Should you buy Palantir stock? (November 2023)

See more of my work: https://www.3minutebreakdowns.com Palantir stock analysis. Ticker: PLTR. Palantir reported earnings last week and the stock jumped by 20%. Shares are now up over 200% year to date. At the latest share price, Palantir has a market cap of 43 billion dollars. With 3.3 billion of cash and no debt, the enterprise value is 39.5 billion. This was an impressive quarter from Palantir. Total revenue grew 17% year over year to $558 million driven by a 37% increase in US commercial customers. So while government revenue only grew by 10% US commercial revenue grew by 33%. Even more impressive, this growth was achieved while operating expenses actually declined. Sales and marketing cost fell 20% to 39 million. And G&A cost fell 19% to 45 million. Gross margin increased to 81% and adjusted free cash flow margin increased to 25%. So Palantir appears to be benefiting from acceptance of its new AI product AIP and its new boot camp strategy is shortening the sales cycle allowing for faster onboarding of new customers. Zooming out, Palantir has now produced 2.1 billion of revenue over the last 12 months, 150 million of net income and 500 million of free cash flow. So at 19 times revenue and 80 times free cash flow the stock isn’t cheap. In fact, at 19 times revenue its the 7th most expensive stock with a market cap over $10 billion.