Palantir: Strong Momentum But Likely Still Below Market's Expectations (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

• My latest 'Sell' view on Palantir was premature; Q4 FY23 results have disproved my previous thesis on the stock. But, for a new host of reasons, I retain a 'Sell'.
• I recognize Palantir's exceptionally strong operating momentum on both revenues and margin growth, driven by bootcamps with commercial enterprises.
• However, an analysis of management's guidance vs consensus estimates suggests that a lot of the optimism is already 'priced in'
• Valuations are near their historical peak levels, leaving minimal margin of safety.
• Technical analysis also makes the case for a bearish view on Palantir vs the S&P500; however, I am flexible on this view and may change my mind if there is any technical sign of view invalidation.

Read the full article here.