10,000+ words, enjoy! $PLTR
Taken together, in the decade before it went public (in late 2020), Palantir, rightfully or wrongfully, and almost entirely not of its own doing, was becoming a household name as an influential secretive company that worked with powerful partners. Few knew how much money it was losing.
A DPO by Any Other Name
Then, in the summer of 2020, Palantir filed a Form S-1 prospectus, and we knew. Palantir had lost $3.96 billion in its history as of June 30, 2020, according to the IPO filing. In 2018 and 2019, the two years directly before the IPO, the company lost a combined $1.2 billion.
The later funding rounds were not cheap. The largest single round, Series K at $899 million, was done at $11.38/share in 2019. The company also supplemented its cash flows between financings and refinancings by juggling revolving lines of credit.
As the company prepared to go public in August 2020, Palantir’s board awarded Karp $1.1 billion worth of stock options. If you have not realized it by now, the company really knows how to throw money around.
https://t.co/tndiePASiX
The average home price in the US is up over 50% in the last 5 years, more than double the increase in wages. The widening gap between prices and incomes has led to the least affordable housing market in history.
https://t.co/l5IYmkf6Ih
The S&P 500 finished the year up 25%. As the updated chart shows, great returns happen quite frequently. The stock market very rarely earns its 'average' return. Far more often, the return for any given year is far higher - or lower - than the target.
The S&P 500 with 5 straight down days while still holding more than 5% above its 200-day average.
This exact setup kicked off the 2022 bear market. Also the 1987 Black Monday crash.
If you're a bear, stop reading; the other 47 signals since 1950 were mostly positive.
What is happening in China?
Just days ago, China announced MASSIVE economic stimulus as their economy crashed.
Now, retail investors are piling into stocks like pandemic-era stimulus is back.
Something is seriously wrong in China and it's too late for stimulus.
(a thread)