$PLTR · Schwab Network · 2026-11-03

And we continue our coverage of Palantir this morning, with our next guest saying: "We admire it, but should we invest in it?" Palantir earned 44 cents per share after adjustment.

Its revenues reached $2.3 billion, an increase of 96% over last year. A fantastic number. Commercial sales jumped by more than 140%, surpassing government sales.

The quarter was exceptional, wasn't it?

Essentially, Palantir is a resounding success. It is one of the major companies that invests huge sums in the field of artificial intelligence, while being content with generating additional profits.

So, from a financial perspective, I would say these are amazing results, aren't they? We also have the rule of forty, where the stock price reached 158. Well, when we look at that, it's really amazing what they've managed to achieve, especially since part of the concern in the last two quarters has been about the performance of commercial revenues.

This is the first quarter in which commercial revenues have exceeded government revenues. So, from a financial standpoint, what Karp and his team have achieved is amazing by any measure, and perhaps one of the best performances in the field ever.

I think the question comes down to: What is the right price to invest in it? What is a reasonable price? And that's where the excitement lies. I think the price movement this morning shows the stock is clearly down.

I think it's best to take a break, and I think this is the right time to monitor the stock's performance.

There are some important support elements, such as the 200-day low at $155. There is an upward gap since last quarter's earnings. Therefore, I think it is better to invest in Palantir shares if the price is indicating a decline in the coming weeks or months.

I think it's better to try and buy it at a lower price, because despite the low price-to-earnings ratio, the 50x price-to-sales ratio, and the 90x cash flow ratio, the stock is still high.

Therefore, I think there is a lot of speculation on Palantir shares at the moment.

I believe that after a period of calm, the stock may experience a recovery. So, I think the key level is if the price breaks above 200 and holds firmly above it for the next week or two, the rise will be enormous, right? Who knows where it might lead?

If the price remains below it, I think we will see some downward pressure before a possible recovery, perhaps in 3, 6 or 12 months from now.

So, do you think some of this, in terms of your opinion of Palantir and how the market views it, is just a technical factor? Yes, I think a lot of it is artistic. I think if we were to try to find an excuse to justify analysts or funds selling their shares, which might be a bit of an exaggeration given this good quarter, but if an excuse had to be found, I would say it's the slowdown in bookings.

It has risen by only 6%, and has been slowing down over the past four quarters. So, this is the kind of trend that we don't necessarily want to see. The same applies to the 40-point rule; they are at 158.

It is almost impossible, no matter how good their financial performance is, for them to increase this number.

So, this number will simply start to decrease, you know, due to purely mathematical calculations. This number cannot be exceeded, or exceeded by much.

So, I think there may be some caution, but again, profits, revenue growth, and even future prospects are all on the rise. Therefore, I think this is where the timing game comes in; when will the complications decrease?

Will that start this quarter? Yes. Again, I don't necessarily trust that.

Therefore, I believe it is currently undergoing a healthy correction at some levels. This does not necessarily mean using the term "fire and brimstone" to refer to the company.

I like his eloquent style, especially since we know that Alex Karp, in his earnings phone calls, often uses pretentious language as if he were giving a long lecture.

Among the things he said about the company: "We've gone from being the most attractive person in the physics department to being the captain of the football team." Are you ignoring this and focusing only on the numbers?

I think that's interesting. It certainly evokes mixed feelings. As for me, I prefer to ignore that. If there is anything to be upset about, it is a certain arrogance in the way the reports and profits are presented, isn't that right?

This may bother me, but ultimately, it's about looking at the stock for what it is, as a company, as an investment.

So, do I really like that he boasts and uses lengthy language about how good his project is and how far it's progressing? No, I don't like that, but ultimately, you make money if you reinvest or provide an opportunity for shareholders, and that's what matters to me.

But here I think you are either in one of the two camps. I don't like some of the exaggerations surrounding the matter, but ultimately, I don't care whether it's an attractive investment or not.

You say it's the best house in the neighborhood, but you're questioning the area's rating. What does that mean? So, what's interesting about Palantir is that it's somewhat insulated from some of the capital spending concerns, and some of the concerns of the big tech companies, and that's a good thing, isn't it?

A decrease in capital spending or a failure of the AI market does not necessarily mean that there will be no negative consequences for Palantir. In fact, this could have positive consequences, as companies, especially in the commercial sector, are looking to invest in automation, efficiency, and the integration of their systems.

But this analogy you used is more about the pressure of multiplication, isn't it? What type of market will we enter in the future?

They are, as you know, the most beautiful, aren't they? They are the most expensive house in the neighborhood, but they are also the richest. Therefore, as long as the market and its participants continue to support a long-term upward trend, they will perform well and outperform it.

But once sentiment deteriorates, not just towards Palantir, but towards the economy as a whole, the neighborhood, and in this example, the housing or real estate market, the price will likely fall faster than anything else, due to the multiplier effect.

So, owning the most expensive house in the neighborhood is fine as long as there are buyers, but once they withdraw from the market, it will not be in anyone's best interest, especially the owner of the most expensive house.