![]() ![]() In fact, the second quarter marked the company’s third straight quarter of GAAP (generally accepted accounting principles) profitability, meaning it’s profitable even after adjusting for things like stock-based compensation.Īdditionally, Palantir raised its full-year revenue guidance to over $2.2 billion and its adjusted income from operations guidance to more than $576 million. Ultimately, it makes sense that Palantir Technologies would trade at a premium to its unprofitable industry as it finally becomes profitable. When multiple insiders set similar price points to automatically sell their company’s shares, it suggests they may see it as fairly valued or at least unlikely to rise significantly higher from that price. We saw a similar jump in auto-sell transactions in July around the previous peak. A review of the company’s stock price action indicates that those auto-sells occurred around the recent peak close to $20/share. Notably, insiders have unloaded over $4 million worth of Palantir shares in the last three months, including a meaningful number of auto-sell transactions eight days ago. However, given the long-running hype around Palantir, it seems unlikely to plunge significantly from current levels, suggesting a neutral view might be appropriate. While the company has finally begun turning a profit, it’s simply too expensive at current levels. Palantir Technologies (NYSE:PLTR)Īt a P/S of 16.1 and a mean P/S of 23.2 since November 2020, Palantir Technologies immediately looks overpriced relative to its industry, although it typically trades at a premium to its industry. Thus, a deep dive is needed to see whether Palantir’s premium and Splunk’s discount are warranted. Palantir is trading at a much higher P/S than the industry, while Splunk is trading at a steep discount to it. It’s currently trading at a price-to-sales (P/S) of 7.7 versus its three-year average P/S of 10. application software industry as a whole isn’t profitable either. Neither company is profitable, so we’ll use their price-to-sales (P/S) ratios to compare their valuations to each other and their industry. It, too, has tumbled in the last five days, falling 5.35%.ĭespite these year-to-date rallies, the recent price declines could signal trouble. Splunk is up 14% year-to-date but remains in the red for the last 12 months, off 14%. Palantir stock is up 138% year-to-date, bringing its 12-month return to 59%, although it has plunged 17.6% just in the last five days. Palantir specializes in big-data analytics, while Splunk offers software for search monitoring and analysis of machine-generated data. ![]() After analyzing the two, I found that SPLK takes the win here. In this piece, I evaluated two software stocks, Palantir Technologies ( NYSE:PLTR) and Splunk ( NASDAQ:SPLK), using TipRanks’ comparison tool to determine which stock is more attractive. ![]()
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