Palantir Is Challenging The Enterprise Software And IT Services Industries (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• Palantir Technologies is delivering exceptional, margin-accretive growth as AIP and Foundry displace traditional enterprise software and IT services. Large guidance beats suggest that the market is not yet recognizing the potential.
• Q4 FY 2025 revenue growth accelerated to 70% year over year, with remaining performance obligations jumping to 2.48 billion dollars as a strong leading indicator of further growth.
• Palantir’s normalized EBIT margin is already 41 percent, with very high incremental margins suggesting significant additional operating leverage ahead.
• Despite a lower one-year forward P/E multiple of 112 times, Palantir’s valuation still implies roughly 30 percent annual earnings growth for 12 years, which leaves very little room for execution.
• The conflict between perfect execution and demanding valuations is reflected in the technical view, which points to market-level performance ahead for Palantir stock.

Read the full article here.