Three Undervalued Tech Stocks to Consider for Long-Term Investments: Palantir
Palantir stocks became very popular after its IPO and its price soared by 200% in a short period. The company operates in the very “hot” segment of Big Data science with artificial intelligence. Before the IPO, the company only had U.S. federal agencies like CIA, FBI and NSA as clients. Palantir technologies is rumored to have been used in the search for Osama Bin Laden, during the investigation of Bernie Madoff’s fraudulent operations, and in other circumstances.
The company is developing a corporate segment which will provide risk management, production optimisation, test drugs analysis, and other services. Palantir’s shares are trading at 70% off their peaks and is gaining the interest of long-term investors. Last year the price of Plantir stocks was overheated, but now the value of Enterprise (EV) is at $22.5 billion, while revenues are expected to come to $2 billion in 2022, up by 30% year-over-year. This makes forward EV/Sales multiplier come to 11. Not the most attractive value in the market, but twice as low as it was at peak levels in 2021.
There are many reasons for bullish expectations to surface as demand for Big Data science is dramatically rising. Revenues are also rising tremendously. The company’s revenues were up by 34% to $432.8 million in Q4 2021, beating analysts’ forecast of 30%. Corporate services are at 13% of overall revenue, and rising fast. Revenues from this segment were up by 132% over October-December 2021, while the number of clients jumped by 371% to 80 corporates. The U.S. government is spending a lot of money on Palantir services. In October 2021 the U.S. Army selected Palantir for a contract worth $823 million.