Palantir Technologies is ready for long-term performance
Palantir Technologies (NYSE:PLTR) offers data analysis software to customers. Founded in 2013, the company works with government agencies to collect and analyze data in order to make decisions. His clients include the CIA and the FBI. The PLTR share got off to a great start this year as its software was adopted by commercial customers.
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Over the past few years, companies have understood the importance of data and it is changing the way business is done. PLTR stock has recently shown volatility. It peaked at $ 45 in January and is currently trading at around $ 23.
Despite the decline, the title seems attractive to me. It’s a long-term buy with long-term growth prospects.
Given the demand for data analysis in the country, the recent drop is a great opportunity to add the stock to your portfolio. Here’s why PLTR stock needs to be on your radar.
Palantir has a huge market
With a market cap of $ 32 billion, PLTR stock may appear overvalued. The company has not reported a profit over the years, but there is a huge opportunity for growth that justifies the valuation. Palantir’s business is very relevant today as business companies have realized the importance of data.
The company is making great strides in the market and has signed several contracts in recent months. The company recently signed contracts with IBM (NYSE:IBM) and Amazon (NASDAQ:AMZN) AWS. It only gained part of the market share, which means that there is huge potential for growth.
Palantir has reported over $ 1 billion in sales for 2020 and fourth quarter revenue was $ 332.1 million, up from $ 229.36 million a year ago. Having signed 21 deals worth over $ 5 million, Palantir holds a strong position in the industry. The demand for data only increases from here and the company has the right software to meet the needs. The company plans to reach $ 4 billion in revenue by 2024 with a growth rate of 30%.
Strong fundamentals coupled with growth opportunities make PLTR stocks a great buy right now.
Government clients mean stability
Palantir has had a lot of backlash for focusing on government contracts, but what’s wrong? The company is well positioned in the industry as a provider of data analysis services for some of the major government agencies. The government sector generated 85% of total revenue in the fourth quarter of 2020 for an amount of $ 132 million.
The government’s demands will only increase in the years to come. Palantir is already working with NHS, the UK’s public healthcare network, and there is no doubt that he will soon be an integral part of the US government. Recently, on April 22, the company was named Crown business service provider UK.
Government contracts are synonymous with stability and constant income.
The Bottom Line on PLTR Stock
Cathie Wood’s ARK Invest purchased 1.1 million shares of PLTR recently. This is not the first time that the investment firm has bought PLTR shares.
The recent volatility of PLTR stocks offers a perfect opportunity for investors looking to add it to their portfolio. A huge amount of data needs to be stored and analyzed, and the demand for Palantir’s software will only increase. With one foot in the government sector and the other in the commercial sector, Palantir Technologies is well positioned to conquer the market. He has a huge growth track for the next two years.
I have been optimistic about Palantir in the past and reiterate my optimistic position today. The company reports its first quarter 2021 results on May 18.
PLTR stock is a long term buy and hold.
At the date of publication, Vandita Jadeja did not hold (neither directly nor indirectly) any position in the securities mentioned in this article.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.