The slaughter of tech stocks without profits begins. Palantir, the great spy, lost 84%
Palantir Technologies, which went public in September 2020 via a direct listing amidst a huge hype, has now earned a place in history for imploding, as WolfStreet well showed. Yet the stock seemed like an investor's dream
Yesterday, Palantir reported another strong balance sheet loss, this time $ 101 million, on $ 446 million in revenue, bringing its total loss over the past four years to $ 2.86 billion. Shares [PLTR] have plummeted 22% so far today and 84% from their January 2021 peak to $ 7.40, a new all-time low. They are down 26% from the first trade in September 2020
Even considering the value 20 we have a decrease of over 60%. Palantir is famous for selling automated analytics systems to the Pentagon, CIA, NSA, ICE and other federal agencies and to state and local agencies, including law enforcement agencies. What more could you want than a company that works for the public, well paid, to spy on others? Too bad it does not make profits, but losses.
Palantir rose to fame when it emerged that police departments were using automatic license plate reading (ALPR) systems that capture images of every license plate (plus vehicle and occupants) that is displayed and that Palantir's software was used to sift through the data. But for Wall Street, it only fueled the hype and hustle and bustle – think of the limitless perspectives of these systems installed in every city in the country and the world!
The company has marketed its software and services to private, corporate clients, but government clients still produce more than half of its revenue and revenue growth in the government segment has slowed to 16% year-over-year. In the end, the number of governments that wish to spy on citizens and can afford Palantir is not an infinite number. Corporate revenues increased 136% in the US and 54% globally. There is growth, but it is not enough to outweigh the costs. Palantir is promising, but not good enough to avoid losses. The market has bought the growth prospects: they are probably right, who does not want to spy on others. pity that the results will be realized too late. Meanwhile Palantir loses, and loses a lot. It may even fail before it succeeds. So who will then spy on the citizens?
Thanks to our Telegram channel you can stay updated on the publication of new articles of Economic Scenarios.
The article Begins the slaughter of tech stocks without profits. Palantir, the great spy, lost 84% comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/inizia-il-massacro-dei-titoli-tecnologici-senza-utili-palantir-il-gran-spione-ha-perso-84/ on Tue, 10 May 2022 06:00:44 +0000.