"Palantir Dip After Earnings Was Just Due" - D'ron Forbes

This is my analysis of the company Palantir after today's earnings report.
By: Division One Finance
QUEENS, N.Y. - Nov. 9, 2021 - PRLog -- Palantir released their earnings report today and it looks like the company did beat on the top and bottom line. Despite the positive earnings the stock has fallen by 8.79% at time of writing.

Palantir is just not a $53 billion company and needs time to live up to the expectations. I'm not a fan of how companies use the year over year comparisons to exploit weak minds. 49% growth in sales year over year, but less than $1 million dollars in sales growth quarter over quarter. They don't yet have the earnings power.

They say they added 20 Net new customers in Q2, but what was the size of these customers? The increase in revenue just isn't there. Not going to trust the adjusted free cash flow of $201 million, because I don't see a quarter of positive free cash flow in sight.

The Bottom Line

I do like their anti-fraud program as well as their work in mining and energy. Those things should add value to the company over time. Still this is not enough to warrant the market value. Sorry Palantir fans but I wouldn't touch this one with a 50 foot pole. I'm not going to include a price target with this press release because there just isn't enough to go off of at this point. I do wish all Palantir investors and the Palantir team the best. This overvaluation is not on you, Wall Street has just been losing it lately.

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D'ron Forbes is a financial journalist, stock portfolio consultant, public speaker and educator. Most known as the founder of Division One Finance and the Stock Market Academy, Forbes' growing influence on the world of finance has changed lives, as he aims to help close the wealth gap.

Also check out my latest report on the intrinsic value of Applied Industrial Technologies:

D’ron Forbes
Location:Queens - New York - United States
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