Palantir [PLTR]: A Long-Term Growth Bet
Palantir is a software company specializing in aggregating complex data sets to help organizations make real-time, data-driven decisions.
What’s impressive about Palantir is how it identifies patterns across massive data landscapes, then adapts its software solutions to meet the specific needs of each client. They’ve historically worked with government agencies like the Department of Defense but have recently expanded into the commercial sector.
Palantir is a unique government contractor. According to the GAO, the U.S. government spent over $90 billion on IT systems alone and you can bet Palantir is a key player in that space.
How Stable Is PLTR Stock?
Palantir’s business model makes it challenging to evaluate like a traditional company. Having been private for a long time, they’re still somewhat of a mystery to the public market.
Unlike consumer-facing tech companies, Palantir’s software isn’t something everyday users interact with; it’s built for institutions, and access is tiered depending on user clearance levels. All of it runs through their central operating system, Foundry.
At the time of this writing, Palantir’s competitors pose little threat, especially in the commercial space. That could mean significant profit potential if they execute properly.
Looking at the balance sheet without diving into all the macro details, there’s nothing too concerning. They have a strong cash position, and their liabilities have slightly decreased compared to the previous year.
While they do face risks and uncertainties, most of it revolves around stock volatility rather than direct competition.
Despite the price swings, I believe PLTR will be a profitable long-term play. I’m looking to stick around for the long term, a 10+ year investment horizon, so I have no plans to sell anytime soon.
Valuation and Future Outlook
When you compare Palantir’s trajectory with the early days of other tech giants, it becomes clear that this stock is still undervalued. To me, it looks like a solid opportunity to buy the dip.
The more I learn about Palantir, the more intrigued I become. I plan to continue increasing my position every month until I reach at least 100 shares.
I’m still a long-term dividend investor at heart. But for a high-growth stock like PLTR, I’m more than willing to make an exception.
Gio founded TheGrowthFocusedGuy in January 2020 because he was fed up with debt.
His mission is to document his journey to Financial Independence in order to motivate and inspire others to get out of debt and begin building generational wealth.
