Is Palantir a Good Investment?

PHOTO CREDIT: Palantir

OVERVIEW

Why You Should?

  1. Palantir will benefit from many success stories from government agencies using Palantir technologies to take down terrorists and other things. For example, the company’s technologies were used to take down Osama Bin Laden after 9/11. This has benefited the company’s future growth and will also benefit investors in the company.
  2. Well-known investors such as Cathie Wood, the founder of Ark Invest, have taken stakes in this company. She called Tesla’s rise to success and has reported great returns during the financial year of 2020. If she and other investors continue to throw their support behind Palantir, the stock will continue to move higher. This will benefit the company and its investors.
  3. Palantir has seen rising revenues over the past couple of financial years due to the reasons mentioned above. This comes to show the vast popularity of the company’s software products. This has helped the company’s growth plans and has also benefited investors in the company. In the financial year of 2020, the company reported revenues of around 1.09 billion. This was higher than what the company reported in the financial year of 2019 when they had revenues of around 742.55 million.
PHOTO CREDIT: Yahoo Finance

Why You Should Not?

  1. Palantir only has around 125 clients around the world. If some of these clients move away from the company, this can really hurt the company’s financial and operational results. Until the company can branch out and gain more clients, this is another risk for investors in the company to worry about.
  2. Despite the rising revenues the company has reported revenues in the past, the company still continues to report rising losses as well. These rising losses will hurt the company in the future. This risk will also hurt investors in the future. In the financial year of 2020, the company reported a loss of around 1.17 billion. This was higher than what the company reported in the financial year of 2019 when they had revenues of around 579.65 million.
PHOTO CREDIT: Yahoo Finance

MY OPINION

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Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.

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Aaditya Patel

Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.