Palantir Demo Day Review: Palantir Technologies Inc (NYSE: PLTR) is hosting its first Demo Day Tuesday after the closing ceremony. The event includes announcements and demonstrations of some of the latest software from the company. Either they were really off when the initial public offering (IPO) was priced, or business has really picked up since then. The odds are that this is the case. Stocks are sharply higher, with day-to-day volatility increasing since the event was announced. In February, Palantir will also report earnings. So, a busy couple of weeks in stock.
Palantir Technologies (NYSE: PLTR) increased by about 26% on one day last week, in anticipation of the upcoming Demo Day scheduled for January 26 after the close of the market.
Oh, because PLTR may have just gone up too far too quickly right now. For example, the stock is trading at about 53 times the sales forecast for 2020 and 40 times for 2021, based on estimates from Finding Alpha. This is based on revenue forecasts of $1.07 billion for 2020 and $1.41 billion for 2021.
The company had a market capitalization of over $56.76 billion at $32.58 on Jan. 22, the day PLTR stock rose 26 percent in one session. This means that since Sept. 30, when it went public at $10., the stock has risen well over 200 percent. That makes me believe that a major mistake was made by either the underwriters or management.