SOLD @13

[Martinit]

Seems you did the right thing - so far.
What terminal growth rate did you assume in your DCF ? 8:47 Looks like 2.5% - a bit low?
OTOH I think you aren't accounting for future dilution...and so far options and RSU outstanding and excercisable + current shares sum to about 2.5B shares (3-8 years).

[gooddude]

Great work
What does it mean when tax written with minus number (***)?

[camiloson]

Great video as always. Can you do FUBO?

[crawfordviolin]

I’m in the same boat Scott. This one makes a small percent of my portfolio but I am down 32%. This stock was pumped heavily and the revenue growth was pretty astounding in addition to the product capabilities that they were touting. I’ll hang in for the earnings results.

[richardc]

Nice work as usual! Do you still have your ABCL?

[wealthydetective]

Nice to hear about your portfolio every now and then.. i'd like to hear more often about it and your investment strategy in general but i understand your style and why you prefer to leave it occasional. I'm sorry for you selling at a loss but i think you made a wise choice at this point, i'm pretty sure it can go higher or lower in the coming weeks and months (no one knows), but if we look at a 24-36 months period i'm fairly confident you'll have the opportunity to buy in again at the same or lower price with the company having improved its financial metrics.. there are way better opportunities out there at the moment

[PiotrMys]

The problem with any analysis like that is that if the company has a moat and that their lead is actually increasing, you cannot value them using what you just did. I am not gonna compare Palantir to Tesla because I think Tesla has relatively a much bigger lead on its closest competition, but Palantir is the ONLY company in its sector in such a good position. It *might* completely dominate just like Tesla is doing. I appreciate you doing a very comprehensive analysis but disruptive compagnies have potential that cannot be valued like you did. I wonder what your Tesla valuation would have been in 2017.

[nahmet]

can you please explain how your valuation changed? I viewed your other pltr videos where you concluded a much higher fair value. the company since hasn't dropped in revenue projections. are you using a higher discount rate now?

[lilbroomstick]

i had like 2 shares @$20 lol, but im actually gonna start nibbling a legit position here around $11 or lower. I dont think the peter thiel AI data analytics thesis is dead. I think its not bad move selling when you did scott and i agree might not move for a while, but i def would try to get back in sometime in the next 12mo

[gooddude]

Is there a difference when company raise a cash throw common stock or option? They all lead to increase outstanding shares right?

[erickestrada]

Palantir stock will drop massively after earnings, that's why I'm buying puts

[febe]

So you think by the end of 2024 FY, PLTR will have near 1B FCF and its EV will be 20B? That doesn't make any sense even with historical (more conservative) valuation metrics. What am I missing?

[taleon]

Hi Scott. Please do RVP (P/E - 3.65) why so low? Thank you.