During the August 31 episode of Mad Money, Jim Cramer highlighted Palantir Technologies Inc. (NASDAQ:PLTR) as one of the market's standout performers. He commented:
Second is Palantir which rallied 51%. My take is that Palantir shouldn't have ever been down to begin with based on the Rule of 40 that we typically use to judge this kind of business. When you add up the revenue growth plus the profit margin, the sum comes to 155. I don't know how you sell something with that kind of profitable growth.
Palantir Technologies Inc.'s (NASDAQ:PLTR) operational performance fully backs up Cramer's bullish view. In its Q2 report, the company posted total revenue of $1.94 billion, representing a staggering 93% year-over-year increase. Growth was driven mainly by its domestic operations, where U.S. commercial revenue surged 149% as enterprise clients aggressively deployed its Artificial Intelligence Platform.
The company generated a GAAP net income margin of 55% along with an adjusted free cash flow margin of 63%. More importantly for the Rule of 40 calculation, Palantir posted a 62% adjusted operating margin. Combined with its 93% revenue growth, Palantir Technologies Inc.'s (NASDAQ:PLTR) Rule of 40 score reached an extraordinary 155%, which places it in a rare tier compared to standard enterprise software peers.
Despite these significantly strong numbers, the valuation multiples have reached extreme territory. Trading at 115x forward earnings, Palantir Technologies Inc. (NASDAQ:PLTR) prices in nearly flawless future execution.
#technologies #pltr #kind #company
Second is Palantir which rallied 51%. My take is that Palantir shouldn't have ever been down to begin with based on the Rule of 40 that we typically use to judge this kind of business. When you add up the revenue growth plus the profit margin, the sum comes to 155. I don't know how you sell something with that kind of profitable growth.
Palantir Technologies Inc.'s (NASDAQ:PLTR) operational performance fully backs up Cramer's bullish view. In its Q2 report, the company posted total revenue of $1.94 billion, representing a staggering 93% year-over-year increase. Growth was driven mainly by its domestic operations, where U.S. commercial revenue surged 149% as enterprise clients aggressively deployed its Artificial Intelligence Platform.
The company generated a GAAP net income margin of 55% along with an adjusted free cash flow margin of 63%. More importantly for the Rule of 40 calculation, Palantir posted a 62% adjusted operating margin. Combined with its 93% revenue growth, Palantir Technologies Inc.'s (NASDAQ:PLTR) Rule of 40 score reached an extraordinary 155%, which places it in a rare tier compared to standard enterprise software peers.
Despite these significantly strong numbers, the valuation multiples have reached extreme territory. Trading at 115x forward earnings, Palantir Technologies Inc. (NASDAQ:PLTR) prices in nearly flawless future execution.
#technologies #pltr #kind #company
2 months ago
