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2nd stowaway in a month caught on Delta Air Lines flight without a ticketPalantir Technologies is a company that specializes in data analytics, which involves processing huge volumes of information to uncover actionable insights and trends. It has recently launched its Artificial Intelligence Platform (AIP), designed to combine large language models with its legacy data analytics, helping clients with real-time decision-making and allowing them to create customized applications based on their data in a secure in-house environment. (Source: 'Why Palantir?') It's safe to assume Palantir can maintain its current growth rate as AI technology improves. The company's third-quarter revenue increased 30% year over year to $725.5 million, and management seems optimistic about its future prospects, with CEO Alex Karp suggesting that organizations that fail to adopt productivity enhancers like its AIP risk being left behind in what he calls a 'winner-takes-all economy.' (Source: 'What could the next three years have in store?') No, Palantir's valuation has lost touch with reality, with a forward price-to-earnings ratio (P/E) of 152, which is significantly higher than the S&P 500's average forward P/E estimate of 23 and even higher than Nvidia's forward P/E of 33, despite Nvidia's impressive growth. This level of overvaluation will probably cause the stock to underperform over the next three years. (Source: 'Sorry, but the valuation is silly') It might be time to consider taking some profits off the table, as the stock's valuation is overextended. While early investors have made a good bet, it's uncertain whether the company can maintain its growth rate and fend off large commercial sector rivals like Microsoft or Snowflake. (Source: 'Sorry, but the valuation is silly') Palantir faces competition from large commercial sector rivals like Microsoft or Snowflake, which also offer data analytics and AI software within their cloud computing ecosystems. It's unclear if the company will be able to maintain its growth rate and fend off these competitors. (Source: 'That said, while Palantir seems to have established trust within the defense industry...') Every time I look at the stock of Palantir Technologies (NASDAQ: PLTR) , it seems to be at a new record high. The company has been an early winner in the hype cycle for generative artificial intelligence (AI) software. And with shares up 313% year to date at the time of this writing, many investors are wondering how much longer this bull run will last. Let's explore the pros and cons of Palantir to decide if it still has a place in your portfolio. Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free » Why Palantir? Founded in 2003, Palantir can be thought of as an early adopter of what we now know as AI. The company specializes in data analytics, which involves processing huge volumes of information to uncover actionable insights and trends. And this tech was a precursor to the large language models (LLMs) behind platforms like ChatGPT. Palantir was quick to adapt to the evolution of its industry. In 2023, it launched its Artificial Intelligence Platform (AIP), designed to combine LLMs with its legacy data analytics. The AIP helps clients with real-time decision-making and allows them to create customized applications based on their data in a secure in-house environment. This can be particularly useful for military and law enforcement, giving operators real-time info about threats and targets during field operations while keeping records for legal and regulatory compliance. What could the next three years have in store? Palantir's third-quarter revenue increased 30% year over year to $725.5 million, helped by the rollout of its new AI-related functionality, particularly among U.S. government and commercial clients. The company is also consistently profitable, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rising 39% to $283.6 million, although this figure adds back significant outflows like stock-based compensation, which totaled $142.4 million in the period. Over the next three years, it's safe to assume Palantir can maintain its current growth rate as AI technology improves. Management certainly seems optimistic, with CEO Alex Karp suggesting that organizations that fail to adopt productivity enhancers like its AIP risk being left behind in what he calls a "winner-takes-all economy." The company has scored some high-profile clients, including the armed forces of Israel and Ukraine, which are both using its software for combat-related missions. That said, while Palantir seems to have established trust within the defense industry, it is unclear if the company will be able to fend off large commercial sector rivals like Microsoft or Snowflake, which also offer data analytics and AI software within their cloud computing ecosystems. Sorry, but the valuation is silly Palantir is an easy company to get excited about. It synergizes data analytics with generative AI to serve very cool uses in the military and law enforcement. That being said, hype doesn't pay the bills. With a forward price-to-earnings ratio (P/E) of 152, its valuation has lost touch with reality. The S&P 500 has an average forward P/E estimate of 23, while the AI industry leader Nvidia has a forward P/E of just 33 despite growing its sales and profits by 94% and 109%, respectively, in its most recent quarter. Palantir is nowhere close to this. This level of overvaluation will probably cause the stock to underperform over the next three years. And while early investors can pat themselves on the back for making an unusually good bet, it might be time to consider taking some profits off the table. Should you invest $1,000 in Palantir Technologies right now? Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Palantir Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $872,947 !* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. See the 10 stocks » *Stock Advisor returns as of December 2, 2024 Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Palantir Technologies. The Motley Fool has a disclosure policy . Where Will Palantir Stock Be in 3 Years? was originally published by The Motley Fool
It’s prime time for returning stuff at stores. Retailers are still figuring out the best way to handle it.Delta lawmaker Hon. Erhiatake Ibori-Suenu has filed a fresh lawsuit as the PDP declared her seat vacant In a statement on Saturday, the daughter of the former governor James Ibori, defended her defection to the APC, stressing that her move is backed by the constitution Debo Ologunagba, the PDP spokesperson, earlier stated that Mrs. Ibori-Suenu's seat in the House of Representatives became vacant the moment she decamped to the APC CHECK OUT: Education is Your Right! Don’t Let Social Norms Hold You Back. Learn Online with LEGIT. Enroll Now! Legit.ng journalist Esther Odili has over two years of experience covering political parties and movements. Hon. Erhiatake Ibori-Suenu, the lawmaker representing Ethiope East/West Federal Constituency of Delta state, has said that her defection to APC complied with the relevant sections of the constitution, hence there was no need for PDP to declare her seat vacant. Ibori’s daughter files fresh lawsuit, insists seat not vacant Legit.ng reported that Mrs Ibori-Suenu, the daughter of the former governor of Delta state , James Ibori, announced her defection in a letter addressed to the speaker, Abbas Tajudeen, which was read on the floor of the House on Thursday, December 5, 2024. Read also PDP NWC takes action on expulsion of Ugochinyere: "no effect" PAY ATTENTION: Legit.ng Needs Your Help! Take our Survey Now and See Improvements at LEGIT.NG Tomorrow In reaction, the PDP declared the seat of Hon. Erhiatake Ibori-Suenu's seat vacant in the House of Representatives. But in a swift move, Mrs Ibori-Suenu, on Saturday, December 7, filed an affidavit to support her originating summon, listing her reasons for dumping the PDP, for the APC . Deposing the affidavit at the Federal High Court sitting in Abuja recently, the lawmaker listed the Speaker of the House of Representatives, the Clerk of the House and PDP as defendants. Ibori’s daughter gives reason for dumping PDP According to Vanguard, she cited the lingering internal party crisis as her major reason for moving to the APC. Ibori-Suenu added that her reasons for leaving the PDP complies with the relevant sections of the constitution, hence there was no need for her seat to be declared vacant. Ibori-Suenu said: “For over a year, the 3rd defendant has been enmeshed in a series of unresolved leadership crises at the national, which crisis has driven the party into two implacable camps. Read also PDP declares Ibori's daughter's seat in National Assembly vacant, gives reason “The 3rd defendant (PDP) started grappling with the internal strife before the 2023 presidential election, particularly after the Peoples Democratic Party, PDP, primaries conducted for the election of the party’s presidential candidate. “The division in the party is evident in the call by supporters of the party’s 2023 presidential election, Alhaji Atiku Abubakar, for the suspension of the former Rivers State Governor (and current Minister of the Federal Republic of Nigeria) and some others in his camp for anti-party activities, while the forrmer Governor of Rivers State’s supporters had also made counter demands for disciplinary actions against the former vice president and his allies including Sule Lamido and Babangida Aliyu, former Governors of Jigawa and Niger states, respectively, amongst others, for anti-party activities.” PDP vs APC: Reason people leave their party Legit.ng earlier reported that some lawmakers' failure to return to the National Assembly has been traced to their inability to be their state governors' preferences. Read also Protest in House of Reps as Ibori’s daughter resigns from PDP, joins APC Reports showed that the defections were rocking the ruling APC and the leading opposition PDP. In states like Benue, Kebbi, Zamfara , Delta, Ekiti, and Ogun, governors or loyalists defeated incumbent senators and reps members to clinch their parties' tickets. PAY ATTENTION : Legit.ng Needs Your Opinion! That's your chance to change your favourite news media. Fill in a short questionnaire Source: Legit.ngNEW YORK (AP) — U.S. stocks tiptoed to more records amid a mixed Tuesday of trading, tacking a touch more onto what’s already been a stellar year so far. The S&P 500 edged up by 2 points, or less than 0.1%, to set an all-time high for the 55th time this year. It’s climbed in 10 of the last 11 days and is on track for one of its best years since the turn of the millennium. The Dow Jones Industrial Average slipped 76 points, or 0.2%, while the Nasdaq composite added 0.4% to its own record set a day earlier. AT&T rose 4.6% after it boosted its profit forecast for the year. It also announced a $10 billion plan to send cash to its investors by buying back its own stock, while saying it expects to authorize another $10 billion of repurchases in 2027. On the losing end of Wall Street was U.S. Steel, which fell 8%. President-elect Donald Trump reiterated on social media that he would not let Japan’s Nippon Steel take over the iconic Pennsylvania steelmaker. Nippon Steel announced plans last December to buy the Pittsburgh-based steel producer for $14.1 billion in cash, raising concerns about what the transaction could mean for unionized workers, supply chains and U.S. national security. Earlier this year, President Joe Biden also came out against the acquisition. Tesla sank 1.6% after a judge in Delaware reaffirmed a previous ruling that the electric car maker must revoke Elon Musk’s multibillion-dollar pay package. The judge denied a request by attorneys for Musk and Tesla’s corporate directors to vacate her ruling earlier this year requiring the company to rescind the unprecedented pay package. All told, the S&P 500 rose 2.73 points to 6,049.88. The Dow fell 76.47 to 44,705.53, and the Nasdaq composite gained 76.96 to 19,480.91. In the bond market, Treasury yields held relatively steady after a report showed U.S. employers were advertising slightly more job openings at the end of October than a month earlier. Continued strength there would raise optimism that the economy could remain out of a recession that many investors had earlier worried was inevitable. The yield on the 10-year Treasury rose to 4.23% from 4.20% from late Monday. Yields have seesawed since Election Day amid worries that Trump’s preferences for lower tax rates and bigger tariffs could spur higher inflation along with economic growth. But traders are still confident the Federal Reserve will cut its main interest rate again at its next meeting in two weeks. They’re betting on a nearly three-in-four chance of that, according to data from CME Group. Lower rates can give the economy more juice, but they can also give inflation more fuel. The key report this week that could guide the Fed’s next move will arrive on Friday. It’s the monthly jobs report , which will show how many workers U.S. employers hired and fired during November. It could be difficult to parse given how much storms and strikes distorted figures in October. Based on trading in the options market, Friday’s jobs report appears to be the biggest potential market mover until the Fed announces its next decision on interest rates Dec. 18, according to strategists at Barclays Capital. In financial markets abroad, the value of South Korea’s currency fell 1.1% against the U.S. dollar following a frenetic night where President Yoon Suk Yeol declared martial law and then later said he’d lift it after lawmakers voted to reject military rule. Stocks of Korean companies that trade in the United States also fell, including a 1.6% drop for SK Telecom. Japan’s Nikkei 225 jumped 1.9% to help lead global markets. Some analysts think Japanese stocks could end up benefiting from Trump’s threats to raise tariffs , including for goods coming from China . Trade relations between the U.S. and China took another step backward after China said it is banning exports to the U.S. of gallium, germanium, antimony and other key high-tech materials with potential military applications. The counterpunch came swiftly after the U.S. Commerce Department expanded the list of Chinese technology companies subject to export controls to include many that make equipment used to make computer chips, chipmaking tools and software. The 140 companies newly included in the so-called “entity list” are nearly all based in China. In China, stock indexes rose 1% in Hong Kong and 0.4% in Shanghai amid unconfirmed reports that Chinese leaders would meet next week to discuss planning for the coming year. Investors are hoping it may bring fresh stimulus to help spur growth in the world’s second-largest economy. In France, the CAC 40 rose 0.3% amid continued worries about politics in Paris , where the government is battling over the budget. AP Business Writers Yuri Kageyama and Matt Ott contributed.
Elon Musk lost his Tesla pay fight. Here's what he can do next.
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