Palantir: Not A Clear Alpha Play Anymore (Archive)
Earlier alpha captured; now reduced visibility, fading catalysts, and fair valuations justify holding.
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
- My earlier bullish thesis on Palantir has generated alpha but now I struggle to find a clear bullish thesis:
- A fall in RPO numbers increases top-line risk as revenue visibility is reduced.
- The S&P 500 inclusion catalyst is likely priced in as Palantir now meets all the criteria for inclusion into the index.
- H2 FY23 net insider selling activity has picked up in H2 FY23, signaling caution for the bulls.
- Valuations do not offer a sufficient discount as Palantir is trading marginally at a premium to its longer term 1-yr fwd P/E multiple.
Read the full article here.
Disclosures and Disclaimers
Past performance ≠ future results. Not investment advice. See full Disclaimer.
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