Hey, this is Tom And we got to talk about Palantir. The stock is up 11 just today. That's after we had a massive 25 to 30 Spike right after Q1 earnings just a couple of days ago and we're up 75 on this stock year to date. Now it's still a long ways away from the highs of the 20 and the 30 it used to get.

when Kathy Wood was all about that stock and the meme stocks and all that stuff and the hype, stocks, etc etc. those days are long gone. The question is, how high can the stock go Now at 11.4 dollars, the question is, what's the runway this stock has? Can it go back to its Glory How long will it take and do I Still think that this is a 500 stock? Potentially I Know this is a 50x from this point, but do I Still believe that? And even more importantly, was Chicken Genius wrong selling this stock he sold at nine and a half dollars, he missed out on a lot of money. The question is, was he wrong? First of all, before we begin this video, I I Have to give a huge shout out to 10ds.

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I Know a lot of tools who are not free who are not as good as attendees and all you guys have to do is use the link below. Sign up, Tell Them! Tom Sent You use it, block out the noise, and get attendees. Thank me later. Now let's go back to Palantir here for a second because this is absolutely insane.

So the question is, now that Palantir is up, let me just pull it up on the screen right now. if volunteer is up by 75 here to date, is this now a good time to invest? For all of you who stayed outside, that's a question you're probably debating with. And for all of you who already have position considering increasing the position. And you know, for some of you who are considering taking profits, all of you are here to find out how much this stock can run up.

And here's the simple answer for you: I Have to go back and talk to you about what just happened. Look, this stock jumped 75 year to date. 25 post earnings. We understand this right now.

First of all, I Have to be honest. I'm not with the crowd that's hating on cheek ingenious for selling for two reasons. Number one, he's a Trader not a long-term investor when it comes to Palantir and that is 100 right to do whatever he wants. If he decides to be a Trader one day and a long-term investor the other day, it's his right.

he decided to be a Trader Good for him mainly because of Reason Number two, which is, he made a hundred thousand dollars on this trade. So the man took a hundred thousand dollars in profit. He got out the stock, kept on running it, lost another 15. whatever.

He already made a hundred thousand dollars, so he did. didn't do anything wrong. There's nothing to criticize him for. There's no hindsight in this game.

Nobody really knows how stock behaves in the short term. He took profits at that time for a Trader. That was not a bad idea at all. In fact, I think if I was a Trader I probably would have done the same.

now. Look, nobody can predict swings, right? He did the right call at the time for a Trader but that is why I Personally don't trade I only invest long term because there's no way to predict these things short term. Now for me, Palantir has never been a trade. You all know this right? It's not news to you I've always been a long-term investment volunteer I started buying volunteer at 18.

A lot of yahoos on the internet talking about me buying at forty dollars and just nonsense. Go back to my first videos. I First did a DCF of volunteer when it was an 18 stock and it kept on buying. In fact I kept on buying even as it went higher and I did not time it correctly.

Sure, a hundred percent guilty as charged. No problem. So my entry point was 18. That's fine, it doesn't matter.

and I'll explain. why did I miss time it? Yeah, sure. but do I care? No. And here's the answer for you: if this is indeed a hundred dollar stock.

If this is indeed a 500 stock like I think it is already giving you a hint about my answer for the next question. So if I think that this is a 500 stock and that's my right to think that that's my opinion, might be inaccurate, might be wrong, Might be the ramblings of a Madman from Russia but that's what I think. So if I think that this is a 500 stock which I do. still to this day and still when the stock was six dollars, I was still thinking that that's why I never sold a single share of volunteer.

So if I think that this is a 500 stock, Does it matter if I entered 18, 10 or 28 or 48 if this is a 500 stock? not really, it doesn't matter. Peter Lynch has a freaking amazing lecture where he talks about the fun fact you all need to remember: it's never too late to buy into good companies. There's always room for good companies to make profits for long-term investors. There's no point in trying to time your entry point if you're not a creator.

it's the wrong tool for that trade. literally. So let's talk about Palantir for a second and why I Think this is potentially is a 500 stock? My mind has never changed. you know me.

I've always been true to the sock I've never sold and everybody was hating on it. Some people were flip-flopping like a Wienerschnitzel basically starting to hit on the stock. Never changed for me and this is why. So right now we had the Q1 conference call I Think this was one of the most exciting calls we had from Palantir.

The trajectory that we've seen from the Q1 numbers and the Q1 presentation is incredible. Uh, sure, there's a good chance. please listen to me. There's a good chance this stock can retrace.

it can sell off. it can drop back to seven. Eight dollars for sure. A chicken genius salt.

that wasn't a bad move at that time. Hindsight judgment is not fair I Don't care. Look at it I Gotta rhyme right? So it cannot race. it can't fall.

Nobody knows I Don't play the game hence I don't care. But here's the most interesting point. This is the point where I find it fascinating and this is why I think they do have Runway Now most analysts and professional investors were bearish on Palantir up until the Q1 call after the Q1 call. I Don't know if you noticed, but the narrative about the stock changed.

Well, nothing really changed dramatically for the numbers except gap of stability which is just an accounting number. The company was free cash flow positive for multiple quarters already. but Gap profitability changed the narrative for this stock. So two consecutive quarters of positive Gap profits change a lot of mines on Wall Street about the stock And that's the beginning of a very interesting time for Palantir.

If institutional investors. and Wall Street starts looking at the stock seriously, not as a meme stock from Hell Kathy Wood kind of thing, right? this is a support point for the stock that can really take it upwards. I Don't know if it's going to happen or when, but this is a really different thing I'm seeing right now, the whole narrative about the stock has absolutely changed. now.

Why is it changing Now Beyond the gap, profitability for two consecutive quarters, there's other things that going on that people are talking about. First of all, stock waste compensation coming down. So this quarter was the seventh consecutive quarter where SBC stock based compensation delusion actually declined. So for two years, every single quarter, the stock waste, competition and dilution of volunteer is declining.

It's still very high and it can improve, but it's coming down every single quarter. Just in Q2 2021, the percentage of stock based compensation of revenues of Palantir was 62 percent. This quarter it came down to 22 only 22 ratio between the delusion, the SBC and the revenues. So they went down by 3x in just under two years.

now. The other thing that people complain about planetary scalability. Well, they're just a government contractor. They can't make any money in the commercial industry.

blah blah blah blah blah. Well, commercial client growth is up 370 percent over the past two years. Currently 75 of their clients is commercial clients. So to say it's a government contractor with 75 percent of the clients coming from the commercial sector is a little bit ridiculous and people starting to see this.

The other thing is that was a lot of talk about gatekeeping. companies don't like Palantir. They have their own tools. They have to admit that those not as good, etc etc.

They're not going to give Valentine a chance. Well look at the companies that already implemented Palantir like Tyson Foods for example. At this point it's going to be very simple I've said it two years ago, Palantir will get to the point where if you don't use it and your competitors are, you're gonna get screwed and you're gonna get wiped out. You will lose so you don't have any choice but to level up and get Talent here as well.

Which is exactly what's starting to happen right now. The other point people talk about volunteer is not. You know it's not a recession-proof company. blah blah blah Well guess what? Q1 Palantir closed 64 new deals at a million dollars or more gave you a quarter of record-breaking revenues of 525 million in this economy when everybody is in the toilet now.

Does it deserve the current price tag? Is it a good idea to buy into such strength? I Don't know, it's your call. I'm not here to decide for you, but for me, it's very obvious right now this valuation is not representative of the true kind of DCF Classic Validation of Palantir If you can take a look at here on the screen I'm actually showing you this is talking VP This is my own platform, but I can actually pull up my own valuation and show you why the valuation of the stock is not yet there, but it will be I Think it will be. This is what I want to show you. So this is our own evaluation tool right here and I'm going to make it a little bit smaller so you guys can see it.

So based on these metrics, right here, palletish is basically between four dollars and twelve dollars right now. if you just do as plain: Plains DCF Valuation with multiples like textbook and don't assume any sort of you know trajectory of growth Etc Et cetera, this stock is between four and twelve dollars currently trading at what 11 and a half? so there's not a lot of room there. So if you're investing in the stock, you have to understand it has to grow n into this valuation. This company jumped up 75 percent in just the the you know the last five months and I know people say well Tom Zoom out.

it's still down like 50 or whatever. 60 Yes. But times has changed, multiples have changed, the economy has changed the the markets have changed. Every single company is in a different climate right now.

This is the penalty we're talking about. Not, you know, not the palantir of two years ago. So if you're buying into the stock, buy it. with the mindset that number one, it cannot raise it, cancel off number two, it still needs a couple of years to grow into its valuation and number three, it's either gonna go to absolutely, you know, out of the stratosphere or it's not and in both options, you should be okay with it.

I Wouldn't put my life savings in but everything I have on this stock because like any other stock in the market, it always have the potential to actually blow you up. So this shouldn't be. you know, betting your kids college money on this thing. No stock should be that position.

but I'm just here to show you that. You know objectively, this stock has a lot of progress to make. They're not there yet. They spiked a lot I Don't know if this is the best time to invest or not right now.

I Don't tie my investments long term because it doesn't really matter, but you know you do. You as always, you know, don't click nothing, don't smash nothing. don't buy nothing I Love you all. See you next video before I Let you go one little thing if you lasted with me this long I Want to show you something Now This is for the Ogs on the channel right here.

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