Dollar Cost Average in Palantir

Palantir offers transformational software for business and government use, both large a small. It’s the leader in terms of quality, value, and impact in my opinion. To that note, as with the rest of the market, it’s taken a hit, dropping below its IPO price. This isn’t an analysis into the company, just a thought considering what it means for the future. I think Palantir’s software will be there in a big way.

I originally wrote about it in October 2020 when the stock was hovering around $10 a share. In that time, it’s triple in price and then come crashing back to earth. Long-term, I think it’s a $100 billion company, or more depending on how much dollars are left circulating. That would be a 7x increase from today’s closing price of $7.29 per share. So, even if you bought it at $10 or $30, if you have the money to dollar cost average, it likely makes a lot of sense to do so.

At $10, let’s say you bought 1,000 shares for a $10,000 investment, you need to buy 1370 shares at this price. That will bring your average price down to $8.44. If you put $10k up at $30, doing the same now will bring your cost average down to $11.76. In both cases, if the price just gets back to it’s high in 2021 you net over 200%. If it does reach the $50+ mark you make 4–5x. Don’t get me wrong, the stock could still go to $5 a share. I just think long-term Palantir continues to be the dominate player with the niche data software it sells.