Cathie Wood Believes Palantir Stock Is a Buy: Should You Follow Suit?
For those willing to take risks like Cathie Wood, Palantir Technologies (NYSE:PLTR) stock is worth considering. Wood’s growth stock investing strategy is highly regarded. Wood’s portfolio includes growth stocks with impressive returns in bull markets.
PLTR stock has moved beyond its meme status with consistent profitability and sales momentum. The decline can’t be attributed to any specific cause. This drop could be a buying opportunity before the next earnings report.
Historically, Palantir’s stock has surged after earnings, settling at a higher baseline, and this current dip might be a chance to invest at a lower price.
Cathie Wood is a PLTR Stock Fan
On Monday, Ark Invest, led by Cathie Wood, made significant trades, including acquiring 203,197 shares of PPLTR through its ARK Autonomous Technology & Robotics ETF.
The purchase now equates to $4.6 million, preceding the company’s Q1 earnings call on May 5. Market experts expect an 8 cents on a $625.33 million, showing a significant increase from Q4 2023.
It was also only in February when Palantir Technologies, Inc.) surged over 30% after its Q4 results and AI prospects led to analysts revising their estimates. Cathie Wood’s Ark Invest increased its holdings, accumulating 1,967,732 shares across its ETFs.
Palantir now makes up 1.84% of ARKK, 1.58% of ARKW, and 1.29% of ARKF, totaling roughly $174.3 million in holdings.
Collaboration with HHI
On April 14, a USV development MOU was signed in Washington D.C. by Palantir. office. Dr. Won-ho Joo, Chief Executive of HD HHI’s Naval and Special Ship Business Unit, and Mr. Ryan Taylor, Palantir’s CRO and CLO, participated.
Palantir, a leading U.S. defense AI company, collaborates with Lockheed Martin in modernizing U.S. Navy combat systems.
The agreement aims to develop a survey USV by 2026, integrating HD HHI’s Avikus autonomous navigation software with Palantir’s Mission Autonomy technology.
USVs play vital roles in missions like surveillance, mine detection, and combat, especially in hazardous zones. However, existing unmanned surface vehicles face challenges in rough conditions and lack the capabilities of manned vessels.
This partnership aims to develop advanced USVs using autonomous navigation and defense AI to overcome these challenges and optimize them for the US and Korean markets.
Additionally, HD HHI has signed MOUs with US defense firms during Sea Air Space 2024 for ship propulsion systems and strategic collaborations.
PLTR is Reasonably Valued
Since its launch in 2020, Palantir has been offering its shares at $10. In January 2021, it peaked at $39, trading 300x its adjusted EPS for the year.
Investors were quite impressed with how Palantir projected 30% revenue growth through 2025.
But in 2022, Palantir shook its investors, declining over 24% as it entered 2023. In December 2022, it reached its lowest record of $6 per share.
Although the stock increased 4 times, it is still below its peak by 40%. Bouncing back in 2024 with more robust and more stable revenue and improved margins, Palantir is back in the game.
Moreover, with AI being more present, the company expects over 20% revenue growth for the year and a 32% increase in earnings.
The company also has commercial revenue in the U.S, which surged 70%. Customer count improved and saw a 55% increase.
In its recent quarter, Palantir proudly announced its $209 million in operating income and a strong $301 million cash flow.
Palantir is positioned for sustained growth, offering innovative solutions and strong financial management for investors in AI and data analytics.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
