Palantir Dips 3.7% As William Blair "Incrementally Negative" After Rally, Startup Bankruptcy

Seeking Alpha2022-11-15

Palantir Technologies shares fell 3.7% on Monday as investment firm William Blair said it had become "incrementally negative" after the recent rally in tech stocks as well as a recent bankruptcy filing of a startup it had invested in.

Analyst Kamil Mielczarek, who has an underperform rating and $5 price target on Palantir Technologies (PLTR) shares, noted that the recent filing of Fast Radius could be a negative for Palantir beyond the drop in asset value.

"In May 2021, Fast Radius entered a $45 million/six-year software agreement with Palantir in connection with Palantir, investing $20 million for 2 million shares of Fast Radius’s equity," Mielczarek wrote in a note to clients. "As a result, there is the potential that Fast Radius’s estimated $9 million annual revenue contribution goes away if the company stops paying Palantir."

Mielczarek added there is the "potential" for more downside if the company's other strategic investments falter, with the analyst noting that the average strategic investment " is down 82% from Palantir’s purchase price."

Palantir (PLTR) generated $28.1M in revenue from strategic investments in its September quarter, down from $39.2M in the prior quarter.

"We believe that the churn of such strategic revenue could be detrimental to Palantir’s profit margins," Mielczarek explained.

Last week, Palantir Technologies (PLTR) was selected to deploy its Foundry solution across WesTrac's servicing and rebuild operations centers in Perth, Western Australia.

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Comments

  • Deonc
    2022-11-15
    Deonc
    Ok
  • D.Billions
    2022-11-15
    D.Billions
    Palantir again? Seeking Alpha really have nothing to publish except for paid contents by Karp. In US market have more than 10k counters but Seeking Alpha only pumped Palantir.
    • AivernReplyTraderopedia: 
      lol you 2 talking heads are like a 2 way echo chamber siah. 40yr old ppl still behaving like kids hyping each other up. imma leave u 2 to it, have a good one.
    • TraderopediaReplyD.Billions: 
      pltr is a rubbish counter...
    • TraderopediaReplyD.Billions: 
      exactly agreed with u bro!!
    • Traderopedia: 
      bro aivern.. it's ok ..to continue the Convo with D.Biliions.at the end of the day, the multi Million question, is will pltr hit usd10by 2030... the answer is clearly absolutely a BIG BIG NO NO NONO .. ME AND D.BILLIONS HAVE MROE THAN 25 YEARS OF TRADING EXPERIENCE;!
    • TraderopediaReplyD.Billions: 
      I agreed... I've known D. Billions personally as a friend... we've known each other since teens 22..we serve the nation proud... we know what is right and what is wrong... we r the Frontline ... we r the nation Wong fei hong!! we punish the bad
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