Bet on Palantir stock for the long-term despite valuation risk, Wall Street veteran says
Вставка
- Опубліковано 25 вер 2024
- TheStreet Pro contributor Stephen ‘Sarge’ Guilfoyle highlighted Palantir as his single best trade despite the stock’s risky valuation.
Transcript:
CONWAY GITTENS: Well, joining us is Sarge. He's a contributor at TheStreet Pro. I hear you come bearing gifts today with your single best trade. What is it.
STEPHEN GUILFOYLE: Well, I'll tell you what I'm willing to buy for myself, for my children and my grandchildren is Palantir Technologies PLTR for the folks at home.
CONWAY GITTENS: For the folks at home, they may not know what that company does. So tell us.
STEPHEN GUILFOYLE: It's kind of difficult to explain. There are big data software company that's been really a contractor to the US government from their beginnings. Now they're spreading into the corporate side, the commercial side. Their customer account is growing like a weed. I think it grew something like 69% year over year last quarter. Their revenues are growing a little more slowly. My thinking is that the revenues are going to catch up to the customer account, not the other way around. It might take a little while. If you look at the stocks chart, you might even see for those of you that they can see these things, a descending triangle, which would be a little bit bearish. But that's OK because there's a gap down to about $19. That's where the gap fills. That's, you've seen me buying it because I tell you what, all you folks are my articles when I'm buying it, that's where I expect to buy to get aggressive. I expect that gap to fill. I expect to load up around 19 and maybe not take off, but take off by the time my children and my grandchildren are a little bit older.
CONWAY GITTENS: So why do you like this stock?
STEPHEN GUILFOYLE: It's because it's demand for what it does, I believe, is going to be inelastic. All right. They provide security, they provide surveillance. They provide big data analysis at a level that really only the CEO, Alex Karp, can explain effectively. I believe that they are well ahead of other software providers, of other big data providers on the AI side. And as long as they can maintain that lead or at least keep the pace up. I mean, you've all seen with Dan Ives has said about this stock, he's raved about this stock, not that Dan's always right, but he's right a lot. He's a five star analyst at TipRanks for a good reason. And I have a lot of the same feelings for this stock as he does. I have other picks, too, for you folks, if you want. I mean, there are three stocks I'm willing to buy.
CONWAY GITTENS:But let's stick with Palantir for right now, because I know that you are bullish on the company's cash flow, right, yes so explain to us why that is a buy for you?
STEPHEN GUILFOYLE: Well, the free cash flow for the firm last quarter, I think it was $148, $149 million, something like that. The balance sheet is clean as a whistle, $3.8 billion in cash, no debt. The firm is set up where it can sustain even if it has two losses for quite a while. But it's been profitable now for, I think, GAAP profitable for six consecutive quarters. Technically, it's eligible for the S&P 500. I don't think they're about to shove it in there, but technically they're eligible. The cash flows are positive. The firm is profitable, revenues are growing. I think they're going to accelerate. Maybe not right away, maybe not this year, but I believe they're going to accelerate into the future. Fundamentally, this is as sound a firm at this size that I can find.
CONWAY GITTENS: So talk to me about some of the risks here. I know they came out with their earnings in May. They gave a full year revenue forecast that was a little bit lighter than what Wall Street was expecting. I think the stock dropped like 15% right after that. I took a look. Deutsche Bank has a sell on it. Davidson, neutral. Citigroup, neutral. HSBC has a hold. RBC, underperform. So what is the risk to this stock?
STEPHEN GUILFOYLE: It's a valuation risk. If the stock if the stock doesn't grow into its big boy clothes like I think it will, it's overvalued. It's plain and simple. So it's a valuation risk. The sell side analysts have to acknowledge that and they are, some of them not. You know, I mentioned Dan Ives. He's not. But some of them are. But you have to buy these stocks when you think when you view the profitability, the revenue growth is not at its peak, but the peak is being priced in. One of them has to move towards the other for our sake. For my kids sake, let's hope that I'm right and that the revenue growth and the profitability grow into the larger size valuation.
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#Palantir #palantirtechnologies #stocks
Been in PLTR for a little while.
Got 730+ shares @around $8
Selling 9 covered calls @ $40 for Jan/25
I've got about 30% of the premium in about a month.
If I buy them back tho... I don't think the stock will move much either way until next earnings. So I'm also cool just riding this premium down for another month.
I feel at this point of the AI buzz I feel PLTR is still struggling.
Are you kidding, PLTR is over 200% in the past year, did me good numbers on my portfolio.
That doesn’t count as struggling to me
Amen Brother
How do you do it ma’am? It’s really not as easy as you say it.
A common problem faced with a lot of intending investors is the misconception of taking the fin market perhaps for a casino game or gamble. A sound system would always bring about profit, this is why no matter the losses traders complain of, there’s also much profit being talked about as well.
PLTR You need to have a LONG term mindset 10-20 years. Buy and hold.
Hopefully only 3-5 years lmao
@@Steelersfootball45 With how fast this tech works I think this is the take!
Or just buy Nvidia and profit today.
@@Steelersfootball45 you have a broke mindset...
10-20 years? They might be bankrupt by then. That’s for ever in the tech world.
Revenues usually take three years per new customer for enterprise software providers. Revenues should take off soon.
We are going to the 🚀🚀🚀🚀🚀🚀
$200
PLTR is the best long term investment (10-25 years) in the entire stock market
You really don’t need to wait 20-30 years. I am hopeful June and July will show incredible gain
Yes. Just around the corner.
What would be the catalyst in June or July?
1 year down the road, many will reflect on not making a decision to keep at least some shares of Palantir.
Go Palantir!💪
the messi of ai
I want to make money right now, not so much for my grand kids
Why block him from naming other stocks?
So right!!!!
Palantir needs time to explain. They don’t really have competition.
I love hearing analysts pump this stock since I own 13k shares, but I scoff at the empty BS being spewed about it.
$250k in PLTR is wild
Capital expenditures for what? They are an analytics software company.
What if 'big data' is not a management solution?
Grandpa buying stocks for his kids😂
Party🎉
Palantir bought back $500k worth of stock last quarter...
No, they bought back $9 million worth of stock last quarter
In the scheme of things those figures are nothing.
@@greghelton4668 yes. They’re just getting their feet wet with it. They’re still in hyper growth stage. They will start buying back stock more heavily in a few years
Tsla for your kids tigers!
He’s not able to explain what Palantir does and says the CEO can explain 😂..There are a lot of UA-camrs like Amit kukreja who can explain better than this guy…
🤣
kukreja probably understands pltr better than most of its employees
This guy is a clown and so is Amit
Why bother when the options market will just steal everything!
excellent. I will add WHY BOTHER if someone already has seen everything what you possess in your account. If there are a couple of banks who have decided to destroy exactly you, they won`t bother about valuation at all. it is not a big problem to swing between hold to downgrade, although the company is great.
@nononnomonohjghdgdshrsrhsjgd I like Alex Karp, and from what I know, this company is worth fighting for. I have fought to keep my shares and have traded them up many times. I'm not giving up but I do believe you are correct about how Wall Street works. Bullies are all the same.
@nononnomonohjghdgdshrsrhsjgd WS, the analysts, and most large Fund Managers have not forgotten let alone forgiven PLTR for going DPO instead of IPO.
@@johnd.5601 yes
@@robertvandeveer1846 why? what have they missed? i mean how does it affect them financially?
You guys are hilarious. There are much better stocks than Palantir. If you want to wait forever then sure, buy palantir.. lol
So name one we should buy now.
Sounhound target 10$
@@nikguitarocphone2505 soun is nowhere near pltr
Pretty dumb statement; the vast majority of the most successful investors buy for the long term and keep buying, particularly if the price drops.
A stock price staying flat for a long time is great for normal people because it gives them a chance to build up a sizeable position over time.
If you want predictable gains then buy dividend funds.
If you want regular and predictable growth then you're a moron because growth companies by their nature are fairly unstable.
Of course. But when your a big investor you diversify.