$PLTR (sell)




February 1, 2022

Sell PLTR at a 50% loss due to further downside and poor Q3 results

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Overview of Palantir Technologies

Company Overview: Palantir Technologies, Inc. develops software to analyze information. The company offers solutions to support many kinds of data including structured, unstructured,relational, temporal, and geospatial.

Revenue Overview: Of the $1.1B in revenue generated in 2020, 56% came from customers in the government segment (Gotham). The remaining 46% comes from the commercial segment(Foundry).

Software Platforms: Palantir Gotham, and Palantir Foundry, which are vertically integrated.

Product Aim: Palantir’s software enables their customers to transform massive amounts of information into knowledge that reflects their world.

Building flexible applications on this data asset allows the data to be made accessible and understandable to the people who need it.

Financial Analysis

3rd Quarter Synopsis

Investment Thesis: Although Palantir has strong technology platforms, mission-critical applications, and a robust demand for AI/Analytics, Palantir has shown various concerns including pricing sustainability, down-market penetration, and the inability to pin down the long-term economics of the business.

Additionally, high equity dilution will depreciate the stock price significantly.

Gross Margins continue to compress:

Palantir reported below-expectation 3Q Results:

Higher Revenues, Promising Idea, Why Sell?

Fundamental Problems: Since Revenue has been decelerating, margins will experience continued pressure, from both systemic and systematic sources.

Projected to be unprofitable for next 3 years.


Commercial Opportunity is likely smaller than most appreciate:

Continued Share Issuance will dilute the share price heavily:

Macroeconomic Risks of Investing in Speculative Tech:


We are currently down 50.41% on Palantir.

Our position costed $8,058.00 , or 300 shares at $26.86.

Palantir is the 2nd heaviest weighting in the tech sector of our portfolio.

To be able to breakeven on our position, Palantir must soar 108.2% = SELL


At the time of writing, I (Michael Penna)have no holdings in Palantir Holdings, Inc (PLTR) or related subsidiaries.

This material is not intended as are commendation, offer, or solicitation for the purchase or sale of any security or investment strategy. It considers only the investment objectives of Etico Partners Financial Advisors, Planner, and Portfolio managers. Michael Pennadoes not offer any brokerage, investment advisory, or  other financial services to our members orother outside entities.

This material is not an official research report of Etico Wealth Management or any of its partners or subsidiaries.

Michael Penna does not provide investment, legal, tax, or accounting advice. Readers of this document should consult their financial, legal, and/or tax advisors before making any financialdecisions.

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