So if you listen to mainstream media over the past few days, Palantir is deluding its shareholders. Again, everybody is in the news talking about how insiders and Palantiras selling heavy, How Palantir is deluding the retail investors and the whole fur that we heard many, many years in the past. It's coming back because there's a lot of new investors in Palantir that have not heard this fund. so they're trying to play this again.

now. Look Palantir as you can see on the screen right now. And by the way, this is powered by stock. MVP It's my software.

You have a coupon code here for last 40. 40 off. It's your software, my guy. Go get it.

40 off and on stock. MVP We have this little thing here that shows you how much Insiders are selling, how much Insiders they're buying, and how much institutional shareholders are buying into Palantir. Now, on the face of it, if you take a look at this thing right here, you see there's a red line that represents the sales of the past three months and the blue line that represents the buys. And you might think that well.

Tom It shows that. Talent Interior Insiders are dumping chairs. Look all this inside acquisition negativity is. You know they bought 10 million shares and they sold 15.7 million shares.

So they're selling like crazy. Well, not exactly predominantly. I would say above 95 of this entire chart Right here. Sales and buys are both not real sales and not real buys.

Even though you see 10 million sales sorry, 15 million sales and 10 million buys, it's all Bs None of this is real and I'll explain why. So Planeteer has a stock based Compensation Plan They're awarding stock to their employees and then once the stock actually vest every quarter, then the employee actually gets taxed. And as the part of the conversion and you get taxed, you have to sell a certain amount of stock to pay the tax liability because you're getting taxed out of pocket and you haven't really gotten any cash. So whenever stocks that get vested I actually get converted, well, there's a tax event and these guys have to pay.

so they sell about half the stock to pay for the tax. they keep that other half now. I'm not saying that every single time this was happening, but mostly 95 of the time every single sale and buy you see here, the buy is most likely a conversion. It's not real open market buy, it's just a conversion of options.

And the sale is not a real open market sale. it's just a sale for tax purposes of about half of the grand. That's why you're seeing the Acquisitions versus the sales 15 to 10. Now obviously it's not 100, but at the end of the day I would say about 10 of this is open market secondary.

Market 90 of this is just options activity and all these things are basically 10 B5 plans. It means that all this selling activity and buying activity is pre-programmed into the activity of volunteer. Essentially if I get a grant for the next 10 years I pre-program for every single conversion that every single investing I pre-program a sale that's triggered upon the conversion. So I can pay the taxes So none of this is actually people sitting in front of the computer screen saying oh, I want to sell I want to dump my shares Right now It's just absolutely normal.

So that's number one. Now there's also this debate about Palantir Whether you know Palantir is absolutely deluding the shareholders, it's been abusing retail investors and so forth and so forth. Now look I have to explain to you and again, image is always more efficient these things than I Am. But let me show you something right here.

on the left hand side, you see the amount of palliative shares and as you can see the shares that started at 600 and 600 million shares in 2020, now at 2.3 billion shares in 2023. So you might think that you know the share kind of volunteer. you know, quadruple in three years and that is technically true. But again, of course there's a Nuance here.

The first thing you have to notice here that it doubled twice and I'll show you why it doubled twice. The first time it doubled, it happened before the company even went public. So the first jump from 640 million shares to almost a billion shares happened before Palantir became a public company. This company chose to go public by way of DPO direct public offering.

Which means there's no big Banks involved. There's no favoritism, nepotism, and all that good stuff. There's no middlemen. The company basically sold its shares directly from the employees from the executives from the directors.

Anybody who had talented shares essentially made the market on day one of them going direct public offering. Now for that to happen, the company literally had to do a split quasi-split so they increased the share count of the existing shareholders before the company went public from 600 million to 900 million in order to allow these employees and these insiders and whoever held volunteer shares to be able to make the market for the Palantir shares. So that's why when Planetary went public, they had a billion shares outstanding. Now the other thing here you have to understand is that in 2020 when this second gen happened, it also happened for a reason.

The second jump was the expiration of the 10-year options plan. So the executives in Palantir they had a 10-year plan that they were granted in 2010, but eventually in 2020, it expired, it expired and the company had to Grant a new plan for all these Executives And that Grant is essentially the second jump. So the second jump from 900 billion so 900 million to 1.7 billion to 1.76 billion happened because of the secondary grant for the most part and other things like hiring a brand new sales force for the company which didn't really exist. So imagine setting up a whole new division in your company that didn't really exist.

So as you can see, the growth and the share count pretty much stopped once it had those two things. Since this point right here, which is the end of all the housekeeping they had to do to they grow at a rate of nine percent per year. So Planeteers diluting at nine percent per year? Now look, you might say that's a lot. You might say that that's too much, but let's compare them to other companies.

and let's compare them on basis of you know as the percentage of revenues, how much money is volunteer making versus how much stock based compensation is giving out. And there's this wonderful chart I Want to show right now? it's it's done by my friend. Amir So Palantir is at 27 and this was an old an Old Chart Ever since then, Palantir went down to 21. But look at other companies, C3i is diluting at 63 percent a stock waste compensation as a percentage of Revenue So that means the amount of stock based comp they're giving out is two-thirds of the revenue.

Snowflake is at 40. Betadoc is a 22.8 Servicenow is a 20 sales force. Ten percent now ever since that point Panther actually came down to 21. so they would be ranked below Data Dog and above Servicenow between 19 and 22.

So Palantir, based on his current dilution, is not anything unusual compared to the other companies in its category. The Data Dogs The Snowflake the C3 AIS Because at the end of the day, this chart right here here in stock MVP shows you how much institutional shareholders are buying into Palantir since it went public. so this was 2020. This is currently right now, So ever since it went public, the share count went from 176 million to 815 million.

Now at this point, you might jump and say, well, Tom You know the share count also went from you know, 640 million to 2.3 billion. So that doesn't count in 2020. In Q3 2020, institutional shareholders held about 27 of Palantir. Currently, Institutional shareholders just three years later are holding 36 percent of volunteer.

So Palantir institutional shareholders increased their position in Planetary by 31 in three years, and that pace is has nothing to do with the delusion. that's just a percentage. So this has nothing to do with dilution. Institutional shareholders are buying into volunteer at a much faster Pace than the share count is increasing, and even if you have arguments against the stock based compensation of volunteer, the pilot is still the absolute king of Revenue per employee Snowflake is generating 340 000 Revenue per employee C3i 380 000 A little bit better.

Datadog 370 000 Salesforce 394 000 So you can see that companies operate with a range of 330 to 400 000 per employee of Revenue Palantir with its stock base compensation is generating 520 520 000 per employee better than Salesforce better than the Data Dog Better Snowflake Better 33i better than all these guys. And to me, it's quite clear that you know Planetary is definitely allocating that stock based compensation correctly because they're literally they're having more Revenue per employee than their you know anybody you can compare them with, look at the end of the day, look at the numbers. If institutional shareholders thought that penalty is dumping and it's uh, it's abusing shareholders and it's a huge scheme by insiders to sell and dump. Would they have increased their holding in the company by almost five times in the past three years from 170 to 8 to 820.

And of course you know I'm just saying. even with the delusion, it's a 31 increase in institutional shareholder over the past three years. So all in all, look, there's obviously some you know factual incorrectness in these arguments, but that's what they say. You know you always the best way to create a lie is to mix in some truth with it.

So they take all this data that technically kind of makes sense and they wrap it around a nice little bow on top of of fud and inaccuracies. So that way it sounds very reasonable because you look at the chart you see, oh look at this. all this Insider selling Oh my God Yeah, yeah, you're right. No, it's it's it's a lie mixed in with a little bit of Truth technically to make it sound a little bit better, the the truth is in the numbers.

Go a little bit deeper research for yourself. find out what's actually going on. Don't let them fool you. By the way, a huge shout out to our painting: Community You guys have killed it Peyton.com forward slash we completely sold out out of Tom's Academy spots.

they're gone the founding members of The Academy you looked it in the 35. Congratulations and I'll see you in the next video. Thank you so much.