World News – CA – Palantir opens at $ 10 per share, market value starts at $ 22 billion

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Palantir Technologies opened on Wednesday at $ 10 a share, roughly matching recent expectations, giving the big data analytics firm an initial valuation of around $ 22 billion

While $ 10 is well above the « benchmark price » of $ 725 for a stock announced last night by the New York Stock Exchange, the opening trade was in line with a recent Wall Street Journal report that predicted an opening price of $ 10 per share

At the start of trading, the stock traded as high as $ 11.41 Within minutes of starting trading, the stock’s volume climbed to 164 million shares, making it the most active action of the day

Founded 17 years ago by a group of former PayPal executives, including current CEO Alex Karp and venture capitalist Peter Thiel, Palantir provides sophisticated software tools to help businesses, organizations nonprofits and government agencies to analyze huge datasets (The name refers to the magic stones in Tolkien’s JRR Books The Lord of the Rings)

The company is drawing attention for its work with US intelligence agencies, but the company also works with a wide range of commercial companies Palantir offers two main products: Palantir Gotham, a platform to « integrate, manage, secure and analyze all of your business data, ”and Palantir Foundry, which the company describes as“ a platform that is reinventing the way people use data by removing the barriers between back-end data management and front-end data analysis « 

Peter Thiel, who made his fortune as an early investor in Facebook, is a co-founder of the company and remains a major shareholder in the company Palantir has raised $ 2.6 billion in venture capital, according to Crunchbase The company’s investors include Japanese insurance company Sompo Holdings, Fujitsu, Thiel’s Founders Fund, Morgan Stanley, BlackRock and Tiger Global, among others

Last week Palantir (PLTR) provided financial guidance for the third quarter ending September 30, the full year and next year

Company predicts third quarter revenue of $ 278 million to $ 280 million, up 46% to 47%, with non-GAAP operating profit of $ 60 million to 62 million dollars, excluding $ 54 million in listing expenses, based compensation and related payroll costs

For the full year, the company reports revenue of $ 1.05 billion to $ 1.06 billion, up 41% to 43%, with non-GAAP operating profit of $ 116 million at $ 126 million The company expects 2021 revenue growth of over 30% This suggests the stock at the opening has a valuation of around 16 times the expected revenue for 2021 This is more than established software companies like Microsoft (MSFT) and Salesforcecom (CRM), but well below the current valuations of fast growing companies like Snowflake (SNOW) at over 100 times sales and Zoom Video Communications (ZM) at about 60 times

For the fourth time now, the NYSE benchmark price hasn’t proven particularly useful in projecting the first trade In the other direct listing on Wednesday, the NYSE has a benchmark price of $ 21, and the stock started trading at $ 27 The most recent main direct listing was

Slack Technologies

(ticker: WORK) in June 2019, which had a benchmark price of $ 26, and open for trading at $ 38.50 For

Spotify technology

(SPOT), which was listed in April 2018, the benchmark price was $ 132 and the first trade was $ 167

A reference price is not the same as the IPO price in a conventional offering In an IPO, the shares to be sold under the offer are traded at the price indicated But no stock trades at the benchmark price on a direct quote As one IPO market watcher told Barron’s, “The benchmark price is totally unnecessary and always based on the latest private market transactions. »

The benchmark price is roughly in line with recent trading in the private market for Palantir shares Note that the majority of the company’s shares are subject to a six-month lock-up agreement, a measure intended to reduce volatility by start of negotiation

Palantir Technologies opened on Wednesday at $ 10 a share, roughly matching recent expectations, giving the big data analytics firm an initial valuation of around $ 22 billion

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Palantir Stock

World news – CA – Palantir opens at $ 10 per share, market value starts at $ 22 billion



SOURCE: https://www.w24news.com/news/world-news-ca-palantir-opens-at-10-per-share-market-value-starts-at-22-billion/?remotepost=357496

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