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2021-12-30

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Sea Limited Shares Jumped More Than 4% in Morning Trading

2021-12-30

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Uber: Ugly Duckling Is Growing Up

2021-12-24

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Sea Limited: An Early Christmas Gift

2021-12-23

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2021-12-21

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Palantir: 3 Reasons Against It And Why It's Still A Buy

2021-12-21

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PLTR Stock Alert: 5 Things to Know About Palantir’s Latest Partnership

2021-12-20

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Palantir and Dewpoint Therapeutics Announce Strategic Partnership

2021-12-14

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Palantir Has Now Entered A New Dimension

2021-12-09

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2021-12-09

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2021-11-30

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Musk highlights 'supply chain nightmare' in tweet

2021-11-30

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2021-11-28

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2021-11-28

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2021-11-27

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Tesla Withdraws Application For $1.3B In German Subsidies

2021-11-27

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Palantir Stock: A Fairy-Tale Valuation

2021-11-27

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2021-11-27

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Will Palantir Be a Trillion-Dollar Stock by 2040?

2021-10-26

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2021-10-17

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Palantir: Strong Upside Ahead

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ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/692164710","repostId":"1106092668","repostType":4,"repost":{"id":"1106092668","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1640876653,"share":"https://www.laohu8.com/m/news/1106092668?lang=&edition=full","pubTime":"2021-12-30 23:04","market":"us","language":"en","title":"Sea Limited Shares Jumped More Than 4% in Morning Trading","url":"https://stock-news.laohu8.com/highlight/detail?id=1106092668","media":"Tiger Newspress","summary":"Sea Limited shares jumped more than 4% in morning trading.Also Read:Sea Limited: A Deep Dive To Unde","content":"<html><head></head><body><p>Sea Limited shares jumped more than 4% in morning trading.</p><p><img src=\"https://static.tigerbbs.com/448dcc7d589843674730e046aa6ef96a\" tg-width=\"840\" tg-height=\"470\" referrerpolicy=\"no-referrer\"/></p><p><b>Also Read:</b><b>Sea Limited: A Deep Dive To Understand The Recent Selloff</b></p><p><b>Summary</b></p><ul><li>Sea Limited is a highly diversified business firing on all cylinders in some of the fastest-growing economies in the world.</li><li>I dive into each of its segments to understand the recent selloff and justify the current valuation.</li><li>I consider Sea one of my ten highest conviction investments.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/aa5cbe0a30acc723a2c6f62300024002\" tg-width=\"1536\" tg-height=\"1024\" width=\"100%\" height=\"auto\"/><span>kokkai/iStock Unreleased via Getty Images</span></p><p><b>Thesis</b></p><p>A by-parts analysis of Sea Limited&#39;s (NYSE:SE) segments shows that its current valuation is roughly fair, but there are many long-term growth drivers that could surprise to the upside and drive very strong returns for years to come.</p><p><b>Introduction</b></p><p>I recently wrote an article highlighting my top 10 stock picks for 2022. I&#39;d already done an in-depth analysis of my other nine picks in other Seeking Alpha articles, so I thought it would be good to close out the year with an article about Sea.</p><p>Furthermore, with shares down significantly over the past couple of months (but still slightly up for the year), I believe this article may prove timely. I don&#39;t speculate on short-term market movements, but I personally added to my Sea shares recently. It&#39;s one of my only losing positions that I didn&#39;t sell out of temporarily for tax-loss harvesting, and in this article, I will explain why Sea is such a high conviction holding for me.</p><p>It&#39;s also worth noting that many professional investors seem to share this opinion. Sea is the 121st largest company in the world, but it&#39;s the16thmost popular holding among hedge funds. This implies that big money is overweight Sea, with 71% of shares held by institutions.</p><p>Because Sea operates in many different areas, I will do a separate analysis of each of its operating segments to justify its current valuation and explain how that valuation could drive unexpectedly strong returns for years.</p><p><b>Gaming</b></p><p>Sea Limited&#39;s gaming segment Garena is best known for Free Fire, a mobile battle royale game that was developed in-house.</p><p>The game was released in 2017 and has been very popular ever since. It currently has the second most monthly active users among all Android games globally. The game is available worldwide, but it&#39;s particularly popular in emerging markets like SEA, LATAM, and India, where it&#39;s been the highest-grossing mobile game for over two years.</p><p>With the game having been popular for a long time already, there&#39;s some concern that gamers will move on to the next big thing. Although there are some mobile games that are older than Free Fire and still very popular - like Roblox, Clash of Clans, and Pokemon Go - there are many more that have been forgotten. Until Garena releases more games and proves that it can be successful with them too, there will always be questions about whether its studio is a one-hit wonder.</p><p>Regardless, Garena is a critical part of Sea because it&#39;s the only profitable segment and it doubles a social platform that provides free advertising for Sea&#39;s non-gaming products. Cross-promotion is a huge competitive advantage for Sea.</p><p>Thus, one reason for Sea&#39;s recent selloff could be the Q4 guidance implied for Garena.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/9e299727cc28a887a36d88831aec8f53\" tg-width=\"640\" tg-height=\"334\" width=\"100%\" height=\"auto\"/><span>Source: Earnings Call Presentation</span></p><p>In Q2 this year, Garena raised its guidance to $4.5B-$4.7B for 2021 bookings (up from $4.3B-$4.5B). With the first three quarters already totaling $3.5B, this implies that Q4 bookings will come in at $1.0B-$1.2B, up between 0% and 20% year over year, and likely down sequentially. This is compared to 29% growth in the most recent quarter and 44% projected growth for the full year.</p><p>While 20% isn&#39;t a terrible deceleration, 0% certainly is. Even 20% growth isn&#39;t spectacular compared to the historic levels. At the 10% midpoint, Garena&#39;s growth looks more similar to that of a mature company like Activision (NASDAQ:ATVI) or Zynga (NASDAQ:ZNGA) than a fast-growing company like Roblox (NYSE:RBLX).</p><p>Garena&#39;s implied valuation should - and did - suffer as a result. While a fast-growing company like Roblox can command a high double-digit P/S multiple, Activision and Zynga trade at an average P/S multiple of just 4. Garena is slightly more profitable than them and probably has more risk to the upside, so I&#39;ll use a P/S multiple of 5 for my implied valuation. This implies a P/E of about 10 for a business growing at around 10%, which is very reasonable in today&#39;s market.</p><p>This means Garena is worth $23.5B based on the high end of management&#39;s guidance.</p><p>I believe this valuation is actually conservative for a few reasons:</p><ul><li>Next year has tough comps and growth could re-accelerate in the following years or even next year, especially if Garena releases a new hit game. The growth rate past next quarter is not based on explicit guidance from the company, only industry forecasts.</li><li>The peer valuations I used are from companies also trading at the lower end of their valuation range for the past year.</li><li>Garena has a good track record and is continuing to invest in Free Fire. One example of this is the recently released Free Fire MAX, which improves the experience for users with higher-end phones and even adds a metaverse-like customizable map called Craftland. To me, this implies that Garena believes Free Fire is still in the earlier part of its lifecycle.</li><li>Although I&#39;d obviously prefer that Garena develops more games in house, in the meantime it&#39;s still not a one-trick pony. In addition to Free Fire, Garena distributes games from third-party developers like Tencent (OTCMKTS:OTCPK:TCEHY). These are popular titles like League of Legends and Call of Duty, which meaningfully diversify Garena&#39;s revenue.</li></ul><p><b>E-Commerce</b></p><p>Sea&#39;s e-commerce platform Shopee is currently its big growth driver. This platform is often considered the Amazon (NASDAQ:AMZN) of Southeast Asia, and it recently expanded into more markets including Brazil.</p><p>There&#39;s always some debate about who is really the Amazon of a region. Shopee certainly has competition, including from Alibaba&#39;s (NYSE:BABA) Lazada, Tokopedia in Indonesia, MercadoLibre (MELI) in Brazil, and even Amazon itself. With most of the competition being private or tucked away into a larger company, many of the competitors don&#39;t publish exact revenue numbers, which makes it difficult to measure the competition. Even Sea hasn&#39;t published explicit revenue numbers for some countries like Brazil.</p><p>One neutral source that can be assessed is the Alexa site rank, which as its name suggests ranks sites by their popularity. Keep in mind that these are ranks, so a lower score is better.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/180367a2b64bccebf243c5b6d8fb776a\" tg-width=\"455\" tg-height=\"353\" width=\"100%\" height=\"auto\"/><span>Source: The Author, compiled from Alexa</span></p><p>Shopee is very mobile-focused, but the above table only considers the website. To check App Store app ranks for the shopping category, we can use App Annie.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/6544f014a5d70d13ee14dab0ac8b6782\" tg-width=\"422\" tg-height=\"403\" width=\"100%\" height=\"auto\"/><span>Source: The Author, compiled from AppAnnie</span></p><p>On the mobile side, there&#39;s no need to look at the competition because Shopee is consistently the number one shopping app in every country listed. In a mobile-first world, this bodes very well. Even on the web side, Shopee wins out except in a few specific regions like LATAM and (barely) Indonesia, which have more local competitors.</p><p>Of course, traffic doesn&#39;t always translate to GMV. But for a shopping app where most people will use the app to buy something, it&#39;s a decent proxy. A third party estimates that Shopee accounts for57%of all e-commerce in Southeast Asia. It&#39;s Shopee&#39;s dominance in the mobile app ranks and market share that make me consider it the Amazon of Southeast Asia.</p><p>So why would a company with so much potential sell off?</p><p>After the recent earnings report, some analysts expressed concern that Shopee is branching out into other countries like Poland and Mexico before validating its business model in the current markets. In these countries, Shopee has less of a presence; it&#39;s bounced between the 3-5 spots on the Mexico App Store for shopping apps, and between spots 1 and 3 in Poland. Although analysts hate uncertainty - and the CEO&#39;s comments that they don&#39;t have a concrete measure of success in these earlier stage countries won&#39;t help with that - Shopee has a history of entering new countries successfully and I am willing to give management some time to try expanding more. After all, if they&#39;re successful, then it could drive even more unexpected growth in the future.</p><p>Another complaint from analysts was that the basket size (average purchase size) is trending down. While that could also have contributed to the recent selloff, it&#39;s hard to complain when the overall sales increased a lot despite a decrease in basket size.</p><p>The company raised its guidance for e-commerce again in Q3, now guiding for $5.0B-$5.2B in 2021 e-commerce revenue. That&#39;s 75%-100% growth in Q4 and about 135% growth for the year. These are much more exciting numbers than the gaming side, although the guidance still implies a slight deceleration in Q4. But compared to Amazon&#39;s $340B in 2020 e-commerce sales, Shopee looks like it&#39;s just scratched the surface. E-commerce is at only11%penetration in Southeast Asia compared to18.7%in the USA, and Southeast Asia economies are generally growing faster than the USA&#39;s.</p><p>Despite being in a blue skies industry, it&#39;s more difficult to value the e-commerce segment because it operates at a loss (whereas the gaming segment is highly profitable). Shopee&#39;s success is not guaranteed because it&#39;s not clear at this point whether the platform can become profitable while retaining its market share. Stocks like this tend to experience more volatility, which could partially explain the recent selloff.</p><p>For unprofitable software companies, I like to use the Rule of 40 to assess the business. But it&#39;s difficult to apply this rule to a more cyclical e-commerce company with naturally lower margins. Even so, it&#39;s worth noting that despite being unprofitable, Sea&#39;s Rule of 40 score of 104 is better than most SaaS companies&#39;, and also better than e-commerce peers Amazon (21), MercadoLibre (73), and Alibaba (43).</p><p>To understand Shopee&#39;s terminal valuation once it becomes profitable, we can look at industry peers. Amazon is one profitable and slower-growing peer, and it trades at 4x P/S. AWS pushes this number up, but Amazon&#39;s high exposure to first-party sales offsets that. Other e-commerce marketplace peers trade at similar valuations: Alibaba at 3x P/S, MercadoLibre at 9x P/S. All of these valuations are basically all-time lows.</p><p>If Shopee keeps doubling revenue over the next couple of years (which it&#39;s easily done every year since 2016), becomes profitable (which scaling up tends to help with), and will have Amazon&#39;s P/S multiple in two years, then at 16 P/S today it would trade flat for two years. But if it keeps growing much faster than Amazon over a longer period like a decade, and/or if the overall industry multiples expand to more normal historical levels, then even at 16x P/S this segment has potential upside. On the other hand, if it stops growing or never becomes profitable then investors will be very disappointed at any P/S.</p><p>Given this wide range of outcomes, each person is going to have their own way of valuing this segment. For me, when I look at Shopee&#39;s mobile dominance, relatively small current size, the funding coming in from Garena, and the precedent set by Amazon, Alibaba, and MercadoLibre for the sustainable long-term success of this business model, I am optimistic about this segment&#39;s future. I recognize that it&#39;s currently an unprofitable and thus risky segment, but I also see the massive potential.</p><p>So I am happy paying a 16x P/S multiple, which values the e-commerce segment at $83.2B. Some people will call that way too high, and those people will probably never get a chance to invest in this company, for better or for worse.</p><p>Thus, with just Garena and Shopee, I have Sea being worth $106.7B. Its current market cap is $123.1B. To account for the difference, let&#39;s look at the other parts of Sea.</p><p><b>FinTech &amp; Investments</b></p><p>The easiest addition to my computed valuation is Sea&#39;s $12B cash pile, partially offset by $4B in debt. This adds some nice optionality to the company and ensures that it won&#39;t be bankrupt any time soon despite losing money with Shopee. Adding in the $8B cash difference puts my computed valuation at $114.7B, just $8.4B short of the actual valuation.</p><p>Then there is Sea&#39;s FinTech arm, SeaMoney. The main product here is a mobile wallet, which was responsible for $4.6B in payment volume in the last quarter (~$20B over a year). This segment accounted for $132 million in Q3 revenue, up a whopping 818% year over year. This implies a &#34;take rate&#34; of 2.9%, which is even better than established FinTech companies like Visa (V). Because of this high take rate, I&#39;m not worried about SeaMoney losing money while it scales.</p><p>Despite SeaMoney being a small segment, it&#39;s now reaching a point where it can be factored into the valuation. Maybe it&#39;s only worth a couple of billion, but this is just the start. Five years ago, nobody would have expected that an e-commerce platform accounting for 5% of Sea&#39;s sales would today be worth more than the gaming segment. But Sea&#39;s management - combined with Garena&#39;s ability to fund new segments and drive their viral adoption - made it happen. It&#39;s certainly not guaranteed that Sea will have the same success with FinTech, but there is precedent for it.</p><p>If one day this segment is worth a third or more of Sea (in 2020, FinTech accounted for 36% of MercadoLibre&#39;s revenue) then getting it for just 7% of the business today will be well worth it, even if that implies a somewhat high 16x P/S multiple for the segment today. Actually, this multiple is already lower than Visa&#39;s, Mastercard&#39;s (NYSE:MA), and Affirm&#39;s (NASDAQ:AFRM). Realistically, a segment growing at 818% year over year should probably get a higher multiple than these slower-growing companies&#39;, but we don&#39;t even need to speculate about what a fair multiple is, since we can reach Sea&#39;s current valuation by using 16x P/S in my model valuation.</p><p>One way this segment could grow even more is through the introduction of more products besides the mobile wallet. Sea noted in their recent earnings that they have started &#34;early initiatives in other digital financial services such as buy now pay later, digital bank, and insurtech.&#34; These guys sure know how to hop on the latest high growth trend.</p><p>Finally, there&#39;s the investments arm. Sea is investing in early-stage tech companies, especially in Southeast Asia. There&#39;s strong precedent for companies like Tencent (which is itself an investor in Sea) and Shopify (NYSE:SHOP) managing successful investment portfolios that ultimately factor meaningfully into their valuation. Right now Sea&#39;s investment arm is very early stage, so I don&#39;t include it in my valuation model. But it doesn&#39;t have to be factored in to justify the current share price. It&#39;s just one more area that might be worth a large part of Sea one day.</p><p><b>Conclusion</b></p><p>Looking at each of Sea&#39;s segments, my valuation model indicates that Sea is fairly valued today. However, my model doesn&#39;t account for the significant optionality of the newer segments. Just like e-commerce did over the last five years, FinTech (and/or investments) could grow to become a very large part of Sea&#39;s business. With the FinTech segment currently growing at 818% year over year, it doesn&#39;t take much imagination to see how this happens. Just another year or two of growth at something close to that rate will make the FinTech arm impossible for investors to ignore.</p><p>This optionality combined general strength in each business has allowed Sea to post an average revenue beat of 7% over the past year. Earnings haven&#39;t been as strong, and I expect that to be the main point of contention with my valuation model, as is the case for most unprofitable companies. In particular, I expect some readers will disagree with my valuation of the e-commerce segment. But even if you drop e-commerce all the way down to 5x P/S (a multiple seen today by much slower growing e-commerce companies) that implies 54% downside from today&#39;s prices. It&#39;s a steep drop for sure, but most companies in today&#39;s market would be looking at such a decline if one were to use the most conservative valuation standards possible.</p><p>Only fast-growing companies like Sea can quickly offset such a decline with revenue growth. As a result, the businesses with the most long-term potential will hardly ever trade at the most conservative valuation possible. And Sea certainly has long-term potential. It&#39;s one of the few high-growth companies I own that I could see reaching a trillion-dollar market cap this decade.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Sea Limited Shares Jumped More Than 4% in Morning Trading</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSea Limited Shares Jumped More Than 4% in Morning Trading\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2021-12-30 23:04</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Sea Limited shares jumped more than 4% in morning trading.</p><p><img src=\"https://static.tigerbbs.com/448dcc7d589843674730e046aa6ef96a\" tg-width=\"840\" tg-height=\"470\" referrerpolicy=\"no-referrer\"/></p><p><b>Also Read:</b><b>Sea Limited: A Deep Dive To Understand The Recent Selloff</b></p><p><b>Summary</b></p><ul><li>Sea Limited is a highly diversified business firing on all cylinders in some of the fastest-growing economies in the world.</li><li>I dive into each of its segments to understand the recent selloff and justify the current valuation.</li><li>I consider Sea one of my ten highest conviction investments.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/aa5cbe0a30acc723a2c6f62300024002\" tg-width=\"1536\" tg-height=\"1024\" width=\"100%\" height=\"auto\"/><span>kokkai/iStock Unreleased via Getty Images</span></p><p><b>Thesis</b></p><p>A by-parts analysis of Sea Limited&#39;s (NYSE:SE) segments shows that its current valuation is roughly fair, but there are many long-term growth drivers that could surprise to the upside and drive very strong returns for years to come.</p><p><b>Introduction</b></p><p>I recently wrote an article highlighting my top 10 stock picks for 2022. I&#39;d already done an in-depth analysis of my other nine picks in other Seeking Alpha articles, so I thought it would be good to close out the year with an article about Sea.</p><p>Furthermore, with shares down significantly over the past couple of months (but still slightly up for the year), I believe this article may prove timely. I don&#39;t speculate on short-term market movements, but I personally added to my Sea shares recently. It&#39;s one of my only losing positions that I didn&#39;t sell out of temporarily for tax-loss harvesting, and in this article, I will explain why Sea is such a high conviction holding for me.</p><p>It&#39;s also worth noting that many professional investors seem to share this opinion. Sea is the 121st largest company in the world, but it&#39;s the16thmost popular holding among hedge funds. This implies that big money is overweight Sea, with 71% of shares held by institutions.</p><p>Because Sea operates in many different areas, I will do a separate analysis of each of its operating segments to justify its current valuation and explain how that valuation could drive unexpectedly strong returns for years.</p><p><b>Gaming</b></p><p>Sea Limited&#39;s gaming segment Garena is best known for Free Fire, a mobile battle royale game that was developed in-house.</p><p>The game was released in 2017 and has been very popular ever since. It currently has the second most monthly active users among all Android games globally. The game is available worldwide, but it&#39;s particularly popular in emerging markets like SEA, LATAM, and India, where it&#39;s been the highest-grossing mobile game for over two years.</p><p>With the game having been popular for a long time already, there&#39;s some concern that gamers will move on to the next big thing. Although there are some mobile games that are older than Free Fire and still very popular - like Roblox, Clash of Clans, and Pokemon Go - there are many more that have been forgotten. Until Garena releases more games and proves that it can be successful with them too, there will always be questions about whether its studio is a one-hit wonder.</p><p>Regardless, Garena is a critical part of Sea because it&#39;s the only profitable segment and it doubles a social platform that provides free advertising for Sea&#39;s non-gaming products. Cross-promotion is a huge competitive advantage for Sea.</p><p>Thus, one reason for Sea&#39;s recent selloff could be the Q4 guidance implied for Garena.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/9e299727cc28a887a36d88831aec8f53\" tg-width=\"640\" tg-height=\"334\" width=\"100%\" height=\"auto\"/><span>Source: Earnings Call Presentation</span></p><p>In Q2 this year, Garena raised its guidance to $4.5B-$4.7B for 2021 bookings (up from $4.3B-$4.5B). With the first three quarters already totaling $3.5B, this implies that Q4 bookings will come in at $1.0B-$1.2B, up between 0% and 20% year over year, and likely down sequentially. This is compared to 29% growth in the most recent quarter and 44% projected growth for the full year.</p><p>While 20% isn&#39;t a terrible deceleration, 0% certainly is. Even 20% growth isn&#39;t spectacular compared to the historic levels. At the 10% midpoint, Garena&#39;s growth looks more similar to that of a mature company like Activision (NASDAQ:ATVI) or Zynga (NASDAQ:ZNGA) than a fast-growing company like Roblox (NYSE:RBLX).</p><p>Garena&#39;s implied valuation should - and did - suffer as a result. While a fast-growing company like Roblox can command a high double-digit P/S multiple, Activision and Zynga trade at an average P/S multiple of just 4. Garena is slightly more profitable than them and probably has more risk to the upside, so I&#39;ll use a P/S multiple of 5 for my implied valuation. This implies a P/E of about 10 for a business growing at around 10%, which is very reasonable in today&#39;s market.</p><p>This means Garena is worth $23.5B based on the high end of management&#39;s guidance.</p><p>I believe this valuation is actually conservative for a few reasons:</p><ul><li>Next year has tough comps and growth could re-accelerate in the following years or even next year, especially if Garena releases a new hit game. The growth rate past next quarter is not based on explicit guidance from the company, only industry forecasts.</li><li>The peer valuations I used are from companies also trading at the lower end of their valuation range for the past year.</li><li>Garena has a good track record and is continuing to invest in Free Fire. One example of this is the recently released Free Fire MAX, which improves the experience for users with higher-end phones and even adds a metaverse-like customizable map called Craftland. To me, this implies that Garena believes Free Fire is still in the earlier part of its lifecycle.</li><li>Although I&#39;d obviously prefer that Garena develops more games in house, in the meantime it&#39;s still not a one-trick pony. In addition to Free Fire, Garena distributes games from third-party developers like Tencent (OTCMKTS:OTCPK:TCEHY). These are popular titles like League of Legends and Call of Duty, which meaningfully diversify Garena&#39;s revenue.</li></ul><p><b>E-Commerce</b></p><p>Sea&#39;s e-commerce platform Shopee is currently its big growth driver. This platform is often considered the Amazon (NASDAQ:AMZN) of Southeast Asia, and it recently expanded into more markets including Brazil.</p><p>There&#39;s always some debate about who is really the Amazon of a region. Shopee certainly has competition, including from Alibaba&#39;s (NYSE:BABA) Lazada, Tokopedia in Indonesia, MercadoLibre (MELI) in Brazil, and even Amazon itself. With most of the competition being private or tucked away into a larger company, many of the competitors don&#39;t publish exact revenue numbers, which makes it difficult to measure the competition. Even Sea hasn&#39;t published explicit revenue numbers for some countries like Brazil.</p><p>One neutral source that can be assessed is the Alexa site rank, which as its name suggests ranks sites by their popularity. Keep in mind that these are ranks, so a lower score is better.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/180367a2b64bccebf243c5b6d8fb776a\" tg-width=\"455\" tg-height=\"353\" width=\"100%\" height=\"auto\"/><span>Source: The Author, compiled from Alexa</span></p><p>Shopee is very mobile-focused, but the above table only considers the website. To check App Store app ranks for the shopping category, we can use App Annie.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/6544f014a5d70d13ee14dab0ac8b6782\" tg-width=\"422\" tg-height=\"403\" width=\"100%\" height=\"auto\"/><span>Source: The Author, compiled from AppAnnie</span></p><p>On the mobile side, there&#39;s no need to look at the competition because Shopee is consistently the number one shopping app in every country listed. In a mobile-first world, this bodes very well. Even on the web side, Shopee wins out except in a few specific regions like LATAM and (barely) Indonesia, which have more local competitors.</p><p>Of course, traffic doesn&#39;t always translate to GMV. But for a shopping app where most people will use the app to buy something, it&#39;s a decent proxy. A third party estimates that Shopee accounts for57%of all e-commerce in Southeast Asia. It&#39;s Shopee&#39;s dominance in the mobile app ranks and market share that make me consider it the Amazon of Southeast Asia.</p><p>So why would a company with so much potential sell off?</p><p>After the recent earnings report, some analysts expressed concern that Shopee is branching out into other countries like Poland and Mexico before validating its business model in the current markets. In these countries, Shopee has less of a presence; it&#39;s bounced between the 3-5 spots on the Mexico App Store for shopping apps, and between spots 1 and 3 in Poland. Although analysts hate uncertainty - and the CEO&#39;s comments that they don&#39;t have a concrete measure of success in these earlier stage countries won&#39;t help with that - Shopee has a history of entering new countries successfully and I am willing to give management some time to try expanding more. After all, if they&#39;re successful, then it could drive even more unexpected growth in the future.</p><p>Another complaint from analysts was that the basket size (average purchase size) is trending down. While that could also have contributed to the recent selloff, it&#39;s hard to complain when the overall sales increased a lot despite a decrease in basket size.</p><p>The company raised its guidance for e-commerce again in Q3, now guiding for $5.0B-$5.2B in 2021 e-commerce revenue. That&#39;s 75%-100% growth in Q4 and about 135% growth for the year. These are much more exciting numbers than the gaming side, although the guidance still implies a slight deceleration in Q4. But compared to Amazon&#39;s $340B in 2020 e-commerce sales, Shopee looks like it&#39;s just scratched the surface. E-commerce is at only11%penetration in Southeast Asia compared to18.7%in the USA, and Southeast Asia economies are generally growing faster than the USA&#39;s.</p><p>Despite being in a blue skies industry, it&#39;s more difficult to value the e-commerce segment because it operates at a loss (whereas the gaming segment is highly profitable). Shopee&#39;s success is not guaranteed because it&#39;s not clear at this point whether the platform can become profitable while retaining its market share. Stocks like this tend to experience more volatility, which could partially explain the recent selloff.</p><p>For unprofitable software companies, I like to use the Rule of 40 to assess the business. But it&#39;s difficult to apply this rule to a more cyclical e-commerce company with naturally lower margins. Even so, it&#39;s worth noting that despite being unprofitable, Sea&#39;s Rule of 40 score of 104 is better than most SaaS companies&#39;, and also better than e-commerce peers Amazon (21), MercadoLibre (73), and Alibaba (43).</p><p>To understand Shopee&#39;s terminal valuation once it becomes profitable, we can look at industry peers. Amazon is one profitable and slower-growing peer, and it trades at 4x P/S. AWS pushes this number up, but Amazon&#39;s high exposure to first-party sales offsets that. Other e-commerce marketplace peers trade at similar valuations: Alibaba at 3x P/S, MercadoLibre at 9x P/S. All of these valuations are basically all-time lows.</p><p>If Shopee keeps doubling revenue over the next couple of years (which it&#39;s easily done every year since 2016), becomes profitable (which scaling up tends to help with), and will have Amazon&#39;s P/S multiple in two years, then at 16 P/S today it would trade flat for two years. But if it keeps growing much faster than Amazon over a longer period like a decade, and/or if the overall industry multiples expand to more normal historical levels, then even at 16x P/S this segment has potential upside. On the other hand, if it stops growing or never becomes profitable then investors will be very disappointed at any P/S.</p><p>Given this wide range of outcomes, each person is going to have their own way of valuing this segment. For me, when I look at Shopee&#39;s mobile dominance, relatively small current size, the funding coming in from Garena, and the precedent set by Amazon, Alibaba, and MercadoLibre for the sustainable long-term success of this business model, I am optimistic about this segment&#39;s future. I recognize that it&#39;s currently an unprofitable and thus risky segment, but I also see the massive potential.</p><p>So I am happy paying a 16x P/S multiple, which values the e-commerce segment at $83.2B. Some people will call that way too high, and those people will probably never get a chance to invest in this company, for better or for worse.</p><p>Thus, with just Garena and Shopee, I have Sea being worth $106.7B. Its current market cap is $123.1B. To account for the difference, let&#39;s look at the other parts of Sea.</p><p><b>FinTech &amp; Investments</b></p><p>The easiest addition to my computed valuation is Sea&#39;s $12B cash pile, partially offset by $4B in debt. This adds some nice optionality to the company and ensures that it won&#39;t be bankrupt any time soon despite losing money with Shopee. Adding in the $8B cash difference puts my computed valuation at $114.7B, just $8.4B short of the actual valuation.</p><p>Then there is Sea&#39;s FinTech arm, SeaMoney. The main product here is a mobile wallet, which was responsible for $4.6B in payment volume in the last quarter (~$20B over a year). This segment accounted for $132 million in Q3 revenue, up a whopping 818% year over year. This implies a &#34;take rate&#34; of 2.9%, which is even better than established FinTech companies like Visa (V). Because of this high take rate, I&#39;m not worried about SeaMoney losing money while it scales.</p><p>Despite SeaMoney being a small segment, it&#39;s now reaching a point where it can be factored into the valuation. Maybe it&#39;s only worth a couple of billion, but this is just the start. Five years ago, nobody would have expected that an e-commerce platform accounting for 5% of Sea&#39;s sales would today be worth more than the gaming segment. But Sea&#39;s management - combined with Garena&#39;s ability to fund new segments and drive their viral adoption - made it happen. It&#39;s certainly not guaranteed that Sea will have the same success with FinTech, but there is precedent for it.</p><p>If one day this segment is worth a third or more of Sea (in 2020, FinTech accounted for 36% of MercadoLibre&#39;s revenue) then getting it for just 7% of the business today will be well worth it, even if that implies a somewhat high 16x P/S multiple for the segment today. Actually, this multiple is already lower than Visa&#39;s, Mastercard&#39;s (NYSE:MA), and Affirm&#39;s (NASDAQ:AFRM). Realistically, a segment growing at 818% year over year should probably get a higher multiple than these slower-growing companies&#39;, but we don&#39;t even need to speculate about what a fair multiple is, since we can reach Sea&#39;s current valuation by using 16x P/S in my model valuation.</p><p>One way this segment could grow even more is through the introduction of more products besides the mobile wallet. Sea noted in their recent earnings that they have started &#34;early initiatives in other digital financial services such as buy now pay later, digital bank, and insurtech.&#34; These guys sure know how to hop on the latest high growth trend.</p><p>Finally, there&#39;s the investments arm. Sea is investing in early-stage tech companies, especially in Southeast Asia. There&#39;s strong precedent for companies like Tencent (which is itself an investor in Sea) and Shopify (NYSE:SHOP) managing successful investment portfolios that ultimately factor meaningfully into their valuation. Right now Sea&#39;s investment arm is very early stage, so I don&#39;t include it in my valuation model. But it doesn&#39;t have to be factored in to justify the current share price. It&#39;s just one more area that might be worth a large part of Sea one day.</p><p><b>Conclusion</b></p><p>Looking at each of Sea&#39;s segments, my valuation model indicates that Sea is fairly valued today. However, my model doesn&#39;t account for the significant optionality of the newer segments. Just like e-commerce did over the last five years, FinTech (and/or investments) could grow to become a very large part of Sea&#39;s business. With the FinTech segment currently growing at 818% year over year, it doesn&#39;t take much imagination to see how this happens. Just another year or two of growth at something close to that rate will make the FinTech arm impossible for investors to ignore.</p><p>This optionality combined general strength in each business has allowed Sea to post an average revenue beat of 7% over the past year. Earnings haven&#39;t been as strong, and I expect that to be the main point of contention with my valuation model, as is the case for most unprofitable companies. In particular, I expect some readers will disagree with my valuation of the e-commerce segment. But even if you drop e-commerce all the way down to 5x P/S (a multiple seen today by much slower growing e-commerce companies) that implies 54% downside from today&#39;s prices. It&#39;s a steep drop for sure, but most companies in today&#39;s market would be looking at such a decline if one were to use the most conservative valuation standards possible.</p><p>Only fast-growing companies like Sea can quickly offset such a decline with revenue growth. As a result, the businesses with the most long-term potential will hardly ever trade at the most conservative valuation possible. And Sea certainly has long-term potential. It&#39;s one of the few high-growth companies I own that I could see reaching a trillion-dollar market cap this decade.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SE":"Sea Ltd"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1106092668","content_text":"Sea Limited shares jumped more than 4% in morning trading.Also Read:Sea Limited: A Deep Dive To Understand The Recent SelloffSummarySea Limited is a highly diversified business firing on all cylinders in some of the fastest-growing economies in the world.I dive into each of its segments to understand the recent selloff and justify the current valuation.I consider Sea one of my ten highest conviction investments.kokkai/iStock Unreleased via Getty ImagesThesisA by-parts analysis of Sea Limited's (NYSE:SE) segments shows that its current valuation is roughly fair, but there are many long-term growth drivers that could surprise to the upside and drive very strong returns for years to come.IntroductionI recently wrote an article highlighting my top 10 stock picks for 2022. I'd already done an in-depth analysis of my other nine picks in other Seeking Alpha articles, so I thought it would be good to close out the year with an article about Sea.Furthermore, with shares down significantly over the past couple of months (but still slightly up for the year), I believe this article may prove timely. I don't speculate on short-term market movements, but I personally added to my Sea shares recently. It's one of my only losing positions that I didn't sell out of temporarily for tax-loss harvesting, and in this article, I will explain why Sea is such a high conviction holding for me.It's also worth noting that many professional investors seem to share this opinion. Sea is the 121st largest company in the world, but it's the16thmost popular holding among hedge funds. This implies that big money is overweight Sea, with 71% of shares held by institutions.Because Sea operates in many different areas, I will do a separate analysis of each of its operating segments to justify its current valuation and explain how that valuation could drive unexpectedly strong returns for years.GamingSea Limited's gaming segment Garena is best known for Free Fire, a mobile battle royale game that was developed in-house.The game was released in 2017 and has been very popular ever since. It currently has the second most monthly active users among all Android games globally. The game is available worldwide, but it's particularly popular in emerging markets like SEA, LATAM, and India, where it's been the highest-grossing mobile game for over two years.With the game having been popular for a long time already, there's some concern that gamers will move on to the next big thing. Although there are some mobile games that are older than Free Fire and still very popular - like Roblox, Clash of Clans, and Pokemon Go - there are many more that have been forgotten. Until Garena releases more games and proves that it can be successful with them too, there will always be questions about whether its studio is a one-hit wonder.Regardless, Garena is a critical part of Sea because it's the only profitable segment and it doubles a social platform that provides free advertising for Sea's non-gaming products. Cross-promotion is a huge competitive advantage for Sea.Thus, one reason for Sea's recent selloff could be the Q4 guidance implied for Garena.Source: Earnings Call PresentationIn Q2 this year, Garena raised its guidance to $4.5B-$4.7B for 2021 bookings (up from $4.3B-$4.5B). With the first three quarters already totaling $3.5B, this implies that Q4 bookings will come in at $1.0B-$1.2B, up between 0% and 20% year over year, and likely down sequentially. This is compared to 29% growth in the most recent quarter and 44% projected growth for the full year.While 20% isn't a terrible deceleration, 0% certainly is. Even 20% growth isn't spectacular compared to the historic levels. At the 10% midpoint, Garena's growth looks more similar to that of a mature company like Activision (NASDAQ:ATVI) or Zynga (NASDAQ:ZNGA) than a fast-growing company like Roblox (NYSE:RBLX).Garena's implied valuation should - and did - suffer as a result. While a fast-growing company like Roblox can command a high double-digit P/S multiple, Activision and Zynga trade at an average P/S multiple of just 4. Garena is slightly more profitable than them and probably has more risk to the upside, so I'll use a P/S multiple of 5 for my implied valuation. This implies a P/E of about 10 for a business growing at around 10%, which is very reasonable in today's market.This means Garena is worth $23.5B based on the high end of management's guidance.I believe this valuation is actually conservative for a few reasons:Next year has tough comps and growth could re-accelerate in the following years or even next year, especially if Garena releases a new hit game. The growth rate past next quarter is not based on explicit guidance from the company, only industry forecasts.The peer valuations I used are from companies also trading at the lower end of their valuation range for the past year.Garena has a good track record and is continuing to invest in Free Fire. One example of this is the recently released Free Fire MAX, which improves the experience for users with higher-end phones and even adds a metaverse-like customizable map called Craftland. To me, this implies that Garena believes Free Fire is still in the earlier part of its lifecycle.Although I'd obviously prefer that Garena develops more games in house, in the meantime it's still not a one-trick pony. In addition to Free Fire, Garena distributes games from third-party developers like Tencent (OTCMKTS:OTCPK:TCEHY). These are popular titles like League of Legends and Call of Duty, which meaningfully diversify Garena's revenue.E-CommerceSea's e-commerce platform Shopee is currently its big growth driver. This platform is often considered the Amazon (NASDAQ:AMZN) of Southeast Asia, and it recently expanded into more markets including Brazil.There's always some debate about who is really the Amazon of a region. Shopee certainly has competition, including from Alibaba's (NYSE:BABA) Lazada, Tokopedia in Indonesia, MercadoLibre (MELI) in Brazil, and even Amazon itself. With most of the competition being private or tucked away into a larger company, many of the competitors don't publish exact revenue numbers, which makes it difficult to measure the competition. Even Sea hasn't published explicit revenue numbers for some countries like Brazil.One neutral source that can be assessed is the Alexa site rank, which as its name suggests ranks sites by their popularity. Keep in mind that these are ranks, so a lower score is better.Source: The Author, compiled from AlexaShopee is very mobile-focused, but the above table only considers the website. To check App Store app ranks for the shopping category, we can use App Annie.Source: The Author, compiled from AppAnnieOn the mobile side, there's no need to look at the competition because Shopee is consistently the number one shopping app in every country listed. In a mobile-first world, this bodes very well. Even on the web side, Shopee wins out except in a few specific regions like LATAM and (barely) Indonesia, which have more local competitors.Of course, traffic doesn't always translate to GMV. But for a shopping app where most people will use the app to buy something, it's a decent proxy. A third party estimates that Shopee accounts for57%of all e-commerce in Southeast Asia. It's Shopee's dominance in the mobile app ranks and market share that make me consider it the Amazon of Southeast Asia.So why would a company with so much potential sell off?After the recent earnings report, some analysts expressed concern that Shopee is branching out into other countries like Poland and Mexico before validating its business model in the current markets. In these countries, Shopee has less of a presence; it's bounced between the 3-5 spots on the Mexico App Store for shopping apps, and between spots 1 and 3 in Poland. Although analysts hate uncertainty - and the CEO's comments that they don't have a concrete measure of success in these earlier stage countries won't help with that - Shopee has a history of entering new countries successfully and I am willing to give management some time to try expanding more. After all, if they're successful, then it could drive even more unexpected growth in the future.Another complaint from analysts was that the basket size (average purchase size) is trending down. While that could also have contributed to the recent selloff, it's hard to complain when the overall sales increased a lot despite a decrease in basket size.The company raised its guidance for e-commerce again in Q3, now guiding for $5.0B-$5.2B in 2021 e-commerce revenue. That's 75%-100% growth in Q4 and about 135% growth for the year. These are much more exciting numbers than the gaming side, although the guidance still implies a slight deceleration in Q4. But compared to Amazon's $340B in 2020 e-commerce sales, Shopee looks like it's just scratched the surface. E-commerce is at only11%penetration in Southeast Asia compared to18.7%in the USA, and Southeast Asia economies are generally growing faster than the USA's.Despite being in a blue skies industry, it's more difficult to value the e-commerce segment because it operates at a loss (whereas the gaming segment is highly profitable). Shopee's success is not guaranteed because it's not clear at this point whether the platform can become profitable while retaining its market share. Stocks like this tend to experience more volatility, which could partially explain the recent selloff.For unprofitable software companies, I like to use the Rule of 40 to assess the business. But it's difficult to apply this rule to a more cyclical e-commerce company with naturally lower margins. Even so, it's worth noting that despite being unprofitable, Sea's Rule of 40 score of 104 is better than most SaaS companies', and also better than e-commerce peers Amazon (21), MercadoLibre (73), and Alibaba (43).To understand Shopee's terminal valuation once it becomes profitable, we can look at industry peers. Amazon is one profitable and slower-growing peer, and it trades at 4x P/S. AWS pushes this number up, but Amazon's high exposure to first-party sales offsets that. Other e-commerce marketplace peers trade at similar valuations: Alibaba at 3x P/S, MercadoLibre at 9x P/S. All of these valuations are basically all-time lows.If Shopee keeps doubling revenue over the next couple of years (which it's easily done every year since 2016), becomes profitable (which scaling up tends to help with), and will have Amazon's P/S multiple in two years, then at 16 P/S today it would trade flat for two years. But if it keeps growing much faster than Amazon over a longer period like a decade, and/or if the overall industry multiples expand to more normal historical levels, then even at 16x P/S this segment has potential upside. On the other hand, if it stops growing or never becomes profitable then investors will be very disappointed at any P/S.Given this wide range of outcomes, each person is going to have their own way of valuing this segment. For me, when I look at Shopee's mobile dominance, relatively small current size, the funding coming in from Garena, and the precedent set by Amazon, Alibaba, and MercadoLibre for the sustainable long-term success of this business model, I am optimistic about this segment's future. I recognize that it's currently an unprofitable and thus risky segment, but I also see the massive potential.So I am happy paying a 16x P/S multiple, which values the e-commerce segment at $83.2B. Some people will call that way too high, and those people will probably never get a chance to invest in this company, for better or for worse.Thus, with just Garena and Shopee, I have Sea being worth $106.7B. Its current market cap is $123.1B. To account for the difference, let's look at the other parts of Sea.FinTech & InvestmentsThe easiest addition to my computed valuation is Sea's $12B cash pile, partially offset by $4B in debt. This adds some nice optionality to the company and ensures that it won't be bankrupt any time soon despite losing money with Shopee. Adding in the $8B cash difference puts my computed valuation at $114.7B, just $8.4B short of the actual valuation.Then there is Sea's FinTech arm, SeaMoney. The main product here is a mobile wallet, which was responsible for $4.6B in payment volume in the last quarter (~$20B over a year). This segment accounted for $132 million in Q3 revenue, up a whopping 818% year over year. This implies a \"take rate\" of 2.9%, which is even better than established FinTech companies like Visa (V). Because of this high take rate, I'm not worried about SeaMoney losing money while it scales.Despite SeaMoney being a small segment, it's now reaching a point where it can be factored into the valuation. Maybe it's only worth a couple of billion, but this is just the start. Five years ago, nobody would have expected that an e-commerce platform accounting for 5% of Sea's sales would today be worth more than the gaming segment. But Sea's management - combined with Garena's ability to fund new segments and drive their viral adoption - made it happen. It's certainly not guaranteed that Sea will have the same success with FinTech, but there is precedent for it.If one day this segment is worth a third or more of Sea (in 2020, FinTech accounted for 36% of MercadoLibre's revenue) then getting it for just 7% of the business today will be well worth it, even if that implies a somewhat high 16x P/S multiple for the segment today. Actually, this multiple is already lower than Visa's, Mastercard's (NYSE:MA), and Affirm's (NASDAQ:AFRM). Realistically, a segment growing at 818% year over year should probably get a higher multiple than these slower-growing companies', but we don't even need to speculate about what a fair multiple is, since we can reach Sea's current valuation by using 16x P/S in my model valuation.One way this segment could grow even more is through the introduction of more products besides the mobile wallet. Sea noted in their recent earnings that they have started \"early initiatives in other digital financial services such as buy now pay later, digital bank, and insurtech.\" These guys sure know how to hop on the latest high growth trend.Finally, there's the investments arm. Sea is investing in early-stage tech companies, especially in Southeast Asia. There's strong precedent for companies like Tencent (which is itself an investor in Sea) and Shopify (NYSE:SHOP) managing successful investment portfolios that ultimately factor meaningfully into their valuation. Right now Sea's investment arm is very early stage, so I don't include it in my valuation model. But it doesn't have to be factored in to justify the current share price. It's just one more area that might be worth a large part of Sea one day.ConclusionLooking at each of Sea's segments, my valuation model indicates that Sea is fairly valued today. However, my model doesn't account for the significant optionality of the newer segments. Just like e-commerce did over the last five years, FinTech (and/or investments) could grow to become a very large part of Sea's business. With the FinTech segment currently growing at 818% year over year, it doesn't take much imagination to see how this happens. Just another year or two of growth at something close to that rate will make the FinTech arm impossible for investors to ignore.This optionality combined general strength in each business has allowed Sea to post an average revenue beat of 7% over the past year. Earnings haven't been as strong, and I expect that to be the main point of contention with my valuation model, as is the case for most unprofitable companies. In particular, I expect some readers will disagree with my valuation of the e-commerce segment. But even if you drop e-commerce all the way down to 5x P/S (a multiple seen today by much slower growing e-commerce companies) that implies 54% downside from today's prices. It's a steep drop for sure, but most companies in today's market would be looking at such a decline if one were to use the most conservative valuation standards possible.Only fast-growing companies like Sea can quickly offset such a decline with revenue growth. As a result, the businesses with the most long-term potential will hardly ever trade at the most conservative valuation possible. And Sea certainly has long-term potential. It's one of the few high-growth companies I own that I could see reaching a trillion-dollar market cap this decade.","news_type":1},"isVote":1,"tweetType":1,"viewCount":490,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":692936120,"gmtCreate":1640824531063,"gmtModify":1640824531167,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/692936120","repostId":"1108936663","repostType":2,"repost":{"id":"1108936663","pubTimestamp":1639723361,"share":"https://www.laohu8.com/m/news/1108936663?lang=&edition=full","pubTime":"2021-12-17 14:42","market":"us","language":"en","title":"Uber: Ugly Duckling Is Growing Up","url":"https://stock-news.laohu8.com/highlight/detail?id=1108936663","media":"Seeking Alpha","summary":"Summary\n\nUber's delivery business is booming and expanding resulting in the company leveraging econo","content":"<p><b>Summary</b></p>\n<ul>\n <li>Uber's delivery business is booming and expanding resulting in the company leveraging economies of scale to reach profitability.</li>\n <li>Mobility business is fast recovering from the pandemic as the economies reopen.</li>\n <li>Future lockdowns and covid restrictions that were seen before are not likely.</li>\n <li>Therefore, Uber may be the ugly duckling waiting to become a swan.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/44b93f3ad8b1091da22c151e759153e2\" tg-width=\"1536\" tg-height=\"1024\" width=\"100%\" height=\"auto\"><span>MOZCO Mateusz Szymanski/iStock Editorial via Getty Images</span></p>\n<p><b>Introduction and Thesis</b></p>\n<p>I am starting to believe that Uber's(NYSE:UBER)story is unfolding like the story of the ugly duckling. In the early days of going public, Uber suffered ignorance and unfavorable views from the investing community just like the ugly duckling, but today, I believe Uber is just around the corner from blossoming into a beautiful and successful swan.</p>\n<p>Uber's business is turning around as the underlying trend forms in favor of the company. From the depths of the pandemic to the pace of recovery seen today, the world changed for good, at least for Uber. One of those changes is food delivery. During the pandemic, consumers could not comfortably leave their houses and dine out resulting in those consumers turning to food delivery permanently growing a business that has been the primary reason for Uber's continuous losses. Thus, as the trend of food delivery continues to grow from the pandemic, Uber's business through economies of scale has been enjoying the favorable trend, and I believe that the convenience of food delivery will allow permanent penetration of delivery in our daily lives. Further, as mobility recovers as well from the pandemic in all aspects, Uber is likely to report a profitable 2022 fiscal year. Although there are risks of dilution,Covid and macroeconomic risks, I believe now is finally the time to consider investing in the ugly duckling.</p>\n<p><b>Favorable Trend</b></p>\n<p>Pandemic brought devastation across nearly all industries and aspects of our lives; however, for Uber, I believe pandemic turned out to be beneficial for the company. Uber's major businesses are delivery and mobility. Before the pandemic, while the mobility business was starting to report positive adjusted EBTIDA, the delivery business continued to struggle. The market was relatively smaller and competitive leading to Uber spending immense amounts of capital on sales, marketing, and development. Even worse, the economies of scale were not seen at the time. However, times have changed for the delivery business. First, the food delivery industry exploded in popularity. For example, Uber's delivery business grew almost&nbsp;3 fold&nbsp;from&nbsp;2019Q4. This massive growth in the industry allowed Uber to leverage economies of scale leading to improving bottom lines. Further, the adaption of the delivery culture in the daily lives of the people allowed Uber to expand its business to more than delivering foods. The company is currently delivering groceries, Christmas trees, and even alcoholic beverages. Therefore, as the market continues to mature, Uber can leverage economies of scale to turn around its loss-leading delivery business into a profitable giant.</p>\n<p>Some critics may argue that delivery was only successful because consumers were not comfortable going outside during the pandemic. I would like to argue otherwise. A pandemic may have been the driving factor behind the adaption of the delivery service by the public; however, convenience was what is and will sustain this business model. Through innovation seen in the past decades, we have seen how much consumers care about convenience through the rise of Amazon(NASDAQ:AMZN), Meta Platforms(NASDAQ:FB), and Apple(NASDAQ:AAPL). Why socialize digitally when you can meet others physically? Why order packages online and wait days when you can simply go buy that product today? Why use smartphones when you already had mobile phones? Consumers will never go back to the more inconvenient way of life.</p>\n<p>Unlike the delivery business, the mobility business was damaged by the pandemic, but it is expected that the mobility business will return to 2019 levels as the impact of the pandemic wanes. As the picture below shows, the mobility business in the world's biggest cities has almost returned to normalcy after the lockdown showing that the demand for ride-hailing services is still present. Further, as pandemic subsides and offices re-open, the mobility business will continue to grow.</p>\n<p><img src=\"https://static.tigerbbs.com/e0a5ee8af7dd1261e2686a20efa4d3b9\" tg-width=\"640\" tg-height=\"340\" width=\"100%\" height=\"auto\"></p>\n<p><b>Covid Fears</b></p>\n<p>Although pandemic was the leading cause of the delivery business success, a worsening pandemic will most likely damage my bullish thesis. A mobility business, a business segment set to lead profitability, will be heavily damaged; however, contrary to the mainstream media's opinion, I believe this scenario is unlikely to unfold due to vaccines and public sentiments.</p>\n<p>Pfizer(NYSE:PFE)&nbsp;on December 8th confirmed that theirCovid vaccines are still effective against the Omicron variant. The company said that a preliminary study \"demonstrates that three doses [of the vaccines] neutralize the Omicron variant while two doses show significantly reduced neutralization titers.\" The company's claims are backed by Omicron orCovid outbreak unfolding in many European nations including Italy, France, the UK, and more.</p>\n<p><img src=\"https://static.tigerbbs.com/fe98b474db7223afa7617f0cb8545e42\" tg-width=\"640\" tg-height=\"413\" width=\"100%\" height=\"auto\"><img src=\"https://static.tigerbbs.com/8849809f79a66a367009de9b31677d63\" tg-width=\"640\" tg-height=\"400\" width=\"100%\" height=\"auto\"><img src=\"https://static.tigerbbs.com/415cdc534da7dc5a6d6f9e754adf099e\" tg-width=\"640\" tg-height=\"388\" width=\"100%\" height=\"auto\"></p>\n<p>Using France as an example, the first picture above shows theCovid cases rising exponentially while the second picture shows the death rate is range-bound. The vaccination rate, shown in the third picture, backs up Pfizer's claim regarding the efficacy of its vaccines because while infections are rising, fatalities are limited due to the vaccines.</p>\n<p>Further, the public's resent for more lockdowns and extreme restrictions are most likely to make Uber's mobility segment of the business more resilient than previous outbreaks.</p>\n<p><b>Financials and Valuation</b></p>\n<p>Uber's balance sheet along with valuation is great. According to&nbsp;Uber's quarterly report, Uber reported revenue growth of 72% year-over-year to $4.8 billion dollars with $8 million positive adjusted EBITDA. After years of losses, the delivery businesses reached a near breakeven level to -0.1% adjusted EBITDA margin. Further, the company's mobility or mobility business had a 5.5% adjusted EBITDA margin, which was on par with the pre-pandemic margins. Overall, the continual improvement of the company's business is resulting in decreasing losses and a stronger balance sheet. Uber has about $5.6 billion in cash and about $33 billion in total assets while the total liabilities were about $20 billion bringing total liability to asset ratio (L/A) to about 60%. All in all, I believe Uber's balance sheet is strong enough to sustain the company's operation given no major changes.</p>\n<p>The valuation of Uber is slightly high. Uber, still unprofitable, trades at about 4.7 times&nbsp;price to&nbsp;sales ratio and about 3 times the forward price to sales ratio. These numbers may seem minimal in comparison with other companies, but because the margin expansion for Uber is questionable, I would say that Uber's valuation today is slightly high. However, as the business turns to reach profitability in the near future, I think the slightly high valuation seen in Uber may be manageable for some investors.</p>\n<p><b>Risks</b></p>\n<p>Investing in Uber comes with significant risks including dilution risks and macroeconomic risks. Uber has been extremely unprofitable for the past years resulting in massive dilution.Uber's outstanding shares increased 12.35% in 2018, 160.62% in 2019, 40.42% in 2020, and 8.2% to date in 2021. As such, to maintain the company's operations, Uber continuously diluted its existing shareholders. Thus, any hurdles to reaching profitability may result in even more dilution in the future. Also, the reason for Uber's financial health today is because of the massive dilution. Further, macroeconomic risks beyond Uber's control may impact the company. Inflation is already at historical highs, and it may continue to stay at these levels resulting in an even faster pace of tapering and rising rates by the Federal Reserve. Therefore, because Uber is still not profitable, raising rates will most likely affect the company negatively.</p>\n<p><b>Summary</b></p>\n<p>No one knows for sure if Uber will blossom into a beautiful swan from an ugly duckling, but today, I am starting to be cautiously bullish on Uber. Pandemic ultimately benefited the company's overall operations leading to a boom in the delivery business, which aided in Uber reaching unit economics. Further, the delivery business is expected to expand as consumers adapt to a more convenient way of life. For the mobility business, there were significant damages; however, as Uber has shown, the mobility business is strongly recovering to 2019 levels as the economies reopen. Therefore, as Uber attempts to turn around its business, I believe investors should worth consider investing in Uber. After all, Uber may blossom into a beautiful swan.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Uber: Ugly Duckling Is Growing Up</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nUber: Ugly Duckling Is Growing Up\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-17 14:42 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4475598-uber-ugly-duckling-is-growing-up><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nUber's delivery business is booming and expanding resulting in the company leveraging economies of scale to reach profitability.\nMobility business is fast recovering from the pandemic as the ...</p>\n\n<a href=\"https://seekingalpha.com/article/4475598-uber-ugly-duckling-is-growing-up\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"UBER":"优步"},"source_url":"https://seekingalpha.com/article/4475598-uber-ugly-duckling-is-growing-up","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1108936663","content_text":"Summary\n\nUber's delivery business is booming and expanding resulting in the company leveraging economies of scale to reach profitability.\nMobility business is fast recovering from the pandemic as the economies reopen.\nFuture lockdowns and covid restrictions that were seen before are not likely.\nTherefore, Uber may be the ugly duckling waiting to become a swan.\n\nMOZCO Mateusz Szymanski/iStock Editorial via Getty Images\nIntroduction and Thesis\nI am starting to believe that Uber's(NYSE:UBER)story is unfolding like the story of the ugly duckling. In the early days of going public, Uber suffered ignorance and unfavorable views from the investing community just like the ugly duckling, but today, I believe Uber is just around the corner from blossoming into a beautiful and successful swan.\nUber's business is turning around as the underlying trend forms in favor of the company. From the depths of the pandemic to the pace of recovery seen today, the world changed for good, at least for Uber. One of those changes is food delivery. During the pandemic, consumers could not comfortably leave their houses and dine out resulting in those consumers turning to food delivery permanently growing a business that has been the primary reason for Uber's continuous losses. Thus, as the trend of food delivery continues to grow from the pandemic, Uber's business through economies of scale has been enjoying the favorable trend, and I believe that the convenience of food delivery will allow permanent penetration of delivery in our daily lives. Further, as mobility recovers as well from the pandemic in all aspects, Uber is likely to report a profitable 2022 fiscal year. Although there are risks of dilution,Covid and macroeconomic risks, I believe now is finally the time to consider investing in the ugly duckling.\nFavorable Trend\nPandemic brought devastation across nearly all industries and aspects of our lives; however, for Uber, I believe pandemic turned out to be beneficial for the company. Uber's major businesses are delivery and mobility. Before the pandemic, while the mobility business was starting to report positive adjusted EBTIDA, the delivery business continued to struggle. The market was relatively smaller and competitive leading to Uber spending immense amounts of capital on sales, marketing, and development. Even worse, the economies of scale were not seen at the time. However, times have changed for the delivery business. First, the food delivery industry exploded in popularity. For example, Uber's delivery business grew almost 3 fold from 2019Q4. This massive growth in the industry allowed Uber to leverage economies of scale leading to improving bottom lines. Further, the adaption of the delivery culture in the daily lives of the people allowed Uber to expand its business to more than delivering foods. The company is currently delivering groceries, Christmas trees, and even alcoholic beverages. Therefore, as the market continues to mature, Uber can leverage economies of scale to turn around its loss-leading delivery business into a profitable giant.\nSome critics may argue that delivery was only successful because consumers were not comfortable going outside during the pandemic. I would like to argue otherwise. A pandemic may have been the driving factor behind the adaption of the delivery service by the public; however, convenience was what is and will sustain this business model. Through innovation seen in the past decades, we have seen how much consumers care about convenience through the rise of Amazon(NASDAQ:AMZN), Meta Platforms(NASDAQ:FB), and Apple(NASDAQ:AAPL). Why socialize digitally when you can meet others physically? Why order packages online and wait days when you can simply go buy that product today? Why use smartphones when you already had mobile phones? Consumers will never go back to the more inconvenient way of life.\nUnlike the delivery business, the mobility business was damaged by the pandemic, but it is expected that the mobility business will return to 2019 levels as the impact of the pandemic wanes. As the picture below shows, the mobility business in the world's biggest cities has almost returned to normalcy after the lockdown showing that the demand for ride-hailing services is still present. Further, as pandemic subsides and offices re-open, the mobility business will continue to grow.\n\nCovid Fears\nAlthough pandemic was the leading cause of the delivery business success, a worsening pandemic will most likely damage my bullish thesis. A mobility business, a business segment set to lead profitability, will be heavily damaged; however, contrary to the mainstream media's opinion, I believe this scenario is unlikely to unfold due to vaccines and public sentiments.\nPfizer(NYSE:PFE) on December 8th confirmed that theirCovid vaccines are still effective against the Omicron variant. The company said that a preliminary study \"demonstrates that three doses [of the vaccines] neutralize the Omicron variant while two doses show significantly reduced neutralization titers.\" The company's claims are backed by Omicron orCovid outbreak unfolding in many European nations including Italy, France, the UK, and more.\n\nUsing France as an example, the first picture above shows theCovid cases rising exponentially while the second picture shows the death rate is range-bound. The vaccination rate, shown in the third picture, backs up Pfizer's claim regarding the efficacy of its vaccines because while infections are rising, fatalities are limited due to the vaccines.\nFurther, the public's resent for more lockdowns and extreme restrictions are most likely to make Uber's mobility segment of the business more resilient than previous outbreaks.\nFinancials and Valuation\nUber's balance sheet along with valuation is great. According to Uber's quarterly report, Uber reported revenue growth of 72% year-over-year to $4.8 billion dollars with $8 million positive adjusted EBITDA. After years of losses, the delivery businesses reached a near breakeven level to -0.1% adjusted EBITDA margin. Further, the company's mobility or mobility business had a 5.5% adjusted EBITDA margin, which was on par with the pre-pandemic margins. Overall, the continual improvement of the company's business is resulting in decreasing losses and a stronger balance sheet. Uber has about $5.6 billion in cash and about $33 billion in total assets while the total liabilities were about $20 billion bringing total liability to asset ratio (L/A) to about 60%. All in all, I believe Uber's balance sheet is strong enough to sustain the company's operation given no major changes.\nThe valuation of Uber is slightly high. Uber, still unprofitable, trades at about 4.7 times price to sales ratio and about 3 times the forward price to sales ratio. These numbers may seem minimal in comparison with other companies, but because the margin expansion for Uber is questionable, I would say that Uber's valuation today is slightly high. However, as the business turns to reach profitability in the near future, I think the slightly high valuation seen in Uber may be manageable for some investors.\nRisks\nInvesting in Uber comes with significant risks including dilution risks and macroeconomic risks. Uber has been extremely unprofitable for the past years resulting in massive dilution.Uber's outstanding shares increased 12.35% in 2018, 160.62% in 2019, 40.42% in 2020, and 8.2% to date in 2021. As such, to maintain the company's operations, Uber continuously diluted its existing shareholders. Thus, any hurdles to reaching profitability may result in even more dilution in the future. Also, the reason for Uber's financial health today is because of the massive dilution. Further, macroeconomic risks beyond Uber's control may impact the company. Inflation is already at historical highs, and it may continue to stay at these levels resulting in an even faster pace of tapering and rising rates by the Federal Reserve. Therefore, because Uber is still not profitable, raising rates will most likely affect the company negatively.\nSummary\nNo one knows for sure if Uber will blossom into a beautiful swan from an ugly duckling, but today, I am starting to be cautiously bullish on Uber. Pandemic ultimately benefited the company's overall operations leading to a boom in the delivery business, which aided in Uber reaching unit economics. Further, the delivery business is expected to expand as consumers adapt to a more convenient way of life. For the mobility business, there were significant damages; however, as Uber has shown, the mobility business is strongly recovering to 2019 levels as the economies reopen. Therefore, as Uber attempts to turn around its business, I believe investors should worth consider investing in Uber. After all, Uber may blossom into a beautiful swan.","news_type":1},"isVote":1,"tweetType":1,"viewCount":384,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":698896783,"gmtCreate":1640331872715,"gmtModify":1640331880243,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/698896783","repostId":"1107827800","repostType":2,"repost":{"id":"1107827800","pubTimestamp":1640326128,"share":"https://www.laohu8.com/m/news/1107827800?lang=&edition=full","pubTime":"2021-12-24 14:08","market":"us","language":"en","title":"Sea Limited: An Early Christmas Gift","url":"https://stock-news.laohu8.com/highlight/detail?id=1107827800","media":"Seeking Alpha","summary":"Summary\n\nSea Limited is a growing company in a growing economy.\nAt this stage, the company should be","content":"<p><b>Summary</b></p>\n<ul>\n <li>Sea Limited is a growing company in a growing economy.</li>\n <li>At this stage, the company should be judged on its growth, not earnings.</li>\n <li>The recent fall in price makes the stock look attractive when compared to similar growth stories.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/f48c8d49ed462ac489fe8f5fa91f5691\" tg-width=\"1536\" tg-height=\"1031\" width=\"100%\" height=\"auto\"><span>FreshSplash/E+ via Getty Images</span></p>\n<p><b>Thesis Summary</b></p>\n<p>Sea Limited (SE) is one of those companies that divide the room. The stock was one of the best performing of 2020/2021 but has now fallen over 30% from its all-time high following a general sell-off which has been most felt in growth stocks.</p>\n<p>However, Sea's fundamental growth story remains strong, and the fact that it is running at a loss should not bother investors at this point. If we look at each segment individually, there's a lot to like, and an argument could be made for a much higher price than today. On a final note, Sea should also be aided by the recent policy change coming from China's Central bank, the PBOC, and overall macroeconomic trends.</p>\n<p><b>A Quick Recap</b></p>\n<p>Sea Limited has three main segments; Digital Entertainment (Garena), Financial Services (SeaMoney) and E-commerce (Shopee). This is how they performed in the last quarter.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/4cd726650027bd5d269b8fe1f0dd0b14\" tg-width=\"1280\" tg-height=\"664\" width=\"100%\" height=\"auto\"><span>Source: Investor Presentation</span></p>\n<p>As we can see, Digital Entertainment is the only segment bringing in operating income. Meanwhile, eCommerce and Digital Finance are running at a loss. However, the growth rates at this point justify the investment. GMV for Shopee was up 81% YoY, and TPV processed through SeaMoney is up 111% YoY.</p>\n<p>Despite strong growth across the board, Sea Limited has come down significantly in the last few weeks, providing us with a perfect opportunity to buy a stock with an incredibly appealing fundamental growth story.</p>\n<p><b>Growth And Profitability Prospects</b></p>\n<p>Firstly, let's talk about Sea's main geographical market; Southeast Asia. SEA economies are experiencing not just a fast level of growth, but also digitalization, which bodes incredibly well for SE.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/626a6dc7b34175282aeba7740413ede1\" tg-width=\"1280\" tg-height=\"521\" width=\"100%\" height=\"auto\"><span>Source: SEA Economy Report</span></p>\n<p>By 2025, the Internet economy is poised to reach over $300 billion in GMV. Indonesia, Vietnam and Thailand will be amongst the fastest growing Internet economies, and these are all areas where the company has a strong presence. On top of that, Sea is also expanding into Latin America, where it has challenged and surpassed MercadoLibre (MELI) in some&nbsp;countries like Brazil.</p>\n<p>Shopee and SeaMoney will grow hand in hand. As Shopee grows, more merchants and consumers will be pulled into the SeaMoney ecosystem, which not only allows digital payments but also helps merchants and consumers get financing. Of course, at the moment the company is focusing on expansion, but we know full well that both eCommerce and Digital Finance can be lucrative segments.</p>\n<p>Garena, which is responsible for creating Free Fire, is on another path. User growth is slowing down, this is true, but there is still plenty of room for monetization. The company has made moves in the right direction here by releasing Free Fire MAX, a premium version of the game. In a recent article on Seeking Alpha,JR Research pointed out&nbsp;that Garena continues to increase the proportion of paying users to active users, which are also growing, albeit at a slower rate.</p>\n<p><b>Comparative Valuation</b></p>\n<p>With all that said, I do feel like sometimes Sea Limited gets judged unfairly, precisely because it has such a successful and profitable segment thanks to Free Fire. Investors often look at Sea's earnings and complain that they aren't growing fast enough, but this is not the company's objective. If Shopee or SeaMoney traded separately as \"exciting and fast-growing start-ups\" investors would be much less harsh with the valuation.</p>\n<p>Sea Limited is a growth company in a growth economy, and it should be judged on its growth and revenue, not on its earnings:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/dabf7759dd81e88d0603fc2f17137235\" tg-width=\"905\" tg-height=\"313\" width=\"100%\" height=\"auto\"><span>Data Source: Seeking Alpha</span></p>\n<p>Above we can see valuation ratios for Sea and what I consider to be some similar companies, though I am sure this will be a contentious point. Meli competes head-on with Sea in the eCommerce and fulfilment space. Roblox (RBLX) is an up and coming game/platform, and it is comparable to Free Fire. Shopify Inc.(NYSE:SHOP)has some unique characteristics, but it is also similar in many ways to Sea. It offers an eCommerce platform and helps merchants sell their products, and Shopify Pay is comparable to SeaMoney. Also, all of these companies are high growth companies through Sea is the best in this regard.</p>\n<p>In terms of P/S and EV/Sales though, Sea is cheaper than the rest of these companies, except for Meli. Also, I like the fact that Sea has a Price/Book in line with that of Shopify. Arguably these other companies could be said to be overvalued, but the idea here is to compare these companies amongst each other.</p>\n<p>Ultimately, Sea is growing incredibly fast, and though it isn't \"profitable\", we know that it's building a business model that will be. A P/S of 14 seems attractive given all of this and the ratio is below the more recent average of around 20.</p>\n<p><b>Other Considerations</b></p>\n<p>Some investors might think that, with the Federal Reserve tightening monetary policy, this is not a good time. The first issue here would be; how long can the Fed tighten? We've seen this play out before in 2018, and we know how it ends. More importantly though, while the Fed tightens, the PBOC is loosening monetary policy, as we saw the&nbsp;key benchmark lending rate cut last week.</p>\n<p>What does this mean for Sea? The effects are unclear. Easy credit in the area will help the company and its customers, but what about exchange rates? Some of these countries try to keep pegs to major currencies, so this might not change. This would suggest that South Eastern economies might have to follow the Fed in tightening monetary policy to defend this exchange rate.</p>\n<p>And lastly, what if COVID returns in full force? Again, the effects would be unclear. In many ways, Sea's business could be improved by this, even if the economy suffers overall.</p>\n<p><b>Takeaway</b></p>\n<p>Nothing much has changed for Sea Limited in recent months, except for its share price, and I'd be remiss if I didn't point out this buying opportunity. The company is expanding in all areas, and even increasing its profitability, though that is less important. I'm excited to see what 2022 holds for this stock.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Sea Limited: An Early Christmas Gift</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSea Limited: An Early Christmas Gift\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-24 14:08 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4476595-sea-limited-an-early-christmas-gift><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nSea Limited is a growing company in a growing economy.\nAt this stage, the company should be judged on its growth, not earnings.\nThe recent fall in price makes the stock look attractive when ...</p>\n\n<a href=\"https://seekingalpha.com/article/4476595-sea-limited-an-early-christmas-gift\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SE":"Sea Ltd"},"source_url":"https://seekingalpha.com/article/4476595-sea-limited-an-early-christmas-gift","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1107827800","content_text":"Summary\n\nSea Limited is a growing company in a growing economy.\nAt this stage, the company should be judged on its growth, not earnings.\nThe recent fall in price makes the stock look attractive when compared to similar growth stories.\n\nFreshSplash/E+ via Getty Images\nThesis Summary\nSea Limited (SE) is one of those companies that divide the room. The stock was one of the best performing of 2020/2021 but has now fallen over 30% from its all-time high following a general sell-off which has been most felt in growth stocks.\nHowever, Sea's fundamental growth story remains strong, and the fact that it is running at a loss should not bother investors at this point. If we look at each segment individually, there's a lot to like, and an argument could be made for a much higher price than today. On a final note, Sea should also be aided by the recent policy change coming from China's Central bank, the PBOC, and overall macroeconomic trends.\nA Quick Recap\nSea Limited has three main segments; Digital Entertainment (Garena), Financial Services (SeaMoney) and E-commerce (Shopee). This is how they performed in the last quarter.\nSource: Investor Presentation\nAs we can see, Digital Entertainment is the only segment bringing in operating income. Meanwhile, eCommerce and Digital Finance are running at a loss. However, the growth rates at this point justify the investment. GMV for Shopee was up 81% YoY, and TPV processed through SeaMoney is up 111% YoY.\nDespite strong growth across the board, Sea Limited has come down significantly in the last few weeks, providing us with a perfect opportunity to buy a stock with an incredibly appealing fundamental growth story.\nGrowth And Profitability Prospects\nFirstly, let's talk about Sea's main geographical market; Southeast Asia. SEA economies are experiencing not just a fast level of growth, but also digitalization, which bodes incredibly well for SE.\nSource: SEA Economy Report\nBy 2025, the Internet economy is poised to reach over $300 billion in GMV. Indonesia, Vietnam and Thailand will be amongst the fastest growing Internet economies, and these are all areas where the company has a strong presence. On top of that, Sea is also expanding into Latin America, where it has challenged and surpassed MercadoLibre (MELI) in some countries like Brazil.\nShopee and SeaMoney will grow hand in hand. As Shopee grows, more merchants and consumers will be pulled into the SeaMoney ecosystem, which not only allows digital payments but also helps merchants and consumers get financing. Of course, at the moment the company is focusing on expansion, but we know full well that both eCommerce and Digital Finance can be lucrative segments.\nGarena, which is responsible for creating Free Fire, is on another path. User growth is slowing down, this is true, but there is still plenty of room for monetization. The company has made moves in the right direction here by releasing Free Fire MAX, a premium version of the game. In a recent article on Seeking Alpha,JR Research pointed out that Garena continues to increase the proportion of paying users to active users, which are also growing, albeit at a slower rate.\nComparative Valuation\nWith all that said, I do feel like sometimes Sea Limited gets judged unfairly, precisely because it has such a successful and profitable segment thanks to Free Fire. Investors often look at Sea's earnings and complain that they aren't growing fast enough, but this is not the company's objective. If Shopee or SeaMoney traded separately as \"exciting and fast-growing start-ups\" investors would be much less harsh with the valuation.\nSea Limited is a growth company in a growth economy, and it should be judged on its growth and revenue, not on its earnings:\nData Source: Seeking Alpha\nAbove we can see valuation ratios for Sea and what I consider to be some similar companies, though I am sure this will be a contentious point. Meli competes head-on with Sea in the eCommerce and fulfilment space. Roblox (RBLX) is an up and coming game/platform, and it is comparable to Free Fire. Shopify Inc.(NYSE:SHOP)has some unique characteristics, but it is also similar in many ways to Sea. It offers an eCommerce platform and helps merchants sell their products, and Shopify Pay is comparable to SeaMoney. Also, all of these companies are high growth companies through Sea is the best in this regard.\nIn terms of P/S and EV/Sales though, Sea is cheaper than the rest of these companies, except for Meli. Also, I like the fact that Sea has a Price/Book in line with that of Shopify. Arguably these other companies could be said to be overvalued, but the idea here is to compare these companies amongst each other.\nUltimately, Sea is growing incredibly fast, and though it isn't \"profitable\", we know that it's building a business model that will be. A P/S of 14 seems attractive given all of this and the ratio is below the more recent average of around 20.\nOther Considerations\nSome investors might think that, with the Federal Reserve tightening monetary policy, this is not a good time. The first issue here would be; how long can the Fed tighten? We've seen this play out before in 2018, and we know how it ends. More importantly though, while the Fed tightens, the PBOC is loosening monetary policy, as we saw the key benchmark lending rate cut last week.\nWhat does this mean for Sea? The effects are unclear. Easy credit in the area will help the company and its customers, but what about exchange rates? Some of these countries try to keep pegs to major currencies, so this might not change. This would suggest that South Eastern economies might have to follow the Fed in tightening monetary policy to defend this exchange rate.\nAnd lastly, what if COVID returns in full force? Again, the effects would be unclear. In many ways, Sea's business could be improved by this, even if the economy suffers overall.\nTakeaway\nNothing much has changed for Sea Limited in recent months, except for its share price, and I'd be remiss if I didn't point out this buying opportunity. The company is expanding in all areas, and even increasing its profitability, though that is less important. I'm excited to see what 2022 holds for this stock.","news_type":1},"isVote":1,"tweetType":1,"viewCount":280,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":691435152,"gmtCreate":1640226432944,"gmtModify":1640226433023,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/691435152","repostId":"2193113312","repostType":2,"isVote":1,"tweetType":1,"viewCount":409,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":693442532,"gmtCreate":1640070464472,"gmtModify":1640070464472,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/693442532","repostId":"1117226796","repostType":2,"repost":{"id":"1117226796","pubTimestamp":1640057164,"share":"https://www.laohu8.com/m/news/1117226796?lang=&edition=full","pubTime":"2021-12-21 11:26","market":"us","language":"en","title":"Palantir: 3 Reasons Against It And Why It's Still A Buy","url":"https://stock-news.laohu8.com/highlight/detail?id=1117226796","media":"Seeking Alpha","summary":"Summary\n\nPalantir Technologies is a battleground stock. Listening to the bears' arguments is a good ","content":"<p><b>Summary</b></p>\n<ul>\n <li>Palantir Technologies is a battleground stock. Listening to the bears' arguments is a good idea for bulls.</li>\n <li>PLTR dilutes its shareholders, but that is not necessarily a huge problem.</li>\n <li>Despite some interest rate headwinds, PLTR seems like a good investment to me, thanks to a strong moat and great growth outlook.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7230cdd890b86f9941b99b1503d04049\" tg-width=\"1536\" tg-height=\"1044\" width=\"100%\" height=\"auto\"><span>spxChrome/E+ via Getty Images</span></p>\n<p><b>Article Thesis</b></p>\n<p>Palantir Technologies (PLTR) is an embattled growth stock, and in recent weeks, bears have been winning as shares continued to decline. There are, indeed some important bear arguments, such as dilution, reliance on government contracts, and rising interest rates. I do, however, still believe that Palantir Technologies is an attractive long-term investment, due to the act that its technology could lead to massive growth for many years to come.</p>\n<p><b>3 Issues Brought Up By Bears</b></p>\n<p>Palantir is a growth stock that brings out highly convinced bulls as well as highly convinced bears. Generally, I am in the bullish camp here, but taking a look at the bear arguments can be a good idea as well. Three of the most common arguments against Palantir are the following ones:</p>\n<p><b>1. Shareholder Dilution</b></p>\n<p>Growth on a company-wide basis is important, but growth on a per-share basis is even more important. There are many examples that show that changes in a company's share count can create or destroy a lot of shareholder value. Apple (AAPL), for example, has seen its net income grow by roughly 190% over the last decade:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2b5263c8346cfbbb898f1d1ac9a5bead\" tg-width=\"635\" tg-height=\"433\" width=\"100%\" height=\"auto\"><span>Data by YCharts</span></p>\n<p>Thanks to a declining share count, its earnings per share rose by a much more attractive 350%, however -- buybacks created a lot of shareholder value. There are also examples where a rising share count destroyed a lot of shareholder value, e.g. at Citigroup (C):</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/fc39008812f5e2d0082dedc95b025c68\" tg-width=\"635\" tg-height=\"433\" width=\"100%\" height=\"auto\"><span>Data by YCharts</span></p>\n<p>Massive share issuance during the Great Recession has resulted in a 75% earnings per share decline since 2007, even though net profits were up over the same time frame. Looking at the changes in a company's share count thus makes sense, as those changes can have a large impact in the long run. At Palantir, we see that the share count has been rising considerably since the company went public. During the most recent quarter, Palantir's share count looked like this:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/917ca4d7a390ced61d7c92d528f84fc1\" tg-width=\"640\" tg-height=\"539\" width=\"100%\" height=\"auto\"><span>Source: Palantir Press Release</span></p>\n<p>Compared to the second quarter, Palantir's average share count was&nbsp;1.895 billion, which makes for a 3.5% quarterly increase, which pencils out to an annual growth rate in the mid-teens. That is, of course, not negligible at all, and bears to have an argument when they state that shareholders get diluted at a meaningful pace. On the other hand, Palantir's business growth rate is way higher than 3% per quarter, as the company has guided for ~40% revenue growth this year, and since Palantir should also deliver outsized business growth in the coming years. Even if Palantir's share count were to climb by 10%-15% a year going forward, revenue per share would still climb by 25%+ a year thanks to the fact that PLTR is growing rapidly. I also believe that dilution will, over the years, decline. Not only has this been the case at many other growth companies, e.g. Amazon (AMZN), Alphabet (GOOG), or Meta (FB), but it is also logical from an option rewards perspective. Option rewards are especially generous when a company is not yet publicly traded and when its future is still more uncertain, but as a company matures, employees get more comfortable as risks for the company decline, and they do not demand large option packages any longer. Last but not least, Palantir also generates strong free cash flows that should allow the company to do share buybacks in the future, which should help improve the dilution rate as well.</p>\n<p><b>2. Reliance on government contracts</b></p>\n<p>In a recent bearish&nbsp;article, fellow Seeking Alpha contributor On The Pulse argued that Palantir was overvalued and that its reliance on government contracts was an issue. Palantir Technologies is, indeed, reliant on government contracts to a large degree today, but I do not believe that this is a major issue. First, Palantir has diversified away from government contracts in the recent past, thanks to massive growth in its commercial business:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/de23409915ee3811691b986a42ece899\" tg-width=\"640\" tg-height=\"308\" width=\"100%\" height=\"auto\"><span>Source: Palantir Technologies presentation</span></p>\n<p>In fact, Palantir's commercial business has been growing much faster than its government business in the recent past, which shows that commercial customers from all kinds of industries apparently see a lot of value in Palantir's technology -- otherwise, they wouldn't be buying at a rapid pace. With</p>\n<p>With the commercial business growth rate outpacing the government business growth rate, Palantir will, over the years, become a company that is less and less dependent on government contracts, and that will ultimately turn into a B2B-focused software/technology player. Even if Palantir were to remain a government-focused company forever, which seems unlikely based on the current growth rates of the individual business units, that would not necessarily be an issue. Working for the government means that there is very little counterparty risk and that existing relations can easily be used to get future contracts. Last but not least, with government budgets rising relatively steadily, good government connections allow for considerable growth opportunities -- especially in the defense tech/security tech space Palantir is active in, as there is a huge need for further investments in this space.</p>\n<p>The claim that a government focus leads to lacking scalability is also false, I believe. Per Palantir's most recent quarterly report (linked above), its operating expenses rose by $9 million between Q3 2020 and Q3 2021 -- whereas revenues rose by $103 million in the same time frame. This backs out changes in share-based compensation. If one were to include those SBC expenses, Palantir's expenses actually<i>declined</i>year-over-year while the company managed to grow its revenue by close to 40%. The claim that Palantir will not generate any scale advantages over the years thus seems to be unfounded, I believe. Instead, the data suggest that Palantir will be able to grow its margins considerably -- the company was able to grow its adjusted gross profit by a massive $90 million while growing its adjusted operating expenses by just $9 million -- making for excellent operating leverage.</p>\n<p><b>3. Exposure to rising rates</b></p>\n<p>Massive inflation will force the Fed to raise rates in 2022 and beyond, and that could be an issue for growth stocks. Companies that are not profitable today, or that have the vast majority of their profits in the distant future, are more exposed to a rising discount rate compared to companies that have low or no growth and that generate a large amount of all future profits in the near term. This could result in outperformance of value stocks versus growth stocks in the coming years, I believe. Palantir, which is not profitable yet, naturally belongs in the \"growth\" bucket that could see an above-average impact from rising interest rates. There is no real counter-argument here, I believe -- it is indeed true that the impact of rising rates on Palantir, all else equal, will be larger compared to a value stock like AbbVie (ABBV), for example.</p>\n<p>This being an incremental negative for Palantir doesn't mean that shares have to be avoided under any circumstances, however. Indeed, even despite some potential headwinds from rising rates, Palantir could still be an attractive investment if other arguments have a larger weight -- I believe this to be true, as I see PLTR's massive growth potential and huge moat outweighing some near-term headwinds from rising rates.</p>\n<p><b>Why Palantir Is Still Attractive</b></p>\n<p>Bears bring up a range of arguments against Palantir, and as shown above, those can have merit. I believe that they might be overblown in some cases, but taking a look at the bear's arguments doesn't hurt -- in fact, it seems like a good idea to look at both sides in order to make a more informed decision. Dilution is indeed an issue, although I do not believe that this will be too much of a headwind, since PLTR's business growth easily outpaces dilution and since dilution, overall, should slow down over the years. Government reliance will wane over the years due to an above-average commercial business growth rate, and in general, doing business with the government is not a bad thing anyway. The claim that PLTR lacks scalability seems to be false, from what I see in PLTR's data.</p>\n<p>Palantir is, despite these arguments, attractive, I believe: The company is growing rapidly, has decades-long growth potential in both its government business as well as on the commercial side, and Palantir seems to have a very wide moat. This combination could turn Palantir into one of the largest and most important companies eventually -- although investors shouldn't expect this to happen in the very near term. Instead, I believe that there is a good chance that Palantir will grow at a considerable rate throughout the 2020s and beyond, as our world becomes ever more data-hungry -- both governments, as well as enterprises, will try to get the most value out of all of this data, and Palantir, with its tailored solutions, will be there to offer that value to its customers. With new tools such as the recently-showcased&nbsp;Foundry&nbsp;for crypto, Palantir is at the forefront of all kinds of emerging technologies. Thanks to the fact that Palantir has access to top talent -- the result of SBC and of an&nbsp;excellent working environment-- I believe that there is a good chance that Palantir will be able to be highly competitive in all kinds of future markets in the Big Data/AI space that may not even exist yet.</p>\n<p><b>Takeaway</b></p>\n<p>In general, I am not much of a growth investor -- instead, I primarily focus on attractively priced stocks with strong cash flows, oftentimes those that pay dividends. Palantir, however, is somewhat of an outlier in my portfolio -- it's a growth stock, it is not really profitable yet, and most of its potential is years away. Due to the highly attractive combination of a massive market opportunity, excellent talent, and a wide moat, Palantir still seems like an attractive long-term investment to me. This isn't a stock that will make investors rich quickly, but I believe that there is a very good chance that Palantir will turn into a very dominant, important company over the next 10+ years. At 19x next year's revenue, PLTR is not cheap, but when we expect that the company will grow at a strong rate for many years, that also doesn't seem outlandish to me at all. It makes sense to listen to the bears' arguments, but I believe that the pros outweigh the cons here.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Palantir: 3 Reasons Against It And Why It's Still A Buy</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPalantir: 3 Reasons Against It And Why It's Still A Buy\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-21 11:26 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4475960-palantir-3-reasons-against-it-and-why-its-still-a-buy><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nPalantir Technologies is a battleground stock. Listening to the bears' arguments is a good idea for bulls.\nPLTR dilutes its shareholders, but that is not necessarily a huge problem.\nDespite ...</p>\n\n<a href=\"https://seekingalpha.com/article/4475960-palantir-3-reasons-against-it-and-why-its-still-a-buy\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4475960-palantir-3-reasons-against-it-and-why-its-still-a-buy","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1117226796","content_text":"Summary\n\nPalantir Technologies is a battleground stock. Listening to the bears' arguments is a good idea for bulls.\nPLTR dilutes its shareholders, but that is not necessarily a huge problem.\nDespite some interest rate headwinds, PLTR seems like a good investment to me, thanks to a strong moat and great growth outlook.\n\nspxChrome/E+ via Getty Images\nArticle Thesis\nPalantir Technologies (PLTR) is an embattled growth stock, and in recent weeks, bears have been winning as shares continued to decline. There are, indeed some important bear arguments, such as dilution, reliance on government contracts, and rising interest rates. I do, however, still believe that Palantir Technologies is an attractive long-term investment, due to the act that its technology could lead to massive growth for many years to come.\n3 Issues Brought Up By Bears\nPalantir is a growth stock that brings out highly convinced bulls as well as highly convinced bears. Generally, I am in the bullish camp here, but taking a look at the bear arguments can be a good idea as well. Three of the most common arguments against Palantir are the following ones:\n1. Shareholder Dilution\nGrowth on a company-wide basis is important, but growth on a per-share basis is even more important. There are many examples that show that changes in a company's share count can create or destroy a lot of shareholder value. Apple (AAPL), for example, has seen its net income grow by roughly 190% over the last decade:\nData by YCharts\nThanks to a declining share count, its earnings per share rose by a much more attractive 350%, however -- buybacks created a lot of shareholder value. There are also examples where a rising share count destroyed a lot of shareholder value, e.g. at Citigroup (C):\nData by YCharts\nMassive share issuance during the Great Recession has resulted in a 75% earnings per share decline since 2007, even though net profits were up over the same time frame. Looking at the changes in a company's share count thus makes sense, as those changes can have a large impact in the long run. At Palantir, we see that the share count has been rising considerably since the company went public. During the most recent quarter, Palantir's share count looked like this:\nSource: Palantir Press Release\nCompared to the second quarter, Palantir's average share count was 1.895 billion, which makes for a 3.5% quarterly increase, which pencils out to an annual growth rate in the mid-teens. That is, of course, not negligible at all, and bears to have an argument when they state that shareholders get diluted at a meaningful pace. On the other hand, Palantir's business growth rate is way higher than 3% per quarter, as the company has guided for ~40% revenue growth this year, and since Palantir should also deliver outsized business growth in the coming years. Even if Palantir's share count were to climb by 10%-15% a year going forward, revenue per share would still climb by 25%+ a year thanks to the fact that PLTR is growing rapidly. I also believe that dilution will, over the years, decline. Not only has this been the case at many other growth companies, e.g. Amazon (AMZN), Alphabet (GOOG), or Meta (FB), but it is also logical from an option rewards perspective. Option rewards are especially generous when a company is not yet publicly traded and when its future is still more uncertain, but as a company matures, employees get more comfortable as risks for the company decline, and they do not demand large option packages any longer. Last but not least, Palantir also generates strong free cash flows that should allow the company to do share buybacks in the future, which should help improve the dilution rate as well.\n2. Reliance on government contracts\nIn a recent bearish article, fellow Seeking Alpha contributor On The Pulse argued that Palantir was overvalued and that its reliance on government contracts was an issue. Palantir Technologies is, indeed, reliant on government contracts to a large degree today, but I do not believe that this is a major issue. First, Palantir has diversified away from government contracts in the recent past, thanks to massive growth in its commercial business:\nSource: Palantir Technologies presentation\nIn fact, Palantir's commercial business has been growing much faster than its government business in the recent past, which shows that commercial customers from all kinds of industries apparently see a lot of value in Palantir's technology -- otherwise, they wouldn't be buying at a rapid pace. With\nWith the commercial business growth rate outpacing the government business growth rate, Palantir will, over the years, become a company that is less and less dependent on government contracts, and that will ultimately turn into a B2B-focused software/technology player. Even if Palantir were to remain a government-focused company forever, which seems unlikely based on the current growth rates of the individual business units, that would not necessarily be an issue. Working for the government means that there is very little counterparty risk and that existing relations can easily be used to get future contracts. Last but not least, with government budgets rising relatively steadily, good government connections allow for considerable growth opportunities -- especially in the defense tech/security tech space Palantir is active in, as there is a huge need for further investments in this space.\nThe claim that a government focus leads to lacking scalability is also false, I believe. Per Palantir's most recent quarterly report (linked above), its operating expenses rose by $9 million between Q3 2020 and Q3 2021 -- whereas revenues rose by $103 million in the same time frame. This backs out changes in share-based compensation. If one were to include those SBC expenses, Palantir's expenses actuallydeclinedyear-over-year while the company managed to grow its revenue by close to 40%. The claim that Palantir will not generate any scale advantages over the years thus seems to be unfounded, I believe. Instead, the data suggest that Palantir will be able to grow its margins considerably -- the company was able to grow its adjusted gross profit by a massive $90 million while growing its adjusted operating expenses by just $9 million -- making for excellent operating leverage.\n3. Exposure to rising rates\nMassive inflation will force the Fed to raise rates in 2022 and beyond, and that could be an issue for growth stocks. Companies that are not profitable today, or that have the vast majority of their profits in the distant future, are more exposed to a rising discount rate compared to companies that have low or no growth and that generate a large amount of all future profits in the near term. This could result in outperformance of value stocks versus growth stocks in the coming years, I believe. Palantir, which is not profitable yet, naturally belongs in the \"growth\" bucket that could see an above-average impact from rising interest rates. There is no real counter-argument here, I believe -- it is indeed true that the impact of rising rates on Palantir, all else equal, will be larger compared to a value stock like AbbVie (ABBV), for example.\nThis being an incremental negative for Palantir doesn't mean that shares have to be avoided under any circumstances, however. Indeed, even despite some potential headwinds from rising rates, Palantir could still be an attractive investment if other arguments have a larger weight -- I believe this to be true, as I see PLTR's massive growth potential and huge moat outweighing some near-term headwinds from rising rates.\nWhy Palantir Is Still Attractive\nBears bring up a range of arguments against Palantir, and as shown above, those can have merit. I believe that they might be overblown in some cases, but taking a look at the bear's arguments doesn't hurt -- in fact, it seems like a good idea to look at both sides in order to make a more informed decision. Dilution is indeed an issue, although I do not believe that this will be too much of a headwind, since PLTR's business growth easily outpaces dilution and since dilution, overall, should slow down over the years. Government reliance will wane over the years due to an above-average commercial business growth rate, and in general, doing business with the government is not a bad thing anyway. The claim that PLTR lacks scalability seems to be false, from what I see in PLTR's data.\nPalantir is, despite these arguments, attractive, I believe: The company is growing rapidly, has decades-long growth potential in both its government business as well as on the commercial side, and Palantir seems to have a very wide moat. This combination could turn Palantir into one of the largest and most important companies eventually -- although investors shouldn't expect this to happen in the very near term. Instead, I believe that there is a good chance that Palantir will grow at a considerable rate throughout the 2020s and beyond, as our world becomes ever more data-hungry -- both governments, as well as enterprises, will try to get the most value out of all of this data, and Palantir, with its tailored solutions, will be there to offer that value to its customers. With new tools such as the recently-showcased Foundry for crypto, Palantir is at the forefront of all kinds of emerging technologies. Thanks to the fact that Palantir has access to top talent -- the result of SBC and of an excellent working environment-- I believe that there is a good chance that Palantir will be able to be highly competitive in all kinds of future markets in the Big Data/AI space that may not even exist yet.\nTakeaway\nIn general, I am not much of a growth investor -- instead, I primarily focus on attractively priced stocks with strong cash flows, oftentimes those that pay dividends. Palantir, however, is somewhat of an outlier in my portfolio -- it's a growth stock, it is not really profitable yet, and most of its potential is years away. Due to the highly attractive combination of a massive market opportunity, excellent talent, and a wide moat, Palantir still seems like an attractive long-term investment to me. This isn't a stock that will make investors rich quickly, but I believe that there is a very good chance that Palantir will turn into a very dominant, important company over the next 10+ years. At 19x next year's revenue, PLTR is not cheap, but when we expect that the company will grow at a strong rate for many years, that also doesn't seem outlandish to me at all. It makes sense to listen to the bears' arguments, but I believe that the pros outweigh the cons here.","news_type":1},"isVote":1,"tweetType":1,"viewCount":539,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":693408072,"gmtCreate":1640055730812,"gmtModify":1640057456895,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/693408072","repostId":"1129749044","repostType":2,"repost":{"id":"1129749044","pubTimestamp":1640052616,"share":"https://www.laohu8.com/m/news/1129749044?lang=&edition=full","pubTime":"2021-12-21 10:10","market":"us","language":"en","title":"PLTR Stock Alert: 5 Things to Know About Palantir’s Latest Partnership","url":"https://stock-news.laohu8.com/highlight/detail?id=1129749044","media":"InvestorPlace","summary":"Despite announcing a new multi-year partnership with Dewpoint Therapeutics, shares of Palantir Techn","content":"<p>Despite announcing a new&nbsp;multi-year partnership&nbsp;with&nbsp;<b>Dewpoint Therapeutics</b>, shares of&nbsp;<b>Palantir Technologies</b>(NYSE:<b><u>PLTR</u></b>) are down more than 4% on the day. The weakness in PLTR stock can be attributed to general market weakness, as the&nbsp;<b>S&amp;P 500</b>&nbsp;and&nbsp;<b>Nasdaq</b>&nbsp;are both down today. However, let’s dive into the details on the new partnership that has shareholders of PLTR stock excited.</p>\n<p>The partnership will see Dewpoint utilize Palantir’s Foundry platform to further research and understand condensates biology. The Foundry platform will help researchers analyze lab data and other data sources. Researchers at Dewpoint will also use Foundry to store their centralized knowledge repository. Additionally, they will use it to contextualize test results and prioritize the best possible outcome.</p>\n<p>Lalarukh Haris Shaikh, Palantir’s head of biotech, praised the partnership. She commented:</p>\n<blockquote>\n “We think Dewpoint is changing the way the world approaches drug design by exploring new frontiers of disease biology, requiring a game changing solution that goes beyond just cloud and infrastructure to drive their R&amp;D and scale with their vision as they grow. We are proud to partner with Dewpoint and share their passion of working on one of the most exciting translational medicine approaches of our time.”\n</blockquote>\n<p>PLTR Stock: What to Know About the Dewpoint Partnership</p>\n<ol>\n <li>Dewpoint is a leading research company that seeks to understand the nature of condensates in order to develop drugs. Condensates are involved in many serious diseases, such as cancer, metabolic disease and other rare genetic disorders.</li>\n <li>The Foundry platform is designed to integrate siloed information sources that will lead to data-driven analysis and conclusions. Foundry will be able to “work seamlessly” with the existing Dewpoint systems.</li>\n <li>For example, the expansion of Dewpoint’s data foundation to include “advanced genetic analysis for disease association and correlation with condensate content” will help the company discover potential medical breakthroughs.</li>\n <li>Dewpoint CEO Ameet Nathwani is looking forward to the prospects that Foundry can bring to the company. He stated that, “Key to our approach has been creating a seamless connection between our wet-lab and dry-lab capabilities, with machine learning and AI at the center. Foundry has provided us with a solid foundation for us to fully connect and operationalize our entire lab to enterprise and enable the discovery and development of new drugs.”</li>\n <li>This partnership comes after Palantir announced that they had won a&nbsp;second option year&nbsp;with the U.S. Army. Indeed, that deal is worth $116.3 million.</li>\n</ol>","source":"lsy1606302653667","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>PLTR Stock Alert: 5 Things to Know About Palantir’s Latest Partnership</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPLTR Stock Alert: 5 Things to Know About Palantir’s Latest Partnership\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-21 10:10 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/2021/12/pltr-stock-alert-5-things-to-know-about-palantirs-latest-partnership/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Despite announcing a new multi-year partnership with Dewpoint Therapeutics, shares of Palantir Technologies(NYSE:PLTR) are down more than 4% on the day. The weakness in PLTR stock can be attributed to...</p>\n\n<a href=\"https://investorplace.com/2021/12/pltr-stock-alert-5-things-to-know-about-palantirs-latest-partnership/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://investorplace.com/2021/12/pltr-stock-alert-5-things-to-know-about-palantirs-latest-partnership/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1129749044","content_text":"Despite announcing a new multi-year partnership with Dewpoint Therapeutics, shares of Palantir Technologies(NYSE:PLTR) are down more than 4% on the day. The weakness in PLTR stock can be attributed to general market weakness, as the S&P 500 and Nasdaq are both down today. However, let’s dive into the details on the new partnership that has shareholders of PLTR stock excited.\nThe partnership will see Dewpoint utilize Palantir’s Foundry platform to further research and understand condensates biology. The Foundry platform will help researchers analyze lab data and other data sources. Researchers at Dewpoint will also use Foundry to store their centralized knowledge repository. Additionally, they will use it to contextualize test results and prioritize the best possible outcome.\nLalarukh Haris Shaikh, Palantir’s head of biotech, praised the partnership. She commented:\n\n “We think Dewpoint is changing the way the world approaches drug design by exploring new frontiers of disease biology, requiring a game changing solution that goes beyond just cloud and infrastructure to drive their R&D and scale with their vision as they grow. We are proud to partner with Dewpoint and share their passion of working on one of the most exciting translational medicine approaches of our time.”\n\nPLTR Stock: What to Know About the Dewpoint Partnership\n\nDewpoint is a leading research company that seeks to understand the nature of condensates in order to develop drugs. Condensates are involved in many serious diseases, such as cancer, metabolic disease and other rare genetic disorders.\nThe Foundry platform is designed to integrate siloed information sources that will lead to data-driven analysis and conclusions. Foundry will be able to “work seamlessly” with the existing Dewpoint systems.\nFor example, the expansion of Dewpoint’s data foundation to include “advanced genetic analysis for disease association and correlation with condensate content” will help the company discover potential medical breakthroughs.\nDewpoint CEO Ameet Nathwani is looking forward to the prospects that Foundry can bring to the company. He stated that, “Key to our approach has been creating a seamless connection between our wet-lab and dry-lab capabilities, with machine learning and AI at the center. Foundry has provided us with a solid foundation for us to fully connect and operationalize our entire lab to enterprise and enable the discovery and development of new drugs.”\nThis partnership comes after Palantir announced that they had won a second option year with the U.S. Army. Indeed, that deal is worth $116.3 million.","news_type":1},"isVote":1,"tweetType":1,"viewCount":203,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":693825733,"gmtCreate":1640004693660,"gmtModify":1640004693801,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/693825733","repostId":"2192962184","repostType":2,"repost":{"id":"2192962184","pubTimestamp":1640004360,"share":"https://www.laohu8.com/m/news/2192962184?lang=&edition=full","pubTime":"2021-12-20 20:46","market":"us","language":"en","title":"Palantir and Dewpoint Therapeutics Announce Strategic Partnership","url":"https://stock-news.laohu8.com/highlight/detail?id=2192962184","media":"Business Wire","summary":"DENVER & BOSTON, December 20, 2021--(BUSINESS WIRE)--Palantir Technologies Inc. (NYSE: PLTR), a lead","content":"<p><b>DENVER &amp; BOSTON, December 20, 2021</b>--(BUSINESS WIRE)--<a href=\"https://laohu8.com/S/PLTR\">Palantir Technologies Inc.</a> (NYSE: PLTR), a leading builder of operating systems for the modern enterprise, and Dewpoint Therapeutics (\"Dewpoint\"), the leading biomolecular condensates company, today announced a partnership for Palantir’s Foundry platform to help power Dewpoint’s efforts to discover treatments and cures for the most challenging diseases.</p>\n<p>Palantir Foundry will help to enable researchers at Dewpoint to further their understanding of condensates biology by analyzing lab data along with other data sources, including data from the published literature and databases, to identify new compounds and therapeutic approaches.</p>\n<p>Dewpoint will also use Foundry as the primary platform for its centralized knowledge repository, helping it contextualize its experimental results and prioritize the most viable outcomes. This multi-year agreement marks <a href=\"https://laohu8.com/S/AONE.U\">one</a> of Palantir’s most comprehensive partnerships with a biotechnology company.</p>\n<p>Palantir Foundry is designed to integrate disparate and siloed information sources to lead to data-driven analysis and decision making. It allows users to track lineage across systems, making it particularly suited for work in life sciences and the biotechnology sector, where data sources come from several unique and separate systems.</p>\n<p>At Dewpoint, Foundry will be able to work seamlessly with the existing systems in its laboratories to provide researchers with a comprehensive foundation for exploration and analysis.</p>\n<p>\"We think Dewpoint is changing the way the world approaches drug design by exploring new frontiers of disease biology, requiring a game changing solution that goes beyond just cloud and infrastructure to drive their R&amp;D and scale with their vision as they grow,\" said Lalarukh Haris Shaikh, Palantir’s Head of Biotech. \"We are proud to partner with Dewpoint and share their passion of working on one of the most exciting translational medicine approaches of our time.\"</p>\n<p>Foundry will help researchers make decisions around compound and target viability and streamline experiments and automate analysis by creating a digital twin of the research environment. One concrete example of Foundry’s use at Dewpoint Therapeutics is the expansion of the data foundation to include advanced genetic analysis for disease association and correlation with condensate content, empowering future discoveries.</p>\n<p>\"Key to our approach has been creating a seamless connection between our wet-lab and dry-lab capabilities, with machine learning and AI at the center. Foundry has provided us with a solid foundation for us to fully connect and operationalize our entire lab to enterprise and enable the discovery and development of new drugs,\" said Dewpoint CEO Ameet Nathwani.</p>\n<p><b>About Biomolecular Condensates</b></p>\n<p>Biomolecular condensates, formed through a process called phase separation, are membraneless droplets inside cells that facilitate molecular interactions and help cells perform vital functions. Condensates have been shown to play a critical role in key biological processes and in serious, intractable diseases across areas including neurodegeneration, cancer, inflammation, infectious disease, metabolic disease, and rare genetic disorders. The first condensates were observed more than 100 years ago. It is only in the last dozen years, though, that scientists—including Dewpoint founders Tony Hyman of the Max Planck Institute in Dresden and Rick Young of the Whitehead Institute—have begun to understand the dynamic nature and function of condensates. Dewpoint develops drugs that exploit this biology.</p>\n<p><b>About Dewpoint Therapeutics</b></p>\n<p>Dewpoint Therapeutics is the first company to apply the emerging understanding of biomolecular condensates to drug discovery. Dewpoint believes that a vast range of conditions have pathways that are regulated by condensates or arise from the dysfunction of condensates — including cancer, neurodegeneration, infectious disease, and metabolic disease. Dewpoint scientists work in Boston, Dresden, and Berlin to translate condensate biology into treatments for the toughest diseases. Learn more at dewpointx.com, and follow us on <a href=\"https://laohu8.com/S/TWTR\">Twitter</a> and LinkedIn.</p>\n<p><b>About Palantir Technologies Inc.</b></p>\n<p>Palantir Technologies Inc. builds and deploys operating systems for the modern enterprise. Additional information is available at https://www.palantir.com.</p>","source":"yahoofinance","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Palantir and Dewpoint Therapeutics Announce Strategic Partnership</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPalantir and Dewpoint Therapeutics Announce Strategic Partnership\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-20 20:46 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/palantir-dewpoint-therapeutics-announce-strategic-115900746.html><strong>Business Wire</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>DENVER & BOSTON, December 20, 2021--(BUSINESS WIRE)--Palantir Technologies Inc. (NYSE: PLTR), a leading builder of operating systems for the modern enterprise, and Dewpoint Therapeutics (\"Dewpoint\"), ...</p>\n\n<a href=\"https://finance.yahoo.com/news/palantir-dewpoint-therapeutics-announce-strategic-115900746.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4023":"应用软件","PLTR":"Palantir Technologies Inc.","BK4543":"AI","BK4547":"WSB热门概念"},"source_url":"https://finance.yahoo.com/news/palantir-dewpoint-therapeutics-announce-strategic-115900746.html","is_english":true,"share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","article_id":"2192962184","content_text":"DENVER & BOSTON, December 20, 2021--(BUSINESS WIRE)--Palantir Technologies Inc. (NYSE: PLTR), a leading builder of operating systems for the modern enterprise, and Dewpoint Therapeutics (\"Dewpoint\"), the leading biomolecular condensates company, today announced a partnership for Palantir’s Foundry platform to help power Dewpoint’s efforts to discover treatments and cures for the most challenging diseases.\nPalantir Foundry will help to enable researchers at Dewpoint to further their understanding of condensates biology by analyzing lab data along with other data sources, including data from the published literature and databases, to identify new compounds and therapeutic approaches.\nDewpoint will also use Foundry as the primary platform for its centralized knowledge repository, helping it contextualize its experimental results and prioritize the most viable outcomes. This multi-year agreement marks one of Palantir’s most comprehensive partnerships with a biotechnology company.\nPalantir Foundry is designed to integrate disparate and siloed information sources to lead to data-driven analysis and decision making. It allows users to track lineage across systems, making it particularly suited for work in life sciences and the biotechnology sector, where data sources come from several unique and separate systems.\nAt Dewpoint, Foundry will be able to work seamlessly with the existing systems in its laboratories to provide researchers with a comprehensive foundation for exploration and analysis.\n\"We think Dewpoint is changing the way the world approaches drug design by exploring new frontiers of disease biology, requiring a game changing solution that goes beyond just cloud and infrastructure to drive their R&D and scale with their vision as they grow,\" said Lalarukh Haris Shaikh, Palantir’s Head of Biotech. \"We are proud to partner with Dewpoint and share their passion of working on one of the most exciting translational medicine approaches of our time.\"\nFoundry will help researchers make decisions around compound and target viability and streamline experiments and automate analysis by creating a digital twin of the research environment. One concrete example of Foundry’s use at Dewpoint Therapeutics is the expansion of the data foundation to include advanced genetic analysis for disease association and correlation with condensate content, empowering future discoveries.\n\"Key to our approach has been creating a seamless connection between our wet-lab and dry-lab capabilities, with machine learning and AI at the center. Foundry has provided us with a solid foundation for us to fully connect and operationalize our entire lab to enterprise and enable the discovery and development of new drugs,\" said Dewpoint CEO Ameet Nathwani.\nAbout Biomolecular Condensates\nBiomolecular condensates, formed through a process called phase separation, are membraneless droplets inside cells that facilitate molecular interactions and help cells perform vital functions. Condensates have been shown to play a critical role in key biological processes and in serious, intractable diseases across areas including neurodegeneration, cancer, inflammation, infectious disease, metabolic disease, and rare genetic disorders. The first condensates were observed more than 100 years ago. It is only in the last dozen years, though, that scientists—including Dewpoint founders Tony Hyman of the Max Planck Institute in Dresden and Rick Young of the Whitehead Institute—have begun to understand the dynamic nature and function of condensates. Dewpoint develops drugs that exploit this biology.\nAbout Dewpoint Therapeutics\nDewpoint Therapeutics is the first company to apply the emerging understanding of biomolecular condensates to drug discovery. Dewpoint believes that a vast range of conditions have pathways that are regulated by condensates or arise from the dysfunction of condensates — including cancer, neurodegeneration, infectious disease, and metabolic disease. Dewpoint scientists work in Boston, Dresden, and Berlin to translate condensate biology into treatments for the toughest diseases. Learn more at dewpointx.com, and follow us on Twitter and LinkedIn.\nAbout Palantir Technologies Inc.\nPalantir Technologies Inc. builds and deploys operating systems for the modern enterprise. Additional information is available at https://www.palantir.com.","news_type":1},"isVote":1,"tweetType":1,"viewCount":359,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":607361668,"gmtCreate":1639491150271,"gmtModify":1639491150340,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/607361668","repostId":"1163753909","repostType":2,"repost":{"id":"1163753909","pubTimestamp":1639365199,"share":"https://www.laohu8.com/m/news/1163753909?lang=&edition=full","pubTime":"2021-12-13 11:13","market":"us","language":"en","title":"Palantir Has Now Entered A New Dimension","url":"https://stock-news.laohu8.com/highlight/detail?id=1163753909","media":"Seeking Alpha","summary":"Summary\n\nPalantir recently launched Foundry for Crypto to empower the future of finance.\nPalantir no","content":"<p><b>Summary</b></p>\n<ul>\n <li>Palantir recently launched Foundry for Crypto to empower the future of finance.</li>\n <li>Palantir now has the opportunity to leverage its platform's connective tissue to track the flow of funds within decentralized finance applications.</li>\n <li>Palantir's worked with the IRS since 2013 and prior to the release of Foundry, Gotham was deployed for large financial institutions.</li>\n <li>In today's article, I will highlight Palantir's roots that lead back to PayPal as well as Palantir's opportunity within fintech.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/b19fbe474b2b948c1dd476507722b776\" tg-width=\"1536\" tg-height=\"864\" width=\"100%\" height=\"auto\"><span>Olemedia/E+ via Getty Images</span></p>\n<p><b>Investment Thesis</b></p>\n<p>When it comes to Palantir (PLTR), most investors are excited by its government business as well as its opportunity in the commercial sector with Foundry for Builders. Today, ~60% of Palantir's business stems from the government, while the other portion comes from the commercial sector. Palantir's platform is known for its artificial intelligence (AI) and deep data insights that provide its customers with critical information to help maximize their profits. Palantir's solutions are built around \"mission-driven engineering\" to integrate information from siloed and unstructured data sets. In this article, we'll explore Palantir's roots that go back to the payments industry and PayPal.</p>\n<p>PayPal and Palantir co-founder Peter Thiel approached fellow Palantir co-founder, Stephen Cohen, in 2004 and told him about his idea for Palantir, here's what he envisioned.</p>\n<blockquote>\n Let's take some of the ideas from the PayPal Anti-Fraud platform and let's try to generalize them to solve the country's counterterrorism problem. And we'll start by selling it directly to the U.S. Government.\n</blockquote>\n<blockquote>\n And while we're at it, let's solve the generalized enterprise information management platforms that are out there. Let's help big enterprises use a Silicon Valley approach to understanding their data.\"-Stephen Cohen, 2013\n</blockquote>\n<p>Five years ago, a quarter of Palantir's business stemmed from the financial sector - while Palantir's connection to the fintech may not be clear on the surface, the company has a significant opportunity to deploy its AI, specifically Foundry, for fintech applications whether that's current banks or fintech companies such as Elementus, a blockchain analytics platform. Palantir currently serves the IRS and the current banking infrastructure as well as future innovative payment technologies such as cryptocurrencies and smart contracts.</p>\n<p><b>Deep Roots In Payments</b></p>\n<p>Much of the Palantir \"DNA\" and culture is replicated from PayPal. Palantir's core technology was also inspired by PayPal, specifically PayPal's Anti-Fraud platform. Peter Thiel co-founded PayPal with Max Levchin and would later go on to co-find Palantir along with Nathan Gettings, Palantir's first chief technology officer, who was an engineer at PayPal where he worked closely with Levchin fighting payment fraud. This PayPal Anti-Fraud framework would go on to provide the fundamental building blocks for Palantir's first initiative to fight counterterrorism.</p>\n<p>Palantir deploys technology within the government that is similar to what it deploys for large financial institutions. The challenges that financial institutions must overcome are similar to those faced in the government context because there are many data sources and many systems that feed input into the financial service sector as well as the government sector. Palantir uses deep data analytics to identify patterns and trends within this information to help its customers manage risk and execute their plans to better navigate complex environments that are constantly changing.</p>\n<p>In 2016, about 25% of Palantir's business came from the financial sector as Palantir deployed its Gotham Platform to investigate fraud for large institutions, as reported in its S1. Palantir works with a lot of banks and replaced legacy technology that's been around for over 30 years. For example, Credit Suisse has used Palantir since 2013 to analyze risks and detect fraud using data from more than a&nbsp;hundred&nbsp;systems across their operations.</p>\n<p>Palantir seeks to become the central operating system for&nbsp;entire industries&nbsp;rather than just a singular customer and Palantir sees an opportunity to create similar industry-wide partnerships within the financial services industry as it has within the U.S. government and aviation industry. Palantir's consistently winning government contracts while Palantir partnered with Airbus(OTCPK:EADSF)&nbsp;to launch&nbsp;SkyWise&nbsp;in 2017 and now works with over 100 airlines.</p>\n<p>Significant Opportunity At Hand</p>\n<p>On November 23, Palantir launched Foundry for Crypto, which will leverage Foundry's defined data integration to automatically build data pipelines and convert unorganized data into a transparent hub.</p>\n<p>Foundry for Crypto will enable Web3 startups to leverage the technology that financial institutions use to fight crime. With the current digital transformation underway and the rise of cryptocurrencies and blockchain technologies, Palantir leverages its data expertise to power the next generation of finance software.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/3f2a3fb5ad32eff1f464c225cc4b1f1c\" tg-width=\"1280\" tg-height=\"621\" width=\"100%\" height=\"auto\"><span>Source: Offerings | Crypto</span></p>\n<p>As indicated above, Palantir is chain-agnostic, meaning that Palantir works with multiple blockchains. Palantir integrates transaction data as well as smart contract data which will enable Palantir to leverage the core competencies of its AI and data analysis to provide its KYC (Know-Your-Customer) insights. For example, if somebody were to make a transaction using cryptocurrency from a non-custodial wallet, then it'd typically be a challenge to decipher KYC information from that wallet since the blockchain itself is encrypted and decentralized. Palantir traces the assets in a non-custodial wallet and tracks where the assets were transferred from. This allows Palantir to locate the exchange the asset was originally transferred from and then Palantir can track customer data from the crypto exchange where the asset was purchased, like Coinbase.</p>\n<p>The example above highlights how Palantir digs deep and scrapes the data from the blockchain to learn about a specific individual. This goes a long way in validating secure transactions as Palantir identifies malicious transactions on the blockchain, based on the transaction's location and specific properties. Companies that want to accept cryptocurrencies need secure solutions while they also want to gather insights around their customers to propel their businesses. BNPL companies, like Affirm, which was started by Max Levchin and Nathan Gettings, use advanced risk modeling (also referred to as AI) to offer consumers more fair credit assessments because BNPL companies have access to essential data from both the merchant and the consumer. Palantir could leverage its AI and data insights to help its customers better understand their clientele to offer targeted marketing campaigns or help them identify opportunities that will decrease expenses.</p>\n<p>Foundry for Crypto is still in its early adoption stage as it was recently rolled out and Palantir has multiple opportunities to implement this platform in a variety of industries as payment technology continues to evolve and will reshape the current payments landscape.</p>\n<p>Smart contracts are another significant opportunity for Palantir. Smart contracts are a set of protocols that are validated and carried out on the flow of data, meaning that once the contract is fulfilled, the data will indicate the contract is satisfied and ensure that the liable party transfers the agreed-upon funds. Palantir has a great opportunity to play a role in the facilitation of data within smart contracts while removing the costs of working with third networks and banks.</p>\n<p>One of Palantir's SPAC investments, BlackSky, deploys Foundry and processes real-time satellite imagery to monitor events taking place on Earth. For example, BlackSky can detect if the shipment has been delivered since BlackSky's satellites take images multiple times throughout the day. BlackSky monitors data and information that can only be processed through imagery and is the custodian of monitoring these actions and generating these actions into data points, so that they can inform smart contracts as to whether or not the contract was satisfied. This is a great example of how Palantir's customers may leverage Foundry to process information relating to digital assets and new digital protocols.</p>\n<p><b>The Government's Implemented Palantir's \"FinTech\" Solution Since 2013</b></p>\n<p>The IRS started working with Palantir in 2013 and Palantir continues to land and expand its partnership with the IRS as it's been awarded nearly $20 million from them over the last 12 months.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/e748221a3ed9fc319e2be6ebf40a8e95\" tg-width=\"956\" tg-height=\"524\" width=\"100%\" height=\"auto\"><span>Source: USAspending.gov</span></p>\n<p>In May, the IRS launched \"Operation Hidden Gem\", which is an initiative to focus on taxpayers who don't report cryptocurrencies gains. Carolyn Schenck, National Fraud Counsel for the IRS, recently had the&nbsp;following&nbsp;in regards to cryptocurrencies.</p>\n<blockquote>\n These transactions are not anonymous, we see you.\"\n</blockquote>\n<p>Another issue around crypto fraud, which Palantir's AML is designed to detect, is similar to PayPal's Anti-Fraud platform. The IRS recently revealed in its annual report that it seized&nbsp;$3.5 billion&nbsp;so far this year from cryptocurrency-related fraud. Palantir enables the IRS with the solutions that decipher criminal financial schemes and analyzes a variety of data sources in real-time. In the past, Palantir allowed the IRS to track the flow of funds or the flow of assets. For example, if someone were to transfer assets to a bank in the Cayman Islands and then withdraw the cash in the U.S. and use it for a&nbsp;down payment&nbsp;on something like an additional property, Palantir's deep data analysis will connect this information that's siloed, and present it to the IRS so that they can handle the specific situations accordingly.</p>\n<p>Based on Palantir's recent launch of Foundry for Crypto, Palantir could already be using its platform to provide real value for the U.S. government. As more information moves online and it becomes more complex to track complex digital assets, Palantir's technology remains one step ahead of trends when it comes to AI. Palantir continuously creates out-of-the-box solutions for the government, it then filters for commercial use cases.</p>\n<p>Now, let's use the L.A. Valuation Stevens Model to provide an updated fair value, then discuss risks associated with Palantir's entrance into crypto.</p>\n<p><b>Valuation</b></p>\n<p>Palantir continues to land new commercial clients and demonstrate the value of its platform through strong quarterly results. In Q3, Palantir grew its commercial customer count by 46% quarter-over-quarter to over 200 customers. Below are some of Palantir's notable financial metrics.</p>\n<ul>\n <li><p>$1.43B in TTM revenue</p></li>\n <li><p>77% gross profit margins</p></li>\n <li><p>$120 billion TAM</p></li>\n</ul>\n<p><b>Palantir's Fair Value And Expected Return</b></p>\n<p>To determine Palantir's fair value, we will employ our proprietary valuation model. Here's what it entails:</p>\n<ul>\n <li><p>In step 1, we use a traditional DCF model with free cash flow discounted by our (shareholders) cost of capital.</p></li>\n <li><p>In step 2, the model accounts for the effects of the change in shares outstanding (buybacks/dilutions).</p></li>\n <li><p>In step 3, we normalize valuation for future growth prospects at the end of the ten years. Then, we arrive at a CAGR using today's share price and the projected share price at the end of 10 years. If this beats the market by enough of a margin, we invest. If not, we wait for a better entry point.</p></li>\n</ul>\n<p>Assumptions:</p>\n<p><img src=\"https://static.tigerbbs.com/5f1499608f487046f492724343ce6250\" tg-width=\"934\" tg-height=\"572\" width=\"100%\" height=\"auto\"></p>\n<p>Results:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/cad4b65a88b3612deb98a837e64a5193\" tg-width=\"738\" tg-height=\"912\" width=\"100%\" height=\"auto\"><span>Source: L.A. Stevens Valuation Model</span></p>\n<p>Based on conservative estimates, Palantir is worth ~$31 today when accounting for future dilution, hence Palantir is significantly undervalued.</p>\n<p>In order for us to determine if Palantir is worth an investment today, we'll project the expected return for Palantir over the next 10 years at today's price. To calculate the total expected return for the next decade, we grow the above free cash flow per share at our conservative growth rate, then assign a conservative Price-to-FCF multiple (35x) to it for year ten. Thereby, we create a conservative intrinsic value projection (2031 price target), by which we determine the 10-yr expected CAGR returns. If these returns beat our hurdle rate of 15%, we buy, else we wait for a better buying opportunity.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/dc7e1db2ce3e749cd8088652a7029424\" tg-width=\"736\" tg-height=\"534\" width=\"100%\" height=\"auto\"><span>Source: L.A. Stevens Valuation Model</span></p>\n<p>Palantir is expected to generate ~20% annualized returns over the next 10 years, therefore, now is an ideal time to add to a position or start one. Palantir's expected to beat our 15% hurdle rate by a wide margin, hence I rate Palantir a strong buy around $20.</p>\n<p><b>Risks</b></p>\n<ul>\n <li><p><i>There are unforeseen risks given that cryptocurrency is a relatively new technology and there is uncertainty around future regulation.</i></p></li>\n</ul>\n<p>Palantir faces competition from both large incumbent tech companies such as Amazon(NASDAQ:AMZN)&nbsp;as well as startups such as Chainalysis. Palantir needs to offer solutions that generate alpha in digital environments that leverage future technological innovations. Chainalysis is a fintech startup that offers KYC and AML automated transaction monitoring on multiple blockchains, similar to Foundry for Crypto. Chainalysis raised $100 million this summer at a $4.2&nbsp;billion valuation and operates in over 60 countries. On the other side of the spectrum are the large tech giants such as Amazon, which started offering the Amazon Managed Blockchain service in 2018, which makes it easy to utilize blockchains such as Ethereum.</p>\n<p>The intersection of digital payments resembles a large opportunity as the banks and card networks have incredibly large networks developed at scale. This results in a fintech landscape that is ripe for innovation and it will be increasingly more competitive, as the top 250 fintech unicorns have raised over $73&nbsp;billion since 2016. Palantir will rely on developing the next wave of AI solutions when it comes to payments, by deploying them for the government to create the core technology and then filtering the solution for the commercial sector.</p>\n<p><b>Conclusion</b></p>\n<p>Palantir is at the forefront of the digital transformation underway as its platform is the connective tissue for modern organizations to generate insights from many sources of information. In regard to payments and fintech, Palantir has deep roots that link back to the early days of PayPal as Palantir's targeted the large financial institutions since the early 2010s. Palantir continues to expand its platform to apply its deep data insights to information within decentralized finance applications like smart contracts. Palantir's well-positioned to leverage its platform to connect the data from these blockchain applications and with its AI expertise to enable its customers to offer innovative fintech solutions.</p>\n<p>I've been bullish on Palantir over the past year and trading below $20, Palantir represents an attractive price for long-term investors given that Palantir is a generational company and has strong ties to PayPal's early days. I rate Palantir a strong buy at $20.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Palantir Has Now Entered A New Dimension</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPalantir Has Now Entered A New Dimension\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-13 11:13 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4474525-palantir-stock-foundry-for-crypto-fintech-opportunity><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nPalantir recently launched Foundry for Crypto to empower the future of finance.\nPalantir now has the opportunity to leverage its platform's connective tissue to track the flow of funds within...</p>\n\n<a href=\"https://seekingalpha.com/article/4474525-palantir-stock-foundry-for-crypto-fintech-opportunity\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4474525-palantir-stock-foundry-for-crypto-fintech-opportunity","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1163753909","content_text":"Summary\n\nPalantir recently launched Foundry for Crypto to empower the future of finance.\nPalantir now has the opportunity to leverage its platform's connective tissue to track the flow of funds within decentralized finance applications.\nPalantir's worked with the IRS since 2013 and prior to the release of Foundry, Gotham was deployed for large financial institutions.\nIn today's article, I will highlight Palantir's roots that lead back to PayPal as well as Palantir's opportunity within fintech.\n\nOlemedia/E+ via Getty Images\nInvestment Thesis\nWhen it comes to Palantir (PLTR), most investors are excited by its government business as well as its opportunity in the commercial sector with Foundry for Builders. Today, ~60% of Palantir's business stems from the government, while the other portion comes from the commercial sector. Palantir's platform is known for its artificial intelligence (AI) and deep data insights that provide its customers with critical information to help maximize their profits. Palantir's solutions are built around \"mission-driven engineering\" to integrate information from siloed and unstructured data sets. In this article, we'll explore Palantir's roots that go back to the payments industry and PayPal.\nPayPal and Palantir co-founder Peter Thiel approached fellow Palantir co-founder, Stephen Cohen, in 2004 and told him about his idea for Palantir, here's what he envisioned.\n\n Let's take some of the ideas from the PayPal Anti-Fraud platform and let's try to generalize them to solve the country's counterterrorism problem. And we'll start by selling it directly to the U.S. Government.\n\n\n And while we're at it, let's solve the generalized enterprise information management platforms that are out there. Let's help big enterprises use a Silicon Valley approach to understanding their data.\"-Stephen Cohen, 2013\n\nFive years ago, a quarter of Palantir's business stemmed from the financial sector - while Palantir's connection to the fintech may not be clear on the surface, the company has a significant opportunity to deploy its AI, specifically Foundry, for fintech applications whether that's current banks or fintech companies such as Elementus, a blockchain analytics platform. Palantir currently serves the IRS and the current banking infrastructure as well as future innovative payment technologies such as cryptocurrencies and smart contracts.\nDeep Roots In Payments\nMuch of the Palantir \"DNA\" and culture is replicated from PayPal. Palantir's core technology was also inspired by PayPal, specifically PayPal's Anti-Fraud platform. Peter Thiel co-founded PayPal with Max Levchin and would later go on to co-find Palantir along with Nathan Gettings, Palantir's first chief technology officer, who was an engineer at PayPal where he worked closely with Levchin fighting payment fraud. This PayPal Anti-Fraud framework would go on to provide the fundamental building blocks for Palantir's first initiative to fight counterterrorism.\nPalantir deploys technology within the government that is similar to what it deploys for large financial institutions. The challenges that financial institutions must overcome are similar to those faced in the government context because there are many data sources and many systems that feed input into the financial service sector as well as the government sector. Palantir uses deep data analytics to identify patterns and trends within this information to help its customers manage risk and execute their plans to better navigate complex environments that are constantly changing.\nIn 2016, about 25% of Palantir's business came from the financial sector as Palantir deployed its Gotham Platform to investigate fraud for large institutions, as reported in its S1. Palantir works with a lot of banks and replaced legacy technology that's been around for over 30 years. For example, Credit Suisse has used Palantir since 2013 to analyze risks and detect fraud using data from more than a hundred systems across their operations.\nPalantir seeks to become the central operating system for entire industries rather than just a singular customer and Palantir sees an opportunity to create similar industry-wide partnerships within the financial services industry as it has within the U.S. government and aviation industry. Palantir's consistently winning government contracts while Palantir partnered with Airbus(OTCPK:EADSF) to launch SkyWise in 2017 and now works with over 100 airlines.\nSignificant Opportunity At Hand\nOn November 23, Palantir launched Foundry for Crypto, which will leverage Foundry's defined data integration to automatically build data pipelines and convert unorganized data into a transparent hub.\nFoundry for Crypto will enable Web3 startups to leverage the technology that financial institutions use to fight crime. With the current digital transformation underway and the rise of cryptocurrencies and blockchain technologies, Palantir leverages its data expertise to power the next generation of finance software.\nSource: Offerings | Crypto\nAs indicated above, Palantir is chain-agnostic, meaning that Palantir works with multiple blockchains. Palantir integrates transaction data as well as smart contract data which will enable Palantir to leverage the core competencies of its AI and data analysis to provide its KYC (Know-Your-Customer) insights. For example, if somebody were to make a transaction using cryptocurrency from a non-custodial wallet, then it'd typically be a challenge to decipher KYC information from that wallet since the blockchain itself is encrypted and decentralized. Palantir traces the assets in a non-custodial wallet and tracks where the assets were transferred from. This allows Palantir to locate the exchange the asset was originally transferred from and then Palantir can track customer data from the crypto exchange where the asset was purchased, like Coinbase.\nThe example above highlights how Palantir digs deep and scrapes the data from the blockchain to learn about a specific individual. This goes a long way in validating secure transactions as Palantir identifies malicious transactions on the blockchain, based on the transaction's location and specific properties. Companies that want to accept cryptocurrencies need secure solutions while they also want to gather insights around their customers to propel their businesses. BNPL companies, like Affirm, which was started by Max Levchin and Nathan Gettings, use advanced risk modeling (also referred to as AI) to offer consumers more fair credit assessments because BNPL companies have access to essential data from both the merchant and the consumer. Palantir could leverage its AI and data insights to help its customers better understand their clientele to offer targeted marketing campaigns or help them identify opportunities that will decrease expenses.\nFoundry for Crypto is still in its early adoption stage as it was recently rolled out and Palantir has multiple opportunities to implement this platform in a variety of industries as payment technology continues to evolve and will reshape the current payments landscape.\nSmart contracts are another significant opportunity for Palantir. Smart contracts are a set of protocols that are validated and carried out on the flow of data, meaning that once the contract is fulfilled, the data will indicate the contract is satisfied and ensure that the liable party transfers the agreed-upon funds. Palantir has a great opportunity to play a role in the facilitation of data within smart contracts while removing the costs of working with third networks and banks.\nOne of Palantir's SPAC investments, BlackSky, deploys Foundry and processes real-time satellite imagery to monitor events taking place on Earth. For example, BlackSky can detect if the shipment has been delivered since BlackSky's satellites take images multiple times throughout the day. BlackSky monitors data and information that can only be processed through imagery and is the custodian of monitoring these actions and generating these actions into data points, so that they can inform smart contracts as to whether or not the contract was satisfied. This is a great example of how Palantir's customers may leverage Foundry to process information relating to digital assets and new digital protocols.\nThe Government's Implemented Palantir's \"FinTech\" Solution Since 2013\nThe IRS started working with Palantir in 2013 and Palantir continues to land and expand its partnership with the IRS as it's been awarded nearly $20 million from them over the last 12 months.\nSource: USAspending.gov\nIn May, the IRS launched \"Operation Hidden Gem\", which is an initiative to focus on taxpayers who don't report cryptocurrencies gains. Carolyn Schenck, National Fraud Counsel for the IRS, recently had the following in regards to cryptocurrencies.\n\n These transactions are not anonymous, we see you.\"\n\nAnother issue around crypto fraud, which Palantir's AML is designed to detect, is similar to PayPal's Anti-Fraud platform. The IRS recently revealed in its annual report that it seized $3.5 billion so far this year from cryptocurrency-related fraud. Palantir enables the IRS with the solutions that decipher criminal financial schemes and analyzes a variety of data sources in real-time. In the past, Palantir allowed the IRS to track the flow of funds or the flow of assets. For example, if someone were to transfer assets to a bank in the Cayman Islands and then withdraw the cash in the U.S. and use it for a down payment on something like an additional property, Palantir's deep data analysis will connect this information that's siloed, and present it to the IRS so that they can handle the specific situations accordingly.\nBased on Palantir's recent launch of Foundry for Crypto, Palantir could already be using its platform to provide real value for the U.S. government. As more information moves online and it becomes more complex to track complex digital assets, Palantir's technology remains one step ahead of trends when it comes to AI. Palantir continuously creates out-of-the-box solutions for the government, it then filters for commercial use cases.\nNow, let's use the L.A. Valuation Stevens Model to provide an updated fair value, then discuss risks associated with Palantir's entrance into crypto.\nValuation\nPalantir continues to land new commercial clients and demonstrate the value of its platform through strong quarterly results. In Q3, Palantir grew its commercial customer count by 46% quarter-over-quarter to over 200 customers. Below are some of Palantir's notable financial metrics.\n\n$1.43B in TTM revenue\n77% gross profit margins\n$120 billion TAM\n\nPalantir's Fair Value And Expected Return\nTo determine Palantir's fair value, we will employ our proprietary valuation model. Here's what it entails:\n\nIn step 1, we use a traditional DCF model with free cash flow discounted by our (shareholders) cost of capital.\nIn step 2, the model accounts for the effects of the change in shares outstanding (buybacks/dilutions).\nIn step 3, we normalize valuation for future growth prospects at the end of the ten years. Then, we arrive at a CAGR using today's share price and the projected share price at the end of 10 years. If this beats the market by enough of a margin, we invest. If not, we wait for a better entry point.\n\nAssumptions:\n\nResults:\nSource: L.A. Stevens Valuation Model\nBased on conservative estimates, Palantir is worth ~$31 today when accounting for future dilution, hence Palantir is significantly undervalued.\nIn order for us to determine if Palantir is worth an investment today, we'll project the expected return for Palantir over the next 10 years at today's price. To calculate the total expected return for the next decade, we grow the above free cash flow per share at our conservative growth rate, then assign a conservative Price-to-FCF multiple (35x) to it for year ten. Thereby, we create a conservative intrinsic value projection (2031 price target), by which we determine the 10-yr expected CAGR returns. If these returns beat our hurdle rate of 15%, we buy, else we wait for a better buying opportunity.\nSource: L.A. Stevens Valuation Model\nPalantir is expected to generate ~20% annualized returns over the next 10 years, therefore, now is an ideal time to add to a position or start one. Palantir's expected to beat our 15% hurdle rate by a wide margin, hence I rate Palantir a strong buy around $20.\nRisks\n\nThere are unforeseen risks given that cryptocurrency is a relatively new technology and there is uncertainty around future regulation.\n\nPalantir faces competition from both large incumbent tech companies such as Amazon(NASDAQ:AMZN) as well as startups such as Chainalysis. Palantir needs to offer solutions that generate alpha in digital environments that leverage future technological innovations. Chainalysis is a fintech startup that offers KYC and AML automated transaction monitoring on multiple blockchains, similar to Foundry for Crypto. Chainalysis raised $100 million this summer at a $4.2 billion valuation and operates in over 60 countries. On the other side of the spectrum are the large tech giants such as Amazon, which started offering the Amazon Managed Blockchain service in 2018, which makes it easy to utilize blockchains such as Ethereum.\nThe intersection of digital payments resembles a large opportunity as the banks and card networks have incredibly large networks developed at scale. This results in a fintech landscape that is ripe for innovation and it will be increasingly more competitive, as the top 250 fintech unicorns have raised over $73 billion since 2016. Palantir will rely on developing the next wave of AI solutions when it comes to payments, by deploying them for the government to create the core technology and then filtering the solution for the commercial sector.\nConclusion\nPalantir is at the forefront of the digital transformation underway as its platform is the connective tissue for modern organizations to generate insights from many sources of information. In regard to payments and fintech, Palantir has deep roots that link back to the early days of PayPal as Palantir's targeted the large financial institutions since the early 2010s. Palantir continues to expand its platform to apply its deep data insights to information within decentralized finance applications like smart contracts. Palantir's well-positioned to leverage its platform to connect the data from these blockchain applications and with its AI expertise to enable its customers to offer innovative fintech solutions.\nI've been bullish on Palantir over the past year and trading below $20, Palantir represents an attractive price for long-term investors given that Palantir is a generational company and has strong ties to PayPal's early days. I rate Palantir a strong buy at $20.","news_type":1},"isVote":1,"tweetType":1,"viewCount":349,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":602458124,"gmtCreate":1639060710629,"gmtModify":1639061401350,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/602458124","repostId":"2190661222","repostType":2,"isVote":1,"tweetType":1,"viewCount":293,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":602219137,"gmtCreate":1639024802530,"gmtModify":1639024818177,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/602219137","repostId":"2189695656","repostType":2,"isVote":1,"tweetType":1,"viewCount":189,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":609196585,"gmtCreate":1638248367607,"gmtModify":1638248367607,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/609196585","repostId":"1176733072","repostType":2,"repost":{"id":"1176733072","pubTimestamp":1638228196,"share":"https://www.laohu8.com/m/news/1176733072?lang=&edition=full","pubTime":"2021-11-30 07:23","market":"us","language":"en","title":"Musk highlights 'supply chain nightmare' in tweet","url":"https://stock-news.laohu8.com/highlight/detail?id=1176733072","media":"Reuters","summary":"Tesla Inc(TSLA.O)Chief Elon Musk on Monday pointed to the challenges stemming from supply chain prob","content":"<p>Tesla Inc(TSLA.O)Chief Elon Musk on Monday pointed to the challenges stemming from supply chain problems on Cybertruck's production, even though the company has so far avoided a major hit from the crisis that has plagued the global auto industry.</p>\n<p>\"Oh man, this year has been such a supply chain nightmare &amp; it's not over!\" Musk said in atweeton Monday,in response to a Twitter users' request on a Cybertruck update.</p>\n<p>\"I will provide an updated product roadmap on next earnings call,\" he added.</p>\n<p>Musk said during Tesla's earnings call in July that he would not necessarily be present at such future events, unless he had something really important to say, indicating that he may have an update on Cybertruck and the company's other products.</p>\n<p>Tesla unveiled the futuristic electric pick-up truck in 2019 that is made of stainless steel used in rockets. Musk has touted receiving several hundred thousand orders for the Cybertruck when preorders were opened.</p>\n<p>At a shareholder meeting in October, Musk said Cybertruck production will begin next year and reach volume production in 2023.</p>\n<p>Tesla shares closed up 5% at $1136.99 on Monday.</p>","source":"lsy1601381805984","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Musk highlights 'supply chain nightmare' in tweet</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMusk highlights 'supply chain nightmare' in tweet\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-11-30 07:23 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.reuters.com/business/autos-transportation/musk-says-he-will-provide-update-tesla-cybertruck-earnings-call-2021-11-29/><strong>Reuters</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Tesla Inc(TSLA.O)Chief Elon Musk on Monday pointed to the challenges stemming from supply chain problems on Cybertruck's production, even though the company has so far avoided a major hit from the ...</p>\n\n<a href=\"https://www.reuters.com/business/autos-transportation/musk-says-he-will-provide-update-tesla-cybertruck-earnings-call-2021-11-29/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TSLA":"特斯拉"},"source_url":"https://www.reuters.com/business/autos-transportation/musk-says-he-will-provide-update-tesla-cybertruck-earnings-call-2021-11-29/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1176733072","content_text":"Tesla Inc(TSLA.O)Chief Elon Musk on Monday pointed to the challenges stemming from supply chain problems on Cybertruck's production, even though the company has so far avoided a major hit from the crisis that has plagued the global auto industry.\n\"Oh man, this year has been such a supply chain nightmare & it's not over!\" Musk said in atweeton Monday,in response to a Twitter users' request on a Cybertruck update.\n\"I will provide an updated product roadmap on next earnings call,\" he added.\nMusk said during Tesla's earnings call in July that he would not necessarily be present at such future events, unless he had something really important to say, indicating that he may have an update on Cybertruck and the company's other products.\nTesla unveiled the futuristic electric pick-up truck in 2019 that is made of stainless steel used in rockets. Musk has touted receiving several hundred thousand orders for the Cybertruck when preorders were opened.\nAt a shareholder meeting in October, Musk said Cybertruck production will begin next year and reach volume production in 2023.\nTesla shares closed up 5% at $1136.99 on Monday.","news_type":1},"isVote":1,"tweetType":1,"viewCount":663,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":609198830,"gmtCreate":1638248186567,"gmtModify":1638248186567,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/609198830","repostId":"2187305682","repostType":2,"isVote":1,"tweetType":1,"viewCount":218,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":600398381,"gmtCreate":1638064112088,"gmtModify":1638064112178,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/600398381","repostId":"2186347077","repostType":2,"isVote":1,"tweetType":1,"viewCount":92,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":600398019,"gmtCreate":1638064090856,"gmtModify":1638064090856,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/600398019","repostId":"2186632846","repostType":2,"isVote":1,"tweetType":1,"viewCount":141,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":877420726,"gmtCreate":1637974463071,"gmtModify":1637974463122,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/877420726","repostId":"1180819201","repostType":2,"repost":{"id":"1180819201","pubTimestamp":1637970255,"share":"https://www.laohu8.com/m/news/1180819201?lang=&edition=full","pubTime":"2021-11-27 07:44","market":"us","language":"en","title":"Tesla Withdraws Application For $1.3B In German Subsidies","url":"https://stock-news.laohu8.com/highlight/detail?id=1180819201","media":"Benzinga","summary":"Tesla, Inc. has opted to forgo subsidies from the German government even as it pushes ahead to exped","content":"<p><b>Tesla, Inc.</b>&nbsp;has opted to forgo subsidies from the German government even as it pushes ahead to expedite the opening of its&nbsp;Giga Berlin.</p>\n<p><b>What Happened:</b>Tesla has told German authorities that it will not avail of the 1.14 billion euros ($1.3 billion) of state aid for its planned battery production facility in Grünheide, a municipality in the Oder-Spree District, in Brandenburg, which is situated 30 kilometers south-east of Berlin, a German news agency reported, citing the country's Federal Ministry of Economics.</p>\n<p>\"Tesla continues to stick to its plans for the battery factory in the Gigafactory Berlin-Brandenburg, but will do without state IPCEI funding,\" a spokesperson to the ministry reportedly said, confirming the withdrawal of the application for funding by Tesla. Later, Tesla's&nbsp;<b>Elon Musk</b>&nbsp;confirmed the same by replying to the report shared by a Twitter user. It has always been Tesla's view that all subsidies should be eliminated, he said.</p>","source":"lsy1606299360108","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Tesla Withdraws Application For $1.3B In German Subsidies</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTesla Withdraws Application For $1.3B In German Subsidies\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-11-27 07:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.benzinga.com/news/21/11/24311712/tesla-withdraws-application-for-1-3b-in-german-subsidies><strong>Benzinga</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Tesla, Inc. has opted to forgo subsidies from the German government even as it pushes ahead to expedite the opening of its Giga Berlin.\nWhat Happened:Tesla has told German authorities that it will not...</p>\n\n<a href=\"https://www.benzinga.com/news/21/11/24311712/tesla-withdraws-application-for-1-3b-in-german-subsidies\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TSLA":"特斯拉"},"source_url":"https://www.benzinga.com/news/21/11/24311712/tesla-withdraws-application-for-1-3b-in-german-subsidies","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1180819201","content_text":"Tesla, Inc. has opted to forgo subsidies from the German government even as it pushes ahead to expedite the opening of its Giga Berlin.\nWhat Happened:Tesla has told German authorities that it will not avail of the 1.14 billion euros ($1.3 billion) of state aid for its planned battery production facility in Grünheide, a municipality in the Oder-Spree District, in Brandenburg, which is situated 30 kilometers south-east of Berlin, a German news agency reported, citing the country's Federal Ministry of Economics.\n\"Tesla continues to stick to its plans for the battery factory in the Gigafactory Berlin-Brandenburg, but will do without state IPCEI funding,\" a spokesperson to the ministry reportedly said, confirming the withdrawal of the application for funding by Tesla. Later, Tesla's Elon Musk confirmed the same by replying to the report shared by a Twitter user. It has always been Tesla's view that all subsidies should be eliminated, he said.","news_type":1},"isVote":1,"tweetType":1,"viewCount":81,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":877420364,"gmtCreate":1637974409610,"gmtModify":1637974409610,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/877420364","repostId":"1133450259","repostType":2,"repost":{"id":"1133450259","pubTimestamp":1637724451,"share":"https://www.laohu8.com/m/news/1133450259?lang=&edition=full","pubTime":"2021-11-24 11:27","market":"us","language":"en","title":"Palantir Stock: A Fairy-Tale Valuation","url":"https://stock-news.laohu8.com/highlight/detail?id=1133450259","media":"Seeking Alpha","summary":"Summary\n\nPalantir’s valuation is impossible to defend.\nPalantir will remain dependent on government ","content":"<p><b>Summary</b></p>\n<ul>\n <li>Palantir’s valuation is impossible to defend.</li>\n <li>Palantir will remain dependent on government for income.</li>\n <li>The private sector opportunity is over-hyped.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/02d7c2e5739d48a7457788f40f66148c\" tg-width=\"1536\" tg-height=\"1024\" width=\"100%\" height=\"auto\"><span>Michael Vi/iStock Editorial via Getty Images</span></p>\n<p>Palantir (PLTR) is a software business with one of the most ridiculous values in the stock market today. Palantir has developed into a valuation that neither makes sense nor is supported by concrete business results, despite its growth opportunity in AI-assisted software analytics.</p>\n<p><b>Palantir: Heavily Dependent On Government</b></p>\n<p>Palantir must be one of the most overvalued stocks in history because it ticks all the conditions. Palantir manages to trade at a market value of $43 billion by specializing in surveillance, big data, and having the US government as a client. After the company issued its shares on the exchange through a direct listing, its market value was significantly larger than $43 billion. Insiders of a corporation sell shares while the company receives no money in a direct listing.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/bd2709688f9042bf5fcce1709d8d33b4\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"><span>Data by YCharts</span></p>\n<p>Instead, an IPO raises funds to invest in the company. Roughly a year ago, Palantir’s shares started trading at $10 a share. The stock, and the market capitalization, have proven highly volatile, as the stock price surged as high as $45. PLTR has since settled for a trading range of $20 - $30 and the company, as well as its business model, continues to attract a great deal of interest and attention.</p>\n<p><b>Palantir Has One Of The Best Features A Stock Can Have: A Sexy Story!</b></p>\n<p>Palantir is right in the thick of a massive money-making opportunity: big data analytics. Information, or data, is a valuable commodity, and the ever-increasing speed with which businesses are embracing full digital transformation makes for a compelling story. Palantir's principal business is to assist organizations, particularly governments, in sifting through massive volumes of data in order to forecast and enhance decision-making. In the corporate realm, this can mean increasing conversions, whereas in government, it might mean supporting public health measures or assisting the US military in dealing with bad guys.</p>\n<p>Palantir is collaborating closely with the US government in a number of ways, and in exchange, Palantir is getting a lot of federal cheese. The company recently obtained an&nbsp;$823&nbsp;million deal with the US military to assist in the development of data architecture for intelligence systems.</p>\n<p>Palantir's revenue is rapidly increasing, but keep in mind that the company is primarily reliant on governments. Revenues from government bodies have increased by 57% year-to-date, to $658.4 million. Revenues from companies were reported as $450.6 million, compared to $350.3 million a year ago. Relative revenue contributions of the government and the private sector were 59% and 41% and last year, 55% and 45%. These percentages tell an important story deserving to be clarified, as they contradict the prevailing narrative.</p>\n<p>The prevailing narrative is that Palantir will move away from the government business and generate significant growth in the private sector. Expanding on the above-mentioned percentages, Palantir’s reliance on government has increased in 9M 2021, compared to 9M 2020, and government revenues are growing at a much faster rate than revenues sourced from the private sector.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/94983df06a9f7beac6c9efc9b601d5de\" tg-width=\"640\" tg-height=\"103\" width=\"100%\" height=\"auto\"><span>Source: Palantir</span></p>\n<p><b>Persistent Losses Despite Soaring Revenues</b></p>\n<p>Palantir's long-term growth possibility in big data is frequently mentioned in bullish analysis, and with good cause. We've all learnt this through the rise of Metaverse Platforms (FB), which was one of the first corporations to collect massive amounts of data in order to monetize its customers. Palantir does have attractive growth prospects: It just reported that 3Q revenues were up 36% to $392 million, and the company expects an annual revenue growth rate of 40% for the year. The company has also stated that it expects at least 30% revenue growth from this year until 2025. While I do not contest that Palantir has potential for revenue growth, there are concerns I think are inadequately reflected in the company’s valuation.</p>\n<p>One anticipated issue is that, while Palantir may be experiencing considerable revenue growth, how much of that increase actually reaches Palantir's shareholders? The answer, not a lot. Reviewing the last filing of financial statements, we can see that despite an eye-popping sales increase of 44% year-to-date, Palantir is not anywhere close to generating profits. Losses in 3Q were $102.1 million and the loss year-to-date is $364.2 million.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/b3cd7fa51065ca16c4f29735f97f885a\" tg-width=\"640\" tg-height=\"322\" width=\"100%\" height=\"auto\"><span>Source: Palantir</span></p>\n<p>Palantir's lack of profitability is a major issue, and I keep asking myself, \"How long will shareholders tolerate Palantir losing so much money every quarter?\"</p>\n<p>The fact that Palantir is not a startup adds to my concerns (which would be a feasible justification for losing so much money). Palantir, on the other hand, which was formed nearly two decades ago and has raised an estimated $2.6 billion in funding, continues to lose money. This is a track record that I find difficult to justify, particularly given Palantir's present multiple.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8aeae26e41a3e34c539c821ce941d1a8\" tg-width=\"640\" tg-height=\"240\" width=\"100%\" height=\"auto\"><span>Source: Crunchbase</span></p>\n<p><b>What Are You Paying For, Exactly?</b></p>\n<p>Palantir is doing an excellent job of presenting its potential, and the stock has a growth stock feel to it.</p>\n<p>But since profits are not showing up on the profit statement after nearly two decades of operations, why exactly are investors paying a multiple of 28? Not even Netflix (NFLX) gets a multiple of 20 and it has been one of the fastest growing companies not only in the U.S., but in the world over the past two decades. The multiple is very hard to defend and not fitting for a company that is growing sales quickly.</p>\n<p>On that note, Palantir isn’t exactly doubling sales every year. A 30% growth rate is good, but not impressive. And why would anyone want to overpay for Palantir’s sales growth, if competitors such as Splunk (SPLK) can be acquired for far lower sales multiples?</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/6bebcab5d6bcfef1fa26b4e3a5c9ad27\" tg-width=\"635\" tg-height=\"433\" width=\"100%\" height=\"auto\"><span>Data by YCharts</span></p>\n<p><b>A Few Words on Risks</b></p>\n<p>Palantir is growing revenues at around 30% annually, but if this growth can be maintained over the long term is another question. Also, can Palantir really turn a profit in the future, and if so, when? Why Palantir receives such a high multiple is beyond me. The big data company is one of the most overvalued and overhyped I've ever seen, which is why I consider Palantir's biggest risk as the excessively inflated multiple.</p>\n<p><b>My Conclusion</b></p>\n<p>It's absurd to pay 28 times revenues for a company that is losing money. The potential for revenue growth is undeniable; after all, big data is big business. However, after two decades of operations, shareholders should be able to expect a little more from Palantir, particularly management, in the form of profits or stock buybacks, or something similar. Palantir has done a fantastic job benefiting its selling shareholders, yet there is no deal to be had because there are no earnings. Palantir's valuation is a fairy tale, and like all fairy tales, it ends in a nasty awakening.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Palantir Stock: A Fairy-Tale Valuation</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPalantir Stock: A Fairy-Tale Valuation\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-11-24 11:27 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4471364-palantir-stock-fairy-tale-valuation><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nPalantir’s valuation is impossible to defend.\nPalantir will remain dependent on government for income.\nThe private sector opportunity is over-hyped.\n\nMichael Vi/iStock Editorial via Getty ...</p>\n\n<a href=\"https://seekingalpha.com/article/4471364-palantir-stock-fairy-tale-valuation\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4471364-palantir-stock-fairy-tale-valuation","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1133450259","content_text":"Summary\n\nPalantir’s valuation is impossible to defend.\nPalantir will remain dependent on government for income.\nThe private sector opportunity is over-hyped.\n\nMichael Vi/iStock Editorial via Getty Images\nPalantir (PLTR) is a software business with one of the most ridiculous values in the stock market today. Palantir has developed into a valuation that neither makes sense nor is supported by concrete business results, despite its growth opportunity in AI-assisted software analytics.\nPalantir: Heavily Dependent On Government\nPalantir must be one of the most overvalued stocks in history because it ticks all the conditions. Palantir manages to trade at a market value of $43 billion by specializing in surveillance, big data, and having the US government as a client. After the company issued its shares on the exchange through a direct listing, its market value was significantly larger than $43 billion. Insiders of a corporation sell shares while the company receives no money in a direct listing.\nData by YCharts\nInstead, an IPO raises funds to invest in the company. Roughly a year ago, Palantir’s shares started trading at $10 a share. The stock, and the market capitalization, have proven highly volatile, as the stock price surged as high as $45. PLTR has since settled for a trading range of $20 - $30 and the company, as well as its business model, continues to attract a great deal of interest and attention.\nPalantir Has One Of The Best Features A Stock Can Have: A Sexy Story!\nPalantir is right in the thick of a massive money-making opportunity: big data analytics. Information, or data, is a valuable commodity, and the ever-increasing speed with which businesses are embracing full digital transformation makes for a compelling story. Palantir's principal business is to assist organizations, particularly governments, in sifting through massive volumes of data in order to forecast and enhance decision-making. In the corporate realm, this can mean increasing conversions, whereas in government, it might mean supporting public health measures or assisting the US military in dealing with bad guys.\nPalantir is collaborating closely with the US government in a number of ways, and in exchange, Palantir is getting a lot of federal cheese. The company recently obtained an $823 million deal with the US military to assist in the development of data architecture for intelligence systems.\nPalantir's revenue is rapidly increasing, but keep in mind that the company is primarily reliant on governments. Revenues from government bodies have increased by 57% year-to-date, to $658.4 million. Revenues from companies were reported as $450.6 million, compared to $350.3 million a year ago. Relative revenue contributions of the government and the private sector were 59% and 41% and last year, 55% and 45%. These percentages tell an important story deserving to be clarified, as they contradict the prevailing narrative.\nThe prevailing narrative is that Palantir will move away from the government business and generate significant growth in the private sector. Expanding on the above-mentioned percentages, Palantir’s reliance on government has increased in 9M 2021, compared to 9M 2020, and government revenues are growing at a much faster rate than revenues sourced from the private sector.\nSource: Palantir\nPersistent Losses Despite Soaring Revenues\nPalantir's long-term growth possibility in big data is frequently mentioned in bullish analysis, and with good cause. We've all learnt this through the rise of Metaverse Platforms (FB), which was one of the first corporations to collect massive amounts of data in order to monetize its customers. Palantir does have attractive growth prospects: It just reported that 3Q revenues were up 36% to $392 million, and the company expects an annual revenue growth rate of 40% for the year. The company has also stated that it expects at least 30% revenue growth from this year until 2025. While I do not contest that Palantir has potential for revenue growth, there are concerns I think are inadequately reflected in the company’s valuation.\nOne anticipated issue is that, while Palantir may be experiencing considerable revenue growth, how much of that increase actually reaches Palantir's shareholders? The answer, not a lot. Reviewing the last filing of financial statements, we can see that despite an eye-popping sales increase of 44% year-to-date, Palantir is not anywhere close to generating profits. Losses in 3Q were $102.1 million and the loss year-to-date is $364.2 million.\nSource: Palantir\nPalantir's lack of profitability is a major issue, and I keep asking myself, \"How long will shareholders tolerate Palantir losing so much money every quarter?\"\nThe fact that Palantir is not a startup adds to my concerns (which would be a feasible justification for losing so much money). Palantir, on the other hand, which was formed nearly two decades ago and has raised an estimated $2.6 billion in funding, continues to lose money. This is a track record that I find difficult to justify, particularly given Palantir's present multiple.\nSource: Crunchbase\nWhat Are You Paying For, Exactly?\nPalantir is doing an excellent job of presenting its potential, and the stock has a growth stock feel to it.\nBut since profits are not showing up on the profit statement after nearly two decades of operations, why exactly are investors paying a multiple of 28? Not even Netflix (NFLX) gets a multiple of 20 and it has been one of the fastest growing companies not only in the U.S., but in the world over the past two decades. The multiple is very hard to defend and not fitting for a company that is growing sales quickly.\nOn that note, Palantir isn’t exactly doubling sales every year. A 30% growth rate is good, but not impressive. And why would anyone want to overpay for Palantir’s sales growth, if competitors such as Splunk (SPLK) can be acquired for far lower sales multiples?\nData by YCharts\nA Few Words on Risks\nPalantir is growing revenues at around 30% annually, but if this growth can be maintained over the long term is another question. Also, can Palantir really turn a profit in the future, and if so, when? Why Palantir receives such a high multiple is beyond me. The big data company is one of the most overvalued and overhyped I've ever seen, which is why I consider Palantir's biggest risk as the excessively inflated multiple.\nMy Conclusion\nIt's absurd to pay 28 times revenues for a company that is losing money. The potential for revenue growth is undeniable; after all, big data is big business. However, after two decades of operations, shareholders should be able to expect a little more from Palantir, particularly management, in the form of profits or stock buybacks, or something similar. Palantir has done a fantastic job benefiting its selling shareholders, yet there is no deal to be had because there are no earnings. Palantir's valuation is a fairy tale, and like all fairy tales, it ends in a nasty awakening.","news_type":1},"isVote":1,"tweetType":1,"viewCount":45,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":877464421,"gmtCreate":1637974280877,"gmtModify":1637974337244,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/877464421","repostId":"2185365359","repostType":2,"isVote":1,"tweetType":1,"viewCount":160,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":877464280,"gmtCreate":1637974259598,"gmtModify":1637974337094,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/877464280","repostId":"2186916023","repostType":2,"repost":{"id":"2186916023","pubTimestamp":1637848500,"share":"https://www.laohu8.com/m/news/2186916023?lang=&edition=full","pubTime":"2021-11-25 21:55","market":"us","language":"en","title":"Will Palantir Be a Trillion-Dollar Stock by 2040?","url":"https://stock-news.laohu8.com/highlight/detail?id=2186916023","media":"Motley Fool","summary":"The data-mining firm has a slim chance of eventually joining the 12-zero club.","content":"<p><b>Palantir Technologies</b> (NYSE:PLTR) has been a volatile and polarizing investment since its direct listing last September. The bulls claimed its data-mining platforms would continue to grow as it signed more government and enterprise contracts.</p>\n<p>The bears pointed out that Palantir was too heavily dependent on government clients, its enterprise business faced too many competitors, it was deeply unprofitable, and its stock was too expensive.</p>\n<p>Palantir's stock price has experienced some wild swings over the past year, but it has still more than doubled since its first trade at $10 per share.</p>\n<p>Today, Palantir is valued at $41.3 billion, or 27 times this year's sales. The bears will argue that the high price-to-sales (P/S) ratio will limit its upside, especially as rising interest rates and inflation make many high-growth tech stocks less attractive.</p>\n<p>But let's look beyond the near-term noise and see if Palantir can still generate big multibagger gains, or even become a trillion-dollar stock, over the next two decades.</p>\n<h2>How fast is Palantir growing?</h2>\n<p>Palantir expects to grow its revenue by at least 30% annually between fiscal 2021 and 2025. That forecast implies its revenue will rise from its target of $1.5 billion this year to at least $4.3 billion in 2025.</p>\n<p>The company expects that growth to be driven by its new and expanded contracts with government agencies, as well as the growth of its Foundry platform for large commercial customers. The accelerating growth of its commercial business over the past year, which notably outpaced the growth of its government business last quarter, supports that thesis.</p>\n<h2>Palantir's path toward a trillion-dollar market cap</h2>\n<p>Palantir hasn't provided any longer-term targets beyond 2025. But based on the growth trajectory of other big data companies like <b><a href=\"https://laohu8.com/S/CRM\">Salesforce</a> </b>(NYSE:CRM), its annual revenue increase could potentially decelerate and stabilize at about 20% over the following 10 years.</p>\n<p>If it hits its target for 2025, then continues to grow its revenue at an average rate of 20% over the following 10 years, it could generate nearly $27 billion in revenue in 2035.</p>\n<p>If Palantir's revenue growth then slows down to 15% per year, which would be more comparable to <b>Microsoft</b>'s (NASDAQ:MSFT) current rate, it could generate over $53 billion in revenue in 2040.</p>\n<p>Assuming the company is still valued at over 20 times sales, its market cap could surpass $1 trillion. But most tech giants that grow their revenue 15% to 25% annually aren't valued at more than 20 times sales.</p>\n<p>Microsoft, which is expected to generate 17% sales growth this year, trades at 13 times that estimate. Salesforce, which is expected to generate 24% sales growth this year, trades at just 11 times this year's sales.</p>\n<p>Therefore, Palantir's market cap could potentially hit $1 trillion by 2040, but it seems highly unlikely. Instead, it will likely be closer to $500 billion (which would still be a 12-bagger gain from its current valuation) if its stock is trading at a more reasonable P/S ratio of 10.</p>\n<h2>Look beyond the market caps</h2>\n<p>Instead of focusing on Palantir's path toward joining the 12-zero club, investors should focus on its ability to generate sustainable growth.</p>\n<p>The company has gained a firm foothold with the U.S. government, but it still faces competition from internally developed systems. Immigration and Customs Enforcement (ICE), for example, has been developing its own platform to replace Palantir's Falcon. If other agencies follow ICE's lead, the company's dream of becoming the \"default operating system for data across the U.S. government\" could abruptly end.</p>\n<p>Palantir is making solid progress in the commercial market, but its Foundry platform still faces plenty of indirect competitors like <b>C3.ai</b>, <b>Salesforce</b>'s Tableau, and Glue from <b>Amazon</b> Web Services.</p>\n<p>The company likely believes its reputation as a battle-hardened platform for the U.S. military and government agencies will attract more enterprise customers. But there's no guarantee that this appeal will last for decades or fend off newer, hungrier, and more disruptive players in the data-mining market.</p>\n<h2>Is Palantir's stock still worth buying?</h2>\n<p>I still believe Palantir's stock is a promising long-term investment on the secular growth of the data-mining and analytics market. However, there's a lot of growth already baked into the stock, and its high valuations could limit its near-term and long-term potential. Palantir probably won't hit a trillion-dollar valuation within the next two decades, but it could still outperform the market and generate impressive multibagger gains.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Will Palantir Be a Trillion-Dollar Stock by 2040?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWill Palantir Be a Trillion-Dollar Stock by 2040?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-11-25 21:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/11/25/will-palantir-be-a-trillion-dollar-stock-by-2040/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Palantir Technologies (NYSE:PLTR) has been a volatile and polarizing investment since its direct listing last September. The bulls claimed its data-mining platforms would continue to grow as it signed...</p>\n\n<a href=\"https://www.fool.com/investing/2021/11/25/will-palantir-be-a-trillion-dollar-stock-by-2040/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://www.fool.com/investing/2021/11/25/will-palantir-be-a-trillion-dollar-stock-by-2040/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2186916023","content_text":"Palantir Technologies (NYSE:PLTR) has been a volatile and polarizing investment since its direct listing last September. The bulls claimed its data-mining platforms would continue to grow as it signed more government and enterprise contracts.\nThe bears pointed out that Palantir was too heavily dependent on government clients, its enterprise business faced too many competitors, it was deeply unprofitable, and its stock was too expensive.\nPalantir's stock price has experienced some wild swings over the past year, but it has still more than doubled since its first trade at $10 per share.\nToday, Palantir is valued at $41.3 billion, or 27 times this year's sales. The bears will argue that the high price-to-sales (P/S) ratio will limit its upside, especially as rising interest rates and inflation make many high-growth tech stocks less attractive.\nBut let's look beyond the near-term noise and see if Palantir can still generate big multibagger gains, or even become a trillion-dollar stock, over the next two decades.\nHow fast is Palantir growing?\nPalantir expects to grow its revenue by at least 30% annually between fiscal 2021 and 2025. That forecast implies its revenue will rise from its target of $1.5 billion this year to at least $4.3 billion in 2025.\nThe company expects that growth to be driven by its new and expanded contracts with government agencies, as well as the growth of its Foundry platform for large commercial customers. The accelerating growth of its commercial business over the past year, which notably outpaced the growth of its government business last quarter, supports that thesis.\nPalantir's path toward a trillion-dollar market cap\nPalantir hasn't provided any longer-term targets beyond 2025. But based on the growth trajectory of other big data companies like Salesforce (NYSE:CRM), its annual revenue increase could potentially decelerate and stabilize at about 20% over the following 10 years.\nIf it hits its target for 2025, then continues to grow its revenue at an average rate of 20% over the following 10 years, it could generate nearly $27 billion in revenue in 2035.\nIf Palantir's revenue growth then slows down to 15% per year, which would be more comparable to Microsoft's (NASDAQ:MSFT) current rate, it could generate over $53 billion in revenue in 2040.\nAssuming the company is still valued at over 20 times sales, its market cap could surpass $1 trillion. But most tech giants that grow their revenue 15% to 25% annually aren't valued at more than 20 times sales.\nMicrosoft, which is expected to generate 17% sales growth this year, trades at 13 times that estimate. Salesforce, which is expected to generate 24% sales growth this year, trades at just 11 times this year's sales.\nTherefore, Palantir's market cap could potentially hit $1 trillion by 2040, but it seems highly unlikely. Instead, it will likely be closer to $500 billion (which would still be a 12-bagger gain from its current valuation) if its stock is trading at a more reasonable P/S ratio of 10.\nLook beyond the market caps\nInstead of focusing on Palantir's path toward joining the 12-zero club, investors should focus on its ability to generate sustainable growth.\nThe company has gained a firm foothold with the U.S. government, but it still faces competition from internally developed systems. Immigration and Customs Enforcement (ICE), for example, has been developing its own platform to replace Palantir's Falcon. If other agencies follow ICE's lead, the company's dream of becoming the \"default operating system for data across the U.S. government\" could abruptly end.\nPalantir is making solid progress in the commercial market, but its Foundry platform still faces plenty of indirect competitors like C3.ai, Salesforce's Tableau, and Glue from Amazon Web Services.\nThe company likely believes its reputation as a battle-hardened platform for the U.S. military and government agencies will attract more enterprise customers. But there's no guarantee that this appeal will last for decades or fend off newer, hungrier, and more disruptive players in the data-mining market.\nIs Palantir's stock still worth buying?\nI still believe Palantir's stock is a promising long-term investment on the secular growth of the data-mining and analytics market. However, there's a lot of growth already baked into the stock, and its high valuations could limit its near-term and long-term potential. Palantir probably won't hit a trillion-dollar valuation within the next two decades, but it could still outperform the market and generate impressive multibagger gains.","news_type":1},"isVote":1,"tweetType":1,"viewCount":144,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":856541053,"gmtCreate":1635204814180,"gmtModify":1635204834026,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/856541053","repostId":"1177255738","repostType":2,"isVote":1,"tweetType":1,"viewCount":289,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":827378032,"gmtCreate":1634428771754,"gmtModify":1634428771873,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/827378032","repostId":"1131725095","repostType":2,"repost":{"id":"1131725095","pubTimestamp":1634201775,"share":"https://www.laohu8.com/m/news/1131725095?lang=&edition=full","pubTime":"2021-10-14 16:56","market":"us","language":"en","title":"Palantir: Strong Upside Ahead","url":"https://stock-news.laohu8.com/highlight/detail?id=1131725095","media":"Seeking Alpha","summary":"Summary\n\nPalantir's growth strategy in the commercial business is bearing fruit, showing that there ","content":"<p><b>Summary</b></p>\n<ul>\n <li>Palantir's growth strategy in the commercial business is bearing fruit, showing that there is a lot of potential to increase its customer base.</li>\n <li>This is a strong support for annual revenue growth of 20-30% in the next four years, justifying its high valuation multiples.</li>\n <li>My price target is $40.75 per share by end-2024, implying more than 70% upside potential over the next three years.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/02d7c2e5739d48a7457788f40f66148c\" tg-width=\"1536\" tg-height=\"1024\" width=\"100%\" height=\"auto\"><span>Michael Vi/iStock Editorial via Getty Images</span></p>\n<p><b>Palantir Technologies</b>(PLTR) is a great growth play with plenty of upside over the next three years, even assuming more conservative assumptions than its own guidance.</p>\n<p><b>Background</b></p>\n<p>I&nbsp;covered Palantir&nbsp;a few months ago, and I’m bullish on its stock as I see the company very well positioned to grow strongly over the medium to long term. This is driven by its software that is quite unique and should lead to strong customer demand over the coming years, as the need to interpret and analyzed big datasets is only expected to rise in the future.</p>\n<p>Nevertheless, there is also a lot of hype about this company and investors should be aware that Palantir is still a small company and its business is in a very early growth phase, thus&nbsp;I don’t see Palantir&nbsp;becoming one of the big tech companies over the next decade.</p>\n<p>This expectation is justified by Palantir’s business model, which is focused on government and large corporate and therefore is not easily scalable. Indeed, the company only had 169 customers at the end of June, a relatively small number of customers due to its historical focus on large clients.</p>\n<p>As I’ve discussed in previous articles, I invest mainly in secular growth companies in a few investing themes, namely semiconductors, electric vehicles, digital payments, 5G and big data. In this last theme, I see Palantir as one of the best picks, and in this article, I do an update on its investment case.</p>\n<p><b>Recent Earnings &amp; Estimates</b></p>\n<p>Since my last article, Palantir has released&nbsp;Q2 2021 earnings, maintain a very good operating momentum. Its revenues in the quarter amounted to $376 million, up by 49% YoY. This strong growth was driven largely by its U.S. commercial business that reported exponential growth, up by 90% YoY.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/f8ee3d7d0ef8a5d56f850d7e219ca013\" tg-width=\"640\" tg-height=\"340\" width=\"100%\" height=\"auto\"><span>Source: Palantir.</span></p>\n<p>This growth rate in Palantir’s commercial business is impressive, but not necessarily unexpected. While Palantir has focused historically on governments and large corporations as its key customers, the company has been changing its strategy and has recruited, in recent months, salespeople to target smaller and medium-sized companies.</p>\n<p>In Q1 2021, Palantir had recruited about 50 dedicated salespeople and this has translated quite rapidly in new customer acquisitions and higher revenue in a relatively short period of time. In Q2, the company added 20 net new customers and total commercial customers increased by 32% QoQ, while in the first six months of the year its commercial customer count increased by 61%. I think this is a strong signal that Palantir offers a good value proposition to customers of different sizes, boding quite well for its growth in the next few years.</p>\n<p>Indeed, Palantir’s edge is to offer a software that is used to analyze big datasets, so that users can make better decisions regarding their needs and projects. Palantir’s software is viewed as a central operating system for customer’s data, which usually can be spread across a large number of teams and departments and possibly in different countries.</p>\n<p>The strong growth reported in the last quarter on the commercial business side is clearly a demonstration that Palantir can leverage its software to a much larger customer base, making me even more bullish as the company can gain a lot of customers both in the U.S. and abroad for years to come.</p>\n<p>This is supported by Palantir’s push to hire more salespeople, with the company hiring 60 additional salespeople in Q2, and more expected until the end of the year. This means that revenue growth in the commercial business is not expected to slow down in the next few quarters, boding very well for overall revenue growth.</p>\n<p>On the government side, Palantir’s revenues increased by 66% YoY in Q2 2021 to $232 million, also a very strong growth rate, and this growth is expected to remain at a strong pace in the near future. For instance, Palantir has recentlybeen selectedby the U.S. Army for the delivery of the Army’s Intelligence data fabric and analytics foundation in a new contract valued at $823 million, for a period of four years, being a good tailwind for revenue growth in coming years.</p>\n<p>Its total commercial revenue increased by 28% YoY to $144 million in Q2 2021, which means that the majority of commercial revenues are generated in international markets and therefore the potential for revenue growth in the U.S. is still largely untapped.</p>\n<p>Beyond revenue growth, Palantir is also improving meaningfully its profitability and has achieved an adjusted operating margin (which excludes stock-based compensation) of 31% in the last quarter, much higher than in Q2 2020. Even though Palantir is not expected to report profits in the short term, from an operating standpoint, it is improving its margins due to a larger scale, showing that its business has operating leverage. As the company gains more customers and increases revenue at a higher rate than expenses, operating margins should continue to rise being a key factor for achieving break-even in the next few years.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7214b3ada30c61fad0ea54b4ca066bb2\" tg-width=\"444\" tg-height=\"453\" width=\"100%\" height=\"auto\"><span>Source: Palantir.</span></p>\n<p>During the first six months of 2021, Palantir’s revenues were up by 49% YoY to $717 million, thus Palantir is on path to generate annual revenues of around $1.4-$1.5 billion in 2021. Current consensus is for $1.51 billion in revenues this year, which seems possible to beat as the company has reported higher growth than was expected in the two previous quarters.</p>\n<p>Regarding its cash flow generation, Palantir is also showing a good performance, given that it has raised its free cash flow guidance to about $300 million in 2021, while previously expecting some $150 million, benefiting from new customers and contracts that have upfront payments. This is supported by its ‘order backlog’, or what the company calls its remaining deal value, which amounted to more than $3.4 billion at the end of June.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/cf2e97080f2de2d05a69d9ac075b6994\" tg-width=\"318\" tg-height=\"262\" width=\"100%\" height=\"auto\"><span>Source: Palantir.</span></p>\n<p>Going forward, Palantir is expected to maintain strong revenue growth, even though it is estimated to drop below +30% YoY in the next couple of years. This may be too conservative, given that Palantir is not showing any signs of slowing down in both the government and commercial businesses, which gives the company a good margin to beat medium-term expectations.</p>\n<p>This provides a strong backdrop for Palantir to achieve annual revenue growth of 30%+ during the next four years and reach its target of $4 billion in revenues by 2025. However, as the company becomes larger I’m expecting lower revenue growth than Palantir’s goal, forecasting annual revenue growth of 20%-25% by 2024 and 2025. Being conservative, this leads to around $3.8 billion in revenue by 2025, slightly lower than the company’s $4 billion goal.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8399716c34af6fc6abd62e9cf7cb59ed\" tg-width=\"494\" tg-height=\"288\" width=\"100%\" height=\"auto\"><span>Source: Bloomberg and author’s calculations.</span></p>\n<p><b>Valuation</b></p>\n<p>As I’ve explained in previous articles, my valuation approach is to look into the next few years of revenues and earnings rather than just focus on this year or the next, to see if the stock has upside potential over a time frame of 2-4 years. Therefore, I’ll use 2025 estimates to see if Palantir is currently undervalued or not, and use its historical valuation based on its revenue multiple as the company is still not profitable in its bottom-line.</p>\n<p>Palantir’s trading history is limited, as the company performed its IPO in 2020, but has traded at about 24x EV/revenues over the past year. Assuming that Palantir will have a slightly lower valuation multiple in the future, as its growth rates decrease in the coming years, I think it is reasonable to assume a 20x EV/revenue multiple by 2024. Note that this is a strong de-rate from its current&nbsp;valuation&nbsp;of close to 30x revenues, hence this seems to be a conservative assumption.</p>\n<p>This methodology gives me a price target of $40.75 by end-2024, implying an upside potential of more than 70% over the next three years. This shows that Palantir has strong upside potential over the next three years and is currently a great play for long-term investors.</p>\n<p><b>Bottom Line</b></p>\n<p>Palantir has very good long-term growth prospects and its recent impressive growth in the U.S. commercial business provides evidence that Palantir is only starting to tap a very large market for the company. I was already bullish on Palantir, but its push for growth in the commercial business was ahead of my expectations, showing that its strategy is right and has a lot of potential to increase its customer base.</p>\n<p>This provides a strong support for annual revenue growth of 20%-30% in the next four years, and being conservative I see plenty of upside in the next few years, making Palantir a great growth play in the big data investment theme.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Palantir: Strong Upside Ahead</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPalantir: Strong Upside Ahead\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-10-14 16:56 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4459749-palantir-strong-upside-ahead><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nPalantir's growth strategy in the commercial business is bearing fruit, showing that there is a lot of potential to increase its customer base.\nThis is a strong support for annual revenue ...</p>\n\n<a href=\"https://seekingalpha.com/article/4459749-palantir-strong-upside-ahead\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4459749-palantir-strong-upside-ahead","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1131725095","content_text":"Summary\n\nPalantir's growth strategy in the commercial business is bearing fruit, showing that there is a lot of potential to increase its customer base.\nThis is a strong support for annual revenue growth of 20-30% in the next four years, justifying its high valuation multiples.\nMy price target is $40.75 per share by end-2024, implying more than 70% upside potential over the next three years.\n\nMichael Vi/iStock Editorial via Getty Images\nPalantir Technologies(PLTR) is a great growth play with plenty of upside over the next three years, even assuming more conservative assumptions than its own guidance.\nBackground\nI covered Palantir a few months ago, and I’m bullish on its stock as I see the company very well positioned to grow strongly over the medium to long term. This is driven by its software that is quite unique and should lead to strong customer demand over the coming years, as the need to interpret and analyzed big datasets is only expected to rise in the future.\nNevertheless, there is also a lot of hype about this company and investors should be aware that Palantir is still a small company and its business is in a very early growth phase, thus I don’t see Palantir becoming one of the big tech companies over the next decade.\nThis expectation is justified by Palantir’s business model, which is focused on government and large corporate and therefore is not easily scalable. Indeed, the company only had 169 customers at the end of June, a relatively small number of customers due to its historical focus on large clients.\nAs I’ve discussed in previous articles, I invest mainly in secular growth companies in a few investing themes, namely semiconductors, electric vehicles, digital payments, 5G and big data. In this last theme, I see Palantir as one of the best picks, and in this article, I do an update on its investment case.\nRecent Earnings & Estimates\nSince my last article, Palantir has released Q2 2021 earnings, maintain a very good operating momentum. Its revenues in the quarter amounted to $376 million, up by 49% YoY. This strong growth was driven largely by its U.S. commercial business that reported exponential growth, up by 90% YoY.\nSource: Palantir.\nThis growth rate in Palantir’s commercial business is impressive, but not necessarily unexpected. While Palantir has focused historically on governments and large corporations as its key customers, the company has been changing its strategy and has recruited, in recent months, salespeople to target smaller and medium-sized companies.\nIn Q1 2021, Palantir had recruited about 50 dedicated salespeople and this has translated quite rapidly in new customer acquisitions and higher revenue in a relatively short period of time. In Q2, the company added 20 net new customers and total commercial customers increased by 32% QoQ, while in the first six months of the year its commercial customer count increased by 61%. I think this is a strong signal that Palantir offers a good value proposition to customers of different sizes, boding quite well for its growth in the next few years.\nIndeed, Palantir’s edge is to offer a software that is used to analyze big datasets, so that users can make better decisions regarding their needs and projects. Palantir’s software is viewed as a central operating system for customer’s data, which usually can be spread across a large number of teams and departments and possibly in different countries.\nThe strong growth reported in the last quarter on the commercial business side is clearly a demonstration that Palantir can leverage its software to a much larger customer base, making me even more bullish as the company can gain a lot of customers both in the U.S. and abroad for years to come.\nThis is supported by Palantir’s push to hire more salespeople, with the company hiring 60 additional salespeople in Q2, and more expected until the end of the year. This means that revenue growth in the commercial business is not expected to slow down in the next few quarters, boding very well for overall revenue growth.\nOn the government side, Palantir’s revenues increased by 66% YoY in Q2 2021 to $232 million, also a very strong growth rate, and this growth is expected to remain at a strong pace in the near future. For instance, Palantir has recentlybeen selectedby the U.S. Army for the delivery of the Army’s Intelligence data fabric and analytics foundation in a new contract valued at $823 million, for a period of four years, being a good tailwind for revenue growth in coming years.\nIts total commercial revenue increased by 28% YoY to $144 million in Q2 2021, which means that the majority of commercial revenues are generated in international markets and therefore the potential for revenue growth in the U.S. is still largely untapped.\nBeyond revenue growth, Palantir is also improving meaningfully its profitability and has achieved an adjusted operating margin (which excludes stock-based compensation) of 31% in the last quarter, much higher than in Q2 2020. Even though Palantir is not expected to report profits in the short term, from an operating standpoint, it is improving its margins due to a larger scale, showing that its business has operating leverage. As the company gains more customers and increases revenue at a higher rate than expenses, operating margins should continue to rise being a key factor for achieving break-even in the next few years.\nSource: Palantir.\nDuring the first six months of 2021, Palantir’s revenues were up by 49% YoY to $717 million, thus Palantir is on path to generate annual revenues of around $1.4-$1.5 billion in 2021. Current consensus is for $1.51 billion in revenues this year, which seems possible to beat as the company has reported higher growth than was expected in the two previous quarters.\nRegarding its cash flow generation, Palantir is also showing a good performance, given that it has raised its free cash flow guidance to about $300 million in 2021, while previously expecting some $150 million, benefiting from new customers and contracts that have upfront payments. This is supported by its ‘order backlog’, or what the company calls its remaining deal value, which amounted to more than $3.4 billion at the end of June.\nSource: Palantir.\nGoing forward, Palantir is expected to maintain strong revenue growth, even though it is estimated to drop below +30% YoY in the next couple of years. This may be too conservative, given that Palantir is not showing any signs of slowing down in both the government and commercial businesses, which gives the company a good margin to beat medium-term expectations.\nThis provides a strong backdrop for Palantir to achieve annual revenue growth of 30%+ during the next four years and reach its target of $4 billion in revenues by 2025. However, as the company becomes larger I’m expecting lower revenue growth than Palantir’s goal, forecasting annual revenue growth of 20%-25% by 2024 and 2025. Being conservative, this leads to around $3.8 billion in revenue by 2025, slightly lower than the company’s $4 billion goal.\nSource: Bloomberg and author’s calculations.\nValuation\nAs I’ve explained in previous articles, my valuation approach is to look into the next few years of revenues and earnings rather than just focus on this year or the next, to see if the stock has upside potential over a time frame of 2-4 years. Therefore, I’ll use 2025 estimates to see if Palantir is currently undervalued or not, and use its historical valuation based on its revenue multiple as the company is still not profitable in its bottom-line.\nPalantir’s trading history is limited, as the company performed its IPO in 2020, but has traded at about 24x EV/revenues over the past year. Assuming that Palantir will have a slightly lower valuation multiple in the future, as its growth rates decrease in the coming years, I think it is reasonable to assume a 20x EV/revenue multiple by 2024. Note that this is a strong de-rate from its current valuation of close to 30x revenues, hence this seems to be a conservative assumption.\nThis methodology gives me a price target of $40.75 by end-2024, implying an upside potential of more than 70% over the next three years. This shows that Palantir has strong upside potential over the next three years and is currently a great play for long-term investors.\nBottom Line\nPalantir has very good long-term growth prospects and its recent impressive growth in the U.S. commercial business provides evidence that Palantir is only starting to tap a very large market for the company. I was already bullish on Palantir, but its push for growth in the commercial business was ahead of my expectations, showing that its strategy is right and has a lot of potential to increase its customer base.\nThis provides a strong support for annual revenue growth of 20%-30% in the next four years, and being conservative I see plenty of upside in the next few years, making Palantir a great growth play in the big data investment theme.","news_type":1},"isVote":1,"tweetType":1,"viewCount":345,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0}],"hots":[{"id":148546503,"gmtCreate":1625994702102,"gmtModify":1631891971339,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Anti-fragile company&nbsp;[财迷]&nbsp;","listText":"Anti-fragile company&nbsp;[财迷]&nbsp;","text":"Anti-fragile company [财迷]","images":[{"img":"https://static.tigerbbs.com/39c6b695368e40c66e85fd46f1bad683","width":"1080","height":"3629"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":2,"repostSize":0,"link":"https://laohu8.com/post/148546503","isVote":1,"tweetType":1,"viewCount":99,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"CN","totalScore":0},{"id":693442532,"gmtCreate":1640070464472,"gmtModify":1640070464472,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/693442532","repostId":"1117226796","repostType":2,"repost":{"id":"1117226796","pubTimestamp":1640057164,"share":"https://www.laohu8.com/m/news/1117226796?lang=&edition=full","pubTime":"2021-12-21 11:26","market":"us","language":"en","title":"Palantir: 3 Reasons Against It And Why It's Still A Buy","url":"https://stock-news.laohu8.com/highlight/detail?id=1117226796","media":"Seeking Alpha","summary":"Summary\n\nPalantir Technologies is a battleground stock. Listening to the bears' arguments is a good ","content":"<p><b>Summary</b></p>\n<ul>\n <li>Palantir Technologies is a battleground stock. Listening to the bears' arguments is a good idea for bulls.</li>\n <li>PLTR dilutes its shareholders, but that is not necessarily a huge problem.</li>\n <li>Despite some interest rate headwinds, PLTR seems like a good investment to me, thanks to a strong moat and great growth outlook.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7230cdd890b86f9941b99b1503d04049\" tg-width=\"1536\" tg-height=\"1044\" width=\"100%\" height=\"auto\"><span>spxChrome/E+ via Getty Images</span></p>\n<p><b>Article Thesis</b></p>\n<p>Palantir Technologies (PLTR) is an embattled growth stock, and in recent weeks, bears have been winning as shares continued to decline. There are, indeed some important bear arguments, such as dilution, reliance on government contracts, and rising interest rates. I do, however, still believe that Palantir Technologies is an attractive long-term investment, due to the act that its technology could lead to massive growth for many years to come.</p>\n<p><b>3 Issues Brought Up By Bears</b></p>\n<p>Palantir is a growth stock that brings out highly convinced bulls as well as highly convinced bears. Generally, I am in the bullish camp here, but taking a look at the bear arguments can be a good idea as well. Three of the most common arguments against Palantir are the following ones:</p>\n<p><b>1. Shareholder Dilution</b></p>\n<p>Growth on a company-wide basis is important, but growth on a per-share basis is even more important. There are many examples that show that changes in a company's share count can create or destroy a lot of shareholder value. Apple (AAPL), for example, has seen its net income grow by roughly 190% over the last decade:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2b5263c8346cfbbb898f1d1ac9a5bead\" tg-width=\"635\" tg-height=\"433\" width=\"100%\" height=\"auto\"><span>Data by YCharts</span></p>\n<p>Thanks to a declining share count, its earnings per share rose by a much more attractive 350%, however -- buybacks created a lot of shareholder value. There are also examples where a rising share count destroyed a lot of shareholder value, e.g. at Citigroup (C):</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/fc39008812f5e2d0082dedc95b025c68\" tg-width=\"635\" tg-height=\"433\" width=\"100%\" height=\"auto\"><span>Data by YCharts</span></p>\n<p>Massive share issuance during the Great Recession has resulted in a 75% earnings per share decline since 2007, even though net profits were up over the same time frame. Looking at the changes in a company's share count thus makes sense, as those changes can have a large impact in the long run. At Palantir, we see that the share count has been rising considerably since the company went public. During the most recent quarter, Palantir's share count looked like this:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/917ca4d7a390ced61d7c92d528f84fc1\" tg-width=\"640\" tg-height=\"539\" width=\"100%\" height=\"auto\"><span>Source: Palantir Press Release</span></p>\n<p>Compared to the second quarter, Palantir's average share count was&nbsp;1.895 billion, which makes for a 3.5% quarterly increase, which pencils out to an annual growth rate in the mid-teens. That is, of course, not negligible at all, and bears to have an argument when they state that shareholders get diluted at a meaningful pace. On the other hand, Palantir's business growth rate is way higher than 3% per quarter, as the company has guided for ~40% revenue growth this year, and since Palantir should also deliver outsized business growth in the coming years. Even if Palantir's share count were to climb by 10%-15% a year going forward, revenue per share would still climb by 25%+ a year thanks to the fact that PLTR is growing rapidly. I also believe that dilution will, over the years, decline. Not only has this been the case at many other growth companies, e.g. Amazon (AMZN), Alphabet (GOOG), or Meta (FB), but it is also logical from an option rewards perspective. Option rewards are especially generous when a company is not yet publicly traded and when its future is still more uncertain, but as a company matures, employees get more comfortable as risks for the company decline, and they do not demand large option packages any longer. Last but not least, Palantir also generates strong free cash flows that should allow the company to do share buybacks in the future, which should help improve the dilution rate as well.</p>\n<p><b>2. Reliance on government contracts</b></p>\n<p>In a recent bearish&nbsp;article, fellow Seeking Alpha contributor On The Pulse argued that Palantir was overvalued and that its reliance on government contracts was an issue. Palantir Technologies is, indeed, reliant on government contracts to a large degree today, but I do not believe that this is a major issue. First, Palantir has diversified away from government contracts in the recent past, thanks to massive growth in its commercial business:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/de23409915ee3811691b986a42ece899\" tg-width=\"640\" tg-height=\"308\" width=\"100%\" height=\"auto\"><span>Source: Palantir Technologies presentation</span></p>\n<p>In fact, Palantir's commercial business has been growing much faster than its government business in the recent past, which shows that commercial customers from all kinds of industries apparently see a lot of value in Palantir's technology -- otherwise, they wouldn't be buying at a rapid pace. With</p>\n<p>With the commercial business growth rate outpacing the government business growth rate, Palantir will, over the years, become a company that is less and less dependent on government contracts, and that will ultimately turn into a B2B-focused software/technology player. Even if Palantir were to remain a government-focused company forever, which seems unlikely based on the current growth rates of the individual business units, that would not necessarily be an issue. Working for the government means that there is very little counterparty risk and that existing relations can easily be used to get future contracts. Last but not least, with government budgets rising relatively steadily, good government connections allow for considerable growth opportunities -- especially in the defense tech/security tech space Palantir is active in, as there is a huge need for further investments in this space.</p>\n<p>The claim that a government focus leads to lacking scalability is also false, I believe. Per Palantir's most recent quarterly report (linked above), its operating expenses rose by $9 million between Q3 2020 and Q3 2021 -- whereas revenues rose by $103 million in the same time frame. This backs out changes in share-based compensation. If one were to include those SBC expenses, Palantir's expenses actually<i>declined</i>year-over-year while the company managed to grow its revenue by close to 40%. The claim that Palantir will not generate any scale advantages over the years thus seems to be unfounded, I believe. Instead, the data suggest that Palantir will be able to grow its margins considerably -- the company was able to grow its adjusted gross profit by a massive $90 million while growing its adjusted operating expenses by just $9 million -- making for excellent operating leverage.</p>\n<p><b>3. Exposure to rising rates</b></p>\n<p>Massive inflation will force the Fed to raise rates in 2022 and beyond, and that could be an issue for growth stocks. Companies that are not profitable today, or that have the vast majority of their profits in the distant future, are more exposed to a rising discount rate compared to companies that have low or no growth and that generate a large amount of all future profits in the near term. This could result in outperformance of value stocks versus growth stocks in the coming years, I believe. Palantir, which is not profitable yet, naturally belongs in the \"growth\" bucket that could see an above-average impact from rising interest rates. There is no real counter-argument here, I believe -- it is indeed true that the impact of rising rates on Palantir, all else equal, will be larger compared to a value stock like AbbVie (ABBV), for example.</p>\n<p>This being an incremental negative for Palantir doesn't mean that shares have to be avoided under any circumstances, however. Indeed, even despite some potential headwinds from rising rates, Palantir could still be an attractive investment if other arguments have a larger weight -- I believe this to be true, as I see PLTR's massive growth potential and huge moat outweighing some near-term headwinds from rising rates.</p>\n<p><b>Why Palantir Is Still Attractive</b></p>\n<p>Bears bring up a range of arguments against Palantir, and as shown above, those can have merit. I believe that they might be overblown in some cases, but taking a look at the bear's arguments doesn't hurt -- in fact, it seems like a good idea to look at both sides in order to make a more informed decision. Dilution is indeed an issue, although I do not believe that this will be too much of a headwind, since PLTR's business growth easily outpaces dilution and since dilution, overall, should slow down over the years. Government reliance will wane over the years due to an above-average commercial business growth rate, and in general, doing business with the government is not a bad thing anyway. The claim that PLTR lacks scalability seems to be false, from what I see in PLTR's data.</p>\n<p>Palantir is, despite these arguments, attractive, I believe: The company is growing rapidly, has decades-long growth potential in both its government business as well as on the commercial side, and Palantir seems to have a very wide moat. This combination could turn Palantir into one of the largest and most important companies eventually -- although investors shouldn't expect this to happen in the very near term. Instead, I believe that there is a good chance that Palantir will grow at a considerable rate throughout the 2020s and beyond, as our world becomes ever more data-hungry -- both governments, as well as enterprises, will try to get the most value out of all of this data, and Palantir, with its tailored solutions, will be there to offer that value to its customers. With new tools such as the recently-showcased&nbsp;Foundry&nbsp;for crypto, Palantir is at the forefront of all kinds of emerging technologies. Thanks to the fact that Palantir has access to top talent -- the result of SBC and of an&nbsp;excellent working environment-- I believe that there is a good chance that Palantir will be able to be highly competitive in all kinds of future markets in the Big Data/AI space that may not even exist yet.</p>\n<p><b>Takeaway</b></p>\n<p>In general, I am not much of a growth investor -- instead, I primarily focus on attractively priced stocks with strong cash flows, oftentimes those that pay dividends. Palantir, however, is somewhat of an outlier in my portfolio -- it's a growth stock, it is not really profitable yet, and most of its potential is years away. Due to the highly attractive combination of a massive market opportunity, excellent talent, and a wide moat, Palantir still seems like an attractive long-term investment to me. This isn't a stock that will make investors rich quickly, but I believe that there is a very good chance that Palantir will turn into a very dominant, important company over the next 10+ years. At 19x next year's revenue, PLTR is not cheap, but when we expect that the company will grow at a strong rate for many years, that also doesn't seem outlandish to me at all. It makes sense to listen to the bears' arguments, but I believe that the pros outweigh the cons here.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Palantir: 3 Reasons Against It And Why It's Still A Buy</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPalantir: 3 Reasons Against It And Why It's Still A Buy\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-21 11:26 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4475960-palantir-3-reasons-against-it-and-why-its-still-a-buy><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nPalantir Technologies is a battleground stock. Listening to the bears' arguments is a good idea for bulls.\nPLTR dilutes its shareholders, but that is not necessarily a huge problem.\nDespite ...</p>\n\n<a href=\"https://seekingalpha.com/article/4475960-palantir-3-reasons-against-it-and-why-its-still-a-buy\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4475960-palantir-3-reasons-against-it-and-why-its-still-a-buy","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1117226796","content_text":"Summary\n\nPalantir Technologies is a battleground stock. Listening to the bears' arguments is a good idea for bulls.\nPLTR dilutes its shareholders, but that is not necessarily a huge problem.\nDespite some interest rate headwinds, PLTR seems like a good investment to me, thanks to a strong moat and great growth outlook.\n\nspxChrome/E+ via Getty Images\nArticle Thesis\nPalantir Technologies (PLTR) is an embattled growth stock, and in recent weeks, bears have been winning as shares continued to decline. There are, indeed some important bear arguments, such as dilution, reliance on government contracts, and rising interest rates. I do, however, still believe that Palantir Technologies is an attractive long-term investment, due to the act that its technology could lead to massive growth for many years to come.\n3 Issues Brought Up By Bears\nPalantir is a growth stock that brings out highly convinced bulls as well as highly convinced bears. Generally, I am in the bullish camp here, but taking a look at the bear arguments can be a good idea as well. Three of the most common arguments against Palantir are the following ones:\n1. Shareholder Dilution\nGrowth on a company-wide basis is important, but growth on a per-share basis is even more important. There are many examples that show that changes in a company's share count can create or destroy a lot of shareholder value. Apple (AAPL), for example, has seen its net income grow by roughly 190% over the last decade:\nData by YCharts\nThanks to a declining share count, its earnings per share rose by a much more attractive 350%, however -- buybacks created a lot of shareholder value. There are also examples where a rising share count destroyed a lot of shareholder value, e.g. at Citigroup (C):\nData by YCharts\nMassive share issuance during the Great Recession has resulted in a 75% earnings per share decline since 2007, even though net profits were up over the same time frame. Looking at the changes in a company's share count thus makes sense, as those changes can have a large impact in the long run. At Palantir, we see that the share count has been rising considerably since the company went public. During the most recent quarter, Palantir's share count looked like this:\nSource: Palantir Press Release\nCompared to the second quarter, Palantir's average share count was 1.895 billion, which makes for a 3.5% quarterly increase, which pencils out to an annual growth rate in the mid-teens. That is, of course, not negligible at all, and bears to have an argument when they state that shareholders get diluted at a meaningful pace. On the other hand, Palantir's business growth rate is way higher than 3% per quarter, as the company has guided for ~40% revenue growth this year, and since Palantir should also deliver outsized business growth in the coming years. Even if Palantir's share count were to climb by 10%-15% a year going forward, revenue per share would still climb by 25%+ a year thanks to the fact that PLTR is growing rapidly. I also believe that dilution will, over the years, decline. Not only has this been the case at many other growth companies, e.g. Amazon (AMZN), Alphabet (GOOG), or Meta (FB), but it is also logical from an option rewards perspective. Option rewards are especially generous when a company is not yet publicly traded and when its future is still more uncertain, but as a company matures, employees get more comfortable as risks for the company decline, and they do not demand large option packages any longer. Last but not least, Palantir also generates strong free cash flows that should allow the company to do share buybacks in the future, which should help improve the dilution rate as well.\n2. Reliance on government contracts\nIn a recent bearish article, fellow Seeking Alpha contributor On The Pulse argued that Palantir was overvalued and that its reliance on government contracts was an issue. Palantir Technologies is, indeed, reliant on government contracts to a large degree today, but I do not believe that this is a major issue. First, Palantir has diversified away from government contracts in the recent past, thanks to massive growth in its commercial business:\nSource: Palantir Technologies presentation\nIn fact, Palantir's commercial business has been growing much faster than its government business in the recent past, which shows that commercial customers from all kinds of industries apparently see a lot of value in Palantir's technology -- otherwise, they wouldn't be buying at a rapid pace. With\nWith the commercial business growth rate outpacing the government business growth rate, Palantir will, over the years, become a company that is less and less dependent on government contracts, and that will ultimately turn into a B2B-focused software/technology player. Even if Palantir were to remain a government-focused company forever, which seems unlikely based on the current growth rates of the individual business units, that would not necessarily be an issue. Working for the government means that there is very little counterparty risk and that existing relations can easily be used to get future contracts. Last but not least, with government budgets rising relatively steadily, good government connections allow for considerable growth opportunities -- especially in the defense tech/security tech space Palantir is active in, as there is a huge need for further investments in this space.\nThe claim that a government focus leads to lacking scalability is also false, I believe. Per Palantir's most recent quarterly report (linked above), its operating expenses rose by $9 million between Q3 2020 and Q3 2021 -- whereas revenues rose by $103 million in the same time frame. This backs out changes in share-based compensation. If one were to include those SBC expenses, Palantir's expenses actuallydeclinedyear-over-year while the company managed to grow its revenue by close to 40%. The claim that Palantir will not generate any scale advantages over the years thus seems to be unfounded, I believe. Instead, the data suggest that Palantir will be able to grow its margins considerably -- the company was able to grow its adjusted gross profit by a massive $90 million while growing its adjusted operating expenses by just $9 million -- making for excellent operating leverage.\n3. Exposure to rising rates\nMassive inflation will force the Fed to raise rates in 2022 and beyond, and that could be an issue for growth stocks. Companies that are not profitable today, or that have the vast majority of their profits in the distant future, are more exposed to a rising discount rate compared to companies that have low or no growth and that generate a large amount of all future profits in the near term. This could result in outperformance of value stocks versus growth stocks in the coming years, I believe. Palantir, which is not profitable yet, naturally belongs in the \"growth\" bucket that could see an above-average impact from rising interest rates. There is no real counter-argument here, I believe -- it is indeed true that the impact of rising rates on Palantir, all else equal, will be larger compared to a value stock like AbbVie (ABBV), for example.\nThis being an incremental negative for Palantir doesn't mean that shares have to be avoided under any circumstances, however. Indeed, even despite some potential headwinds from rising rates, Palantir could still be an attractive investment if other arguments have a larger weight -- I believe this to be true, as I see PLTR's massive growth potential and huge moat outweighing some near-term headwinds from rising rates.\nWhy Palantir Is Still Attractive\nBears bring up a range of arguments against Palantir, and as shown above, those can have merit. I believe that they might be overblown in some cases, but taking a look at the bear's arguments doesn't hurt -- in fact, it seems like a good idea to look at both sides in order to make a more informed decision. Dilution is indeed an issue, although I do not believe that this will be too much of a headwind, since PLTR's business growth easily outpaces dilution and since dilution, overall, should slow down over the years. Government reliance will wane over the years due to an above-average commercial business growth rate, and in general, doing business with the government is not a bad thing anyway. The claim that PLTR lacks scalability seems to be false, from what I see in PLTR's data.\nPalantir is, despite these arguments, attractive, I believe: The company is growing rapidly, has decades-long growth potential in both its government business as well as on the commercial side, and Palantir seems to have a very wide moat. This combination could turn Palantir into one of the largest and most important companies eventually -- although investors shouldn't expect this to happen in the very near term. Instead, I believe that there is a good chance that Palantir will grow at a considerable rate throughout the 2020s and beyond, as our world becomes ever more data-hungry -- both governments, as well as enterprises, will try to get the most value out of all of this data, and Palantir, with its tailored solutions, will be there to offer that value to its customers. With new tools such as the recently-showcased Foundry for crypto, Palantir is at the forefront of all kinds of emerging technologies. Thanks to the fact that Palantir has access to top talent -- the result of SBC and of an excellent working environment-- I believe that there is a good chance that Palantir will be able to be highly competitive in all kinds of future markets in the Big Data/AI space that may not even exist yet.\nTakeaway\nIn general, I am not much of a growth investor -- instead, I primarily focus on attractively priced stocks with strong cash flows, oftentimes those that pay dividends. Palantir, however, is somewhat of an outlier in my portfolio -- it's a growth stock, it is not really profitable yet, and most of its potential is years away. Due to the highly attractive combination of a massive market opportunity, excellent talent, and a wide moat, Palantir still seems like an attractive long-term investment to me. This isn't a stock that will make investors rich quickly, but I believe that there is a very good chance that Palantir will turn into a very dominant, important company over the next 10+ years. At 19x next year's revenue, PLTR is not cheap, but when we expect that the company will grow at a strong rate for many years, that also doesn't seem outlandish to me at all. It makes sense to listen to the bears' arguments, but I believe that the pros outweigh the cons here.","news_type":1},"isVote":1,"tweetType":1,"viewCount":539,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":692936120,"gmtCreate":1640824531063,"gmtModify":1640824531167,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/692936120","repostId":"1108936663","repostType":2,"isVote":1,"tweetType":1,"viewCount":384,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":693408072,"gmtCreate":1640055730812,"gmtModify":1640057456895,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/693408072","repostId":"1129749044","repostType":2,"repost":{"id":"1129749044","pubTimestamp":1640052616,"share":"https://www.laohu8.com/m/news/1129749044?lang=&edition=full","pubTime":"2021-12-21 10:10","market":"us","language":"en","title":"PLTR Stock Alert: 5 Things to Know About Palantir’s Latest Partnership","url":"https://stock-news.laohu8.com/highlight/detail?id=1129749044","media":"InvestorPlace","summary":"Despite announcing a new multi-year partnership with Dewpoint Therapeutics, shares of Palantir Techn","content":"<p>Despite announcing a new&nbsp;multi-year partnership&nbsp;with&nbsp;<b>Dewpoint Therapeutics</b>, shares of&nbsp;<b>Palantir Technologies</b>(NYSE:<b><u>PLTR</u></b>) are down more than 4% on the day. The weakness in PLTR stock can be attributed to general market weakness, as the&nbsp;<b>S&amp;P 500</b>&nbsp;and&nbsp;<b>Nasdaq</b>&nbsp;are both down today. However, let’s dive into the details on the new partnership that has shareholders of PLTR stock excited.</p>\n<p>The partnership will see Dewpoint utilize Palantir’s Foundry platform to further research and understand condensates biology. The Foundry platform will help researchers analyze lab data and other data sources. Researchers at Dewpoint will also use Foundry to store their centralized knowledge repository. Additionally, they will use it to contextualize test results and prioritize the best possible outcome.</p>\n<p>Lalarukh Haris Shaikh, Palantir’s head of biotech, praised the partnership. She commented:</p>\n<blockquote>\n “We think Dewpoint is changing the way the world approaches drug design by exploring new frontiers of disease biology, requiring a game changing solution that goes beyond just cloud and infrastructure to drive their R&amp;D and scale with their vision as they grow. We are proud to partner with Dewpoint and share their passion of working on one of the most exciting translational medicine approaches of our time.”\n</blockquote>\n<p>PLTR Stock: What to Know About the Dewpoint Partnership</p>\n<ol>\n <li>Dewpoint is a leading research company that seeks to understand the nature of condensates in order to develop drugs. Condensates are involved in many serious diseases, such as cancer, metabolic disease and other rare genetic disorders.</li>\n <li>The Foundry platform is designed to integrate siloed information sources that will lead to data-driven analysis and conclusions. Foundry will be able to “work seamlessly” with the existing Dewpoint systems.</li>\n <li>For example, the expansion of Dewpoint’s data foundation to include “advanced genetic analysis for disease association and correlation with condensate content” will help the company discover potential medical breakthroughs.</li>\n <li>Dewpoint CEO Ameet Nathwani is looking forward to the prospects that Foundry can bring to the company. He stated that, “Key to our approach has been creating a seamless connection between our wet-lab and dry-lab capabilities, with machine learning and AI at the center. Foundry has provided us with a solid foundation for us to fully connect and operationalize our entire lab to enterprise and enable the discovery and development of new drugs.”</li>\n <li>This partnership comes after Palantir announced that they had won a&nbsp;second option year&nbsp;with the U.S. Army. Indeed, that deal is worth $116.3 million.</li>\n</ol>","source":"lsy1606302653667","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>PLTR Stock Alert: 5 Things to Know About Palantir’s Latest Partnership</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPLTR Stock Alert: 5 Things to Know About Palantir’s Latest Partnership\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-21 10:10 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/2021/12/pltr-stock-alert-5-things-to-know-about-palantirs-latest-partnership/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Despite announcing a new multi-year partnership with Dewpoint Therapeutics, shares of Palantir Technologies(NYSE:PLTR) are down more than 4% on the day. The weakness in PLTR stock can be attributed to...</p>\n\n<a href=\"https://investorplace.com/2021/12/pltr-stock-alert-5-things-to-know-about-palantirs-latest-partnership/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://investorplace.com/2021/12/pltr-stock-alert-5-things-to-know-about-palantirs-latest-partnership/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1129749044","content_text":"Despite announcing a new multi-year partnership with Dewpoint Therapeutics, shares of Palantir Technologies(NYSE:PLTR) are down more than 4% on the day. The weakness in PLTR stock can be attributed to general market weakness, as the S&P 500 and Nasdaq are both down today. However, let’s dive into the details on the new partnership that has shareholders of PLTR stock excited.\nThe partnership will see Dewpoint utilize Palantir’s Foundry platform to further research and understand condensates biology. The Foundry platform will help researchers analyze lab data and other data sources. Researchers at Dewpoint will also use Foundry to store their centralized knowledge repository. Additionally, they will use it to contextualize test results and prioritize the best possible outcome.\nLalarukh Haris Shaikh, Palantir’s head of biotech, praised the partnership. She commented:\n\n “We think Dewpoint is changing the way the world approaches drug design by exploring new frontiers of disease biology, requiring a game changing solution that goes beyond just cloud and infrastructure to drive their R&D and scale with their vision as they grow. We are proud to partner with Dewpoint and share their passion of working on one of the most exciting translational medicine approaches of our time.”\n\nPLTR Stock: What to Know About the Dewpoint Partnership\n\nDewpoint is a leading research company that seeks to understand the nature of condensates in order to develop drugs. Condensates are involved in many serious diseases, such as cancer, metabolic disease and other rare genetic disorders.\nThe Foundry platform is designed to integrate siloed information sources that will lead to data-driven analysis and conclusions. Foundry will be able to “work seamlessly” with the existing Dewpoint systems.\nFor example, the expansion of Dewpoint’s data foundation to include “advanced genetic analysis for disease association and correlation with condensate content” will help the company discover potential medical breakthroughs.\nDewpoint CEO Ameet Nathwani is looking forward to the prospects that Foundry can bring to the company. He stated that, “Key to our approach has been creating a seamless connection between our wet-lab and dry-lab capabilities, with machine learning and AI at the center. Foundry has provided us with a solid foundation for us to fully connect and operationalize our entire lab to enterprise and enable the discovery and development of new drugs.”\nThis partnership comes after Palantir announced that they had won a second option year with the U.S. Army. Indeed, that deal is worth $116.3 million.","news_type":1},"isVote":1,"tweetType":1,"viewCount":203,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":693825733,"gmtCreate":1640004693660,"gmtModify":1640004693801,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/693825733","repostId":"2192962184","repostType":2,"repost":{"id":"2192962184","pubTimestamp":1640004360,"share":"https://www.laohu8.com/m/news/2192962184?lang=&edition=full","pubTime":"2021-12-20 20:46","market":"us","language":"en","title":"Palantir and Dewpoint Therapeutics Announce Strategic Partnership","url":"https://stock-news.laohu8.com/highlight/detail?id=2192962184","media":"Business Wire","summary":"DENVER & BOSTON, December 20, 2021--(BUSINESS WIRE)--Palantir Technologies Inc. (NYSE: PLTR), a lead","content":"<p><b>DENVER &amp; BOSTON, December 20, 2021</b>--(BUSINESS WIRE)--<a href=\"https://laohu8.com/S/PLTR\">Palantir Technologies Inc.</a> (NYSE: PLTR), a leading builder of operating systems for the modern enterprise, and Dewpoint Therapeutics (\"Dewpoint\"), the leading biomolecular condensates company, today announced a partnership for Palantir’s Foundry platform to help power Dewpoint’s efforts to discover treatments and cures for the most challenging diseases.</p>\n<p>Palantir Foundry will help to enable researchers at Dewpoint to further their understanding of condensates biology by analyzing lab data along with other data sources, including data from the published literature and databases, to identify new compounds and therapeutic approaches.</p>\n<p>Dewpoint will also use Foundry as the primary platform for its centralized knowledge repository, helping it contextualize its experimental results and prioritize the most viable outcomes. This multi-year agreement marks <a href=\"https://laohu8.com/S/AONE.U\">one</a> of Palantir’s most comprehensive partnerships with a biotechnology company.</p>\n<p>Palantir Foundry is designed to integrate disparate and siloed information sources to lead to data-driven analysis and decision making. It allows users to track lineage across systems, making it particularly suited for work in life sciences and the biotechnology sector, where data sources come from several unique and separate systems.</p>\n<p>At Dewpoint, Foundry will be able to work seamlessly with the existing systems in its laboratories to provide researchers with a comprehensive foundation for exploration and analysis.</p>\n<p>\"We think Dewpoint is changing the way the world approaches drug design by exploring new frontiers of disease biology, requiring a game changing solution that goes beyond just cloud and infrastructure to drive their R&amp;D and scale with their vision as they grow,\" said Lalarukh Haris Shaikh, Palantir’s Head of Biotech. \"We are proud to partner with Dewpoint and share their passion of working on one of the most exciting translational medicine approaches of our time.\"</p>\n<p>Foundry will help researchers make decisions around compound and target viability and streamline experiments and automate analysis by creating a digital twin of the research environment. One concrete example of Foundry’s use at Dewpoint Therapeutics is the expansion of the data foundation to include advanced genetic analysis for disease association and correlation with condensate content, empowering future discoveries.</p>\n<p>\"Key to our approach has been creating a seamless connection between our wet-lab and dry-lab capabilities, with machine learning and AI at the center. Foundry has provided us with a solid foundation for us to fully connect and operationalize our entire lab to enterprise and enable the discovery and development of new drugs,\" said Dewpoint CEO Ameet Nathwani.</p>\n<p><b>About Biomolecular Condensates</b></p>\n<p>Biomolecular condensates, formed through a process called phase separation, are membraneless droplets inside cells that facilitate molecular interactions and help cells perform vital functions. Condensates have been shown to play a critical role in key biological processes and in serious, intractable diseases across areas including neurodegeneration, cancer, inflammation, infectious disease, metabolic disease, and rare genetic disorders. The first condensates were observed more than 100 years ago. It is only in the last dozen years, though, that scientists—including Dewpoint founders Tony Hyman of the Max Planck Institute in Dresden and Rick Young of the Whitehead Institute—have begun to understand the dynamic nature and function of condensates. Dewpoint develops drugs that exploit this biology.</p>\n<p><b>About Dewpoint Therapeutics</b></p>\n<p>Dewpoint Therapeutics is the first company to apply the emerging understanding of biomolecular condensates to drug discovery. Dewpoint believes that a vast range of conditions have pathways that are regulated by condensates or arise from the dysfunction of condensates — including cancer, neurodegeneration, infectious disease, and metabolic disease. Dewpoint scientists work in Boston, Dresden, and Berlin to translate condensate biology into treatments for the toughest diseases. Learn more at dewpointx.com, and follow us on <a href=\"https://laohu8.com/S/TWTR\">Twitter</a> and LinkedIn.</p>\n<p><b>About Palantir Technologies Inc.</b></p>\n<p>Palantir Technologies Inc. builds and deploys operating systems for the modern enterprise. Additional information is available at https://www.palantir.com.</p>","source":"yahoofinance","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Palantir and Dewpoint Therapeutics Announce Strategic Partnership</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPalantir and Dewpoint Therapeutics Announce Strategic Partnership\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-20 20:46 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/palantir-dewpoint-therapeutics-announce-strategic-115900746.html><strong>Business Wire</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>DENVER & BOSTON, December 20, 2021--(BUSINESS WIRE)--Palantir Technologies Inc. (NYSE: PLTR), a leading builder of operating systems for the modern enterprise, and Dewpoint Therapeutics (\"Dewpoint\"), ...</p>\n\n<a href=\"https://finance.yahoo.com/news/palantir-dewpoint-therapeutics-announce-strategic-115900746.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4023":"应用软件","PLTR":"Palantir Technologies Inc.","BK4543":"AI","BK4547":"WSB热门概念"},"source_url":"https://finance.yahoo.com/news/palantir-dewpoint-therapeutics-announce-strategic-115900746.html","is_english":true,"share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","article_id":"2192962184","content_text":"DENVER & BOSTON, December 20, 2021--(BUSINESS WIRE)--Palantir Technologies Inc. (NYSE: PLTR), a leading builder of operating systems for the modern enterprise, and Dewpoint Therapeutics (\"Dewpoint\"), the leading biomolecular condensates company, today announced a partnership for Palantir’s Foundry platform to help power Dewpoint’s efforts to discover treatments and cures for the most challenging diseases.\nPalantir Foundry will help to enable researchers at Dewpoint to further their understanding of condensates biology by analyzing lab data along with other data sources, including data from the published literature and databases, to identify new compounds and therapeutic approaches.\nDewpoint will also use Foundry as the primary platform for its centralized knowledge repository, helping it contextualize its experimental results and prioritize the most viable outcomes. This multi-year agreement marks one of Palantir’s most comprehensive partnerships with a biotechnology company.\nPalantir Foundry is designed to integrate disparate and siloed information sources to lead to data-driven analysis and decision making. It allows users to track lineage across systems, making it particularly suited for work in life sciences and the biotechnology sector, where data sources come from several unique and separate systems.\nAt Dewpoint, Foundry will be able to work seamlessly with the existing systems in its laboratories to provide researchers with a comprehensive foundation for exploration and analysis.\n\"We think Dewpoint is changing the way the world approaches drug design by exploring new frontiers of disease biology, requiring a game changing solution that goes beyond just cloud and infrastructure to drive their R&D and scale with their vision as they grow,\" said Lalarukh Haris Shaikh, Palantir’s Head of Biotech. \"We are proud to partner with Dewpoint and share their passion of working on one of the most exciting translational medicine approaches of our time.\"\nFoundry will help researchers make decisions around compound and target viability and streamline experiments and automate analysis by creating a digital twin of the research environment. One concrete example of Foundry’s use at Dewpoint Therapeutics is the expansion of the data foundation to include advanced genetic analysis for disease association and correlation with condensate content, empowering future discoveries.\n\"Key to our approach has been creating a seamless connection between our wet-lab and dry-lab capabilities, with machine learning and AI at the center. Foundry has provided us with a solid foundation for us to fully connect and operationalize our entire lab to enterprise and enable the discovery and development of new drugs,\" said Dewpoint CEO Ameet Nathwani.\nAbout Biomolecular Condensates\nBiomolecular condensates, formed through a process called phase separation, are membraneless droplets inside cells that facilitate molecular interactions and help cells perform vital functions. Condensates have been shown to play a critical role in key biological processes and in serious, intractable diseases across areas including neurodegeneration, cancer, inflammation, infectious disease, metabolic disease, and rare genetic disorders. The first condensates were observed more than 100 years ago. It is only in the last dozen years, though, that scientists—including Dewpoint founders Tony Hyman of the Max Planck Institute in Dresden and Rick Young of the Whitehead Institute—have begun to understand the dynamic nature and function of condensates. Dewpoint develops drugs that exploit this biology.\nAbout Dewpoint Therapeutics\nDewpoint Therapeutics is the first company to apply the emerging understanding of biomolecular condensates to drug discovery. Dewpoint believes that a vast range of conditions have pathways that are regulated by condensates or arise from the dysfunction of condensates — including cancer, neurodegeneration, infectious disease, and metabolic disease. Dewpoint scientists work in Boston, Dresden, and Berlin to translate condensate biology into treatments for the toughest diseases. Learn more at dewpointx.com, and follow us on Twitter and LinkedIn.\nAbout Palantir Technologies Inc.\nPalantir Technologies Inc. builds and deploys operating systems for the modern enterprise. Additional information is available at https://www.palantir.com.","news_type":1},"isVote":1,"tweetType":1,"viewCount":359,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":607361668,"gmtCreate":1639491150271,"gmtModify":1639491150340,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/607361668","repostId":"1163753909","repostType":2,"repost":{"id":"1163753909","pubTimestamp":1639365199,"share":"https://www.laohu8.com/m/news/1163753909?lang=&edition=full","pubTime":"2021-12-13 11:13","market":"us","language":"en","title":"Palantir Has Now Entered A New Dimension","url":"https://stock-news.laohu8.com/highlight/detail?id=1163753909","media":"Seeking Alpha","summary":"Summary\n\nPalantir recently launched Foundry for Crypto to empower the future of finance.\nPalantir no","content":"<p><b>Summary</b></p>\n<ul>\n <li>Palantir recently launched Foundry for Crypto to empower the future of finance.</li>\n <li>Palantir now has the opportunity to leverage its platform's connective tissue to track the flow of funds within decentralized finance applications.</li>\n <li>Palantir's worked with the IRS since 2013 and prior to the release of Foundry, Gotham was deployed for large financial institutions.</li>\n <li>In today's article, I will highlight Palantir's roots that lead back to PayPal as well as Palantir's opportunity within fintech.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/b19fbe474b2b948c1dd476507722b776\" tg-width=\"1536\" tg-height=\"864\" width=\"100%\" height=\"auto\"><span>Olemedia/E+ via Getty Images</span></p>\n<p><b>Investment Thesis</b></p>\n<p>When it comes to Palantir (PLTR), most investors are excited by its government business as well as its opportunity in the commercial sector with Foundry for Builders. Today, ~60% of Palantir's business stems from the government, while the other portion comes from the commercial sector. Palantir's platform is known for its artificial intelligence (AI) and deep data insights that provide its customers with critical information to help maximize their profits. Palantir's solutions are built around \"mission-driven engineering\" to integrate information from siloed and unstructured data sets. In this article, we'll explore Palantir's roots that go back to the payments industry and PayPal.</p>\n<p>PayPal and Palantir co-founder Peter Thiel approached fellow Palantir co-founder, Stephen Cohen, in 2004 and told him about his idea for Palantir, here's what he envisioned.</p>\n<blockquote>\n Let's take some of the ideas from the PayPal Anti-Fraud platform and let's try to generalize them to solve the country's counterterrorism problem. And we'll start by selling it directly to the U.S. Government.\n</blockquote>\n<blockquote>\n And while we're at it, let's solve the generalized enterprise information management platforms that are out there. Let's help big enterprises use a Silicon Valley approach to understanding their data.\"-Stephen Cohen, 2013\n</blockquote>\n<p>Five years ago, a quarter of Palantir's business stemmed from the financial sector - while Palantir's connection to the fintech may not be clear on the surface, the company has a significant opportunity to deploy its AI, specifically Foundry, for fintech applications whether that's current banks or fintech companies such as Elementus, a blockchain analytics platform. Palantir currently serves the IRS and the current banking infrastructure as well as future innovative payment technologies such as cryptocurrencies and smart contracts.</p>\n<p><b>Deep Roots In Payments</b></p>\n<p>Much of the Palantir \"DNA\" and culture is replicated from PayPal. Palantir's core technology was also inspired by PayPal, specifically PayPal's Anti-Fraud platform. Peter Thiel co-founded PayPal with Max Levchin and would later go on to co-find Palantir along with Nathan Gettings, Palantir's first chief technology officer, who was an engineer at PayPal where he worked closely with Levchin fighting payment fraud. This PayPal Anti-Fraud framework would go on to provide the fundamental building blocks for Palantir's first initiative to fight counterterrorism.</p>\n<p>Palantir deploys technology within the government that is similar to what it deploys for large financial institutions. The challenges that financial institutions must overcome are similar to those faced in the government context because there are many data sources and many systems that feed input into the financial service sector as well as the government sector. Palantir uses deep data analytics to identify patterns and trends within this information to help its customers manage risk and execute their plans to better navigate complex environments that are constantly changing.</p>\n<p>In 2016, about 25% of Palantir's business came from the financial sector as Palantir deployed its Gotham Platform to investigate fraud for large institutions, as reported in its S1. Palantir works with a lot of banks and replaced legacy technology that's been around for over 30 years. For example, Credit Suisse has used Palantir since 2013 to analyze risks and detect fraud using data from more than a&nbsp;hundred&nbsp;systems across their operations.</p>\n<p>Palantir seeks to become the central operating system for&nbsp;entire industries&nbsp;rather than just a singular customer and Palantir sees an opportunity to create similar industry-wide partnerships within the financial services industry as it has within the U.S. government and aviation industry. Palantir's consistently winning government contracts while Palantir partnered with Airbus(OTCPK:EADSF)&nbsp;to launch&nbsp;SkyWise&nbsp;in 2017 and now works with over 100 airlines.</p>\n<p>Significant Opportunity At Hand</p>\n<p>On November 23, Palantir launched Foundry for Crypto, which will leverage Foundry's defined data integration to automatically build data pipelines and convert unorganized data into a transparent hub.</p>\n<p>Foundry for Crypto will enable Web3 startups to leverage the technology that financial institutions use to fight crime. With the current digital transformation underway and the rise of cryptocurrencies and blockchain technologies, Palantir leverages its data expertise to power the next generation of finance software.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/3f2a3fb5ad32eff1f464c225cc4b1f1c\" tg-width=\"1280\" tg-height=\"621\" width=\"100%\" height=\"auto\"><span>Source: Offerings | Crypto</span></p>\n<p>As indicated above, Palantir is chain-agnostic, meaning that Palantir works with multiple blockchains. Palantir integrates transaction data as well as smart contract data which will enable Palantir to leverage the core competencies of its AI and data analysis to provide its KYC (Know-Your-Customer) insights. For example, if somebody were to make a transaction using cryptocurrency from a non-custodial wallet, then it'd typically be a challenge to decipher KYC information from that wallet since the blockchain itself is encrypted and decentralized. Palantir traces the assets in a non-custodial wallet and tracks where the assets were transferred from. This allows Palantir to locate the exchange the asset was originally transferred from and then Palantir can track customer data from the crypto exchange where the asset was purchased, like Coinbase.</p>\n<p>The example above highlights how Palantir digs deep and scrapes the data from the blockchain to learn about a specific individual. This goes a long way in validating secure transactions as Palantir identifies malicious transactions on the blockchain, based on the transaction's location and specific properties. Companies that want to accept cryptocurrencies need secure solutions while they also want to gather insights around their customers to propel their businesses. BNPL companies, like Affirm, which was started by Max Levchin and Nathan Gettings, use advanced risk modeling (also referred to as AI) to offer consumers more fair credit assessments because BNPL companies have access to essential data from both the merchant and the consumer. Palantir could leverage its AI and data insights to help its customers better understand their clientele to offer targeted marketing campaigns or help them identify opportunities that will decrease expenses.</p>\n<p>Foundry for Crypto is still in its early adoption stage as it was recently rolled out and Palantir has multiple opportunities to implement this platform in a variety of industries as payment technology continues to evolve and will reshape the current payments landscape.</p>\n<p>Smart contracts are another significant opportunity for Palantir. Smart contracts are a set of protocols that are validated and carried out on the flow of data, meaning that once the contract is fulfilled, the data will indicate the contract is satisfied and ensure that the liable party transfers the agreed-upon funds. Palantir has a great opportunity to play a role in the facilitation of data within smart contracts while removing the costs of working with third networks and banks.</p>\n<p>One of Palantir's SPAC investments, BlackSky, deploys Foundry and processes real-time satellite imagery to monitor events taking place on Earth. For example, BlackSky can detect if the shipment has been delivered since BlackSky's satellites take images multiple times throughout the day. BlackSky monitors data and information that can only be processed through imagery and is the custodian of monitoring these actions and generating these actions into data points, so that they can inform smart contracts as to whether or not the contract was satisfied. This is a great example of how Palantir's customers may leverage Foundry to process information relating to digital assets and new digital protocols.</p>\n<p><b>The Government's Implemented Palantir's \"FinTech\" Solution Since 2013</b></p>\n<p>The IRS started working with Palantir in 2013 and Palantir continues to land and expand its partnership with the IRS as it's been awarded nearly $20 million from them over the last 12 months.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/e748221a3ed9fc319e2be6ebf40a8e95\" tg-width=\"956\" tg-height=\"524\" width=\"100%\" height=\"auto\"><span>Source: USAspending.gov</span></p>\n<p>In May, the IRS launched \"Operation Hidden Gem\", which is an initiative to focus on taxpayers who don't report cryptocurrencies gains. Carolyn Schenck, National Fraud Counsel for the IRS, recently had the&nbsp;following&nbsp;in regards to cryptocurrencies.</p>\n<blockquote>\n These transactions are not anonymous, we see you.\"\n</blockquote>\n<p>Another issue around crypto fraud, which Palantir's AML is designed to detect, is similar to PayPal's Anti-Fraud platform. The IRS recently revealed in its annual report that it seized&nbsp;$3.5 billion&nbsp;so far this year from cryptocurrency-related fraud. Palantir enables the IRS with the solutions that decipher criminal financial schemes and analyzes a variety of data sources in real-time. In the past, Palantir allowed the IRS to track the flow of funds or the flow of assets. For example, if someone were to transfer assets to a bank in the Cayman Islands and then withdraw the cash in the U.S. and use it for a&nbsp;down payment&nbsp;on something like an additional property, Palantir's deep data analysis will connect this information that's siloed, and present it to the IRS so that they can handle the specific situations accordingly.</p>\n<p>Based on Palantir's recent launch of Foundry for Crypto, Palantir could already be using its platform to provide real value for the U.S. government. As more information moves online and it becomes more complex to track complex digital assets, Palantir's technology remains one step ahead of trends when it comes to AI. Palantir continuously creates out-of-the-box solutions for the government, it then filters for commercial use cases.</p>\n<p>Now, let's use the L.A. Valuation Stevens Model to provide an updated fair value, then discuss risks associated with Palantir's entrance into crypto.</p>\n<p><b>Valuation</b></p>\n<p>Palantir continues to land new commercial clients and demonstrate the value of its platform through strong quarterly results. In Q3, Palantir grew its commercial customer count by 46% quarter-over-quarter to over 200 customers. Below are some of Palantir's notable financial metrics.</p>\n<ul>\n <li><p>$1.43B in TTM revenue</p></li>\n <li><p>77% gross profit margins</p></li>\n <li><p>$120 billion TAM</p></li>\n</ul>\n<p><b>Palantir's Fair Value And Expected Return</b></p>\n<p>To determine Palantir's fair value, we will employ our proprietary valuation model. Here's what it entails:</p>\n<ul>\n <li><p>In step 1, we use a traditional DCF model with free cash flow discounted by our (shareholders) cost of capital.</p></li>\n <li><p>In step 2, the model accounts for the effects of the change in shares outstanding (buybacks/dilutions).</p></li>\n <li><p>In step 3, we normalize valuation for future growth prospects at the end of the ten years. Then, we arrive at a CAGR using today's share price and the projected share price at the end of 10 years. If this beats the market by enough of a margin, we invest. If not, we wait for a better entry point.</p></li>\n</ul>\n<p>Assumptions:</p>\n<p><img src=\"https://static.tigerbbs.com/5f1499608f487046f492724343ce6250\" tg-width=\"934\" tg-height=\"572\" width=\"100%\" height=\"auto\"></p>\n<p>Results:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/cad4b65a88b3612deb98a837e64a5193\" tg-width=\"738\" tg-height=\"912\" width=\"100%\" height=\"auto\"><span>Source: L.A. Stevens Valuation Model</span></p>\n<p>Based on conservative estimates, Palantir is worth ~$31 today when accounting for future dilution, hence Palantir is significantly undervalued.</p>\n<p>In order for us to determine if Palantir is worth an investment today, we'll project the expected return for Palantir over the next 10 years at today's price. To calculate the total expected return for the next decade, we grow the above free cash flow per share at our conservative growth rate, then assign a conservative Price-to-FCF multiple (35x) to it for year ten. Thereby, we create a conservative intrinsic value projection (2031 price target), by which we determine the 10-yr expected CAGR returns. If these returns beat our hurdle rate of 15%, we buy, else we wait for a better buying opportunity.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/dc7e1db2ce3e749cd8088652a7029424\" tg-width=\"736\" tg-height=\"534\" width=\"100%\" height=\"auto\"><span>Source: L.A. Stevens Valuation Model</span></p>\n<p>Palantir is expected to generate ~20% annualized returns over the next 10 years, therefore, now is an ideal time to add to a position or start one. Palantir's expected to beat our 15% hurdle rate by a wide margin, hence I rate Palantir a strong buy around $20.</p>\n<p><b>Risks</b></p>\n<ul>\n <li><p><i>There are unforeseen risks given that cryptocurrency is a relatively new technology and there is uncertainty around future regulation.</i></p></li>\n</ul>\n<p>Palantir faces competition from both large incumbent tech companies such as Amazon(NASDAQ:AMZN)&nbsp;as well as startups such as Chainalysis. Palantir needs to offer solutions that generate alpha in digital environments that leverage future technological innovations. Chainalysis is a fintech startup that offers KYC and AML automated transaction monitoring on multiple blockchains, similar to Foundry for Crypto. Chainalysis raised $100 million this summer at a $4.2&nbsp;billion valuation and operates in over 60 countries. On the other side of the spectrum are the large tech giants such as Amazon, which started offering the Amazon Managed Blockchain service in 2018, which makes it easy to utilize blockchains such as Ethereum.</p>\n<p>The intersection of digital payments resembles a large opportunity as the banks and card networks have incredibly large networks developed at scale. This results in a fintech landscape that is ripe for innovation and it will be increasingly more competitive, as the top 250 fintech unicorns have raised over $73&nbsp;billion since 2016. Palantir will rely on developing the next wave of AI solutions when it comes to payments, by deploying them for the government to create the core technology and then filtering the solution for the commercial sector.</p>\n<p><b>Conclusion</b></p>\n<p>Palantir is at the forefront of the digital transformation underway as its platform is the connective tissue for modern organizations to generate insights from many sources of information. In regard to payments and fintech, Palantir has deep roots that link back to the early days of PayPal as Palantir's targeted the large financial institutions since the early 2010s. Palantir continues to expand its platform to apply its deep data insights to information within decentralized finance applications like smart contracts. Palantir's well-positioned to leverage its platform to connect the data from these blockchain applications and with its AI expertise to enable its customers to offer innovative fintech solutions.</p>\n<p>I've been bullish on Palantir over the past year and trading below $20, Palantir represents an attractive price for long-term investors given that Palantir is a generational company and has strong ties to PayPal's early days. I rate Palantir a strong buy at $20.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Palantir Has Now Entered A New Dimension</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPalantir Has Now Entered A New Dimension\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-13 11:13 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4474525-palantir-stock-foundry-for-crypto-fintech-opportunity><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nPalantir recently launched Foundry for Crypto to empower the future of finance.\nPalantir now has the opportunity to leverage its platform's connective tissue to track the flow of funds within...</p>\n\n<a href=\"https://seekingalpha.com/article/4474525-palantir-stock-foundry-for-crypto-fintech-opportunity\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4474525-palantir-stock-foundry-for-crypto-fintech-opportunity","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1163753909","content_text":"Summary\n\nPalantir recently launched Foundry for Crypto to empower the future of finance.\nPalantir now has the opportunity to leverage its platform's connective tissue to track the flow of funds within decentralized finance applications.\nPalantir's worked with the IRS since 2013 and prior to the release of Foundry, Gotham was deployed for large financial institutions.\nIn today's article, I will highlight Palantir's roots that lead back to PayPal as well as Palantir's opportunity within fintech.\n\nOlemedia/E+ via Getty Images\nInvestment Thesis\nWhen it comes to Palantir (PLTR), most investors are excited by its government business as well as its opportunity in the commercial sector with Foundry for Builders. Today, ~60% of Palantir's business stems from the government, while the other portion comes from the commercial sector. Palantir's platform is known for its artificial intelligence (AI) and deep data insights that provide its customers with critical information to help maximize their profits. Palantir's solutions are built around \"mission-driven engineering\" to integrate information from siloed and unstructured data sets. In this article, we'll explore Palantir's roots that go back to the payments industry and PayPal.\nPayPal and Palantir co-founder Peter Thiel approached fellow Palantir co-founder, Stephen Cohen, in 2004 and told him about his idea for Palantir, here's what he envisioned.\n\n Let's take some of the ideas from the PayPal Anti-Fraud platform and let's try to generalize them to solve the country's counterterrorism problem. And we'll start by selling it directly to the U.S. Government.\n\n\n And while we're at it, let's solve the generalized enterprise information management platforms that are out there. Let's help big enterprises use a Silicon Valley approach to understanding their data.\"-Stephen Cohen, 2013\n\nFive years ago, a quarter of Palantir's business stemmed from the financial sector - while Palantir's connection to the fintech may not be clear on the surface, the company has a significant opportunity to deploy its AI, specifically Foundry, for fintech applications whether that's current banks or fintech companies such as Elementus, a blockchain analytics platform. Palantir currently serves the IRS and the current banking infrastructure as well as future innovative payment technologies such as cryptocurrencies and smart contracts.\nDeep Roots In Payments\nMuch of the Palantir \"DNA\" and culture is replicated from PayPal. Palantir's core technology was also inspired by PayPal, specifically PayPal's Anti-Fraud platform. Peter Thiel co-founded PayPal with Max Levchin and would later go on to co-find Palantir along with Nathan Gettings, Palantir's first chief technology officer, who was an engineer at PayPal where he worked closely with Levchin fighting payment fraud. This PayPal Anti-Fraud framework would go on to provide the fundamental building blocks for Palantir's first initiative to fight counterterrorism.\nPalantir deploys technology within the government that is similar to what it deploys for large financial institutions. The challenges that financial institutions must overcome are similar to those faced in the government context because there are many data sources and many systems that feed input into the financial service sector as well as the government sector. Palantir uses deep data analytics to identify patterns and trends within this information to help its customers manage risk and execute their plans to better navigate complex environments that are constantly changing.\nIn 2016, about 25% of Palantir's business came from the financial sector as Palantir deployed its Gotham Platform to investigate fraud for large institutions, as reported in its S1. Palantir works with a lot of banks and replaced legacy technology that's been around for over 30 years. For example, Credit Suisse has used Palantir since 2013 to analyze risks and detect fraud using data from more than a hundred systems across their operations.\nPalantir seeks to become the central operating system for entire industries rather than just a singular customer and Palantir sees an opportunity to create similar industry-wide partnerships within the financial services industry as it has within the U.S. government and aviation industry. Palantir's consistently winning government contracts while Palantir partnered with Airbus(OTCPK:EADSF) to launch SkyWise in 2017 and now works with over 100 airlines.\nSignificant Opportunity At Hand\nOn November 23, Palantir launched Foundry for Crypto, which will leverage Foundry's defined data integration to automatically build data pipelines and convert unorganized data into a transparent hub.\nFoundry for Crypto will enable Web3 startups to leverage the technology that financial institutions use to fight crime. With the current digital transformation underway and the rise of cryptocurrencies and blockchain technologies, Palantir leverages its data expertise to power the next generation of finance software.\nSource: Offerings | Crypto\nAs indicated above, Palantir is chain-agnostic, meaning that Palantir works with multiple blockchains. Palantir integrates transaction data as well as smart contract data which will enable Palantir to leverage the core competencies of its AI and data analysis to provide its KYC (Know-Your-Customer) insights. For example, if somebody were to make a transaction using cryptocurrency from a non-custodial wallet, then it'd typically be a challenge to decipher KYC information from that wallet since the blockchain itself is encrypted and decentralized. Palantir traces the assets in a non-custodial wallet and tracks where the assets were transferred from. This allows Palantir to locate the exchange the asset was originally transferred from and then Palantir can track customer data from the crypto exchange where the asset was purchased, like Coinbase.\nThe example above highlights how Palantir digs deep and scrapes the data from the blockchain to learn about a specific individual. This goes a long way in validating secure transactions as Palantir identifies malicious transactions on the blockchain, based on the transaction's location and specific properties. Companies that want to accept cryptocurrencies need secure solutions while they also want to gather insights around their customers to propel their businesses. BNPL companies, like Affirm, which was started by Max Levchin and Nathan Gettings, use advanced risk modeling (also referred to as AI) to offer consumers more fair credit assessments because BNPL companies have access to essential data from both the merchant and the consumer. Palantir could leverage its AI and data insights to help its customers better understand their clientele to offer targeted marketing campaigns or help them identify opportunities that will decrease expenses.\nFoundry for Crypto is still in its early adoption stage as it was recently rolled out and Palantir has multiple opportunities to implement this platform in a variety of industries as payment technology continues to evolve and will reshape the current payments landscape.\nSmart contracts are another significant opportunity for Palantir. Smart contracts are a set of protocols that are validated and carried out on the flow of data, meaning that once the contract is fulfilled, the data will indicate the contract is satisfied and ensure that the liable party transfers the agreed-upon funds. Palantir has a great opportunity to play a role in the facilitation of data within smart contracts while removing the costs of working with third networks and banks.\nOne of Palantir's SPAC investments, BlackSky, deploys Foundry and processes real-time satellite imagery to monitor events taking place on Earth. For example, BlackSky can detect if the shipment has been delivered since BlackSky's satellites take images multiple times throughout the day. BlackSky monitors data and information that can only be processed through imagery and is the custodian of monitoring these actions and generating these actions into data points, so that they can inform smart contracts as to whether or not the contract was satisfied. This is a great example of how Palantir's customers may leverage Foundry to process information relating to digital assets and new digital protocols.\nThe Government's Implemented Palantir's \"FinTech\" Solution Since 2013\nThe IRS started working with Palantir in 2013 and Palantir continues to land and expand its partnership with the IRS as it's been awarded nearly $20 million from them over the last 12 months.\nSource: USAspending.gov\nIn May, the IRS launched \"Operation Hidden Gem\", which is an initiative to focus on taxpayers who don't report cryptocurrencies gains. Carolyn Schenck, National Fraud Counsel for the IRS, recently had the following in regards to cryptocurrencies.\n\n These transactions are not anonymous, we see you.\"\n\nAnother issue around crypto fraud, which Palantir's AML is designed to detect, is similar to PayPal's Anti-Fraud platform. The IRS recently revealed in its annual report that it seized $3.5 billion so far this year from cryptocurrency-related fraud. Palantir enables the IRS with the solutions that decipher criminal financial schemes and analyzes a variety of data sources in real-time. In the past, Palantir allowed the IRS to track the flow of funds or the flow of assets. For example, if someone were to transfer assets to a bank in the Cayman Islands and then withdraw the cash in the U.S. and use it for a down payment on something like an additional property, Palantir's deep data analysis will connect this information that's siloed, and present it to the IRS so that they can handle the specific situations accordingly.\nBased on Palantir's recent launch of Foundry for Crypto, Palantir could already be using its platform to provide real value for the U.S. government. As more information moves online and it becomes more complex to track complex digital assets, Palantir's technology remains one step ahead of trends when it comes to AI. Palantir continuously creates out-of-the-box solutions for the government, it then filters for commercial use cases.\nNow, let's use the L.A. Valuation Stevens Model to provide an updated fair value, then discuss risks associated with Palantir's entrance into crypto.\nValuation\nPalantir continues to land new commercial clients and demonstrate the value of its platform through strong quarterly results. In Q3, Palantir grew its commercial customer count by 46% quarter-over-quarter to over 200 customers. Below are some of Palantir's notable financial metrics.\n\n$1.43B in TTM revenue\n77% gross profit margins\n$120 billion TAM\n\nPalantir's Fair Value And Expected Return\nTo determine Palantir's fair value, we will employ our proprietary valuation model. Here's what it entails:\n\nIn step 1, we use a traditional DCF model with free cash flow discounted by our (shareholders) cost of capital.\nIn step 2, the model accounts for the effects of the change in shares outstanding (buybacks/dilutions).\nIn step 3, we normalize valuation for future growth prospects at the end of the ten years. Then, we arrive at a CAGR using today's share price and the projected share price at the end of 10 years. If this beats the market by enough of a margin, we invest. If not, we wait for a better entry point.\n\nAssumptions:\n\nResults:\nSource: L.A. Stevens Valuation Model\nBased on conservative estimates, Palantir is worth ~$31 today when accounting for future dilution, hence Palantir is significantly undervalued.\nIn order for us to determine if Palantir is worth an investment today, we'll project the expected return for Palantir over the next 10 years at today's price. To calculate the total expected return for the next decade, we grow the above free cash flow per share at our conservative growth rate, then assign a conservative Price-to-FCF multiple (35x) to it for year ten. Thereby, we create a conservative intrinsic value projection (2031 price target), by which we determine the 10-yr expected CAGR returns. If these returns beat our hurdle rate of 15%, we buy, else we wait for a better buying opportunity.\nSource: L.A. Stevens Valuation Model\nPalantir is expected to generate ~20% annualized returns over the next 10 years, therefore, now is an ideal time to add to a position or start one. Palantir's expected to beat our 15% hurdle rate by a wide margin, hence I rate Palantir a strong buy around $20.\nRisks\n\nThere are unforeseen risks given that cryptocurrency is a relatively new technology and there is uncertainty around future regulation.\n\nPalantir faces competition from both large incumbent tech companies such as Amazon(NASDAQ:AMZN) as well as startups such as Chainalysis. Palantir needs to offer solutions that generate alpha in digital environments that leverage future technological innovations. Chainalysis is a fintech startup that offers KYC and AML automated transaction monitoring on multiple blockchains, similar to Foundry for Crypto. Chainalysis raised $100 million this summer at a $4.2 billion valuation and operates in over 60 countries. On the other side of the spectrum are the large tech giants such as Amazon, which started offering the Amazon Managed Blockchain service in 2018, which makes it easy to utilize blockchains such as Ethereum.\nThe intersection of digital payments resembles a large opportunity as the banks and card networks have incredibly large networks developed at scale. This results in a fintech landscape that is ripe for innovation and it will be increasingly more competitive, as the top 250 fintech unicorns have raised over $73 billion since 2016. Palantir will rely on developing the next wave of AI solutions when it comes to payments, by deploying them for the government to create the core technology and then filtering the solution for the commercial sector.\nConclusion\nPalantir is at the forefront of the digital transformation underway as its platform is the connective tissue for modern organizations to generate insights from many sources of information. In regard to payments and fintech, Palantir has deep roots that link back to the early days of PayPal as Palantir's targeted the large financial institutions since the early 2010s. Palantir continues to expand its platform to apply its deep data insights to information within decentralized finance applications like smart contracts. Palantir's well-positioned to leverage its platform to connect the data from these blockchain applications and with its AI expertise to enable its customers to offer innovative fintech solutions.\nI've been bullish on Palantir over the past year and trading below $20, Palantir represents an attractive price for long-term investors given that Palantir is a generational company and has strong ties to PayPal's early days. I rate Palantir a strong buy at $20.","news_type":1},"isVote":1,"tweetType":1,"viewCount":349,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":602458124,"gmtCreate":1639060710629,"gmtModify":1639061401350,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/602458124","repostId":"2190661222","repostType":2,"isVote":1,"tweetType":1,"viewCount":293,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":877420726,"gmtCreate":1637974463071,"gmtModify":1637974463122,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/877420726","repostId":"1180819201","repostType":2,"repost":{"id":"1180819201","pubTimestamp":1637970255,"share":"https://www.laohu8.com/m/news/1180819201?lang=&edition=full","pubTime":"2021-11-27 07:44","market":"us","language":"en","title":"Tesla Withdraws Application For $1.3B In German Subsidies","url":"https://stock-news.laohu8.com/highlight/detail?id=1180819201","media":"Benzinga","summary":"Tesla, Inc. has opted to forgo subsidies from the German government even as it pushes ahead to exped","content":"<p><b>Tesla, Inc.</b>&nbsp;has opted to forgo subsidies from the German government even as it pushes ahead to expedite the opening of its&nbsp;Giga Berlin.</p>\n<p><b>What Happened:</b>Tesla has told German authorities that it will not avail of the 1.14 billion euros ($1.3 billion) of state aid for its planned battery production facility in Grünheide, a municipality in the Oder-Spree District, in Brandenburg, which is situated 30 kilometers south-east of Berlin, a German news agency reported, citing the country's Federal Ministry of Economics.</p>\n<p>\"Tesla continues to stick to its plans for the battery factory in the Gigafactory Berlin-Brandenburg, but will do without state IPCEI funding,\" a spokesperson to the ministry reportedly said, confirming the withdrawal of the application for funding by Tesla. Later, Tesla's&nbsp;<b>Elon Musk</b>&nbsp;confirmed the same by replying to the report shared by a Twitter user. It has always been Tesla's view that all subsidies should be eliminated, he said.</p>","source":"lsy1606299360108","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Tesla Withdraws Application For $1.3B In German Subsidies</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTesla Withdraws Application For $1.3B In German Subsidies\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-11-27 07:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.benzinga.com/news/21/11/24311712/tesla-withdraws-application-for-1-3b-in-german-subsidies><strong>Benzinga</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Tesla, Inc. has opted to forgo subsidies from the German government even as it pushes ahead to expedite the opening of its Giga Berlin.\nWhat Happened:Tesla has told German authorities that it will not...</p>\n\n<a href=\"https://www.benzinga.com/news/21/11/24311712/tesla-withdraws-application-for-1-3b-in-german-subsidies\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TSLA":"特斯拉"},"source_url":"https://www.benzinga.com/news/21/11/24311712/tesla-withdraws-application-for-1-3b-in-german-subsidies","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1180819201","content_text":"Tesla, Inc. has opted to forgo subsidies from the German government even as it pushes ahead to expedite the opening of its Giga Berlin.\nWhat Happened:Tesla has told German authorities that it will not avail of the 1.14 billion euros ($1.3 billion) of state aid for its planned battery production facility in Grünheide, a municipality in the Oder-Spree District, in Brandenburg, which is situated 30 kilometers south-east of Berlin, a German news agency reported, citing the country's Federal Ministry of Economics.\n\"Tesla continues to stick to its plans for the battery factory in the Gigafactory Berlin-Brandenburg, but will do without state IPCEI funding,\" a spokesperson to the ministry reportedly said, confirming the withdrawal of the application for funding by Tesla. Later, Tesla's Elon Musk confirmed the same by replying to the report shared by a Twitter user. It has always been Tesla's view that all subsidies should be eliminated, he said.","news_type":1},"isVote":1,"tweetType":1,"viewCount":81,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":877420364,"gmtCreate":1637974409610,"gmtModify":1637974409610,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/877420364","repostId":"1133450259","repostType":2,"repost":{"id":"1133450259","pubTimestamp":1637724451,"share":"https://www.laohu8.com/m/news/1133450259?lang=&edition=full","pubTime":"2021-11-24 11:27","market":"us","language":"en","title":"Palantir Stock: A Fairy-Tale Valuation","url":"https://stock-news.laohu8.com/highlight/detail?id=1133450259","media":"Seeking Alpha","summary":"Summary\n\nPalantir’s valuation is impossible to defend.\nPalantir will remain dependent on government ","content":"<p><b>Summary</b></p>\n<ul>\n <li>Palantir’s valuation is impossible to defend.</li>\n <li>Palantir will remain dependent on government for income.</li>\n <li>The private sector opportunity is over-hyped.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/02d7c2e5739d48a7457788f40f66148c\" tg-width=\"1536\" tg-height=\"1024\" width=\"100%\" height=\"auto\"><span>Michael Vi/iStock Editorial via Getty Images</span></p>\n<p>Palantir (PLTR) is a software business with one of the most ridiculous values in the stock market today. Palantir has developed into a valuation that neither makes sense nor is supported by concrete business results, despite its growth opportunity in AI-assisted software analytics.</p>\n<p><b>Palantir: Heavily Dependent On Government</b></p>\n<p>Palantir must be one of the most overvalued stocks in history because it ticks all the conditions. Palantir manages to trade at a market value of $43 billion by specializing in surveillance, big data, and having the US government as a client. After the company issued its shares on the exchange through a direct listing, its market value was significantly larger than $43 billion. Insiders of a corporation sell shares while the company receives no money in a direct listing.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/bd2709688f9042bf5fcce1709d8d33b4\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"><span>Data by YCharts</span></p>\n<p>Instead, an IPO raises funds to invest in the company. Roughly a year ago, Palantir’s shares started trading at $10 a share. The stock, and the market capitalization, have proven highly volatile, as the stock price surged as high as $45. PLTR has since settled for a trading range of $20 - $30 and the company, as well as its business model, continues to attract a great deal of interest and attention.</p>\n<p><b>Palantir Has One Of The Best Features A Stock Can Have: A Sexy Story!</b></p>\n<p>Palantir is right in the thick of a massive money-making opportunity: big data analytics. Information, or data, is a valuable commodity, and the ever-increasing speed with which businesses are embracing full digital transformation makes for a compelling story. Palantir's principal business is to assist organizations, particularly governments, in sifting through massive volumes of data in order to forecast and enhance decision-making. In the corporate realm, this can mean increasing conversions, whereas in government, it might mean supporting public health measures or assisting the US military in dealing with bad guys.</p>\n<p>Palantir is collaborating closely with the US government in a number of ways, and in exchange, Palantir is getting a lot of federal cheese. The company recently obtained an&nbsp;$823&nbsp;million deal with the US military to assist in the development of data architecture for intelligence systems.</p>\n<p>Palantir's revenue is rapidly increasing, but keep in mind that the company is primarily reliant on governments. Revenues from government bodies have increased by 57% year-to-date, to $658.4 million. Revenues from companies were reported as $450.6 million, compared to $350.3 million a year ago. Relative revenue contributions of the government and the private sector were 59% and 41% and last year, 55% and 45%. These percentages tell an important story deserving to be clarified, as they contradict the prevailing narrative.</p>\n<p>The prevailing narrative is that Palantir will move away from the government business and generate significant growth in the private sector. Expanding on the above-mentioned percentages, Palantir’s reliance on government has increased in 9M 2021, compared to 9M 2020, and government revenues are growing at a much faster rate than revenues sourced from the private sector.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/94983df06a9f7beac6c9efc9b601d5de\" tg-width=\"640\" tg-height=\"103\" width=\"100%\" height=\"auto\"><span>Source: Palantir</span></p>\n<p><b>Persistent Losses Despite Soaring Revenues</b></p>\n<p>Palantir's long-term growth possibility in big data is frequently mentioned in bullish analysis, and with good cause. We've all learnt this through the rise of Metaverse Platforms (FB), which was one of the first corporations to collect massive amounts of data in order to monetize its customers. Palantir does have attractive growth prospects: It just reported that 3Q revenues were up 36% to $392 million, and the company expects an annual revenue growth rate of 40% for the year. The company has also stated that it expects at least 30% revenue growth from this year until 2025. While I do not contest that Palantir has potential for revenue growth, there are concerns I think are inadequately reflected in the company’s valuation.</p>\n<p>One anticipated issue is that, while Palantir may be experiencing considerable revenue growth, how much of that increase actually reaches Palantir's shareholders? The answer, not a lot. Reviewing the last filing of financial statements, we can see that despite an eye-popping sales increase of 44% year-to-date, Palantir is not anywhere close to generating profits. Losses in 3Q were $102.1 million and the loss year-to-date is $364.2 million.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/b3cd7fa51065ca16c4f29735f97f885a\" tg-width=\"640\" tg-height=\"322\" width=\"100%\" height=\"auto\"><span>Source: Palantir</span></p>\n<p>Palantir's lack of profitability is a major issue, and I keep asking myself, \"How long will shareholders tolerate Palantir losing so much money every quarter?\"</p>\n<p>The fact that Palantir is not a startup adds to my concerns (which would be a feasible justification for losing so much money). Palantir, on the other hand, which was formed nearly two decades ago and has raised an estimated $2.6 billion in funding, continues to lose money. This is a track record that I find difficult to justify, particularly given Palantir's present multiple.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8aeae26e41a3e34c539c821ce941d1a8\" tg-width=\"640\" tg-height=\"240\" width=\"100%\" height=\"auto\"><span>Source: Crunchbase</span></p>\n<p><b>What Are You Paying For, Exactly?</b></p>\n<p>Palantir is doing an excellent job of presenting its potential, and the stock has a growth stock feel to it.</p>\n<p>But since profits are not showing up on the profit statement after nearly two decades of operations, why exactly are investors paying a multiple of 28? Not even Netflix (NFLX) gets a multiple of 20 and it has been one of the fastest growing companies not only in the U.S., but in the world over the past two decades. The multiple is very hard to defend and not fitting for a company that is growing sales quickly.</p>\n<p>On that note, Palantir isn’t exactly doubling sales every year. A 30% growth rate is good, but not impressive. And why would anyone want to overpay for Palantir’s sales growth, if competitors such as Splunk (SPLK) can be acquired for far lower sales multiples?</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/6bebcab5d6bcfef1fa26b4e3a5c9ad27\" tg-width=\"635\" tg-height=\"433\" width=\"100%\" height=\"auto\"><span>Data by YCharts</span></p>\n<p><b>A Few Words on Risks</b></p>\n<p>Palantir is growing revenues at around 30% annually, but if this growth can be maintained over the long term is another question. Also, can Palantir really turn a profit in the future, and if so, when? Why Palantir receives such a high multiple is beyond me. The big data company is one of the most overvalued and overhyped I've ever seen, which is why I consider Palantir's biggest risk as the excessively inflated multiple.</p>\n<p><b>My Conclusion</b></p>\n<p>It's absurd to pay 28 times revenues for a company that is losing money. The potential for revenue growth is undeniable; after all, big data is big business. However, after two decades of operations, shareholders should be able to expect a little more from Palantir, particularly management, in the form of profits or stock buybacks, or something similar. Palantir has done a fantastic job benefiting its selling shareholders, yet there is no deal to be had because there are no earnings. Palantir's valuation is a fairy tale, and like all fairy tales, it ends in a nasty awakening.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Palantir Stock: A Fairy-Tale Valuation</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPalantir Stock: A Fairy-Tale Valuation\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-11-24 11:27 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4471364-palantir-stock-fairy-tale-valuation><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nPalantir’s valuation is impossible to defend.\nPalantir will remain dependent on government for income.\nThe private sector opportunity is over-hyped.\n\nMichael Vi/iStock Editorial via Getty ...</p>\n\n<a href=\"https://seekingalpha.com/article/4471364-palantir-stock-fairy-tale-valuation\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4471364-palantir-stock-fairy-tale-valuation","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1133450259","content_text":"Summary\n\nPalantir’s valuation is impossible to defend.\nPalantir will remain dependent on government for income.\nThe private sector opportunity is over-hyped.\n\nMichael Vi/iStock Editorial via Getty Images\nPalantir (PLTR) is a software business with one of the most ridiculous values in the stock market today. Palantir has developed into a valuation that neither makes sense nor is supported by concrete business results, despite its growth opportunity in AI-assisted software analytics.\nPalantir: Heavily Dependent On Government\nPalantir must be one of the most overvalued stocks in history because it ticks all the conditions. Palantir manages to trade at a market value of $43 billion by specializing in surveillance, big data, and having the US government as a client. After the company issued its shares on the exchange through a direct listing, its market value was significantly larger than $43 billion. Insiders of a corporation sell shares while the company receives no money in a direct listing.\nData by YCharts\nInstead, an IPO raises funds to invest in the company. Roughly a year ago, Palantir’s shares started trading at $10 a share. The stock, and the market capitalization, have proven highly volatile, as the stock price surged as high as $45. PLTR has since settled for a trading range of $20 - $30 and the company, as well as its business model, continues to attract a great deal of interest and attention.\nPalantir Has One Of The Best Features A Stock Can Have: A Sexy Story!\nPalantir is right in the thick of a massive money-making opportunity: big data analytics. Information, or data, is a valuable commodity, and the ever-increasing speed with which businesses are embracing full digital transformation makes for a compelling story. Palantir's principal business is to assist organizations, particularly governments, in sifting through massive volumes of data in order to forecast and enhance decision-making. In the corporate realm, this can mean increasing conversions, whereas in government, it might mean supporting public health measures or assisting the US military in dealing with bad guys.\nPalantir is collaborating closely with the US government in a number of ways, and in exchange, Palantir is getting a lot of federal cheese. The company recently obtained an $823 million deal with the US military to assist in the development of data architecture for intelligence systems.\nPalantir's revenue is rapidly increasing, but keep in mind that the company is primarily reliant on governments. Revenues from government bodies have increased by 57% year-to-date, to $658.4 million. Revenues from companies were reported as $450.6 million, compared to $350.3 million a year ago. Relative revenue contributions of the government and the private sector were 59% and 41% and last year, 55% and 45%. These percentages tell an important story deserving to be clarified, as they contradict the prevailing narrative.\nThe prevailing narrative is that Palantir will move away from the government business and generate significant growth in the private sector. Expanding on the above-mentioned percentages, Palantir’s reliance on government has increased in 9M 2021, compared to 9M 2020, and government revenues are growing at a much faster rate than revenues sourced from the private sector.\nSource: Palantir\nPersistent Losses Despite Soaring Revenues\nPalantir's long-term growth possibility in big data is frequently mentioned in bullish analysis, and with good cause. We've all learnt this through the rise of Metaverse Platforms (FB), which was one of the first corporations to collect massive amounts of data in order to monetize its customers. Palantir does have attractive growth prospects: It just reported that 3Q revenues were up 36% to $392 million, and the company expects an annual revenue growth rate of 40% for the year. The company has also stated that it expects at least 30% revenue growth from this year until 2025. While I do not contest that Palantir has potential for revenue growth, there are concerns I think are inadequately reflected in the company’s valuation.\nOne anticipated issue is that, while Palantir may be experiencing considerable revenue growth, how much of that increase actually reaches Palantir's shareholders? The answer, not a lot. Reviewing the last filing of financial statements, we can see that despite an eye-popping sales increase of 44% year-to-date, Palantir is not anywhere close to generating profits. Losses in 3Q were $102.1 million and the loss year-to-date is $364.2 million.\nSource: Palantir\nPalantir's lack of profitability is a major issue, and I keep asking myself, \"How long will shareholders tolerate Palantir losing so much money every quarter?\"\nThe fact that Palantir is not a startup adds to my concerns (which would be a feasible justification for losing so much money). Palantir, on the other hand, which was formed nearly two decades ago and has raised an estimated $2.6 billion in funding, continues to lose money. This is a track record that I find difficult to justify, particularly given Palantir's present multiple.\nSource: Crunchbase\nWhat Are You Paying For, Exactly?\nPalantir is doing an excellent job of presenting its potential, and the stock has a growth stock feel to it.\nBut since profits are not showing up on the profit statement after nearly two decades of operations, why exactly are investors paying a multiple of 28? Not even Netflix (NFLX) gets a multiple of 20 and it has been one of the fastest growing companies not only in the U.S., but in the world over the past two decades. The multiple is very hard to defend and not fitting for a company that is growing sales quickly.\nOn that note, Palantir isn’t exactly doubling sales every year. A 30% growth rate is good, but not impressive. And why would anyone want to overpay for Palantir’s sales growth, if competitors such as Splunk (SPLK) can be acquired for far lower sales multiples?\nData by YCharts\nA Few Words on Risks\nPalantir is growing revenues at around 30% annually, but if this growth can be maintained over the long term is another question. Also, can Palantir really turn a profit in the future, and if so, when? Why Palantir receives such a high multiple is beyond me. The big data company is one of the most overvalued and overhyped I've ever seen, which is why I consider Palantir's biggest risk as the excessively inflated multiple.\nMy Conclusion\nIt's absurd to pay 28 times revenues for a company that is losing money. The potential for revenue growth is undeniable; after all, big data is big business. However, after two decades of operations, shareholders should be able to expect a little more from Palantir, particularly management, in the form of profits or stock buybacks, or something similar. Palantir has done a fantastic job benefiting its selling shareholders, yet there is no deal to be had because there are no earnings. Palantir's valuation is a fairy tale, and like all fairy tales, it ends in a nasty awakening.","news_type":1},"isVote":1,"tweetType":1,"viewCount":45,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":877464421,"gmtCreate":1637974280877,"gmtModify":1637974337244,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/877464421","repostId":"2185365359","repostType":2,"isVote":1,"tweetType":1,"viewCount":160,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":877464280,"gmtCreate":1637974259598,"gmtModify":1637974337094,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/877464280","repostId":"2186916023","repostType":2,"repost":{"id":"2186916023","pubTimestamp":1637848500,"share":"https://www.laohu8.com/m/news/2186916023?lang=&edition=full","pubTime":"2021-11-25 21:55","market":"us","language":"en","title":"Will Palantir Be a Trillion-Dollar Stock by 2040?","url":"https://stock-news.laohu8.com/highlight/detail?id=2186916023","media":"Motley Fool","summary":"The data-mining firm has a slim chance of eventually joining the 12-zero club.","content":"<p><b>Palantir Technologies</b> (NYSE:PLTR) has been a volatile and polarizing investment since its direct listing last September. The bulls claimed its data-mining platforms would continue to grow as it signed more government and enterprise contracts.</p>\n<p>The bears pointed out that Palantir was too heavily dependent on government clients, its enterprise business faced too many competitors, it was deeply unprofitable, and its stock was too expensive.</p>\n<p>Palantir's stock price has experienced some wild swings over the past year, but it has still more than doubled since its first trade at $10 per share.</p>\n<p>Today, Palantir is valued at $41.3 billion, or 27 times this year's sales. The bears will argue that the high price-to-sales (P/S) ratio will limit its upside, especially as rising interest rates and inflation make many high-growth tech stocks less attractive.</p>\n<p>But let's look beyond the near-term noise and see if Palantir can still generate big multibagger gains, or even become a trillion-dollar stock, over the next two decades.</p>\n<h2>How fast is Palantir growing?</h2>\n<p>Palantir expects to grow its revenue by at least 30% annually between fiscal 2021 and 2025. That forecast implies its revenue will rise from its target of $1.5 billion this year to at least $4.3 billion in 2025.</p>\n<p>The company expects that growth to be driven by its new and expanded contracts with government agencies, as well as the growth of its Foundry platform for large commercial customers. The accelerating growth of its commercial business over the past year, which notably outpaced the growth of its government business last quarter, supports that thesis.</p>\n<h2>Palantir's path toward a trillion-dollar market cap</h2>\n<p>Palantir hasn't provided any longer-term targets beyond 2025. But based on the growth trajectory of other big data companies like <b><a href=\"https://laohu8.com/S/CRM\">Salesforce</a> </b>(NYSE:CRM), its annual revenue increase could potentially decelerate and stabilize at about 20% over the following 10 years.</p>\n<p>If it hits its target for 2025, then continues to grow its revenue at an average rate of 20% over the following 10 years, it could generate nearly $27 billion in revenue in 2035.</p>\n<p>If Palantir's revenue growth then slows down to 15% per year, which would be more comparable to <b>Microsoft</b>'s (NASDAQ:MSFT) current rate, it could generate over $53 billion in revenue in 2040.</p>\n<p>Assuming the company is still valued at over 20 times sales, its market cap could surpass $1 trillion. But most tech giants that grow their revenue 15% to 25% annually aren't valued at more than 20 times sales.</p>\n<p>Microsoft, which is expected to generate 17% sales growth this year, trades at 13 times that estimate. Salesforce, which is expected to generate 24% sales growth this year, trades at just 11 times this year's sales.</p>\n<p>Therefore, Palantir's market cap could potentially hit $1 trillion by 2040, but it seems highly unlikely. Instead, it will likely be closer to $500 billion (which would still be a 12-bagger gain from its current valuation) if its stock is trading at a more reasonable P/S ratio of 10.</p>\n<h2>Look beyond the market caps</h2>\n<p>Instead of focusing on Palantir's path toward joining the 12-zero club, investors should focus on its ability to generate sustainable growth.</p>\n<p>The company has gained a firm foothold with the U.S. government, but it still faces competition from internally developed systems. Immigration and Customs Enforcement (ICE), for example, has been developing its own platform to replace Palantir's Falcon. If other agencies follow ICE's lead, the company's dream of becoming the \"default operating system for data across the U.S. government\" could abruptly end.</p>\n<p>Palantir is making solid progress in the commercial market, but its Foundry platform still faces plenty of indirect competitors like <b>C3.ai</b>, <b>Salesforce</b>'s Tableau, and Glue from <b>Amazon</b> Web Services.</p>\n<p>The company likely believes its reputation as a battle-hardened platform for the U.S. military and government agencies will attract more enterprise customers. But there's no guarantee that this appeal will last for decades or fend off newer, hungrier, and more disruptive players in the data-mining market.</p>\n<h2>Is Palantir's stock still worth buying?</h2>\n<p>I still believe Palantir's stock is a promising long-term investment on the secular growth of the data-mining and analytics market. However, there's a lot of growth already baked into the stock, and its high valuations could limit its near-term and long-term potential. Palantir probably won't hit a trillion-dollar valuation within the next two decades, but it could still outperform the market and generate impressive multibagger gains.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Will Palantir Be a Trillion-Dollar Stock by 2040?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWill Palantir Be a Trillion-Dollar Stock by 2040?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-11-25 21:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/11/25/will-palantir-be-a-trillion-dollar-stock-by-2040/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Palantir Technologies (NYSE:PLTR) has been a volatile and polarizing investment since its direct listing last September. The bulls claimed its data-mining platforms would continue to grow as it signed...</p>\n\n<a href=\"https://www.fool.com/investing/2021/11/25/will-palantir-be-a-trillion-dollar-stock-by-2040/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://www.fool.com/investing/2021/11/25/will-palantir-be-a-trillion-dollar-stock-by-2040/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2186916023","content_text":"Palantir Technologies (NYSE:PLTR) has been a volatile and polarizing investment since its direct listing last September. The bulls claimed its data-mining platforms would continue to grow as it signed more government and enterprise contracts.\nThe bears pointed out that Palantir was too heavily dependent on government clients, its enterprise business faced too many competitors, it was deeply unprofitable, and its stock was too expensive.\nPalantir's stock price has experienced some wild swings over the past year, but it has still more than doubled since its first trade at $10 per share.\nToday, Palantir is valued at $41.3 billion, or 27 times this year's sales. The bears will argue that the high price-to-sales (P/S) ratio will limit its upside, especially as rising interest rates and inflation make many high-growth tech stocks less attractive.\nBut let's look beyond the near-term noise and see if Palantir can still generate big multibagger gains, or even become a trillion-dollar stock, over the next two decades.\nHow fast is Palantir growing?\nPalantir expects to grow its revenue by at least 30% annually between fiscal 2021 and 2025. That forecast implies its revenue will rise from its target of $1.5 billion this year to at least $4.3 billion in 2025.\nThe company expects that growth to be driven by its new and expanded contracts with government agencies, as well as the growth of its Foundry platform for large commercial customers. The accelerating growth of its commercial business over the past year, which notably outpaced the growth of its government business last quarter, supports that thesis.\nPalantir's path toward a trillion-dollar market cap\nPalantir hasn't provided any longer-term targets beyond 2025. But based on the growth trajectory of other big data companies like Salesforce (NYSE:CRM), its annual revenue increase could potentially decelerate and stabilize at about 20% over the following 10 years.\nIf it hits its target for 2025, then continues to grow its revenue at an average rate of 20% over the following 10 years, it could generate nearly $27 billion in revenue in 2035.\nIf Palantir's revenue growth then slows down to 15% per year, which would be more comparable to Microsoft's (NASDAQ:MSFT) current rate, it could generate over $53 billion in revenue in 2040.\nAssuming the company is still valued at over 20 times sales, its market cap could surpass $1 trillion. But most tech giants that grow their revenue 15% to 25% annually aren't valued at more than 20 times sales.\nMicrosoft, which is expected to generate 17% sales growth this year, trades at 13 times that estimate. Salesforce, which is expected to generate 24% sales growth this year, trades at just 11 times this year's sales.\nTherefore, Palantir's market cap could potentially hit $1 trillion by 2040, but it seems highly unlikely. Instead, it will likely be closer to $500 billion (which would still be a 12-bagger gain from its current valuation) if its stock is trading at a more reasonable P/S ratio of 10.\nLook beyond the market caps\nInstead of focusing on Palantir's path toward joining the 12-zero club, investors should focus on its ability to generate sustainable growth.\nThe company has gained a firm foothold with the U.S. government, but it still faces competition from internally developed systems. Immigration and Customs Enforcement (ICE), for example, has been developing its own platform to replace Palantir's Falcon. If other agencies follow ICE's lead, the company's dream of becoming the \"default operating system for data across the U.S. government\" could abruptly end.\nPalantir is making solid progress in the commercial market, but its Foundry platform still faces plenty of indirect competitors like C3.ai, Salesforce's Tableau, and Glue from Amazon Web Services.\nThe company likely believes its reputation as a battle-hardened platform for the U.S. military and government agencies will attract more enterprise customers. But there's no guarantee that this appeal will last for decades or fend off newer, hungrier, and more disruptive players in the data-mining market.\nIs Palantir's stock still worth buying?\nI still believe Palantir's stock is a promising long-term investment on the secular growth of the data-mining and analytics market. However, there's a lot of growth already baked into the stock, and its high valuations could limit its near-term and long-term potential. Palantir probably won't hit a trillion-dollar valuation within the next two decades, but it could still outperform the market and generate impressive multibagger gains.","news_type":1},"isVote":1,"tweetType":1,"viewCount":144,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":856541053,"gmtCreate":1635204814180,"gmtModify":1635204834026,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/856541053","repostId":"1177255738","repostType":2,"repost":{"id":"1177255738","pubTimestamp":1634953820,"share":"https://www.laohu8.com/m/news/1177255738?lang=&edition=full","pubTime":"2021-10-23 09:50","market":"us","language":"en","title":"Palantir Stock Price Prediction: Outlook After U.S. Army Selection","url":"https://stock-news.laohu8.com/highlight/detail?id=1177255738","media":"Seeking Alpha","summary":"Summary\n\nPalantir's US Army contract is huge news for the company due to the contract's large size. ","content":"<p><b>Summary</b></p>\n<ul>\n <li>Palantir's US Army contract is huge news for the company due to the contract's large size. The bigger picture is important as well - PLTR is highly competitive and trusted.</li>\n <li>PLTR is one of just four IL-5 DoD-certified companies and is moving to IL-6, which should increase its moat further.</li>\n <li>The company is seemingly expensive on a profit basis, but when we consider PLTR's growth outlook, shares could be a pretty good investment, nevertheless.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/aa0d32030c1112ab6f00943f9091b85b\" tg-width=\"768\" tg-height=\"516\" width=\"100%\" height=\"auto\"><span>Scott Olson/Getty Images News</span></p>\n<p><b>Article Thesis</b></p>\n<p>Palantir Technologies (PLTR) remains a highly exciting, fast-growing tech company that continues to trade at an expensive valuation. The recent contract with the US Army shows, again, that its proprietary solutions are in a class of their own and that Palantir Technologies is very entrenched in government bodies, which should allow the company to deliver strong growth for many years. Palantir Technologies is not a low-risk pick, but I do believe that, in the long run, investors could see sizeable gains from this stock.</p>\n<p><b>Palantir &amp; US Army Contract</b></p>\n<p>In early October, Palantir Technologies announced that it was selected by the US Army for a contract worth&nbsp;$823 million&nbsp;that will see the company deliver the Army Intelligence data fabric and analytics foundation for the&nbsp;<i>Capability Drop 2</i>&nbsp;(CD-2) program.</p>\n<p>For a company like Palantir, which generates revenue of around $1.5 billion a year right now, an $800+ million contract is huge, of course, but it should be noted that this contract will not see Palantir capture all of that revenue in a short period of time. On top of that, not necessarily all of that revenue will go to Palantir Technologies, as other vendors, e.g., for hardware, might take some share of the contract as well. A more bearish analyst&nbsp;noted&nbsp;that the administration has requested around $100 million for that contract in fiscal 2022, suggesting that it will take several years for Palantir to capture all of the revenue from that contract.</p>\n<p>Still, this contract is a major positive, I believe, due to several reasons. First, the decision by the US Army to award the contract to Palantir Technologies suggests that Palantir remains a forerunner on a tech basis in the defense space, despite some analysts and commenters believing that Palantir's offering/services are very commoditized. If that were the case, the contract would likely have gone to a different company that sells its services and products at lower prices - remember that Palantir demands gross margins north of 70% on a company-wide basis. Customers would not be willing to pay that much for a commoditized product that could be supplied by anyone.</p>\n<p>The contract award by the US Army for such a large single contract also indicates that officials see Palantir as capable of delivering on large-scale contracts, despite the fact that Palantir Technologies is, by revenue and employer count, not a very large company today. Officials seem to believe that Palantir is able to execute well on these contracts, which, in turn, suggests that Palantir should have a good chance of getting other contracts of a similar size in the future.</p>\n<p>Palantir's strong position in the defense space versus possible competitors is also indicated by the fact that Palantir Technologies is one of just four companies with a level 5 (IL-5) Department of Defense SaaS approval:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/9381e77c84c44423e48d0947838946a3\" tg-width=\"1273\" tg-height=\"841\" width=\"100%\" height=\"auto\"><span>Source: Palantir</span></p>\n<p>This alone gives Palantir a major edge versus competitors that are not approved for services this critical. Once Palantir moves to IL-6 approval - at which point the company could also handle DoD classified information - Palantir's moat versus competitors should grow further. Palantir's management believes that this will happen in the foreseeable future and that Palantir will likely be the first company to receive IL-6 approval overall. The defense market could be a huge market opportunity for Palantir Technologies over the next couple of years:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/63c9bdfc460b29e6a19e05ad9f2b1278\" tg-width=\"640\" tg-height=\"397\" width=\"100%\" height=\"auto\"><span>Source: nscai.gov (page 67 of full report)</span></p>\n<p>The National Security Commission on Artificial Intelligence forecasts that AI R&amp;D investments will grow to close to $80 billion by 2030. Palantir Technologies will not be able to address all of that market, as this does include hardware, implementation, etc., but even a couple of percentage points of market share would turn into a $1+ billion a year business. Considering that defense is just one of many markets Palantir Technologies is able to address, this seems highly encouraging - especially when we consider that Palantir is doing around $1.5 billion in revenue this year across all markets the company is active in.</p>\n<p>Palantir Technologies has, thanks to other contracts with military customers, proven that the US Army contract was not an outlier. Instead, Palantir seems to work well with defense customers, which is why the company gets chosen for new contracts again and again - even by the US&nbsp;Space Force.</p>\n<p><b>PLTR Stock Forecast</b></p>\n<p>Palantir's management believes that the company will be the most important software player in the world one day, and even though I believe that this is far from guaranteed, I do believe that Palantir has massive growth potential for many years to come. Its solutions could have a huge impact in commerce as well as in the military and security fields. Thanks to close relations with customers (as laid out above), a proven track record, and strong talent - which is why stock-based compensation is so high, as that talent is expensive - Palantir should be able to deliver huge revenue growth throughout the 2020s.</p>\n<p>Management believes that revenue in 2024 will come in around $4 billion, and that aligns pretty well with&nbsp;analyst estimates. During its four quarters as a publicly traded company, Palantir has beaten analyst estimates on both lines four times, thus the company is establishing a pretty clear track record of outperforming expectations. It is, of course, not guaranteed that this will happen in the future, too, but I do believe that there is a pretty solid chance that Palantir could generate more than $4 billion in revenue in 2024. Let's still go with the $4 billion estimate and assume that revenue grows by 30% for the following three years, and by 25% between 2028 and 2030. If that were to happen, then Palantir would generate revenue of $17 billion in 2030, which would pencil out to a ~11x increase in nine years. What could a company with $17 billion in annual sales and 25% revenue growth be valued at?</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/52c4b159657eb14f408b680d91dd91ca\" tg-width=\"635\" tg-height=\"515\" width=\"100%\" height=\"auto\"><span>Data by YCharts</span></p>\n<p>Major software players such as Microsoft (MSFT), Salesforce.com (CRM), and Adobe (ADBE) are growing by 15%-25% right now, and trade for 11x to 19x this year's sales today. Considering that Palantir does, in our scenario, grow a little faster than these three companies, a 15x sales multiple does not seem outrageous at all, I believe. Based on estimated sales of $17 billion, this gets us to a market capitalization of $255 billion nine years from now, or roughly 5.3x as much as today's market capitalization of $48 billion. This does, however, not mean that PLTR will see its shares climb by 430%, as we also have to consider the company's share count, which has been rising and which will likely continue to rise. It is hard to forecast where exactly the share count will stand nine years from now, as we don't know the trajectory of future share-based compensation and since PLTR might start to repurchase shares in the future. If we assume that the share count rises by 100 million a year (the share count has risen by 80 million shares over the last year, per YCharts), that pencils out to a share count of ~2.9 billion in 2030. Based on an expected market capitalization of $255 billion, this gets us to a share price of around $90 - or roughly 3.5x as much as today. In other words, if this scenario comes true, investors will generate a 9-year return of around 250%, or roughly 15% a year. That is not as outstanding as the returns one would have gotten when one held AMZN(AMZN)over the last nine years, for example, but an annual return in the ballpark of 15% is still highly attractive, I believe.</p>\n<p>One can, of course, argue that this scenario is not realistic and that the growth rate should be higher or lower, or that the sales multiple in 2030 should be different. Still, I believe that this is a solid base case scenario that<i>might</i>be on the conservative side, considering Palantir Technologies' large potential across many different industries.</p>\n<p><b>PLTR Stock: Is Now A Good Time To Buy Or Sell?</b></p>\n<p>Palantir is a very different stock compared to what I mostly cover, and what I primarily invest in. At current prices, PLTR looks quite expensive at first sight, trading at ~150x forward earnings. The company, however, offers massive growth potential, attractive fundamentals, and has a huge moat that could grow further once PLTR is IL-6 DoD approved.</p>\n<p>Palantir is not a low-risk stock, as the company is, like other high-growth stocks trading at high valuations, vulnerable to interest rate movements. On top of that, profitability has not been proven on a lasting basis yet, and we don't know the trajectory of share-based compensation expenses.</p>\n<p>Nevertheless, I believe that Palantir is a high-growth company that could deliver double-digit total returns in the long run, and due to a huge and fast-growing addressable market and a wide moat, I am willing to invest in this company - unlike many other highly-valued growth companies that I deem unattractive. Whether Palantir Technologies is a good fit for your portfolio depends on your individual goals and risk tolerance, of course, but I wouldn't be surprised to see PLTR rise at least three-fold by the end of the decade.</p>\n<p><b>Is This an Income Stream Which Induces Fear?</b></p>\n<p><img src=\"https://static.tigerbbs.com/6a958be03c050d5cdb47e6524217c231\" tg-width=\"542\" tg-height=\"324\" width=\"100%\" height=\"auto\"></p>\n<p>The primary goal of the&nbsp;Cash Flow Kingdom Income Portfolio&nbsp;is to produce an overall yield in the 7% - 10% range. We accomplish this by combining several different income streams to form an attractive, steady portfolio payout. The portfolio's price can fluctuate, but the income stream remains consistent.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Palantir Stock Price Prediction: Outlook After U.S. Army Selection</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPalantir Stock Price Prediction: Outlook After U.S. Army Selection\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-10-23 09:50 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4461220-palantir-stock-price-prediction><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nPalantir's US Army contract is huge news for the company due to the contract's large size. The bigger picture is important as well - PLTR is highly competitive and trusted.\nPLTR is one of ...</p>\n\n<a href=\"https://seekingalpha.com/article/4461220-palantir-stock-price-prediction\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4461220-palantir-stock-price-prediction","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1177255738","content_text":"Summary\n\nPalantir's US Army contract is huge news for the company due to the contract's large size. The bigger picture is important as well - PLTR is highly competitive and trusted.\nPLTR is one of just four IL-5 DoD-certified companies and is moving to IL-6, which should increase its moat further.\nThe company is seemingly expensive on a profit basis, but when we consider PLTR's growth outlook, shares could be a pretty good investment, nevertheless.\n\nScott Olson/Getty Images News\nArticle Thesis\nPalantir Technologies (PLTR) remains a highly exciting, fast-growing tech company that continues to trade at an expensive valuation. The recent contract with the US Army shows, again, that its proprietary solutions are in a class of their own and that Palantir Technologies is very entrenched in government bodies, which should allow the company to deliver strong growth for many years. Palantir Technologies is not a low-risk pick, but I do believe that, in the long run, investors could see sizeable gains from this stock.\nPalantir & US Army Contract\nIn early October, Palantir Technologies announced that it was selected by the US Army for a contract worth $823 million that will see the company deliver the Army Intelligence data fabric and analytics foundation for the Capability Drop 2 (CD-2) program.\nFor a company like Palantir, which generates revenue of around $1.5 billion a year right now, an $800+ million contract is huge, of course, but it should be noted that this contract will not see Palantir capture all of that revenue in a short period of time. On top of that, not necessarily all of that revenue will go to Palantir Technologies, as other vendors, e.g., for hardware, might take some share of the contract as well. A more bearish analyst noted that the administration has requested around $100 million for that contract in fiscal 2022, suggesting that it will take several years for Palantir to capture all of the revenue from that contract.\nStill, this contract is a major positive, I believe, due to several reasons. First, the decision by the US Army to award the contract to Palantir Technologies suggests that Palantir remains a forerunner on a tech basis in the defense space, despite some analysts and commenters believing that Palantir's offering/services are very commoditized. If that were the case, the contract would likely have gone to a different company that sells its services and products at lower prices - remember that Palantir demands gross margins north of 70% on a company-wide basis. Customers would not be willing to pay that much for a commoditized product that could be supplied by anyone.\nThe contract award by the US Army for such a large single contract also indicates that officials see Palantir as capable of delivering on large-scale contracts, despite the fact that Palantir Technologies is, by revenue and employer count, not a very large company today. Officials seem to believe that Palantir is able to execute well on these contracts, which, in turn, suggests that Palantir should have a good chance of getting other contracts of a similar size in the future.\nPalantir's strong position in the defense space versus possible competitors is also indicated by the fact that Palantir Technologies is one of just four companies with a level 5 (IL-5) Department of Defense SaaS approval:\nSource: Palantir\nThis alone gives Palantir a major edge versus competitors that are not approved for services this critical. Once Palantir moves to IL-6 approval - at which point the company could also handle DoD classified information - Palantir's moat versus competitors should grow further. Palantir's management believes that this will happen in the foreseeable future and that Palantir will likely be the first company to receive IL-6 approval overall. The defense market could be a huge market opportunity for Palantir Technologies over the next couple of years:\nSource: nscai.gov (page 67 of full report)\nThe National Security Commission on Artificial Intelligence forecasts that AI R&D investments will grow to close to $80 billion by 2030. Palantir Technologies will not be able to address all of that market, as this does include hardware, implementation, etc., but even a couple of percentage points of market share would turn into a $1+ billion a year business. Considering that defense is just one of many markets Palantir Technologies is able to address, this seems highly encouraging - especially when we consider that Palantir is doing around $1.5 billion in revenue this year across all markets the company is active in.\nPalantir Technologies has, thanks to other contracts with military customers, proven that the US Army contract was not an outlier. Instead, Palantir seems to work well with defense customers, which is why the company gets chosen for new contracts again and again - even by the US Space Force.\nPLTR Stock Forecast\nPalantir's management believes that the company will be the most important software player in the world one day, and even though I believe that this is far from guaranteed, I do believe that Palantir has massive growth potential for many years to come. Its solutions could have a huge impact in commerce as well as in the military and security fields. Thanks to close relations with customers (as laid out above), a proven track record, and strong talent - which is why stock-based compensation is so high, as that talent is expensive - Palantir should be able to deliver huge revenue growth throughout the 2020s.\nManagement believes that revenue in 2024 will come in around $4 billion, and that aligns pretty well with analyst estimates. During its four quarters as a publicly traded company, Palantir has beaten analyst estimates on both lines four times, thus the company is establishing a pretty clear track record of outperforming expectations. It is, of course, not guaranteed that this will happen in the future, too, but I do believe that there is a pretty solid chance that Palantir could generate more than $4 billion in revenue in 2024. Let's still go with the $4 billion estimate and assume that revenue grows by 30% for the following three years, and by 25% between 2028 and 2030. If that were to happen, then Palantir would generate revenue of $17 billion in 2030, which would pencil out to a ~11x increase in nine years. What could a company with $17 billion in annual sales and 25% revenue growth be valued at?\nData by YCharts\nMajor software players such as Microsoft (MSFT), Salesforce.com (CRM), and Adobe (ADBE) are growing by 15%-25% right now, and trade for 11x to 19x this year's sales today. Considering that Palantir does, in our scenario, grow a little faster than these three companies, a 15x sales multiple does not seem outrageous at all, I believe. Based on estimated sales of $17 billion, this gets us to a market capitalization of $255 billion nine years from now, or roughly 5.3x as much as today's market capitalization of $48 billion. This does, however, not mean that PLTR will see its shares climb by 430%, as we also have to consider the company's share count, which has been rising and which will likely continue to rise. It is hard to forecast where exactly the share count will stand nine years from now, as we don't know the trajectory of future share-based compensation and since PLTR might start to repurchase shares in the future. If we assume that the share count rises by 100 million a year (the share count has risen by 80 million shares over the last year, per YCharts), that pencils out to a share count of ~2.9 billion in 2030. Based on an expected market capitalization of $255 billion, this gets us to a share price of around $90 - or roughly 3.5x as much as today. In other words, if this scenario comes true, investors will generate a 9-year return of around 250%, or roughly 15% a year. That is not as outstanding as the returns one would have gotten when one held AMZN(AMZN)over the last nine years, for example, but an annual return in the ballpark of 15% is still highly attractive, I believe.\nOne can, of course, argue that this scenario is not realistic and that the growth rate should be higher or lower, or that the sales multiple in 2030 should be different. Still, I believe that this is a solid base case scenario thatmightbe on the conservative side, considering Palantir Technologies' large potential across many different industries.\nPLTR Stock: Is Now A Good Time To Buy Or Sell?\nPalantir is a very different stock compared to what I mostly cover, and what I primarily invest in. At current prices, PLTR looks quite expensive at first sight, trading at ~150x forward earnings. The company, however, offers massive growth potential, attractive fundamentals, and has a huge moat that could grow further once PLTR is IL-6 DoD approved.\nPalantir is not a low-risk stock, as the company is, like other high-growth stocks trading at high valuations, vulnerable to interest rate movements. On top of that, profitability has not been proven on a lasting basis yet, and we don't know the trajectory of share-based compensation expenses.\nNevertheless, I believe that Palantir is a high-growth company that could deliver double-digit total returns in the long run, and due to a huge and fast-growing addressable market and a wide moat, I am willing to invest in this company - unlike many other highly-valued growth companies that I deem unattractive. Whether Palantir Technologies is a good fit for your portfolio depends on your individual goals and risk tolerance, of course, but I wouldn't be surprised to see PLTR rise at least three-fold by the end of the decade.\nIs This an Income Stream Which Induces Fear?\n\nThe primary goal of the Cash Flow Kingdom Income Portfolio is to produce an overall yield in the 7% - 10% range. We accomplish this by combining several different income streams to form an attractive, steady portfolio payout. The portfolio's price can fluctuate, but the income stream remains consistent.","news_type":1},"isVote":1,"tweetType":1,"viewCount":289,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":827378032,"gmtCreate":1634428771754,"gmtModify":1634428771873,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/827378032","repostId":"1131725095","repostType":2,"repost":{"id":"1131725095","pubTimestamp":1634201775,"share":"https://www.laohu8.com/m/news/1131725095?lang=&edition=full","pubTime":"2021-10-14 16:56","market":"us","language":"en","title":"Palantir: Strong Upside Ahead","url":"https://stock-news.laohu8.com/highlight/detail?id=1131725095","media":"Seeking Alpha","summary":"Summary\n\nPalantir's growth strategy in the commercial business is bearing fruit, showing that there ","content":"<p><b>Summary</b></p>\n<ul>\n <li>Palantir's growth strategy in the commercial business is bearing fruit, showing that there is a lot of potential to increase its customer base.</li>\n <li>This is a strong support for annual revenue growth of 20-30% in the next four years, justifying its high valuation multiples.</li>\n <li>My price target is $40.75 per share by end-2024, implying more than 70% upside potential over the next three years.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/02d7c2e5739d48a7457788f40f66148c\" tg-width=\"1536\" tg-height=\"1024\" width=\"100%\" height=\"auto\"><span>Michael Vi/iStock Editorial via Getty Images</span></p>\n<p><b>Palantir Technologies</b>(PLTR) is a great growth play with plenty of upside over the next three years, even assuming more conservative assumptions than its own guidance.</p>\n<p><b>Background</b></p>\n<p>I&nbsp;covered Palantir&nbsp;a few months ago, and I’m bullish on its stock as I see the company very well positioned to grow strongly over the medium to long term. This is driven by its software that is quite unique and should lead to strong customer demand over the coming years, as the need to interpret and analyzed big datasets is only expected to rise in the future.</p>\n<p>Nevertheless, there is also a lot of hype about this company and investors should be aware that Palantir is still a small company and its business is in a very early growth phase, thus&nbsp;I don’t see Palantir&nbsp;becoming one of the big tech companies over the next decade.</p>\n<p>This expectation is justified by Palantir’s business model, which is focused on government and large corporate and therefore is not easily scalable. Indeed, the company only had 169 customers at the end of June, a relatively small number of customers due to its historical focus on large clients.</p>\n<p>As I’ve discussed in previous articles, I invest mainly in secular growth companies in a few investing themes, namely semiconductors, electric vehicles, digital payments, 5G and big data. In this last theme, I see Palantir as one of the best picks, and in this article, I do an update on its investment case.</p>\n<p><b>Recent Earnings &amp; Estimates</b></p>\n<p>Since my last article, Palantir has released&nbsp;Q2 2021 earnings, maintain a very good operating momentum. Its revenues in the quarter amounted to $376 million, up by 49% YoY. This strong growth was driven largely by its U.S. commercial business that reported exponential growth, up by 90% YoY.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/f8ee3d7d0ef8a5d56f850d7e219ca013\" tg-width=\"640\" tg-height=\"340\" width=\"100%\" height=\"auto\"><span>Source: Palantir.</span></p>\n<p>This growth rate in Palantir’s commercial business is impressive, but not necessarily unexpected. While Palantir has focused historically on governments and large corporations as its key customers, the company has been changing its strategy and has recruited, in recent months, salespeople to target smaller and medium-sized companies.</p>\n<p>In Q1 2021, Palantir had recruited about 50 dedicated salespeople and this has translated quite rapidly in new customer acquisitions and higher revenue in a relatively short period of time. In Q2, the company added 20 net new customers and total commercial customers increased by 32% QoQ, while in the first six months of the year its commercial customer count increased by 61%. I think this is a strong signal that Palantir offers a good value proposition to customers of different sizes, boding quite well for its growth in the next few years.</p>\n<p>Indeed, Palantir’s edge is to offer a software that is used to analyze big datasets, so that users can make better decisions regarding their needs and projects. Palantir’s software is viewed as a central operating system for customer’s data, which usually can be spread across a large number of teams and departments and possibly in different countries.</p>\n<p>The strong growth reported in the last quarter on the commercial business side is clearly a demonstration that Palantir can leverage its software to a much larger customer base, making me even more bullish as the company can gain a lot of customers both in the U.S. and abroad for years to come.</p>\n<p>This is supported by Palantir’s push to hire more salespeople, with the company hiring 60 additional salespeople in Q2, and more expected until the end of the year. This means that revenue growth in the commercial business is not expected to slow down in the next few quarters, boding very well for overall revenue growth.</p>\n<p>On the government side, Palantir’s revenues increased by 66% YoY in Q2 2021 to $232 million, also a very strong growth rate, and this growth is expected to remain at a strong pace in the near future. For instance, Palantir has recentlybeen selectedby the U.S. Army for the delivery of the Army’s Intelligence data fabric and analytics foundation in a new contract valued at $823 million, for a period of four years, being a good tailwind for revenue growth in coming years.</p>\n<p>Its total commercial revenue increased by 28% YoY to $144 million in Q2 2021, which means that the majority of commercial revenues are generated in international markets and therefore the potential for revenue growth in the U.S. is still largely untapped.</p>\n<p>Beyond revenue growth, Palantir is also improving meaningfully its profitability and has achieved an adjusted operating margin (which excludes stock-based compensation) of 31% in the last quarter, much higher than in Q2 2020. Even though Palantir is not expected to report profits in the short term, from an operating standpoint, it is improving its margins due to a larger scale, showing that its business has operating leverage. As the company gains more customers and increases revenue at a higher rate than expenses, operating margins should continue to rise being a key factor for achieving break-even in the next few years.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7214b3ada30c61fad0ea54b4ca066bb2\" tg-width=\"444\" tg-height=\"453\" width=\"100%\" height=\"auto\"><span>Source: Palantir.</span></p>\n<p>During the first six months of 2021, Palantir’s revenues were up by 49% YoY to $717 million, thus Palantir is on path to generate annual revenues of around $1.4-$1.5 billion in 2021. Current consensus is for $1.51 billion in revenues this year, which seems possible to beat as the company has reported higher growth than was expected in the two previous quarters.</p>\n<p>Regarding its cash flow generation, Palantir is also showing a good performance, given that it has raised its free cash flow guidance to about $300 million in 2021, while previously expecting some $150 million, benefiting from new customers and contracts that have upfront payments. This is supported by its ‘order backlog’, or what the company calls its remaining deal value, which amounted to more than $3.4 billion at the end of June.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/cf2e97080f2de2d05a69d9ac075b6994\" tg-width=\"318\" tg-height=\"262\" width=\"100%\" height=\"auto\"><span>Source: Palantir.</span></p>\n<p>Going forward, Palantir is expected to maintain strong revenue growth, even though it is estimated to drop below +30% YoY in the next couple of years. This may be too conservative, given that Palantir is not showing any signs of slowing down in both the government and commercial businesses, which gives the company a good margin to beat medium-term expectations.</p>\n<p>This provides a strong backdrop for Palantir to achieve annual revenue growth of 30%+ during the next four years and reach its target of $4 billion in revenues by 2025. However, as the company becomes larger I’m expecting lower revenue growth than Palantir’s goal, forecasting annual revenue growth of 20%-25% by 2024 and 2025. Being conservative, this leads to around $3.8 billion in revenue by 2025, slightly lower than the company’s $4 billion goal.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8399716c34af6fc6abd62e9cf7cb59ed\" tg-width=\"494\" tg-height=\"288\" width=\"100%\" height=\"auto\"><span>Source: Bloomberg and author’s calculations.</span></p>\n<p><b>Valuation</b></p>\n<p>As I’ve explained in previous articles, my valuation approach is to look into the next few years of revenues and earnings rather than just focus on this year or the next, to see if the stock has upside potential over a time frame of 2-4 years. Therefore, I’ll use 2025 estimates to see if Palantir is currently undervalued or not, and use its historical valuation based on its revenue multiple as the company is still not profitable in its bottom-line.</p>\n<p>Palantir’s trading history is limited, as the company performed its IPO in 2020, but has traded at about 24x EV/revenues over the past year. Assuming that Palantir will have a slightly lower valuation multiple in the future, as its growth rates decrease in the coming years, I think it is reasonable to assume a 20x EV/revenue multiple by 2024. Note that this is a strong de-rate from its current&nbsp;valuation&nbsp;of close to 30x revenues, hence this seems to be a conservative assumption.</p>\n<p>This methodology gives me a price target of $40.75 by end-2024, implying an upside potential of more than 70% over the next three years. This shows that Palantir has strong upside potential over the next three years and is currently a great play for long-term investors.</p>\n<p><b>Bottom Line</b></p>\n<p>Palantir has very good long-term growth prospects and its recent impressive growth in the U.S. commercial business provides evidence that Palantir is only starting to tap a very large market for the company. I was already bullish on Palantir, but its push for growth in the commercial business was ahead of my expectations, showing that its strategy is right and has a lot of potential to increase its customer base.</p>\n<p>This provides a strong support for annual revenue growth of 20%-30% in the next four years, and being conservative I see plenty of upside in the next few years, making Palantir a great growth play in the big data investment theme.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Palantir: Strong Upside Ahead</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPalantir: Strong Upside Ahead\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-10-14 16:56 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4459749-palantir-strong-upside-ahead><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nPalantir's growth strategy in the commercial business is bearing fruit, showing that there is a lot of potential to increase its customer base.\nThis is a strong support for annual revenue ...</p>\n\n<a href=\"https://seekingalpha.com/article/4459749-palantir-strong-upside-ahead\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4459749-palantir-strong-upside-ahead","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1131725095","content_text":"Summary\n\nPalantir's growth strategy in the commercial business is bearing fruit, showing that there is a lot of potential to increase its customer base.\nThis is a strong support for annual revenue growth of 20-30% in the next four years, justifying its high valuation multiples.\nMy price target is $40.75 per share by end-2024, implying more than 70% upside potential over the next three years.\n\nMichael Vi/iStock Editorial via Getty Images\nPalantir Technologies(PLTR) is a great growth play with plenty of upside over the next three years, even assuming more conservative assumptions than its own guidance.\nBackground\nI covered Palantir a few months ago, and I’m bullish on its stock as I see the company very well positioned to grow strongly over the medium to long term. This is driven by its software that is quite unique and should lead to strong customer demand over the coming years, as the need to interpret and analyzed big datasets is only expected to rise in the future.\nNevertheless, there is also a lot of hype about this company and investors should be aware that Palantir is still a small company and its business is in a very early growth phase, thus I don’t see Palantir becoming one of the big tech companies over the next decade.\nThis expectation is justified by Palantir’s business model, which is focused on government and large corporate and therefore is not easily scalable. Indeed, the company only had 169 customers at the end of June, a relatively small number of customers due to its historical focus on large clients.\nAs I’ve discussed in previous articles, I invest mainly in secular growth companies in a few investing themes, namely semiconductors, electric vehicles, digital payments, 5G and big data. In this last theme, I see Palantir as one of the best picks, and in this article, I do an update on its investment case.\nRecent Earnings & Estimates\nSince my last article, Palantir has released Q2 2021 earnings, maintain a very good operating momentum. Its revenues in the quarter amounted to $376 million, up by 49% YoY. This strong growth was driven largely by its U.S. commercial business that reported exponential growth, up by 90% YoY.\nSource: Palantir.\nThis growth rate in Palantir’s commercial business is impressive, but not necessarily unexpected. While Palantir has focused historically on governments and large corporations as its key customers, the company has been changing its strategy and has recruited, in recent months, salespeople to target smaller and medium-sized companies.\nIn Q1 2021, Palantir had recruited about 50 dedicated salespeople and this has translated quite rapidly in new customer acquisitions and higher revenue in a relatively short period of time. In Q2, the company added 20 net new customers and total commercial customers increased by 32% QoQ, while in the first six months of the year its commercial customer count increased by 61%. I think this is a strong signal that Palantir offers a good value proposition to customers of different sizes, boding quite well for its growth in the next few years.\nIndeed, Palantir’s edge is to offer a software that is used to analyze big datasets, so that users can make better decisions regarding their needs and projects. Palantir’s software is viewed as a central operating system for customer’s data, which usually can be spread across a large number of teams and departments and possibly in different countries.\nThe strong growth reported in the last quarter on the commercial business side is clearly a demonstration that Palantir can leverage its software to a much larger customer base, making me even more bullish as the company can gain a lot of customers both in the U.S. and abroad for years to come.\nThis is supported by Palantir’s push to hire more salespeople, with the company hiring 60 additional salespeople in Q2, and more expected until the end of the year. This means that revenue growth in the commercial business is not expected to slow down in the next few quarters, boding very well for overall revenue growth.\nOn the government side, Palantir’s revenues increased by 66% YoY in Q2 2021 to $232 million, also a very strong growth rate, and this growth is expected to remain at a strong pace in the near future. For instance, Palantir has recentlybeen selectedby the U.S. Army for the delivery of the Army’s Intelligence data fabric and analytics foundation in a new contract valued at $823 million, for a period of four years, being a good tailwind for revenue growth in coming years.\nIts total commercial revenue increased by 28% YoY to $144 million in Q2 2021, which means that the majority of commercial revenues are generated in international markets and therefore the potential for revenue growth in the U.S. is still largely untapped.\nBeyond revenue growth, Palantir is also improving meaningfully its profitability and has achieved an adjusted operating margin (which excludes stock-based compensation) of 31% in the last quarter, much higher than in Q2 2020. Even though Palantir is not expected to report profits in the short term, from an operating standpoint, it is improving its margins due to a larger scale, showing that its business has operating leverage. As the company gains more customers and increases revenue at a higher rate than expenses, operating margins should continue to rise being a key factor for achieving break-even in the next few years.\nSource: Palantir.\nDuring the first six months of 2021, Palantir’s revenues were up by 49% YoY to $717 million, thus Palantir is on path to generate annual revenues of around $1.4-$1.5 billion in 2021. Current consensus is for $1.51 billion in revenues this year, which seems possible to beat as the company has reported higher growth than was expected in the two previous quarters.\nRegarding its cash flow generation, Palantir is also showing a good performance, given that it has raised its free cash flow guidance to about $300 million in 2021, while previously expecting some $150 million, benefiting from new customers and contracts that have upfront payments. This is supported by its ‘order backlog’, or what the company calls its remaining deal value, which amounted to more than $3.4 billion at the end of June.\nSource: Palantir.\nGoing forward, Palantir is expected to maintain strong revenue growth, even though it is estimated to drop below +30% YoY in the next couple of years. This may be too conservative, given that Palantir is not showing any signs of slowing down in both the government and commercial businesses, which gives the company a good margin to beat medium-term expectations.\nThis provides a strong backdrop for Palantir to achieve annual revenue growth of 30%+ during the next four years and reach its target of $4 billion in revenues by 2025. However, as the company becomes larger I’m expecting lower revenue growth than Palantir’s goal, forecasting annual revenue growth of 20%-25% by 2024 and 2025. Being conservative, this leads to around $3.8 billion in revenue by 2025, slightly lower than the company’s $4 billion goal.\nSource: Bloomberg and author’s calculations.\nValuation\nAs I’ve explained in previous articles, my valuation approach is to look into the next few years of revenues and earnings rather than just focus on this year or the next, to see if the stock has upside potential over a time frame of 2-4 years. Therefore, I’ll use 2025 estimates to see if Palantir is currently undervalued or not, and use its historical valuation based on its revenue multiple as the company is still not profitable in its bottom-line.\nPalantir’s trading history is limited, as the company performed its IPO in 2020, but has traded at about 24x EV/revenues over the past year. Assuming that Palantir will have a slightly lower valuation multiple in the future, as its growth rates decrease in the coming years, I think it is reasonable to assume a 20x EV/revenue multiple by 2024. Note that this is a strong de-rate from its current valuation of close to 30x revenues, hence this seems to be a conservative assumption.\nThis methodology gives me a price target of $40.75 by end-2024, implying an upside potential of more than 70% over the next three years. This shows that Palantir has strong upside potential over the next three years and is currently a great play for long-term investors.\nBottom Line\nPalantir has very good long-term growth prospects and its recent impressive growth in the U.S. commercial business provides evidence that Palantir is only starting to tap a very large market for the company. I was already bullish on Palantir, but its push for growth in the commercial business was ahead of my expectations, showing that its strategy is right and has a lot of potential to increase its customer base.\nThis provides a strong support for annual revenue growth of 20%-30% in the next four years, and being conservative I see plenty of upside in the next few years, making Palantir a great growth play in the big data investment theme.","news_type":1},"isVote":1,"tweetType":1,"viewCount":345,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":827370735,"gmtCreate":1634428382754,"gmtModify":1634428382899,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/827370735","repostId":"1181832255","repostType":2,"repost":{"id":"1181832255","pubTimestamp":1634307211,"share":"https://www.laohu8.com/m/news/1181832255?lang=&edition=full","pubTime":"2021-10-15 22:13","market":"us","language":"en","title":"Palantir Is A Buy: Why This Stock Could Go A Lot Higher","url":"https://stock-news.laohu8.com/highlight/detail?id=1181832255","media":"Seeking Alpha","summary":"Summary\n\nPalantir had a strong run-up last year, but shares have been trading sideways for months no","content":"<p><b>Summary</b></p>\n<ul>\n <li>Palantir had a strong run-up last year, but shares have been trading sideways for months now.</li>\n <li>We are likely witnessing a consolidation phase, after which Palantir should head higher.</li>\n <li>The company enjoys a prominent market position with its government business, and its corporate operations are also expanding.</li>\n <li>Palantir has enormous growth potential, and its share price should continue to power higher as we advance.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/0361567f2939770c4946a5568ce8dc7e\" tg-width=\"1536\" tg-height=\"1033\" width=\"100%\" height=\"auto\"><span>Scott Olson/Getty Images News</span></p>\n<p>Palantir(NYSE:PLTR)had a strong run-up in 2020 and early 2021, but lately, the stock has mostly moved sideways. Palantir is a market leader in big data analytics and has significant growth potential and plenty of market share to capture. The company already caters to top government agencies, corporations, and sectors across numerous industries. The company is continuously improving and growing its business segments, and Palantir should continue to attract new clients in the future. Moreover, the company should continue to increase revenues and grow EPS as we advance. Palantir's stock will likely rise from here and could double within the next several years.</p>\n<p><b>The Technical Setup</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/ace88581cae461d9a59e70b01abd2c4c\" tg-width=\"640\" tg-height=\"676\" width=\"100%\" height=\"auto\"><span>Source: Stockcharts.com</span></p>\n<p>Palantir has been in a relatively tight trading range ($20-30) for most of this year. However, we see the stock making slightly higher highs and higher lows in recent months. There is now strong support around the $22 and $20 support levels. Additionally, the full stochastic, the CCI, and other technical indicators imply that the stock will likely shift towards a more positive technical momentum. Given the technical setup, a breakout above the $30 resistance level seems probable within the next several months.</p>\n<p><b>Palantir's Businesses</b></p>\n<p>Palantir operates out ofthree core segments. Gotham, Metropolis, and Foundry are the three main \"projects\" that the company is known for right now. While Palantir is a leading software big data analytics company, what I find most interesting is the company's client list.</p>\n<p>The company's Gotham program is used by U.S. counter-terrorism analysts at the U.S. Intelligence Community and the Department of Defense. Moreover, the CIA, DOD, and numerous other intelligence and defense branches use Palantir's services. Government contracts are the primary source of income and growth for Palantir, and the company&nbsp;continues to attract clients&nbsp;amongst government agencies. The company signed contracts with the CDC, the U.S. Special Operations Command, the United States Space Force, and others.</p>\n<p>The U.S. government would not use the services of an unreliable or incompetent company. The trusted seal of approval of the U.S. government is excellent for Palantir, as it signals that the firm is highly competent and can be trusted. Furthermore, government contracts are often recurring and can deliver steady long-term revenues for Palantir.</p>\n<p>Palantir Metropolis is data integration, information management, and quantitative analytics software used primarily by banks, hedge funds, and other financial institutions. Metropolis is a lucrative area the company can continue to expand operations in.</p>\n<p>The company's Foundry program is Palantir's software designed for other corporate clients. Over&nbsp;200 companies&nbsp;already use Palantir's software, and the list continues to grow. Palantir will likely continue to improve operations and increase clients in its corporate segment. This trend should enable revenues to continue to expand and EPS to rise.</p>\n<p><b>Palantir's Growth Story</b></p>\n<p>With revenues looking to surge by about&nbsp;38% this year, Palantir is one of the most exciting growth stocks around today. Analysts expect Palantir to report $1.5 billion in revenues in 2021, and sales could triple to more than $5 billion by the end of 2025.</p>\n<p><b>Revenue Growth</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a1058c11240d23ab79899c55af6687fe\" tg-width=\"640\" tg-height=\"286\" width=\"100%\" height=\"auto\"><span>Source: seekingalpha.com</span></p>\n<p>Palantir's revenues have doubled since 2019, and sales growth should continue to surge as we move ahead. The company has a powerful presence amongst government agencies, which provides Palantir with a continuous stream of lucrative government contracts. Additionally, the company continues to expand its reach in the corporate sector as well. It's important to consider that Palantir has a great deal of market share to capture, and the company has a remarkably long growth runway. We could see significant double-digit growth continue for many more years with Palantir as we move ahead. Therefore, the company's P/E ratio will likely remain relatively high well into the future.</p>\n<p><b>EPS Projections</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5ed71a1a8a1164ed597242f76d7c39fc\" tg-width=\"640\" tg-height=\"283\" width=\"100%\" height=\"auto\"><span>Source: seekingalpha.com</span></p>\n<p>While the company's EPS may appear relatively low right now, earnings will likely surge in the future. After all, this kind of earnings dynamic is what we should expect to see from a growth company. Limited EPS growth while the company is expanding operations and growing revenues is a normal phenomenon. Once Palantir gets more established in its core industries, we will likely see growth slow down and EPS increase as the company begins emphasizing earnings rather than growth.</p>\n<p><b>Beating the Analysts</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/38b36b5d8c54c212b4e342b80563d88e\" tg-width=\"640\" tg-height=\"278\" width=\"100%\" height=\"auto\"><span>Source: seekingalpha.com</span></p>\n<p>Palantir is becoming quite adept at beating consensus analysts' projections. While analysts expected the company to produce $0.12 in EPS, Palantir delivered $0.20 instead. This outperformance is a significant 67% beat over the estimates. Now, we may not see 50-100% EPS beats in future years, but Palantir's EPS results could come in towards the higher end of estimates as we advance.</p>\n<p><b>Here's What Palantir's Earnings Could Look Like in Future Years:</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/9efd80de9939548724af3e938182359c\" tg-width=\"905\" tg-height=\"400\" width=\"100%\" height=\"auto\"><span>Source: Author's material</span></p>\n<p>My earnings estimates are just slightly higher than the&nbsp;consensus analysts' figures. However, I don't believe that I am overly optimistic about the stock price here. Due to Palantir's substantial revenue growth and earning capacity, we will likely continue to see a relatively high P/E ratio for this stock. This dynamic is nothing out of the ordinary, as we see relatively high P/E ratios persist in other dominant market-leading names with high growth prospects.</p>\n<p><b>The Bottom Line</b></p>\n<p>Palantir is a unique company that should continue to expand revenues and increase EPS as we move forward. The company has a very prominent position in the lucrative government software sector. Moreover, Palantir continues to improve its market position in its corporate segments as well. The company has significant growth potential and should continue to deliver double-digit revenue growth for many years. In addition, Palantir is already showing a tenacity for surpassing analysts' expectations, and the company could continue to bring in higher earnings than the market expects. I suspect that Palantir's stock can have a sustainable move up to around $50 over the next 1-3 years. After this appreciation, shares of Palantir can continue to move higher.</p>\n<p><b>Risks to Consider</b></p>\n<p>Despite my bullish outlook for Palantir, market participants should consider some potential risks. While the growth story is strong at Palantir, shares are far from cheap, and the company's earnings are still quite limited. Moreover, if the company's growth picture were to turn less bullish for whatever reason, the stock could head in the wrong direction. For instance, if Palantir lost favor with the government or had a data breach, the stock could experience a notable decline. Palantir is not a value company. It is an elevated-risk/high reward potential stock. The company needs to execute almost flawlessly and operate optimally for the stock price to continue to grow.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Palantir Is A Buy: Why This Stock Could Go A Lot Higher</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPalantir Is A Buy: Why This Stock Could Go A Lot Higher\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-10-15 22:13 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4459874-why-palantir-could-go-lot-higher><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nPalantir had a strong run-up last year, but shares have been trading sideways for months now.\nWe are likely witnessing a consolidation phase, after which Palantir should head higher.\nThe ...</p>\n\n<a href=\"https://seekingalpha.com/article/4459874-why-palantir-could-go-lot-higher\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"source_url":"https://seekingalpha.com/article/4459874-why-palantir-could-go-lot-higher","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1181832255","content_text":"Summary\n\nPalantir had a strong run-up last year, but shares have been trading sideways for months now.\nWe are likely witnessing a consolidation phase, after which Palantir should head higher.\nThe company enjoys a prominent market position with its government business, and its corporate operations are also expanding.\nPalantir has enormous growth potential, and its share price should continue to power higher as we advance.\n\nScott Olson/Getty Images News\nPalantir(NYSE:PLTR)had a strong run-up in 2020 and early 2021, but lately, the stock has mostly moved sideways. Palantir is a market leader in big data analytics and has significant growth potential and plenty of market share to capture. The company already caters to top government agencies, corporations, and sectors across numerous industries. The company is continuously improving and growing its business segments, and Palantir should continue to attract new clients in the future. Moreover, the company should continue to increase revenues and grow EPS as we advance. Palantir's stock will likely rise from here and could double within the next several years.\nThe Technical Setup\nSource: Stockcharts.com\nPalantir has been in a relatively tight trading range ($20-30) for most of this year. However, we see the stock making slightly higher highs and higher lows in recent months. There is now strong support around the $22 and $20 support levels. Additionally, the full stochastic, the CCI, and other technical indicators imply that the stock will likely shift towards a more positive technical momentum. Given the technical setup, a breakout above the $30 resistance level seems probable within the next several months.\nPalantir's Businesses\nPalantir operates out ofthree core segments. Gotham, Metropolis, and Foundry are the three main \"projects\" that the company is known for right now. While Palantir is a leading software big data analytics company, what I find most interesting is the company's client list.\nThe company's Gotham program is used by U.S. counter-terrorism analysts at the U.S. Intelligence Community and the Department of Defense. Moreover, the CIA, DOD, and numerous other intelligence and defense branches use Palantir's services. Government contracts are the primary source of income and growth for Palantir, and the company continues to attract clients amongst government agencies. The company signed contracts with the CDC, the U.S. Special Operations Command, the United States Space Force, and others.\nThe U.S. government would not use the services of an unreliable or incompetent company. The trusted seal of approval of the U.S. government is excellent for Palantir, as it signals that the firm is highly competent and can be trusted. Furthermore, government contracts are often recurring and can deliver steady long-term revenues for Palantir.\nPalantir Metropolis is data integration, information management, and quantitative analytics software used primarily by banks, hedge funds, and other financial institutions. Metropolis is a lucrative area the company can continue to expand operations in.\nThe company's Foundry program is Palantir's software designed for other corporate clients. Over 200 companies already use Palantir's software, and the list continues to grow. Palantir will likely continue to improve operations and increase clients in its corporate segment. This trend should enable revenues to continue to expand and EPS to rise.\nPalantir's Growth Story\nWith revenues looking to surge by about 38% this year, Palantir is one of the most exciting growth stocks around today. Analysts expect Palantir to report $1.5 billion in revenues in 2021, and sales could triple to more than $5 billion by the end of 2025.\nRevenue Growth\nSource: seekingalpha.com\nPalantir's revenues have doubled since 2019, and sales growth should continue to surge as we move ahead. The company has a powerful presence amongst government agencies, which provides Palantir with a continuous stream of lucrative government contracts. Additionally, the company continues to expand its reach in the corporate sector as well. It's important to consider that Palantir has a great deal of market share to capture, and the company has a remarkably long growth runway. We could see significant double-digit growth continue for many more years with Palantir as we move ahead. Therefore, the company's P/E ratio will likely remain relatively high well into the future.\nEPS Projections\nSource: seekingalpha.com\nWhile the company's EPS may appear relatively low right now, earnings will likely surge in the future. After all, this kind of earnings dynamic is what we should expect to see from a growth company. Limited EPS growth while the company is expanding operations and growing revenues is a normal phenomenon. Once Palantir gets more established in its core industries, we will likely see growth slow down and EPS increase as the company begins emphasizing earnings rather than growth.\nBeating the Analysts\nSource: seekingalpha.com\nPalantir is becoming quite adept at beating consensus analysts' projections. While analysts expected the company to produce $0.12 in EPS, Palantir delivered $0.20 instead. This outperformance is a significant 67% beat over the estimates. Now, we may not see 50-100% EPS beats in future years, but Palantir's EPS results could come in towards the higher end of estimates as we advance.\nHere's What Palantir's Earnings Could Look Like in Future Years:\nSource: Author's material\nMy earnings estimates are just slightly higher than the consensus analysts' figures. However, I don't believe that I am overly optimistic about the stock price here. Due to Palantir's substantial revenue growth and earning capacity, we will likely continue to see a relatively high P/E ratio for this stock. This dynamic is nothing out of the ordinary, as we see relatively high P/E ratios persist in other dominant market-leading names with high growth prospects.\nThe Bottom Line\nPalantir is a unique company that should continue to expand revenues and increase EPS as we move forward. The company has a very prominent position in the lucrative government software sector. Moreover, Palantir continues to improve its market position in its corporate segments as well. The company has significant growth potential and should continue to deliver double-digit revenue growth for many years. In addition, Palantir is already showing a tenacity for surpassing analysts' expectations, and the company could continue to bring in higher earnings than the market expects. I suspect that Palantir's stock can have a sustainable move up to around $50 over the next 1-3 years. After this appreciation, shares of Palantir can continue to move higher.\nRisks to Consider\nDespite my bullish outlook for Palantir, market participants should consider some potential risks. While the growth story is strong at Palantir, shares are far from cheap, and the company's earnings are still quite limited. Moreover, if the company's growth picture were to turn less bullish for whatever reason, the stock could head in the wrong direction. For instance, if Palantir lost favor with the government or had a data breach, the stock could experience a notable decline. Palantir is not a value company. It is an elevated-risk/high reward potential stock. The company needs to execute almost flawlessly and operate optimally for the stock price to continue to grow.","news_type":1},"isVote":1,"tweetType":1,"viewCount":24,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":866279886,"gmtCreate":1632787759645,"gmtModify":1632797591513,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/INS\">$Intelligent(INS)$</a>maybe","listText":"<a href=\"https://laohu8.com/S/INS\">$Intelligent(INS)$</a>maybe","text":"$Intelligent(INS)$maybe","images":[{"img":"https://static.tigerbbs.com/7f457f06b57bd0992f985a48c8d1e4c9","width":"1080","height":"3720"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/866279886","isVote":1,"tweetType":1,"viewCount":70,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"CN","totalScore":0},{"id":692164710,"gmtCreate":1640877442131,"gmtModify":1640877442131,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/692164710","repostId":"1106092668","repostType":4,"repost":{"id":"1106092668","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1640876653,"share":"https://www.laohu8.com/m/news/1106092668?lang=&edition=full","pubTime":"2021-12-30 23:04","market":"us","language":"en","title":"Sea Limited Shares Jumped More Than 4% in Morning Trading","url":"https://stock-news.laohu8.com/highlight/detail?id=1106092668","media":"Tiger Newspress","summary":"Sea Limited shares jumped more than 4% in morning trading.Also Read:Sea Limited: A Deep Dive To Unde","content":"<html><head></head><body><p>Sea Limited shares jumped more than 4% in morning trading.</p><p><img src=\"https://static.tigerbbs.com/448dcc7d589843674730e046aa6ef96a\" tg-width=\"840\" tg-height=\"470\" referrerpolicy=\"no-referrer\"/></p><p><b>Also Read:</b><b>Sea Limited: A Deep Dive To Understand The Recent Selloff</b></p><p><b>Summary</b></p><ul><li>Sea Limited is a highly diversified business firing on all cylinders in some of the fastest-growing economies in the world.</li><li>I dive into each of its segments to understand the recent selloff and justify the current valuation.</li><li>I consider Sea one of my ten highest conviction investments.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/aa5cbe0a30acc723a2c6f62300024002\" tg-width=\"1536\" tg-height=\"1024\" width=\"100%\" height=\"auto\"/><span>kokkai/iStock Unreleased via Getty Images</span></p><p><b>Thesis</b></p><p>A by-parts analysis of Sea Limited&#39;s (NYSE:SE) segments shows that its current valuation is roughly fair, but there are many long-term growth drivers that could surprise to the upside and drive very strong returns for years to come.</p><p><b>Introduction</b></p><p>I recently wrote an article highlighting my top 10 stock picks for 2022. I&#39;d already done an in-depth analysis of my other nine picks in other Seeking Alpha articles, so I thought it would be good to close out the year with an article about Sea.</p><p>Furthermore, with shares down significantly over the past couple of months (but still slightly up for the year), I believe this article may prove timely. I don&#39;t speculate on short-term market movements, but I personally added to my Sea shares recently. It&#39;s one of my only losing positions that I didn&#39;t sell out of temporarily for tax-loss harvesting, and in this article, I will explain why Sea is such a high conviction holding for me.</p><p>It&#39;s also worth noting that many professional investors seem to share this opinion. Sea is the 121st largest company in the world, but it&#39;s the16thmost popular holding among hedge funds. This implies that big money is overweight Sea, with 71% of shares held by institutions.</p><p>Because Sea operates in many different areas, I will do a separate analysis of each of its operating segments to justify its current valuation and explain how that valuation could drive unexpectedly strong returns for years.</p><p><b>Gaming</b></p><p>Sea Limited&#39;s gaming segment Garena is best known for Free Fire, a mobile battle royale game that was developed in-house.</p><p>The game was released in 2017 and has been very popular ever since. It currently has the second most monthly active users among all Android games globally. The game is available worldwide, but it&#39;s particularly popular in emerging markets like SEA, LATAM, and India, where it&#39;s been the highest-grossing mobile game for over two years.</p><p>With the game having been popular for a long time already, there&#39;s some concern that gamers will move on to the next big thing. Although there are some mobile games that are older than Free Fire and still very popular - like Roblox, Clash of Clans, and Pokemon Go - there are many more that have been forgotten. Until Garena releases more games and proves that it can be successful with them too, there will always be questions about whether its studio is a one-hit wonder.</p><p>Regardless, Garena is a critical part of Sea because it&#39;s the only profitable segment and it doubles a social platform that provides free advertising for Sea&#39;s non-gaming products. Cross-promotion is a huge competitive advantage for Sea.</p><p>Thus, one reason for Sea&#39;s recent selloff could be the Q4 guidance implied for Garena.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/9e299727cc28a887a36d88831aec8f53\" tg-width=\"640\" tg-height=\"334\" width=\"100%\" height=\"auto\"/><span>Source: Earnings Call Presentation</span></p><p>In Q2 this year, Garena raised its guidance to $4.5B-$4.7B for 2021 bookings (up from $4.3B-$4.5B). With the first three quarters already totaling $3.5B, this implies that Q4 bookings will come in at $1.0B-$1.2B, up between 0% and 20% year over year, and likely down sequentially. This is compared to 29% growth in the most recent quarter and 44% projected growth for the full year.</p><p>While 20% isn&#39;t a terrible deceleration, 0% certainly is. Even 20% growth isn&#39;t spectacular compared to the historic levels. At the 10% midpoint, Garena&#39;s growth looks more similar to that of a mature company like Activision (NASDAQ:ATVI) or Zynga (NASDAQ:ZNGA) than a fast-growing company like Roblox (NYSE:RBLX).</p><p>Garena&#39;s implied valuation should - and did - suffer as a result. While a fast-growing company like Roblox can command a high double-digit P/S multiple, Activision and Zynga trade at an average P/S multiple of just 4. Garena is slightly more profitable than them and probably has more risk to the upside, so I&#39;ll use a P/S multiple of 5 for my implied valuation. This implies a P/E of about 10 for a business growing at around 10%, which is very reasonable in today&#39;s market.</p><p>This means Garena is worth $23.5B based on the high end of management&#39;s guidance.</p><p>I believe this valuation is actually conservative for a few reasons:</p><ul><li>Next year has tough comps and growth could re-accelerate in the following years or even next year, especially if Garena releases a new hit game. The growth rate past next quarter is not based on explicit guidance from the company, only industry forecasts.</li><li>The peer valuations I used are from companies also trading at the lower end of their valuation range for the past year.</li><li>Garena has a good track record and is continuing to invest in Free Fire. One example of this is the recently released Free Fire MAX, which improves the experience for users with higher-end phones and even adds a metaverse-like customizable map called Craftland. To me, this implies that Garena believes Free Fire is still in the earlier part of its lifecycle.</li><li>Although I&#39;d obviously prefer that Garena develops more games in house, in the meantime it&#39;s still not a one-trick pony. In addition to Free Fire, Garena distributes games from third-party developers like Tencent (OTCMKTS:OTCPK:TCEHY). These are popular titles like League of Legends and Call of Duty, which meaningfully diversify Garena&#39;s revenue.</li></ul><p><b>E-Commerce</b></p><p>Sea&#39;s e-commerce platform Shopee is currently its big growth driver. This platform is often considered the Amazon (NASDAQ:AMZN) of Southeast Asia, and it recently expanded into more markets including Brazil.</p><p>There&#39;s always some debate about who is really the Amazon of a region. Shopee certainly has competition, including from Alibaba&#39;s (NYSE:BABA) Lazada, Tokopedia in Indonesia, MercadoLibre (MELI) in Brazil, and even Amazon itself. With most of the competition being private or tucked away into a larger company, many of the competitors don&#39;t publish exact revenue numbers, which makes it difficult to measure the competition. Even Sea hasn&#39;t published explicit revenue numbers for some countries like Brazil.</p><p>One neutral source that can be assessed is the Alexa site rank, which as its name suggests ranks sites by their popularity. Keep in mind that these are ranks, so a lower score is better.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/180367a2b64bccebf243c5b6d8fb776a\" tg-width=\"455\" tg-height=\"353\" width=\"100%\" height=\"auto\"/><span>Source: The Author, compiled from Alexa</span></p><p>Shopee is very mobile-focused, but the above table only considers the website. To check App Store app ranks for the shopping category, we can use App Annie.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/6544f014a5d70d13ee14dab0ac8b6782\" tg-width=\"422\" tg-height=\"403\" width=\"100%\" height=\"auto\"/><span>Source: The Author, compiled from AppAnnie</span></p><p>On the mobile side, there&#39;s no need to look at the competition because Shopee is consistently the number one shopping app in every country listed. In a mobile-first world, this bodes very well. Even on the web side, Shopee wins out except in a few specific regions like LATAM and (barely) Indonesia, which have more local competitors.</p><p>Of course, traffic doesn&#39;t always translate to GMV. But for a shopping app where most people will use the app to buy something, it&#39;s a decent proxy. A third party estimates that Shopee accounts for57%of all e-commerce in Southeast Asia. It&#39;s Shopee&#39;s dominance in the mobile app ranks and market share that make me consider it the Amazon of Southeast Asia.</p><p>So why would a company with so much potential sell off?</p><p>After the recent earnings report, some analysts expressed concern that Shopee is branching out into other countries like Poland and Mexico before validating its business model in the current markets. In these countries, Shopee has less of a presence; it&#39;s bounced between the 3-5 spots on the Mexico App Store for shopping apps, and between spots 1 and 3 in Poland. Although analysts hate uncertainty - and the CEO&#39;s comments that they don&#39;t have a concrete measure of success in these earlier stage countries won&#39;t help with that - Shopee has a history of entering new countries successfully and I am willing to give management some time to try expanding more. After all, if they&#39;re successful, then it could drive even more unexpected growth in the future.</p><p>Another complaint from analysts was that the basket size (average purchase size) is trending down. While that could also have contributed to the recent selloff, it&#39;s hard to complain when the overall sales increased a lot despite a decrease in basket size.</p><p>The company raised its guidance for e-commerce again in Q3, now guiding for $5.0B-$5.2B in 2021 e-commerce revenue. That&#39;s 75%-100% growth in Q4 and about 135% growth for the year. These are much more exciting numbers than the gaming side, although the guidance still implies a slight deceleration in Q4. But compared to Amazon&#39;s $340B in 2020 e-commerce sales, Shopee looks like it&#39;s just scratched the surface. E-commerce is at only11%penetration in Southeast Asia compared to18.7%in the USA, and Southeast Asia economies are generally growing faster than the USA&#39;s.</p><p>Despite being in a blue skies industry, it&#39;s more difficult to value the e-commerce segment because it operates at a loss (whereas the gaming segment is highly profitable). Shopee&#39;s success is not guaranteed because it&#39;s not clear at this point whether the platform can become profitable while retaining its market share. Stocks like this tend to experience more volatility, which could partially explain the recent selloff.</p><p>For unprofitable software companies, I like to use the Rule of 40 to assess the business. But it&#39;s difficult to apply this rule to a more cyclical e-commerce company with naturally lower margins. Even so, it&#39;s worth noting that despite being unprofitable, Sea&#39;s Rule of 40 score of 104 is better than most SaaS companies&#39;, and also better than e-commerce peers Amazon (21), MercadoLibre (73), and Alibaba (43).</p><p>To understand Shopee&#39;s terminal valuation once it becomes profitable, we can look at industry peers. Amazon is one profitable and slower-growing peer, and it trades at 4x P/S. AWS pushes this number up, but Amazon&#39;s high exposure to first-party sales offsets that. Other e-commerce marketplace peers trade at similar valuations: Alibaba at 3x P/S, MercadoLibre at 9x P/S. All of these valuations are basically all-time lows.</p><p>If Shopee keeps doubling revenue over the next couple of years (which it&#39;s easily done every year since 2016), becomes profitable (which scaling up tends to help with), and will have Amazon&#39;s P/S multiple in two years, then at 16 P/S today it would trade flat for two years. But if it keeps growing much faster than Amazon over a longer period like a decade, and/or if the overall industry multiples expand to more normal historical levels, then even at 16x P/S this segment has potential upside. On the other hand, if it stops growing or never becomes profitable then investors will be very disappointed at any P/S.</p><p>Given this wide range of outcomes, each person is going to have their own way of valuing this segment. For me, when I look at Shopee&#39;s mobile dominance, relatively small current size, the funding coming in from Garena, and the precedent set by Amazon, Alibaba, and MercadoLibre for the sustainable long-term success of this business model, I am optimistic about this segment&#39;s future. I recognize that it&#39;s currently an unprofitable and thus risky segment, but I also see the massive potential.</p><p>So I am happy paying a 16x P/S multiple, which values the e-commerce segment at $83.2B. Some people will call that way too high, and those people will probably never get a chance to invest in this company, for better or for worse.</p><p>Thus, with just Garena and Shopee, I have Sea being worth $106.7B. Its current market cap is $123.1B. To account for the difference, let&#39;s look at the other parts of Sea.</p><p><b>FinTech &amp; Investments</b></p><p>The easiest addition to my computed valuation is Sea&#39;s $12B cash pile, partially offset by $4B in debt. This adds some nice optionality to the company and ensures that it won&#39;t be bankrupt any time soon despite losing money with Shopee. Adding in the $8B cash difference puts my computed valuation at $114.7B, just $8.4B short of the actual valuation.</p><p>Then there is Sea&#39;s FinTech arm, SeaMoney. The main product here is a mobile wallet, which was responsible for $4.6B in payment volume in the last quarter (~$20B over a year). This segment accounted for $132 million in Q3 revenue, up a whopping 818% year over year. This implies a &#34;take rate&#34; of 2.9%, which is even better than established FinTech companies like Visa (V). Because of this high take rate, I&#39;m not worried about SeaMoney losing money while it scales.</p><p>Despite SeaMoney being a small segment, it&#39;s now reaching a point where it can be factored into the valuation. Maybe it&#39;s only worth a couple of billion, but this is just the start. Five years ago, nobody would have expected that an e-commerce platform accounting for 5% of Sea&#39;s sales would today be worth more than the gaming segment. But Sea&#39;s management - combined with Garena&#39;s ability to fund new segments and drive their viral adoption - made it happen. It&#39;s certainly not guaranteed that Sea will have the same success with FinTech, but there is precedent for it.</p><p>If one day this segment is worth a third or more of Sea (in 2020, FinTech accounted for 36% of MercadoLibre&#39;s revenue) then getting it for just 7% of the business today will be well worth it, even if that implies a somewhat high 16x P/S multiple for the segment today. Actually, this multiple is already lower than Visa&#39;s, Mastercard&#39;s (NYSE:MA), and Affirm&#39;s (NASDAQ:AFRM). Realistically, a segment growing at 818% year over year should probably get a higher multiple than these slower-growing companies&#39;, but we don&#39;t even need to speculate about what a fair multiple is, since we can reach Sea&#39;s current valuation by using 16x P/S in my model valuation.</p><p>One way this segment could grow even more is through the introduction of more products besides the mobile wallet. Sea noted in their recent earnings that they have started &#34;early initiatives in other digital financial services such as buy now pay later, digital bank, and insurtech.&#34; These guys sure know how to hop on the latest high growth trend.</p><p>Finally, there&#39;s the investments arm. Sea is investing in early-stage tech companies, especially in Southeast Asia. There&#39;s strong precedent for companies like Tencent (which is itself an investor in Sea) and Shopify (NYSE:SHOP) managing successful investment portfolios that ultimately factor meaningfully into their valuation. Right now Sea&#39;s investment arm is very early stage, so I don&#39;t include it in my valuation model. But it doesn&#39;t have to be factored in to justify the current share price. It&#39;s just one more area that might be worth a large part of Sea one day.</p><p><b>Conclusion</b></p><p>Looking at each of Sea&#39;s segments, my valuation model indicates that Sea is fairly valued today. However, my model doesn&#39;t account for the significant optionality of the newer segments. Just like e-commerce did over the last five years, FinTech (and/or investments) could grow to become a very large part of Sea&#39;s business. With the FinTech segment currently growing at 818% year over year, it doesn&#39;t take much imagination to see how this happens. Just another year or two of growth at something close to that rate will make the FinTech arm impossible for investors to ignore.</p><p>This optionality combined general strength in each business has allowed Sea to post an average revenue beat of 7% over the past year. Earnings haven&#39;t been as strong, and I expect that to be the main point of contention with my valuation model, as is the case for most unprofitable companies. In particular, I expect some readers will disagree with my valuation of the e-commerce segment. But even if you drop e-commerce all the way down to 5x P/S (a multiple seen today by much slower growing e-commerce companies) that implies 54% downside from today&#39;s prices. It&#39;s a steep drop for sure, but most companies in today&#39;s market would be looking at such a decline if one were to use the most conservative valuation standards possible.</p><p>Only fast-growing companies like Sea can quickly offset such a decline with revenue growth. As a result, the businesses with the most long-term potential will hardly ever trade at the most conservative valuation possible. And Sea certainly has long-term potential. It&#39;s one of the few high-growth companies I own that I could see reaching a trillion-dollar market cap this decade.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Sea Limited Shares Jumped More Than 4% in Morning Trading</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSea Limited Shares Jumped More Than 4% in Morning Trading\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2021-12-30 23:04</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Sea Limited shares jumped more than 4% in morning trading.</p><p><img src=\"https://static.tigerbbs.com/448dcc7d589843674730e046aa6ef96a\" tg-width=\"840\" tg-height=\"470\" referrerpolicy=\"no-referrer\"/></p><p><b>Also Read:</b><b>Sea Limited: A Deep Dive To Understand The Recent Selloff</b></p><p><b>Summary</b></p><ul><li>Sea Limited is a highly diversified business firing on all cylinders in some of the fastest-growing economies in the world.</li><li>I dive into each of its segments to understand the recent selloff and justify the current valuation.</li><li>I consider Sea one of my ten highest conviction investments.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/aa5cbe0a30acc723a2c6f62300024002\" tg-width=\"1536\" tg-height=\"1024\" width=\"100%\" height=\"auto\"/><span>kokkai/iStock Unreleased via Getty Images</span></p><p><b>Thesis</b></p><p>A by-parts analysis of Sea Limited&#39;s (NYSE:SE) segments shows that its current valuation is roughly fair, but there are many long-term growth drivers that could surprise to the upside and drive very strong returns for years to come.</p><p><b>Introduction</b></p><p>I recently wrote an article highlighting my top 10 stock picks for 2022. I&#39;d already done an in-depth analysis of my other nine picks in other Seeking Alpha articles, so I thought it would be good to close out the year with an article about Sea.</p><p>Furthermore, with shares down significantly over the past couple of months (but still slightly up for the year), I believe this article may prove timely. I don&#39;t speculate on short-term market movements, but I personally added to my Sea shares recently. It&#39;s one of my only losing positions that I didn&#39;t sell out of temporarily for tax-loss harvesting, and in this article, I will explain why Sea is such a high conviction holding for me.</p><p>It&#39;s also worth noting that many professional investors seem to share this opinion. Sea is the 121st largest company in the world, but it&#39;s the16thmost popular holding among hedge funds. This implies that big money is overweight Sea, with 71% of shares held by institutions.</p><p>Because Sea operates in many different areas, I will do a separate analysis of each of its operating segments to justify its current valuation and explain how that valuation could drive unexpectedly strong returns for years.</p><p><b>Gaming</b></p><p>Sea Limited&#39;s gaming segment Garena is best known for Free Fire, a mobile battle royale game that was developed in-house.</p><p>The game was released in 2017 and has been very popular ever since. It currently has the second most monthly active users among all Android games globally. The game is available worldwide, but it&#39;s particularly popular in emerging markets like SEA, LATAM, and India, where it&#39;s been the highest-grossing mobile game for over two years.</p><p>With the game having been popular for a long time already, there&#39;s some concern that gamers will move on to the next big thing. Although there are some mobile games that are older than Free Fire and still very popular - like Roblox, Clash of Clans, and Pokemon Go - there are many more that have been forgotten. Until Garena releases more games and proves that it can be successful with them too, there will always be questions about whether its studio is a one-hit wonder.</p><p>Regardless, Garena is a critical part of Sea because it&#39;s the only profitable segment and it doubles a social platform that provides free advertising for Sea&#39;s non-gaming products. Cross-promotion is a huge competitive advantage for Sea.</p><p>Thus, one reason for Sea&#39;s recent selloff could be the Q4 guidance implied for Garena.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/9e299727cc28a887a36d88831aec8f53\" tg-width=\"640\" tg-height=\"334\" width=\"100%\" height=\"auto\"/><span>Source: Earnings Call Presentation</span></p><p>In Q2 this year, Garena raised its guidance to $4.5B-$4.7B for 2021 bookings (up from $4.3B-$4.5B). With the first three quarters already totaling $3.5B, this implies that Q4 bookings will come in at $1.0B-$1.2B, up between 0% and 20% year over year, and likely down sequentially. This is compared to 29% growth in the most recent quarter and 44% projected growth for the full year.</p><p>While 20% isn&#39;t a terrible deceleration, 0% certainly is. Even 20% growth isn&#39;t spectacular compared to the historic levels. At the 10% midpoint, Garena&#39;s growth looks more similar to that of a mature company like Activision (NASDAQ:ATVI) or Zynga (NASDAQ:ZNGA) than a fast-growing company like Roblox (NYSE:RBLX).</p><p>Garena&#39;s implied valuation should - and did - suffer as a result. While a fast-growing company like Roblox can command a high double-digit P/S multiple, Activision and Zynga trade at an average P/S multiple of just 4. Garena is slightly more profitable than them and probably has more risk to the upside, so I&#39;ll use a P/S multiple of 5 for my implied valuation. This implies a P/E of about 10 for a business growing at around 10%, which is very reasonable in today&#39;s market.</p><p>This means Garena is worth $23.5B based on the high end of management&#39;s guidance.</p><p>I believe this valuation is actually conservative for a few reasons:</p><ul><li>Next year has tough comps and growth could re-accelerate in the following years or even next year, especially if Garena releases a new hit game. The growth rate past next quarter is not based on explicit guidance from the company, only industry forecasts.</li><li>The peer valuations I used are from companies also trading at the lower end of their valuation range for the past year.</li><li>Garena has a good track record and is continuing to invest in Free Fire. One example of this is the recently released Free Fire MAX, which improves the experience for users with higher-end phones and even adds a metaverse-like customizable map called Craftland. To me, this implies that Garena believes Free Fire is still in the earlier part of its lifecycle.</li><li>Although I&#39;d obviously prefer that Garena develops more games in house, in the meantime it&#39;s still not a one-trick pony. In addition to Free Fire, Garena distributes games from third-party developers like Tencent (OTCMKTS:OTCPK:TCEHY). These are popular titles like League of Legends and Call of Duty, which meaningfully diversify Garena&#39;s revenue.</li></ul><p><b>E-Commerce</b></p><p>Sea&#39;s e-commerce platform Shopee is currently its big growth driver. This platform is often considered the Amazon (NASDAQ:AMZN) of Southeast Asia, and it recently expanded into more markets including Brazil.</p><p>There&#39;s always some debate about who is really the Amazon of a region. Shopee certainly has competition, including from Alibaba&#39;s (NYSE:BABA) Lazada, Tokopedia in Indonesia, MercadoLibre (MELI) in Brazil, and even Amazon itself. With most of the competition being private or tucked away into a larger company, many of the competitors don&#39;t publish exact revenue numbers, which makes it difficult to measure the competition. Even Sea hasn&#39;t published explicit revenue numbers for some countries like Brazil.</p><p>One neutral source that can be assessed is the Alexa site rank, which as its name suggests ranks sites by their popularity. Keep in mind that these are ranks, so a lower score is better.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/180367a2b64bccebf243c5b6d8fb776a\" tg-width=\"455\" tg-height=\"353\" width=\"100%\" height=\"auto\"/><span>Source: The Author, compiled from Alexa</span></p><p>Shopee is very mobile-focused, but the above table only considers the website. To check App Store app ranks for the shopping category, we can use App Annie.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/6544f014a5d70d13ee14dab0ac8b6782\" tg-width=\"422\" tg-height=\"403\" width=\"100%\" height=\"auto\"/><span>Source: The Author, compiled from AppAnnie</span></p><p>On the mobile side, there&#39;s no need to look at the competition because Shopee is consistently the number one shopping app in every country listed. In a mobile-first world, this bodes very well. Even on the web side, Shopee wins out except in a few specific regions like LATAM and (barely) Indonesia, which have more local competitors.</p><p>Of course, traffic doesn&#39;t always translate to GMV. But for a shopping app where most people will use the app to buy something, it&#39;s a decent proxy. A third party estimates that Shopee accounts for57%of all e-commerce in Southeast Asia. It&#39;s Shopee&#39;s dominance in the mobile app ranks and market share that make me consider it the Amazon of Southeast Asia.</p><p>So why would a company with so much potential sell off?</p><p>After the recent earnings report, some analysts expressed concern that Shopee is branching out into other countries like Poland and Mexico before validating its business model in the current markets. In these countries, Shopee has less of a presence; it&#39;s bounced between the 3-5 spots on the Mexico App Store for shopping apps, and between spots 1 and 3 in Poland. Although analysts hate uncertainty - and the CEO&#39;s comments that they don&#39;t have a concrete measure of success in these earlier stage countries won&#39;t help with that - Shopee has a history of entering new countries successfully and I am willing to give management some time to try expanding more. After all, if they&#39;re successful, then it could drive even more unexpected growth in the future.</p><p>Another complaint from analysts was that the basket size (average purchase size) is trending down. While that could also have contributed to the recent selloff, it&#39;s hard to complain when the overall sales increased a lot despite a decrease in basket size.</p><p>The company raised its guidance for e-commerce again in Q3, now guiding for $5.0B-$5.2B in 2021 e-commerce revenue. That&#39;s 75%-100% growth in Q4 and about 135% growth for the year. These are much more exciting numbers than the gaming side, although the guidance still implies a slight deceleration in Q4. But compared to Amazon&#39;s $340B in 2020 e-commerce sales, Shopee looks like it&#39;s just scratched the surface. E-commerce is at only11%penetration in Southeast Asia compared to18.7%in the USA, and Southeast Asia economies are generally growing faster than the USA&#39;s.</p><p>Despite being in a blue skies industry, it&#39;s more difficult to value the e-commerce segment because it operates at a loss (whereas the gaming segment is highly profitable). Shopee&#39;s success is not guaranteed because it&#39;s not clear at this point whether the platform can become profitable while retaining its market share. Stocks like this tend to experience more volatility, which could partially explain the recent selloff.</p><p>For unprofitable software companies, I like to use the Rule of 40 to assess the business. But it&#39;s difficult to apply this rule to a more cyclical e-commerce company with naturally lower margins. Even so, it&#39;s worth noting that despite being unprofitable, Sea&#39;s Rule of 40 score of 104 is better than most SaaS companies&#39;, and also better than e-commerce peers Amazon (21), MercadoLibre (73), and Alibaba (43).</p><p>To understand Shopee&#39;s terminal valuation once it becomes profitable, we can look at industry peers. Amazon is one profitable and slower-growing peer, and it trades at 4x P/S. AWS pushes this number up, but Amazon&#39;s high exposure to first-party sales offsets that. Other e-commerce marketplace peers trade at similar valuations: Alibaba at 3x P/S, MercadoLibre at 9x P/S. All of these valuations are basically all-time lows.</p><p>If Shopee keeps doubling revenue over the next couple of years (which it&#39;s easily done every year since 2016), becomes profitable (which scaling up tends to help with), and will have Amazon&#39;s P/S multiple in two years, then at 16 P/S today it would trade flat for two years. But if it keeps growing much faster than Amazon over a longer period like a decade, and/or if the overall industry multiples expand to more normal historical levels, then even at 16x P/S this segment has potential upside. On the other hand, if it stops growing or never becomes profitable then investors will be very disappointed at any P/S.</p><p>Given this wide range of outcomes, each person is going to have their own way of valuing this segment. For me, when I look at Shopee&#39;s mobile dominance, relatively small current size, the funding coming in from Garena, and the precedent set by Amazon, Alibaba, and MercadoLibre for the sustainable long-term success of this business model, I am optimistic about this segment&#39;s future. I recognize that it&#39;s currently an unprofitable and thus risky segment, but I also see the massive potential.</p><p>So I am happy paying a 16x P/S multiple, which values the e-commerce segment at $83.2B. Some people will call that way too high, and those people will probably never get a chance to invest in this company, for better or for worse.</p><p>Thus, with just Garena and Shopee, I have Sea being worth $106.7B. Its current market cap is $123.1B. To account for the difference, let&#39;s look at the other parts of Sea.</p><p><b>FinTech &amp; Investments</b></p><p>The easiest addition to my computed valuation is Sea&#39;s $12B cash pile, partially offset by $4B in debt. This adds some nice optionality to the company and ensures that it won&#39;t be bankrupt any time soon despite losing money with Shopee. Adding in the $8B cash difference puts my computed valuation at $114.7B, just $8.4B short of the actual valuation.</p><p>Then there is Sea&#39;s FinTech arm, SeaMoney. The main product here is a mobile wallet, which was responsible for $4.6B in payment volume in the last quarter (~$20B over a year). This segment accounted for $132 million in Q3 revenue, up a whopping 818% year over year. This implies a &#34;take rate&#34; of 2.9%, which is even better than established FinTech companies like Visa (V). Because of this high take rate, I&#39;m not worried about SeaMoney losing money while it scales.</p><p>Despite SeaMoney being a small segment, it&#39;s now reaching a point where it can be factored into the valuation. Maybe it&#39;s only worth a couple of billion, but this is just the start. Five years ago, nobody would have expected that an e-commerce platform accounting for 5% of Sea&#39;s sales would today be worth more than the gaming segment. But Sea&#39;s management - combined with Garena&#39;s ability to fund new segments and drive their viral adoption - made it happen. It&#39;s certainly not guaranteed that Sea will have the same success with FinTech, but there is precedent for it.</p><p>If one day this segment is worth a third or more of Sea (in 2020, FinTech accounted for 36% of MercadoLibre&#39;s revenue) then getting it for just 7% of the business today will be well worth it, even if that implies a somewhat high 16x P/S multiple for the segment today. Actually, this multiple is already lower than Visa&#39;s, Mastercard&#39;s (NYSE:MA), and Affirm&#39;s (NASDAQ:AFRM). Realistically, a segment growing at 818% year over year should probably get a higher multiple than these slower-growing companies&#39;, but we don&#39;t even need to speculate about what a fair multiple is, since we can reach Sea&#39;s current valuation by using 16x P/S in my model valuation.</p><p>One way this segment could grow even more is through the introduction of more products besides the mobile wallet. Sea noted in their recent earnings that they have started &#34;early initiatives in other digital financial services such as buy now pay later, digital bank, and insurtech.&#34; These guys sure know how to hop on the latest high growth trend.</p><p>Finally, there&#39;s the investments arm. Sea is investing in early-stage tech companies, especially in Southeast Asia. There&#39;s strong precedent for companies like Tencent (which is itself an investor in Sea) and Shopify (NYSE:SHOP) managing successful investment portfolios that ultimately factor meaningfully into their valuation. Right now Sea&#39;s investment arm is very early stage, so I don&#39;t include it in my valuation model. But it doesn&#39;t have to be factored in to justify the current share price. It&#39;s just one more area that might be worth a large part of Sea one day.</p><p><b>Conclusion</b></p><p>Looking at each of Sea&#39;s segments, my valuation model indicates that Sea is fairly valued today. However, my model doesn&#39;t account for the significant optionality of the newer segments. Just like e-commerce did over the last five years, FinTech (and/or investments) could grow to become a very large part of Sea&#39;s business. With the FinTech segment currently growing at 818% year over year, it doesn&#39;t take much imagination to see how this happens. Just another year or two of growth at something close to that rate will make the FinTech arm impossible for investors to ignore.</p><p>This optionality combined general strength in each business has allowed Sea to post an average revenue beat of 7% over the past year. Earnings haven&#39;t been as strong, and I expect that to be the main point of contention with my valuation model, as is the case for most unprofitable companies. In particular, I expect some readers will disagree with my valuation of the e-commerce segment. But even if you drop e-commerce all the way down to 5x P/S (a multiple seen today by much slower growing e-commerce companies) that implies 54% downside from today&#39;s prices. It&#39;s a steep drop for sure, but most companies in today&#39;s market would be looking at such a decline if one were to use the most conservative valuation standards possible.</p><p>Only fast-growing companies like Sea can quickly offset such a decline with revenue growth. As a result, the businesses with the most long-term potential will hardly ever trade at the most conservative valuation possible. And Sea certainly has long-term potential. It&#39;s one of the few high-growth companies I own that I could see reaching a trillion-dollar market cap this decade.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SE":"Sea Ltd"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1106092668","content_text":"Sea Limited shares jumped more than 4% in morning trading.Also Read:Sea Limited: A Deep Dive To Understand The Recent SelloffSummarySea Limited is a highly diversified business firing on all cylinders in some of the fastest-growing economies in the world.I dive into each of its segments to understand the recent selloff and justify the current valuation.I consider Sea one of my ten highest conviction investments.kokkai/iStock Unreleased via Getty ImagesThesisA by-parts analysis of Sea Limited's (NYSE:SE) segments shows that its current valuation is roughly fair, but there are many long-term growth drivers that could surprise to the upside and drive very strong returns for years to come.IntroductionI recently wrote an article highlighting my top 10 stock picks for 2022. I'd already done an in-depth analysis of my other nine picks in other Seeking Alpha articles, so I thought it would be good to close out the year with an article about Sea.Furthermore, with shares down significantly over the past couple of months (but still slightly up for the year), I believe this article may prove timely. I don't speculate on short-term market movements, but I personally added to my Sea shares recently. It's one of my only losing positions that I didn't sell out of temporarily for tax-loss harvesting, and in this article, I will explain why Sea is such a high conviction holding for me.It's also worth noting that many professional investors seem to share this opinion. Sea is the 121st largest company in the world, but it's the16thmost popular holding among hedge funds. This implies that big money is overweight Sea, with 71% of shares held by institutions.Because Sea operates in many different areas, I will do a separate analysis of each of its operating segments to justify its current valuation and explain how that valuation could drive unexpectedly strong returns for years.GamingSea Limited's gaming segment Garena is best known for Free Fire, a mobile battle royale game that was developed in-house.The game was released in 2017 and has been very popular ever since. It currently has the second most monthly active users among all Android games globally. The game is available worldwide, but it's particularly popular in emerging markets like SEA, LATAM, and India, where it's been the highest-grossing mobile game for over two years.With the game having been popular for a long time already, there's some concern that gamers will move on to the next big thing. Although there are some mobile games that are older than Free Fire and still very popular - like Roblox, Clash of Clans, and Pokemon Go - there are many more that have been forgotten. Until Garena releases more games and proves that it can be successful with them too, there will always be questions about whether its studio is a one-hit wonder.Regardless, Garena is a critical part of Sea because it's the only profitable segment and it doubles a social platform that provides free advertising for Sea's non-gaming products. Cross-promotion is a huge competitive advantage for Sea.Thus, one reason for Sea's recent selloff could be the Q4 guidance implied for Garena.Source: Earnings Call PresentationIn Q2 this year, Garena raised its guidance to $4.5B-$4.7B for 2021 bookings (up from $4.3B-$4.5B). With the first three quarters already totaling $3.5B, this implies that Q4 bookings will come in at $1.0B-$1.2B, up between 0% and 20% year over year, and likely down sequentially. This is compared to 29% growth in the most recent quarter and 44% projected growth for the full year.While 20% isn't a terrible deceleration, 0% certainly is. Even 20% growth isn't spectacular compared to the historic levels. At the 10% midpoint, Garena's growth looks more similar to that of a mature company like Activision (NASDAQ:ATVI) or Zynga (NASDAQ:ZNGA) than a fast-growing company like Roblox (NYSE:RBLX).Garena's implied valuation should - and did - suffer as a result. While a fast-growing company like Roblox can command a high double-digit P/S multiple, Activision and Zynga trade at an average P/S multiple of just 4. Garena is slightly more profitable than them and probably has more risk to the upside, so I'll use a P/S multiple of 5 for my implied valuation. This implies a P/E of about 10 for a business growing at around 10%, which is very reasonable in today's market.This means Garena is worth $23.5B based on the high end of management's guidance.I believe this valuation is actually conservative for a few reasons:Next year has tough comps and growth could re-accelerate in the following years or even next year, especially if Garena releases a new hit game. The growth rate past next quarter is not based on explicit guidance from the company, only industry forecasts.The peer valuations I used are from companies also trading at the lower end of their valuation range for the past year.Garena has a good track record and is continuing to invest in Free Fire. One example of this is the recently released Free Fire MAX, which improves the experience for users with higher-end phones and even adds a metaverse-like customizable map called Craftland. To me, this implies that Garena believes Free Fire is still in the earlier part of its lifecycle.Although I'd obviously prefer that Garena develops more games in house, in the meantime it's still not a one-trick pony. In addition to Free Fire, Garena distributes games from third-party developers like Tencent (OTCMKTS:OTCPK:TCEHY). These are popular titles like League of Legends and Call of Duty, which meaningfully diversify Garena's revenue.E-CommerceSea's e-commerce platform Shopee is currently its big growth driver. This platform is often considered the Amazon (NASDAQ:AMZN) of Southeast Asia, and it recently expanded into more markets including Brazil.There's always some debate about who is really the Amazon of a region. Shopee certainly has competition, including from Alibaba's (NYSE:BABA) Lazada, Tokopedia in Indonesia, MercadoLibre (MELI) in Brazil, and even Amazon itself. With most of the competition being private or tucked away into a larger company, many of the competitors don't publish exact revenue numbers, which makes it difficult to measure the competition. Even Sea hasn't published explicit revenue numbers for some countries like Brazil.One neutral source that can be assessed is the Alexa site rank, which as its name suggests ranks sites by their popularity. Keep in mind that these are ranks, so a lower score is better.Source: The Author, compiled from AlexaShopee is very mobile-focused, but the above table only considers the website. To check App Store app ranks for the shopping category, we can use App Annie.Source: The Author, compiled from AppAnnieOn the mobile side, there's no need to look at the competition because Shopee is consistently the number one shopping app in every country listed. In a mobile-first world, this bodes very well. Even on the web side, Shopee wins out except in a few specific regions like LATAM and (barely) Indonesia, which have more local competitors.Of course, traffic doesn't always translate to GMV. But for a shopping app where most people will use the app to buy something, it's a decent proxy. A third party estimates that Shopee accounts for57%of all e-commerce in Southeast Asia. It's Shopee's dominance in the mobile app ranks and market share that make me consider it the Amazon of Southeast Asia.So why would a company with so much potential sell off?After the recent earnings report, some analysts expressed concern that Shopee is branching out into other countries like Poland and Mexico before validating its business model in the current markets. In these countries, Shopee has less of a presence; it's bounced between the 3-5 spots on the Mexico App Store for shopping apps, and between spots 1 and 3 in Poland. Although analysts hate uncertainty - and the CEO's comments that they don't have a concrete measure of success in these earlier stage countries won't help with that - Shopee has a history of entering new countries successfully and I am willing to give management some time to try expanding more. After all, if they're successful, then it could drive even more unexpected growth in the future.Another complaint from analysts was that the basket size (average purchase size) is trending down. While that could also have contributed to the recent selloff, it's hard to complain when the overall sales increased a lot despite a decrease in basket size.The company raised its guidance for e-commerce again in Q3, now guiding for $5.0B-$5.2B in 2021 e-commerce revenue. That's 75%-100% growth in Q4 and about 135% growth for the year. These are much more exciting numbers than the gaming side, although the guidance still implies a slight deceleration in Q4. But compared to Amazon's $340B in 2020 e-commerce sales, Shopee looks like it's just scratched the surface. E-commerce is at only11%penetration in Southeast Asia compared to18.7%in the USA, and Southeast Asia economies are generally growing faster than the USA's.Despite being in a blue skies industry, it's more difficult to value the e-commerce segment because it operates at a loss (whereas the gaming segment is highly profitable). Shopee's success is not guaranteed because it's not clear at this point whether the platform can become profitable while retaining its market share. Stocks like this tend to experience more volatility, which could partially explain the recent selloff.For unprofitable software companies, I like to use the Rule of 40 to assess the business. But it's difficult to apply this rule to a more cyclical e-commerce company with naturally lower margins. Even so, it's worth noting that despite being unprofitable, Sea's Rule of 40 score of 104 is better than most SaaS companies', and also better than e-commerce peers Amazon (21), MercadoLibre (73), and Alibaba (43).To understand Shopee's terminal valuation once it becomes profitable, we can look at industry peers. Amazon is one profitable and slower-growing peer, and it trades at 4x P/S. AWS pushes this number up, but Amazon's high exposure to first-party sales offsets that. Other e-commerce marketplace peers trade at similar valuations: Alibaba at 3x P/S, MercadoLibre at 9x P/S. All of these valuations are basically all-time lows.If Shopee keeps doubling revenue over the next couple of years (which it's easily done every year since 2016), becomes profitable (which scaling up tends to help with), and will have Amazon's P/S multiple in two years, then at 16 P/S today it would trade flat for two years. But if it keeps growing much faster than Amazon over a longer period like a decade, and/or if the overall industry multiples expand to more normal historical levels, then even at 16x P/S this segment has potential upside. On the other hand, if it stops growing or never becomes profitable then investors will be very disappointed at any P/S.Given this wide range of outcomes, each person is going to have their own way of valuing this segment. For me, when I look at Shopee's mobile dominance, relatively small current size, the funding coming in from Garena, and the precedent set by Amazon, Alibaba, and MercadoLibre for the sustainable long-term success of this business model, I am optimistic about this segment's future. I recognize that it's currently an unprofitable and thus risky segment, but I also see the massive potential.So I am happy paying a 16x P/S multiple, which values the e-commerce segment at $83.2B. Some people will call that way too high, and those people will probably never get a chance to invest in this company, for better or for worse.Thus, with just Garena and Shopee, I have Sea being worth $106.7B. Its current market cap is $123.1B. To account for the difference, let's look at the other parts of Sea.FinTech & InvestmentsThe easiest addition to my computed valuation is Sea's $12B cash pile, partially offset by $4B in debt. This adds some nice optionality to the company and ensures that it won't be bankrupt any time soon despite losing money with Shopee. Adding in the $8B cash difference puts my computed valuation at $114.7B, just $8.4B short of the actual valuation.Then there is Sea's FinTech arm, SeaMoney. The main product here is a mobile wallet, which was responsible for $4.6B in payment volume in the last quarter (~$20B over a year). This segment accounted for $132 million in Q3 revenue, up a whopping 818% year over year. This implies a \"take rate\" of 2.9%, which is even better than established FinTech companies like Visa (V). Because of this high take rate, I'm not worried about SeaMoney losing money while it scales.Despite SeaMoney being a small segment, it's now reaching a point where it can be factored into the valuation. Maybe it's only worth a couple of billion, but this is just the start. Five years ago, nobody would have expected that an e-commerce platform accounting for 5% of Sea's sales would today be worth more than the gaming segment. But Sea's management - combined with Garena's ability to fund new segments and drive their viral adoption - made it happen. It's certainly not guaranteed that Sea will have the same success with FinTech, but there is precedent for it.If one day this segment is worth a third or more of Sea (in 2020, FinTech accounted for 36% of MercadoLibre's revenue) then getting it for just 7% of the business today will be well worth it, even if that implies a somewhat high 16x P/S multiple for the segment today. Actually, this multiple is already lower than Visa's, Mastercard's (NYSE:MA), and Affirm's (NASDAQ:AFRM). Realistically, a segment growing at 818% year over year should probably get a higher multiple than these slower-growing companies', but we don't even need to speculate about what a fair multiple is, since we can reach Sea's current valuation by using 16x P/S in my model valuation.One way this segment could grow even more is through the introduction of more products besides the mobile wallet. Sea noted in their recent earnings that they have started \"early initiatives in other digital financial services such as buy now pay later, digital bank, and insurtech.\" These guys sure know how to hop on the latest high growth trend.Finally, there's the investments arm. Sea is investing in early-stage tech companies, especially in Southeast Asia. There's strong precedent for companies like Tencent (which is itself an investor in Sea) and Shopify (NYSE:SHOP) managing successful investment portfolios that ultimately factor meaningfully into their valuation. Right now Sea's investment arm is very early stage, so I don't include it in my valuation model. But it doesn't have to be factored in to justify the current share price. It's just one more area that might be worth a large part of Sea one day.ConclusionLooking at each of Sea's segments, my valuation model indicates that Sea is fairly valued today. However, my model doesn't account for the significant optionality of the newer segments. Just like e-commerce did over the last five years, FinTech (and/or investments) could grow to become a very large part of Sea's business. With the FinTech segment currently growing at 818% year over year, it doesn't take much imagination to see how this happens. Just another year or two of growth at something close to that rate will make the FinTech arm impossible for investors to ignore.This optionality combined general strength in each business has allowed Sea to post an average revenue beat of 7% over the past year. Earnings haven't been as strong, and I expect that to be the main point of contention with my valuation model, as is the case for most unprofitable companies. In particular, I expect some readers will disagree with my valuation of the e-commerce segment. But even if you drop e-commerce all the way down to 5x P/S (a multiple seen today by much slower growing e-commerce companies) that implies 54% downside from today's prices. It's a steep drop for sure, but most companies in today's market would be looking at such a decline if one were to use the most conservative valuation standards possible.Only fast-growing companies like Sea can quickly offset such a decline with revenue growth. As a result, the businesses with the most long-term potential will hardly ever trade at the most conservative valuation possible. And Sea certainly has long-term potential. It's one of the few high-growth companies I own that I could see reaching a trillion-dollar market cap this decade.","news_type":1},"isVote":1,"tweetType":1,"viewCount":490,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":698896783,"gmtCreate":1640331872715,"gmtModify":1640331880243,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/698896783","repostId":"1107827800","repostType":2,"repost":{"id":"1107827800","pubTimestamp":1640326128,"share":"https://www.laohu8.com/m/news/1107827800?lang=&edition=full","pubTime":"2021-12-24 14:08","market":"us","language":"en","title":"Sea Limited: An Early Christmas Gift","url":"https://stock-news.laohu8.com/highlight/detail?id=1107827800","media":"Seeking Alpha","summary":"Summary\n\nSea Limited is a growing company in a growing economy.\nAt this stage, the company should be","content":"<p><b>Summary</b></p>\n<ul>\n <li>Sea Limited is a growing company in a growing economy.</li>\n <li>At this stage, the company should be judged on its growth, not earnings.</li>\n <li>The recent fall in price makes the stock look attractive when compared to similar growth stories.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/f48c8d49ed462ac489fe8f5fa91f5691\" tg-width=\"1536\" tg-height=\"1031\" width=\"100%\" height=\"auto\"><span>FreshSplash/E+ via Getty Images</span></p>\n<p><b>Thesis Summary</b></p>\n<p>Sea Limited (SE) is one of those companies that divide the room. The stock was one of the best performing of 2020/2021 but has now fallen over 30% from its all-time high following a general sell-off which has been most felt in growth stocks.</p>\n<p>However, Sea's fundamental growth story remains strong, and the fact that it is running at a loss should not bother investors at this point. If we look at each segment individually, there's a lot to like, and an argument could be made for a much higher price than today. On a final note, Sea should also be aided by the recent policy change coming from China's Central bank, the PBOC, and overall macroeconomic trends.</p>\n<p><b>A Quick Recap</b></p>\n<p>Sea Limited has three main segments; Digital Entertainment (Garena), Financial Services (SeaMoney) and E-commerce (Shopee). This is how they performed in the last quarter.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/4cd726650027bd5d269b8fe1f0dd0b14\" tg-width=\"1280\" tg-height=\"664\" width=\"100%\" height=\"auto\"><span>Source: Investor Presentation</span></p>\n<p>As we can see, Digital Entertainment is the only segment bringing in operating income. Meanwhile, eCommerce and Digital Finance are running at a loss. However, the growth rates at this point justify the investment. GMV for Shopee was up 81% YoY, and TPV processed through SeaMoney is up 111% YoY.</p>\n<p>Despite strong growth across the board, Sea Limited has come down significantly in the last few weeks, providing us with a perfect opportunity to buy a stock with an incredibly appealing fundamental growth story.</p>\n<p><b>Growth And Profitability Prospects</b></p>\n<p>Firstly, let's talk about Sea's main geographical market; Southeast Asia. SEA economies are experiencing not just a fast level of growth, but also digitalization, which bodes incredibly well for SE.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/626a6dc7b34175282aeba7740413ede1\" tg-width=\"1280\" tg-height=\"521\" width=\"100%\" height=\"auto\"><span>Source: SEA Economy Report</span></p>\n<p>By 2025, the Internet economy is poised to reach over $300 billion in GMV. Indonesia, Vietnam and Thailand will be amongst the fastest growing Internet economies, and these are all areas where the company has a strong presence. On top of that, Sea is also expanding into Latin America, where it has challenged and surpassed MercadoLibre (MELI) in some&nbsp;countries like Brazil.</p>\n<p>Shopee and SeaMoney will grow hand in hand. As Shopee grows, more merchants and consumers will be pulled into the SeaMoney ecosystem, which not only allows digital payments but also helps merchants and consumers get financing. Of course, at the moment the company is focusing on expansion, but we know full well that both eCommerce and Digital Finance can be lucrative segments.</p>\n<p>Garena, which is responsible for creating Free Fire, is on another path. User growth is slowing down, this is true, but there is still plenty of room for monetization. The company has made moves in the right direction here by releasing Free Fire MAX, a premium version of the game. In a recent article on Seeking Alpha,JR Research pointed out&nbsp;that Garena continues to increase the proportion of paying users to active users, which are also growing, albeit at a slower rate.</p>\n<p><b>Comparative Valuation</b></p>\n<p>With all that said, I do feel like sometimes Sea Limited gets judged unfairly, precisely because it has such a successful and profitable segment thanks to Free Fire. Investors often look at Sea's earnings and complain that they aren't growing fast enough, but this is not the company's objective. If Shopee or SeaMoney traded separately as \"exciting and fast-growing start-ups\" investors would be much less harsh with the valuation.</p>\n<p>Sea Limited is a growth company in a growth economy, and it should be judged on its growth and revenue, not on its earnings:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/dabf7759dd81e88d0603fc2f17137235\" tg-width=\"905\" tg-height=\"313\" width=\"100%\" height=\"auto\"><span>Data Source: Seeking Alpha</span></p>\n<p>Above we can see valuation ratios for Sea and what I consider to be some similar companies, though I am sure this will be a contentious point. Meli competes head-on with Sea in the eCommerce and fulfilment space. Roblox (RBLX) is an up and coming game/platform, and it is comparable to Free Fire. Shopify Inc.(NYSE:SHOP)has some unique characteristics, but it is also similar in many ways to Sea. It offers an eCommerce platform and helps merchants sell their products, and Shopify Pay is comparable to SeaMoney. Also, all of these companies are high growth companies through Sea is the best in this regard.</p>\n<p>In terms of P/S and EV/Sales though, Sea is cheaper than the rest of these companies, except for Meli. Also, I like the fact that Sea has a Price/Book in line with that of Shopify. Arguably these other companies could be said to be overvalued, but the idea here is to compare these companies amongst each other.</p>\n<p>Ultimately, Sea is growing incredibly fast, and though it isn't \"profitable\", we know that it's building a business model that will be. A P/S of 14 seems attractive given all of this and the ratio is below the more recent average of around 20.</p>\n<p><b>Other Considerations</b></p>\n<p>Some investors might think that, with the Federal Reserve tightening monetary policy, this is not a good time. The first issue here would be; how long can the Fed tighten? We've seen this play out before in 2018, and we know how it ends. More importantly though, while the Fed tightens, the PBOC is loosening monetary policy, as we saw the&nbsp;key benchmark lending rate cut last week.</p>\n<p>What does this mean for Sea? The effects are unclear. Easy credit in the area will help the company and its customers, but what about exchange rates? Some of these countries try to keep pegs to major currencies, so this might not change. This would suggest that South Eastern economies might have to follow the Fed in tightening monetary policy to defend this exchange rate.</p>\n<p>And lastly, what if COVID returns in full force? Again, the effects would be unclear. In many ways, Sea's business could be improved by this, even if the economy suffers overall.</p>\n<p><b>Takeaway</b></p>\n<p>Nothing much has changed for Sea Limited in recent months, except for its share price, and I'd be remiss if I didn't point out this buying opportunity. The company is expanding in all areas, and even increasing its profitability, though that is less important. I'm excited to see what 2022 holds for this stock.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Sea Limited: An Early Christmas Gift</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSea Limited: An Early Christmas Gift\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-24 14:08 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4476595-sea-limited-an-early-christmas-gift><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nSea Limited is a growing company in a growing economy.\nAt this stage, the company should be judged on its growth, not earnings.\nThe recent fall in price makes the stock look attractive when ...</p>\n\n<a href=\"https://seekingalpha.com/article/4476595-sea-limited-an-early-christmas-gift\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SE":"Sea Ltd"},"source_url":"https://seekingalpha.com/article/4476595-sea-limited-an-early-christmas-gift","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1107827800","content_text":"Summary\n\nSea Limited is a growing company in a growing economy.\nAt this stage, the company should be judged on its growth, not earnings.\nThe recent fall in price makes the stock look attractive when compared to similar growth stories.\n\nFreshSplash/E+ via Getty Images\nThesis Summary\nSea Limited (SE) is one of those companies that divide the room. The stock was one of the best performing of 2020/2021 but has now fallen over 30% from its all-time high following a general sell-off which has been most felt in growth stocks.\nHowever, Sea's fundamental growth story remains strong, and the fact that it is running at a loss should not bother investors at this point. If we look at each segment individually, there's a lot to like, and an argument could be made for a much higher price than today. On a final note, Sea should also be aided by the recent policy change coming from China's Central bank, the PBOC, and overall macroeconomic trends.\nA Quick Recap\nSea Limited has three main segments; Digital Entertainment (Garena), Financial Services (SeaMoney) and E-commerce (Shopee). This is how they performed in the last quarter.\nSource: Investor Presentation\nAs we can see, Digital Entertainment is the only segment bringing in operating income. Meanwhile, eCommerce and Digital Finance are running at a loss. However, the growth rates at this point justify the investment. GMV for Shopee was up 81% YoY, and TPV processed through SeaMoney is up 111% YoY.\nDespite strong growth across the board, Sea Limited has come down significantly in the last few weeks, providing us with a perfect opportunity to buy a stock with an incredibly appealing fundamental growth story.\nGrowth And Profitability Prospects\nFirstly, let's talk about Sea's main geographical market; Southeast Asia. SEA economies are experiencing not just a fast level of growth, but also digitalization, which bodes incredibly well for SE.\nSource: SEA Economy Report\nBy 2025, the Internet economy is poised to reach over $300 billion in GMV. Indonesia, Vietnam and Thailand will be amongst the fastest growing Internet economies, and these are all areas where the company has a strong presence. On top of that, Sea is also expanding into Latin America, where it has challenged and surpassed MercadoLibre (MELI) in some countries like Brazil.\nShopee and SeaMoney will grow hand in hand. As Shopee grows, more merchants and consumers will be pulled into the SeaMoney ecosystem, which not only allows digital payments but also helps merchants and consumers get financing. Of course, at the moment the company is focusing on expansion, but we know full well that both eCommerce and Digital Finance can be lucrative segments.\nGarena, which is responsible for creating Free Fire, is on another path. User growth is slowing down, this is true, but there is still plenty of room for monetization. The company has made moves in the right direction here by releasing Free Fire MAX, a premium version of the game. In a recent article on Seeking Alpha,JR Research pointed out that Garena continues to increase the proportion of paying users to active users, which are also growing, albeit at a slower rate.\nComparative Valuation\nWith all that said, I do feel like sometimes Sea Limited gets judged unfairly, precisely because it has such a successful and profitable segment thanks to Free Fire. Investors often look at Sea's earnings and complain that they aren't growing fast enough, but this is not the company's objective. If Shopee or SeaMoney traded separately as \"exciting and fast-growing start-ups\" investors would be much less harsh with the valuation.\nSea Limited is a growth company in a growth economy, and it should be judged on its growth and revenue, not on its earnings:\nData Source: Seeking Alpha\nAbove we can see valuation ratios for Sea and what I consider to be some similar companies, though I am sure this will be a contentious point. Meli competes head-on with Sea in the eCommerce and fulfilment space. Roblox (RBLX) is an up and coming game/platform, and it is comparable to Free Fire. Shopify Inc.(NYSE:SHOP)has some unique characteristics, but it is also similar in many ways to Sea. It offers an eCommerce platform and helps merchants sell their products, and Shopify Pay is comparable to SeaMoney. Also, all of these companies are high growth companies through Sea is the best in this regard.\nIn terms of P/S and EV/Sales though, Sea is cheaper than the rest of these companies, except for Meli. Also, I like the fact that Sea has a Price/Book in line with that of Shopify. Arguably these other companies could be said to be overvalued, but the idea here is to compare these companies amongst each other.\nUltimately, Sea is growing incredibly fast, and though it isn't \"profitable\", we know that it's building a business model that will be. A P/S of 14 seems attractive given all of this and the ratio is below the more recent average of around 20.\nOther Considerations\nSome investors might think that, with the Federal Reserve tightening monetary policy, this is not a good time. The first issue here would be; how long can the Fed tighten? We've seen this play out before in 2018, and we know how it ends. More importantly though, while the Fed tightens, the PBOC is loosening monetary policy, as we saw the key benchmark lending rate cut last week.\nWhat does this mean for Sea? The effects are unclear. Easy credit in the area will help the company and its customers, but what about exchange rates? Some of these countries try to keep pegs to major currencies, so this might not change. This would suggest that South Eastern economies might have to follow the Fed in tightening monetary policy to defend this exchange rate.\nAnd lastly, what if COVID returns in full force? Again, the effects would be unclear. In many ways, Sea's business could be improved by this, even if the economy suffers overall.\nTakeaway\nNothing much has changed for Sea Limited in recent months, except for its share price, and I'd be remiss if I didn't point out this buying opportunity. The company is expanding in all areas, and even increasing its profitability, though that is less important. I'm excited to see what 2022 holds for this stock.","news_type":1},"isVote":1,"tweetType":1,"viewCount":280,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":691435152,"gmtCreate":1640226432944,"gmtModify":1640226433023,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/691435152","repostId":"2193113312","repostType":2,"isVote":1,"tweetType":1,"viewCount":409,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":602219137,"gmtCreate":1639024802530,"gmtModify":1639024818177,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/602219137","repostId":"2189695656","repostType":2,"repost":{"id":"2189695656","pubTimestamp":1639019727,"share":"https://www.laohu8.com/m/news/2189695656?lang=&edition=full","pubTime":"2021-12-09 11:15","market":"us","language":"en","title":"Palantir's Q3 Earnings Highlight an Exciting Road Ahead","url":"https://stock-news.laohu8.com/highlight/detail?id=2189695656","media":"Motley Fool","summary":"After nearly two decades as a private company, Palantir's latest earnings highlight what it's been up to and where it's going.","content":"<p>Enterprises rely on data to deliver value. According to research from IDC, the problem is that upwards of 80% of an organization's data is unstructured. Customer records, important documents, audio files, emails, and more are housed in disparate systems, rendering traditional automation, business intelligence, and analytics solutions less useful. As a result, most of these organizations spend years with high-cost consultants attempting to build an in-house solution. More often than not, these efforts do not lead to much progress.</p>\n<p>After spending nearly two decades as a private company and raising billions of dollars in venture capital, <b>Palantir Technologies</b> (NYSE:PLTR) is showcasing that the capabilities of its premier software platform, Foundry, were well worth the wait. Moreover, Palantir has invested in a number of smaller, yet potentially disruptive technology companies to assist in its many use cases and addressable markets.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/86871dec05066e8791f4a3ac81264278\" tg-width=\"700\" tg-height=\"466\" referrerpolicy=\"no-referrer\"><span>Image source: Getty Images.</span></p>\n<h2><b>Financial performance</b></h2>\n<p>Palantir describes Foundry as the connective tissue that connects analytics and operational systems, allowing customers to model and execute complex cross-functional transactions. This method is beginning to pay dividends for Palantir, as the company generated $392 million in revenue during Q3, representing 36% year-over-year growth. Moreover, the company is increasing average revenue per customer and expanding its margins, leading to increased cash flow. In Q3 2021 Palantir reported 57% contribution margin compared to 56% in Q3 2020. Additionally, Palantir's year-to-date operating cash flow is $240.4 million, compared to <i>negative </i>$278.3 million for the first nine months of 2020.</p>\n<p>Palantir concluded its Q3 earnings call with guidance for Q4 2021 revenue of $418 million and full-year 2021 revenue growth of 40%. However, not all investors were pleased with these results, as stock-based compensation remains a significant component of the management team's pay. The company has outlined a clear vision to grow revenue at 30% or more for the next four years. So despite its stock-based compensation awards, I am enthusiastic about Palantir's growth prospects, especially in the commercial sector, and about its growing number of use cases.</p>\n<h2><b>All roads lead to cryptocurrency</b></h2>\n<p>Palantir has found interesting ways to deploy its capital since its public offering. The company has invested in several high-growth companies in the transportation space, including connected vehicle data analytics company <b>Wejo</b> (NASDAQ:WEJO) and micromobility company <b><a href=\"https://laohu8.com/S/BRDS\">Bird Global</a> </b>(NYSE:BRDS). The company also formed an alliance with cellular medicine company <b>Celularity </b>(NASDAQ:CELU), which is leveraging Palantir's software in its cellular data set to accelerate research and development initiatives.</p>\n<p>These partnerships and strategic investments are assisting Palantir as the company discovers more use cases and serviceable markets, especially for non-governmental entities.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/88e2be3b791f3b33388ec5d17f5194b6\" tg-width=\"700\" tg-height=\"407\" referrerpolicy=\"no-referrer\"><span>Image source: Getty Images.</span></p>\n<p>During the earnings call, management announced that they had discovered a unique fit with crypto companies that need industrialized compliance solutions. Palantir is leveraging its experience with anti-money laundering and helping governments identify compliance issues with some of the largest banks in the world.</p>\n<p>The rising number of use cases and applications for the Foundry product could bode well for Palantir as the company begins to scale its commercial sector practice. Financial institutions such as investment banks (as well as brokers and trading platforms such as <b>Coinbase</b> and <b>Robinhood</b>) will all need to continue building out proper compliance procedures as crypto becomes more regulated.</p>\n<p>Palantir reported meaningful growth on the commercial side of its business in the form of 46% quarter-over-quarter growth in commercial customer count and 135% since December 2020. As an investor, I am impressed by the malleability of Palantir's product and its market-ready applications. Given the rise in enthusiasm around the crypto-economy at large, the implications of Foundry for crypto should not be underestimated.</p>\n<h2><b>Now what?</b></h2>\n<p>Palantir has faced scrutiny for its lucrative stock-based compensation packages as well as its reliance on large government contracts. However, the company showcased new uses in financial services, specifically crypto, and highlighted how its software is assisting the automotive industry Although management reiterated its commitment to 30% year-over-year growth for the next four years, these case studies make me feel that it is possible that this is a bit conservative given the company's current trajectory of 40% revenue growth this year, and the fact that many of these strategic investments and partnerships are still in early stages.</p>\n<p>When it comes to big data analytics, Palantir is the company that excites me the most. I think that the company has invested wisely over the course of two decades, and the growth that we are seeing is only the beginning.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Palantir's Q3 Earnings Highlight an Exciting Road Ahead</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPalantir's Q3 Earnings Highlight an Exciting Road Ahead\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-09 11:15 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/12/08/palantirs-q3-earnings-highlight-exciting-roadmap-a/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Enterprises rely on data to deliver value. According to research from IDC, the problem is that upwards of 80% of an organization's data is unstructured. Customer records, important documents, audio ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/12/08/palantirs-q3-earnings-highlight-exciting-roadmap-a/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4543":"AI","BK4547":"WSB热门概念","BK4139":"生物科技","PLTR":"Palantir Technologies Inc.","CELU":"Celularity Inc.","BK4023":"应用软件","WEJO":"Wejo Group Limited","BRDS":"Bird Global"},"source_url":"https://www.fool.com/investing/2021/12/08/palantirs-q3-earnings-highlight-exciting-roadmap-a/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2189695656","content_text":"Enterprises rely on data to deliver value. According to research from IDC, the problem is that upwards of 80% of an organization's data is unstructured. Customer records, important documents, audio files, emails, and more are housed in disparate systems, rendering traditional automation, business intelligence, and analytics solutions less useful. As a result, most of these organizations spend years with high-cost consultants attempting to build an in-house solution. More often than not, these efforts do not lead to much progress.\nAfter spending nearly two decades as a private company and raising billions of dollars in venture capital, Palantir Technologies (NYSE:PLTR) is showcasing that the capabilities of its premier software platform, Foundry, were well worth the wait. Moreover, Palantir has invested in a number of smaller, yet potentially disruptive technology companies to assist in its many use cases and addressable markets.\nImage source: Getty Images.\nFinancial performance\nPalantir describes Foundry as the connective tissue that connects analytics and operational systems, allowing customers to model and execute complex cross-functional transactions. This method is beginning to pay dividends for Palantir, as the company generated $392 million in revenue during Q3, representing 36% year-over-year growth. Moreover, the company is increasing average revenue per customer and expanding its margins, leading to increased cash flow. In Q3 2021 Palantir reported 57% contribution margin compared to 56% in Q3 2020. Additionally, Palantir's year-to-date operating cash flow is $240.4 million, compared to negative $278.3 million for the first nine months of 2020.\nPalantir concluded its Q3 earnings call with guidance for Q4 2021 revenue of $418 million and full-year 2021 revenue growth of 40%. However, not all investors were pleased with these results, as stock-based compensation remains a significant component of the management team's pay. The company has outlined a clear vision to grow revenue at 30% or more for the next four years. So despite its stock-based compensation awards, I am enthusiastic about Palantir's growth prospects, especially in the commercial sector, and about its growing number of use cases.\nAll roads lead to cryptocurrency\nPalantir has found interesting ways to deploy its capital since its public offering. The company has invested in several high-growth companies in the transportation space, including connected vehicle data analytics company Wejo (NASDAQ:WEJO) and micromobility company Bird Global (NYSE:BRDS). The company also formed an alliance with cellular medicine company Celularity (NASDAQ:CELU), which is leveraging Palantir's software in its cellular data set to accelerate research and development initiatives.\nThese partnerships and strategic investments are assisting Palantir as the company discovers more use cases and serviceable markets, especially for non-governmental entities.\nImage source: Getty Images.\nDuring the earnings call, management announced that they had discovered a unique fit with crypto companies that need industrialized compliance solutions. Palantir is leveraging its experience with anti-money laundering and helping governments identify compliance issues with some of the largest banks in the world.\nThe rising number of use cases and applications for the Foundry product could bode well for Palantir as the company begins to scale its commercial sector practice. Financial institutions such as investment banks (as well as brokers and trading platforms such as Coinbase and Robinhood) will all need to continue building out proper compliance procedures as crypto becomes more regulated.\nPalantir reported meaningful growth on the commercial side of its business in the form of 46% quarter-over-quarter growth in commercial customer count and 135% since December 2020. As an investor, I am impressed by the malleability of Palantir's product and its market-ready applications. Given the rise in enthusiasm around the crypto-economy at large, the implications of Foundry for crypto should not be underestimated.\nNow what?\nPalantir has faced scrutiny for its lucrative stock-based compensation packages as well as its reliance on large government contracts. However, the company showcased new uses in financial services, specifically crypto, and highlighted how its software is assisting the automotive industry Although management reiterated its commitment to 30% year-over-year growth for the next four years, these case studies make me feel that it is possible that this is a bit conservative given the company's current trajectory of 40% revenue growth this year, and the fact that many of these strategic investments and partnerships are still in early stages.\nWhen it comes to big data analytics, Palantir is the company that excites me the most. I think that the company has invested wisely over the course of two decades, and the growth that we are seeing is only the beginning.","news_type":1},"isVote":1,"tweetType":1,"viewCount":189,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0},{"id":609196585,"gmtCreate":1638248367607,"gmtModify":1638248367607,"author":{"id":"3579932425739623","authorId":"3579932425739623","name":"agoyagi","avatar":"https://static.tigerbbs.com/8c802b858e86a9cfcdcb5fd68fc241c9","crmLevel":2,"crmLevelSwitch":0},"themes":[],"htmlText":"Great ariticle, would you like to share it?","listText":"Great ariticle, would you like to share it?","text":"Great ariticle, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/609196585","repostId":"1176733072","repostType":2,"repost":{"id":"1176733072","pubTimestamp":1638228196,"share":"https://www.laohu8.com/m/news/1176733072?lang=&edition=full","pubTime":"2021-11-30 07:23","market":"us","language":"en","title":"Musk highlights 'supply chain nightmare' in tweet","url":"https://stock-news.laohu8.com/highlight/detail?id=1176733072","media":"Reuters","summary":"Tesla Inc(TSLA.O)Chief Elon Musk on Monday pointed to the challenges stemming from supply chain prob","content":"<p>Tesla Inc(TSLA.O)Chief Elon Musk on Monday pointed to the challenges stemming from supply chain problems on Cybertruck's production, even though the company has so far avoided a major hit from the crisis that has plagued the global auto industry.</p>\n<p>\"Oh man, this year has been such a supply chain nightmare &amp; it's not over!\" Musk said in atweeton Monday,in response to a Twitter users' request on a Cybertruck update.</p>\n<p>\"I will provide an updated product roadmap on next earnings call,\" he added.</p>\n<p>Musk said during Tesla's earnings call in July that he would not necessarily be present at such future events, unless he had something really important to say, indicating that he may have an update on Cybertruck and the company's other products.</p>\n<p>Tesla unveiled the futuristic electric pick-up truck in 2019 that is made of stainless steel used in rockets. Musk has touted receiving several hundred thousand orders for the Cybertruck when preorders were opened.</p>\n<p>At a shareholder meeting in October, Musk said Cybertruck production will begin next year and reach volume production in 2023.</p>\n<p>Tesla shares closed up 5% at $1136.99 on Monday.</p>","source":"lsy1601381805984","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Musk highlights 'supply chain nightmare' in tweet</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMusk highlights 'supply chain nightmare' in tweet\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-11-30 07:23 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.reuters.com/business/autos-transportation/musk-says-he-will-provide-update-tesla-cybertruck-earnings-call-2021-11-29/><strong>Reuters</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Tesla Inc(TSLA.O)Chief Elon Musk on Monday pointed to the challenges stemming from supply chain problems on Cybertruck's production, even though the company has so far avoided a major hit from the ...</p>\n\n<a href=\"https://www.reuters.com/business/autos-transportation/musk-says-he-will-provide-update-tesla-cybertruck-earnings-call-2021-11-29/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TSLA":"特斯拉"},"source_url":"https://www.reuters.com/business/autos-transportation/musk-says-he-will-provide-update-tesla-cybertruck-earnings-call-2021-11-29/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1176733072","content_text":"Tesla Inc(TSLA.O)Chief Elon Musk on Monday pointed to the challenges stemming from supply chain problems on Cybertruck's production, even though the company has so far avoided a major hit from the crisis that has plagued the global auto industry.\n\"Oh man, this year has been such a supply chain nightmare & it's not over!\" Musk said in atweeton Monday,in response to a Twitter users' request on a Cybertruck update.\n\"I will provide an updated product roadmap on next earnings call,\" he added.\nMusk said during Tesla's earnings call in July that he would not necessarily be present at such future events, unless he had something really important to say, indicating that he may have an update on Cybertruck and the company's other products.\nTesla unveiled the futuristic electric pick-up truck in 2019 that is made of stainless steel used in rockets. Musk has touted receiving several hundred thousand orders for the Cybertruck when preorders were opened.\nAt a shareholder meeting in October, Musk said Cybertruck production will begin next year and reach volume production in 2023.\nTesla shares closed up 5% at $1136.99 on Monday.","news_type":1},"isVote":1,"tweetType":1,"viewCount":663,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"CN","totalScore":0}],"lives":[]}