What is Palatable about Palantir?

People have many different opinions about Palantir Technologies. Some people love the company and think it is an excellent investment, while others are convinced that it will soon be going out of business. Let's dig into some reasons to buy Palantir stock and some reasons to avoid buying it altogether. Either way, this is setting up to be a very tradable stock.

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Canceled Plan

The cancel price was reached before the first buy could be triggered.


Long-term Relations with Government
Palantir is the dominant default systematic operator of data for the United States government. It helped the FBI, Armed Forces, CIA, and many other government institutions make accurate, data-driven decisions.  As of November 2017, Palantir Technologies employs 420 people and sits on a war chest worth $1.7 billion with another $714 million in cash reserves with revenue that has increased year after year to $430.3 Million.

In January 2021, the United States Military hired them to modernize and strengthen its security checkpoints and ground stations. These recent contracts are an indication of more growth potential for the company's revenue in the future.


Continuous Growth in Enterprise Market
Palantir helps businesses by processing customer data; however, there is lots of competition in the industry. Despite this obstacle, Palantir's revenue to enterprises has increased by 30% each year and was $320.3 Million in September 2020.  Confirming the universal belief that Palantir Technologies' investment in its Foundry platform would pay off, the National Institute of Health signed a long-term contract with Palantir.


Flaws in the Governance structure
Due to their company buyback program, existing shareholders are limited to selling an insignificant 20% in the upcoming months. The governance structure is aggressive, meaning that potential changes can happen at any time. This can be detrimental to company employees who have faith in their vision for Palantir's future.


The Intersection of Opportunity
Palantir Technologies is a company that employs advanced artificial intelligence in an era where this is gaining industry momentum.  As they seek to provide analytics for commercial and Government customers, a global push by significant players in industry and Government on AI, leads us to believe we can expect massive revenue growth in Palantir's top line.  This presents the setup for market movements.




  Price Shares Cost Returns R/R
Green Channel
Buy $22.75
$3,981.25  
Reward $33.22 $5,813.50 $1,832.25
Risk $19.76 $3,458.00 ($523.25)
Cancel $27.44    
 
Blue Channel
Buy $19.76
$2,983.76  
Reward $28.65 $4,326.15 $1,342.39
Risk $16.05 $2,423.55 ($560.21)
Even $21.37      
 
1st Trade exit @ reward target $1,032.50  
Total Reward from all applicable channels $2,374.89  
Total Risk from all applicable channels ($1,732.71)  
 
Red Channel
Buy $16.05
$2,985.30  
Reward $22.01 $4,093.86 $1,108.56
Risk $13.22 $2,458.92 ($526.38)
Even $19.43      
 
1st Trade exit @ reward target ($129.50)  
2nd Trade exit @ reward target $339.75  
Total Reward from all applicable channels $1,318.81  
Total Risk from all applicable channels ($3,181.67)  
Green Channel

3.50:1
reward : risk
level reached 61.51%
Blue Channel

2.40:1
reward : risk
level reached 38.87%
Red Channel

2.11:1
reward : risk
level reached 20.38%

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