Foreign explanation of why Pelletier is going to make a lot of people myself included Rich. Now look, there's no guarantees in life except death and taxes. We're all going to die. We're all gonna pay taxes.

But in this notebook I have the explanation of why I Think Palantir is the only stock right now in the market to give me a Tesla like Return of the next five to ten years now. About 10 years ago, a gentleman you all know by the name of Peter Thiel wrote a book. That book is called Zero To One I Highly recommend you go and read that book now in that book. What he was saying essentially is that he's going to build a company.

This is going to become a monopoly in an industry that does not yet Exist by solving a problem that most clients don't even know they have yet. Now that sounded like crazy talk. but now in 2023, we can see the dude was right now. Peter Tio In case you don't know the guy, he was the co-founder of Palantir, but he's still also the co-founder of PayPal and part of the PayPal Mafia along with Elon Musk and bunch now Peter Tio is no idiot.

We know that and pirateo said 10 years ago, something very interesting. He essentially opened up his cards now on the poker table who shows his cards only somebody who knows that he won a hundred percent which I think what? Peter till knew in 2014. Now now in 2023, everybody knows about Palantir. They're nearing two billion dollars in revenues.

Massive net dollar attention, lots of hype. Everybody's talking about Palantir, but the question is what to do. A lot of you are wondering right now how to invest in Palantir without taking all this massive extra risk because nobody's excited to buy Palantir after 127 spike in the share price of the past few months. It's just too expensive.

It's too scary. Who wants to buy into a parabolic spike? Nobody. And I'm here to tell you there's a way if you stay till the end of this video. I'm not only going to show you why this is a one trillion dollar company, I'm going to show you how I'm increasing my position palantir with out taking all this extra risk of buying into a formal cycle.

there is a way to do it before we do that. I Want to give a huge shout out to today's sponsor Pandeys. I've been working with 10 days for months. They are a free platform, no premiums, no paid subscriptions.

You get a free newsletter with some of the best information about the stock market, the economy. You get an options flow and you get the best options calculator in the market. The link is below. Go get it Right now.

It's a must-have for any investor, especially in times like these. Tell them Tom sent you and thank me later. Now moving on to volunteer. Now let's go through my notebook right here.

What happened with Talentier? We have to back it up a little bit, right? So the stock is up 80 at least since the latest earnings, but it's up 127 year today. What happened? Well look. Patenty always had a strong balance sheet. They had nice growth, but the one item they missed just to be great is profitability.

Now that Catalyst finally arrived, a quarter go. but this quarter it happened the second time. So after Palantir hit profitability twice in a row, a lot of fundamental based investors basically said, well look, if this company has a terrific balance sheet and growth and potential and it's profitable, why not at seven dollars a share boom they started buying Now when that happened, The Perfect Storm was brewing outside of Palantir, which was the AI hype. AI was becoming a thing.

People started realizing well AI is the future, which it is, but there's a lot of caveats to that as well. But then investors started realizing well wait wait wait wait wait wait. Isn't Palantir an AI play? Of course they are dummy. They've been doing AI for 20 years.

Foundry Gotham Apollo They're all AI based data analytics system and they've been doing it for 20 years. So all of a sudden people started buying into volunteer and then people started saying well look, it might have an S P 500 inclusion because you know if it's eligible, why not But we saw what happened with Tesla once it got included the SB 500 and all this whole plus started around Palantir. but wait I have to pump the brakes here. Wait wait wait.

it's not going to one trillion dollars next year, it's not going to go to 500 per share in the next two years. It's not going to happen, but there's a way. Trust me, stay patient with me. I'll take you for this journey.

Now we can talk all day about the products Gotham Foundry Apollo and others, but it doesn't matter. There's no need for us to discuss exactly how their products work. What we can take a look at here is three things: They make two billion dollars a year, their clients, their top 20 clients pay 50 million a year, and their net dollar retention is a hundred and eleven percent. Which means their client pay 11 more than they did last year on average.

Now if those platforms did not work, do you think that people would have paid 50 million a year a pop over something that doesn't work? You know the answer to that. So the products work. and if you want to learn more about how they work, comment below. I'll make a video showing you the application with Airbus which is absolutely incredible to look at, but we can do it in a different video.

The problem right now with Palantir is that the risk reward system for the stock changed. Palantir at seven dollars is not Talent Here at Forty Dollars, it's a completely different risk profile and it freaks a lot of you out. rightfully so. If you've been dollar cost averaging since Seven Dollars, you're sitting pretty.

no problem. you're not freaking out right now. Basically you're saying to yourself, well, if it goes down, I'll buy more if it goes up I'm just going to watch it go up right? No problem. No problemo.

But if you haven't now, you have a much more difficult choice. But there's a solution. The one thing I just want to show you here is that there's a way to do it the right way. if you've been part of our community and we have a 4 000 member community, on our Patreon Patreon.com forward slash Tom Nash and on our Discord we mainly talk about Tesla and palleteer mainly about Palantir.

If you've been a part of our community, you would have seen that where dollar cost averaging into the stock at Seven Eight, Nine, Ten Eleven Dollars, you would have been a part of this. Now that's not to say we hit every single stock right. God Knows that's not the case. We make mistakes, but we teach the system.

We teach the process of dollar cost averaging long term into great companies. and we teach you how to do it the right way. We're not giving you fish, we're teaching you how to go out and get your own fish. Now it's Five dollars per month.

The price of a freaking cup of coffee. Cry it out for a month, see if it's worth, see if it's giving you the education you need. And you know what? if you're unhappy with my volunteer, my Tesla all of my newsletters, Everything. If you're not happy with my Patreon membership, I'll refund you even if you stayed the whole 29 days and you're asking for the refund on the 30th day I'm still going to refund you, No problem at all.

Now here's the thing. Let's start with the latest financials of Palantir. It's going to be a long list of boys and girls brace for Impact. So on the latest Financial volunteer.

we see a few things. obviously. We saw the second consecutive quarter of Gap of stability which was phenomenal. We saw the company on Pace to make over two billion dollars.

because they did 520 million quarterly in revenues, we saw 18 year-over-year growth. We saw the U.S commercial Revenue go up above 100 million. For the first time in history, we saw a hundred and eleven percent net dollar retention which was better once. But look at the macro in this Macro 111 is amazing.

Mainly, we saw stock based compensation drop in the past two years from 1.2 billion 1.2 billion to 400 million. So the stock based compensation is a thing that's super sensitive to our investors. I Get it? But check this out. from 1.2 billion to 400 million, That's not even the most impressive part.

The most impressive part. is that the percentage of stock based compensation from the entire revenues of the company went down from 100 plus percent just two years ago to 26. So stock based competition is not just going down, it's becoming a smaller and smaller piece from the entire revenues of the company. And I Get it.

I Know what? People freaked out, But look, Palantir went from 2400 employees to 4 000 employees within 18 months. You cannot increase your employment and your HR from 2400 to 4 000 without giving massive amounts of stock based compensation. It's just a price of growth, but now it's obviously slowing down. Now, as far as the balance sheet of this company, it couldn't have gone better.

3 billion in Cash 1 billion in a credit facility which they haven't tapped into yet. Zero dollars debt, Four billion in assets, 900 million in liabilities, four to one ratio of asset solubilities. This company has one of the cleanest balance sheets we've ever seen. but that's not new.

Let's talk about scalability. where I think there's a lot of bears are hiding in this category. Scalability. Originally a few years ago, people were saying well Tom this is a consultancy.

This is not a SAS business. Well, Mother Lover How is a consultancy deriving 80 gross profit? Can you explain to me there's no consultancy on this god-given Earth And you know, even Mckins included that gives you 80 gross profit. It just doesn't happen. So that was an asinine argument.

Now the new argument is. well, it's not scalable. Two little clients? Sure, let's take a look at it. In Q121, just two years ago, the company had 60 commercial clients.

Currently it has to be 280 clients, 400 percent increase in commercial classic in commercial client count in two years. Show me another company that increases its amount of clients in two years by 400 percent 60 to 280. Wait, look at the scale. This ain't some low ticket item.

This is not Snowflake and I like snowflake. But I'm saying this is a completely different business. This is a high ticket item. Top 20 clients pay 15 million dollars a year 64 New Deals of 1 million or more, 22 deals of 5 million more, eight deals of 10 million more.

All of this just happened in the latest quarter in one quarter. So this is a high ticket item with 111 medal retention and it's growing at 400 in two years as far as client count. So don't tell me stories about scalability. Now the other part I The other Fable I Keep hearing about is the slowing growth of Pelletier and you know it's not growing as fast as 2020.

but the macro have changed. Look at the market. everybody's laying off people. The market ain't the same.

but look at this in the past two years when Palantir is so horrible. In the past two years, the revenues went up by 55 percent. There have been positive free cash flow for eight consecutive quarters. They did 2.2 billion in 2023 in revenues and in 2018, Just five years ago, five years ago, they did 600..

So from 600 million to 2.2 billion in five years and this economy and Colvin with the war in Ukraine with all the stuff, show me a company that does better except me. perhaps a Tesla Now can it correct? Yes and it will likely correct. I'm quite positive that this is not a trade for me. This is a long-term investment.

Um, now how do I play this without adding all this extra risk? If I go out right now. if I'm you and I miss the boat and I haven't been dollar cost averaging. By the way, if you want a dollar cost average if you want to learn the system, if you learn, I'm going to say it again because it's important if you want to learn the process the right way so you don't get slammed out of a deal like this. Patreon.com Forward slash Tom Nash Come with us.

learn the system. Five dollars per month. It's worth it, Trust me. Now, what do you do if you missed it and now you're looking at a 14 price to start buying Palantir? Well, you're not blowing your load all the same time, hoping you basically catch it before it goes to 500.

you're not buying everything right now. 14 No palleteer has more work to be done. It ain't going to 500 tomorrow. Relax.

You have at least two to three years to buy into Palleteer slowly. Dollar cost averaging every month. Slowly Time over time. Wait for red days.

Buy a little wait for another red day, buy a little bit more Dollar Cost average over the next 36 48 months. Do it slowly. It ain't gonna run away in that time. Believe me, there's a lot of time here now.

There's a lot of work to be done for Palantir. They have to improve margins which are not there yet. They have to improve their client concentration. Even though they've been growing nicely, their top 20 clients are basically responsible for 50 of the profit.

It's just too high. There's a lot of work here to be done. and what I would think here for me is very simple. If you're reading Palantir and you have a you know, a reasonable cost basis here, so you're looking at this right now and trying to figure out well, should I take some profits or not for me, it's very simple.

I'm looking at this and I'm saying well look if it goes down lower I'll buy more, no problem if it goes up higher and it flies out the handle and I'm wrong about this and it's going to go to 60 dollars I'm just going to enjoy the ride. still gonna stay in then you're going to enjoy it watching it fly. But if you're new to this, still the risk of it going back down to seven eight nine dollars is just too big for you to lump some right now into a 14 cost basis. Buy it slowly over time, manage your risk.

Now the good news here is that look: I Think that the AI driven Foundry and the polo will be as revolutionary for the U.S commercial industry as Microsoft was just in the 90s. I Think this thing is a game changer. It's going to change the industry. This is going to be the next Microsoft in my opinion.

But the good news for you, the new investors is that there's plenty of time to do this. This isn't going to happen tomorrow. It's going to take years, which means you have plenty of time to do it if you want to learn the right way to do it. I'm going to say it again for the 15th time.

go to our Patreon Patreon.com Forward slash: Tom Nash Sign up right now so you can learn with us how to do it. You can analyze it, You can look at the good stuff. the bad stuff. Learn the process.

As always, it's been a pleasure to spend these few minutes with you. I Love you all! See you next video.