This is a step-by-step stock review to answer the question, is Palantir (PLTR) stock a good buy or is Palantir a good long term investment?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important This will help us answer our big question “Is Palantir a good long-term investment”. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
1.Palantir Company History
When investing in stocks, and more so to determine if Palantir stock is a good long-term investment, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.
- Founding Visionaries: Founded in 2003 by Peter Thiel, Alex Karp, Joe Lonsdale, Stephen Cohen, and Nathan Gettings to transform data use.
- Government Contracts: Initially focused on government contracts, including military work.
- Commercial Expansion: Expanded to offer data solutions for businesses.
- Silicon Valley Roots: Started in Silicon Valley, leveraging innovative ideas.
- Venture Capital Backing: Received significant investment, enabling rapid growth.
- Foundational Technologies: Developed key tools like Gotham and Foundry for data analysis.
- Global Presence: Established offices worldwide to support various industries.
- Strategic Partnerships: Collaborated with major tech firms to enhance products.
- IPO Milestone: Went public in 2020, marking a significant milestone.
- Ethical Controversies: Faced criticism over data use and government collaborations.
- Industry Recognition: Acknowledged for innovative contributions to data.
- Diverse Client Base: Serves a wide range of clients, from governments to nonprofits.
- Commitment to Innovation: Continues to innovate and improve data solutions.
- Future Outlook: Positioned for growth by expanding its impact on data analysis.
2.MOS (Margin of Safety)
When investing in a company, the first step is to look at the financials. These financials are critical in trying to answer our question “is Palantir a good long term investment?” Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: On sale
- Score: 72
- MOS: 54%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Palantir (PLTR) makes money:
- Software Licensing: Palantir earns from selling software licenses like Gotham and Foundry, tailored to various needs.
- Subscription Model: Clients pay regularly for Palantir’s data tools, ensuring a steady income.
- Professional Services: Palantir assists with consulting, training, and support, generating additional revenue.
- Government Contracts: Palantir secures contracts for data analysis and security, especially with governments.
- Commercial Partnerships: Palantir collaborates with businesses, aiding them with its tech and increasing revenue.
- Data Monetization: Palantir helps clients profit from their data insights.
- Platform Extensions: Palantir offers add-ons, enhancing software value.
- Software Maintenance: Palantir provides ongoing support for client software, earning through maintenance.
- Value-added Services: Palantir offers extra services like data analysis, boosting earnings.
- Marketplace Commissions: Palantir earns from transactions on its marketplace.
- Strategic Investments: Palantir invests in startups for additional revenue streams.
- Continuous Innovation: Palantir stays ahead by innovating, boosting earnings.
Here are a few of the other companies that Palantir (PLTR) has acquired over the years. This is important because a company will use a “Buy before build” philosophy to go to market faster and add additional streams of revenue. A company with more revenue streams has a more stable business model. Keep in mind, that most companies don’t build new software because it takes too long to go to market and generate revenue.
- Grove
- Kimono Labs
- Fusient
- Poptip
- FoxyCart
- Qrious
- Spectrum
- Pryte
- Silk
- Augify
- Hermeus
- Cortexica Vision Systems
- Propeller
- Pyramid Analytics
- Silk.co
- Kimono Labs
- Qadium
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Palantir (PLTR) stacks up against other companies.
- Oracle Corporation – 78/100
- Palantir – 72/100
- DigitalOcean Holdings, Inc. – 67/100
- GoDaddy Inc – 61/100
- IBM – 61/100
- Snowflake – 45/100
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Strategic Vision: Alex Karp led Palantir’s strategic direction, positioning it as a data analytics leader.
- Rapid Growth: Under Karp’s leadership, Palantir rapidly expanded its global client base and revenue streams.
- Government Contracts: Secured lucrative contracts with government agencies, establishing trust in national security and defense.
- Commercial Expansion: Diversified Palantir’s offerings, penetrating commercial sectors for revenue growth.
- Product Innovation: Fostered innovation, resulting in groundbreaking products like Gotham and Foundry.
- Public Listing: Led Palantir through its 2020 NYSE direct listing, a milestone achievement.
- Strategic Partnerships: Forged partnerships to expand market reach and enhance offerings.
- Ethical Framework: Established data use and privacy standards for responsible practices.
- Talent Development: Cultivated a high-performing team to execute Palantir’s vision.
- Market Recognition: Earned industry acclaim, solidifying Palantir’s tech leadership.
- Community Engagement: Committed to CSR initiatives, making a positive impact beyond profits.
- Financial Performance: Achieved record-breaking financial results, exceeding targets.
- Thought Leadership: Positioned Palantir as a tech thought leader with industry insights.
6. Palantir 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Palantir (PLTR) is 72/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Palantir (PLTR) stock a good buy?
Some of the top questions investors can have is Palantir (PLTR) stock a good buy or should I buy Palantir (PLTR) stock or is Palantir a good long term investment?
- Innovative Solutions: Palantir stands out for its cutting-edge data analytics and integration platforms, poised to disrupt industries and drive growth.
- Government Contracts: With a strong foothold in government contracts, Palantir showcases stability and resilience, making it an attractive investment option.
- Commercial Expansion: Palantir’s expansion into commercial sectors offers vast growth opportunities, diversifying revenue streams and enhancing shareholder value.
- Strategic Partnerships: Leveraging strategic partnerships with industry leaders, Palantir expands its market reach and solidifies its position as a tech powerhouse.
- Rapid Growth: Palantir’s rapid revenue growth and global expansion underscore its potential for substantial returns on investment.
- Ethical Framework: Committed to ethical data practices, Palantir mitigates regulatory risks and builds trust with investors, reinforcing its long-term sustainability.
- Innovation Culture: A culture of innovation drives Palantir’s continuous development of groundbreaking products, ensuring relevance and competitiveness in the market.
- Talent Development: Palantir’s focus on talent development cultivates a high-performing workforce capable of driving innovation and executing strategic objectives.
- Financial Performance: Palantir’s impressive financial performance, marked by strong revenue growth and profitability, signals financial health and potential for value appreciation.
- Market Recognition: Palantir’s industry recognition and awards underscore its leadership and innovation, boosting investor confidence.
- Community Impact: Through corporate social responsibility initiatives, Palantir demonstrates a commitment to making a positive impact beyond profits, resonating with socially conscious investors.
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To truly know if Palantir (PLTR) is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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