Dear Reader,
Palantir Technologies, the data mining company heavily drawing on artificial intelligence, recently staged an Initial Public Offering. Currently public markets value Palantir at 15.16 billion USD.
I think Palantir Technologies is significantly undervalued. Palantir Technologies is basically a play on artificial intelligence. In my opinion, Palantir Technologies could be worth 45 billion USD in the next 2-3 years. In the first half of 2020 up until 30 June 2020 Palantir Technologies made 481.216 million USD and is well on track to bring in 1 billion USD in revenue for the full 2020 which will be 400% growth on the 322.656 million USD Palantir Technologies made in revenues in 2019.
Palantir Technologies is still unprofitable, but at this growth rate of revenue its software based artificial intelligence and data mining business could turn into a money printing machine relatively quickly above some level of revenue.
My forecast of Palantir Technologies reaching 45 billion USD in market capitalization, of course is predicated on the stock market measured by the main global stock market indices and especially the Nasdaq composite, not crashing. If major US and global stock market indices crash, it could take 5-7 years for Palantir Technologies to reach 45 billion USD market capitalization.
But the future lies with artificial intelligence and Palantir Technologies is one of the major listed technology companies based on which you can invest in artificial intelligence.
All said, Palantir Technologies has to become profitable. At 78% yearly negative net profit margin for 2019 Palantir Technologies is still burning cash heavily. If Palantir Technologies controls costs well and continues to grow its revenue by excess of 50 % year on year it could turn an even more successful company indeed.
Disclaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn, Facebook etc.) are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is".
Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.
Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!
Respectfully yours,
Petar Posledovich
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