Shares of PLTR are buying on the decline after this recent sale

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Palantir (NYSE:PLTR) the stock experienced better days. After an outstanding debut, shares inevitably fell after the IPO. But they continue to stumble. This is suitable for a course if you are investing in growth stocks. And the big data and analyst player is a share of growth in all aspects of the world.

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It has a value proposition shared by few companies. Luke Lango’s best stock pick she loves it and deservedly so. Few companies can deliver growth like PLTR.

Although still a young company, it has achieved an impressive record of state victories. The defense establishment believes that. Therefore, they continue to award and renew contracts.

Some members of Congress have come to terms with its methods and some treaties, in particular with the Immigration and Customs Control Agency (ICE)..

However, Palantir’s experience shows that many government agencies and commercial institutions believe in his tools. And if they are the best company for the job, they will continue to strive for favor.

Why then are PLTR stocks declining? Much is related to external factors. The Federal Reserve plans to cut bond purchases and raise interest rates this year, which is not good for stock growth.

Fears about the fast-spreading, highly contagious version of omicron also cool growth.

At the same time, investors want more Palantir campaigns on the commercial side. There are also concerns that its revenues are based primarily on U.S. coasts. However, the argument remains that Palantir’s main offering is still very attractive.

Inflated fears

At the beginning of the year, investors are once again focusing on safer betting. You can’t blame them for making that decision. Goldman Sachs ’latest forecast suggests the Fed will be forced to raise interest rates more than expected this year as the U.S. government wants to tackle inflation and a very strong labor market.

Goldman Sachs (NYSE:GS) has improved its view of the economy, they are now predicting that there will be four-quarter interest rate hikes in 2022, which is more than the previous forecast of the three marches.

As interest rates in most pandemics rise again to near-zero levels, people will of course buy bonds as they have less risk. This is a reduction in the valuation of some high-growth stocks and Palantir is no exception.

According to the latest Palantir data, the company reported a loss of $ 102.1 million, or 5 cents per share, in third-quarter revenue totaling $ 392.1 million, up from $ 289.4 million a year ago.

In reporting earnings, Palantir raised revenue guidelines. It now expects revenue of $ 418 million in the fourth quarter. It’s a company they forecast annual revenue of $ 1.53 billion for the full year, more than the previous estimate of $ 1.42 billion.

Palantir CEO Alex Karp previously set target of 30% revenue growth. The new estimate predicts 40% growth this year.

Despite these numbers, investors wanted more. It was mainly affected by the slowdown in the growth of public procurement and the lack of traction on the commercial side. The government segment recorded only 34% year-on-year growth. The company’s commercial revenue in the US grew by 103% year on year and the number of customers by 46%.

Palantir is spreading its wings internationally

Investors continue to be disappointed that Palantir relies on government spending for growth. However, the division between commercial and defense revenues has been less pronounced in the last quarter than before.

The company has experienced some positive momentum in recent months with growing customer demand and hiring sales staff. The construction of its commercial pipeline is very important for sustainable growth. There is also a perception that the company needs to establish an international presence.

Progress needs to be reported on both sides.

Palantir Technologies wants to expand its business into a new market through a partnership with South Korea Hyundai Heavy Industries Group. This partnership could give them an edge in international markets by developing large data platforms for commercial customers outside of America.

meanwhile Palantir transfers all data processing in the United Kingdom from the United States at a time when privacy regulations are being tightened around the world. The shift in Palantir’s data processing processes will allow European customers to be less susceptible to possible data leakage.

It will also allow the big data analytics company to build on its impressive local customer base. He already counts the National Health Service (NHS) among his clients.

The PLTR stock is the growth stock available at a discount

Growing stocks are not having the best time. And one can understand why this is so. However, the prospects for the growth of this company are astronomical. There are very few companies that have experience with Palantir. That puts them in another league.

The only problem with companies like this is when to buy, no or buy or not. Due to the slow price momentum we have seen in the last few weeks, now is the ideal time to invest in PLTR shares.

On the date of publication Faizan Farooque did not hold (directly or indirectly) any positions in the securities referred to in this Article. The opinions expressed in this article are those of the author and are the subject of InvestorPlace.com Guidelines for publication.

Faizan Farooque is the author of a paper for InvestorPlace.com and many other financial sites. Faizan has many years of experience in stock market analysis and was a former data journalist at S&P Global Market Intelligence. You can view his analysis on InvestorPlace and TipRanks.

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