Palantir Technologies Inc

Section 1: Company Fundamentals

1.1 Company Overview and Performance summary

Company Overview:

Palantir Technologies Inc. (NYSE: PLTR) is engaged in building software to assist in counterterrorism investigations and operations. It has built four principal software platforms, including Palantir Gotham (Gotham), Palantir Foundry (Foundry), Palantir Apollo (Apollo), and Palantir Artificial Intelligence Platform (AIP).

This Global AI and Emerging Market Report covers the Company Overview & Price performance, Summary table, Key positives & negatives, Key metrics, Company details, technical guidance & Stock recommendation, and Price chart.

Price Performance:

• PLTR's share price has corrected by 9.23% in the past three months. However, in the long term, the stock has given a return of 79.39% over the past year.
• The stock is currently trading near to the upper end of its 52-week range of USD 50 and 52-week low price of USD 11.82, with the expectations of an upside movement from the current support levels of USD 20-USD 22.
• The price is currently between its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of around 44.75.

1.2 Summary Table

1.3 The Key Positives & Negatives

1.4 Key Metrics

Palantir Technologies Inc. exhibits exceptional financial prowess, evident in its impressive margins across various key metrics compared to industry benchmarks. With a gross margin of 81.7%, surpassing the industry median, Palantir demonstrates adept cost management and pricing power. This efficiency extends to its EBITDA margin of 14.1%, indicating superior operational profitability and expense control. Moreover, Palantir's operating margin of 12.8% highlights its effective management of operating expenses, leading to a higher conversion of revenue into operating profit, underscoring its operational efficiency and scalability. Additionally, Palantir's pretax and net margins notably outshine industry standards, signifying robust profit generation and overall efficiency in converting revenue into earnings after expenses.

In the realm of returns, Palantir excels with a return on equity (ROE) of 2.9%, far exceeding the industry median. This indicates the company's effectiveness in generating returns from shareholders' equity, indicative of its strong financial footing and profit-generating capabilities. Palantir's consistent outperformance against industry benchmarks underscores its financial health and operational efficiency, positioning the company competitively within its sector and laying a solid foundation for sustained growth and shareholder value creation in the future.

Section 2: Palantir Technologies Inc (NYSE: PLTR) (“Buy” at the closing market price of USD 21.24, as of May 21, 2024)

2.1 Company Details

2.2 Technical Guidance and Stock Recommendation  

Baidu Inc (NASDAQ: BIDU)

Section 1: Company Fundamentals

1.1 Company Overview and Performance summary

Company Overview:

Baidu Inc (NASDAQ: BIDU) is a Chinese language Internet search provider. The Company offers a Chinese language search platform on its Baidu.com Website that enables users to find information online, including Webpages, news, images, documents and multimedia files, through links provided on its website. The Company operates through two segments, Baidu Core segment and iQIYI segment.

This Global AI and Emerging Market Report covers the Company Overview & Price performance, Summary table, Key positives & negatives, Key metrics, Company details, technical guidance & Stock recommendation, and Price chart.

Price Performance:

• BIDU's share price has consolidated with a mere correction of 0.37% in the past three months. Similarly, in the long term, the stock has corrected by 16.51% over the past year.
• The stock is currently trading near to the lower end of its 52-week range of USD 98 and 52-week low price of USD 94.25, with the expectations of an upside movement from the current support levels of USD 100-USD 105.
• The price is currently between its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of around 46.39.

1.2 Summary Table

1.3 The Key Positives & Negatives

1.4 Key Metrics

Comparing Baidu's financial performance against industry medians for the first quarter of fiscal year 2024 reveals notable outperformance across key profitability metrics. Baidu's EBITDA margin stands substantially higher at 21.3% compared to the industry median of 11.3%, indicating superior operational profitability and efficient expense management. Similarly, Baidu's operating margin of 17.4% surpasses the industry median of 6.6%, highlighting the company's effective control over operating expenses and higher conversion of revenue into operating profit. Baidu's pretax margin of 21.4% significantly exceeds the industry median of 7.3%, demonstrating robust pre-tax profitability and effective management of expenses before taxes. Moreover, Baidu's net margin of 18.6% far outpaces the industry median of 4.5%, underscoring the company's ability to retain a higher percentage of revenue as profit after all expenses are deducted.

Additionally, Baidu's return on equity (ROE) for the same period stands at 2.20%, showing improvement from the industry median of 1.20%, reflecting the company's effectiveness in generating returns from shareholders' equity. These metrics collectively indicate Baidu's strong financial health, operational efficiency, and superior performance relative to industry peers.

Section 2: Baidu Inc (NASDAQ: BIDU) (“Buy” at the closing market price of USD 105.14, as of May 21, 2024)

2.1 Company Details

2.2 Technical Guidance and Stock Recommendation  

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is May 21, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stocks prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.