00:00folks paler stock is in panic mode right
00:02now it's quite the roller coaster to the
00:04downside and this is despite a pretty
00:07impressive earnings report but do not
00:09let the fear get to you this is a golden
00:11opportunity and in today's video I'm
00:13going to break down why palente tier the
00:14tier of the palen is poised to turn some
00:17Savvy investors and Traders and dip
00:19buyers into millionaires in the coming
00:21years and for context I've long been one
00:23of penter most vocal Believers you can
00:26scroll back through my channel to find
00:27nearly 100 plus paler videos back to
00:302020 I've said that I've believed in
00:32Palante here during big bull cycles and
00:34during horrible bear Cycles as well and
00:37I continue to do so yesterday's earnings
00:39only strengthen my resolve in today's
00:41video you're going to be getting the big
00:42breakdown the full breakdown folks make
00:44sure to do your own due diligence on all
00:46ideas presented here on the channel okay
00:47let's get to work time stamps down below
00:49okay so if you are unfamiliar with paler
00:51paler is essentially a big data software
00:54analytics company customers use their
00:55software to make better operational
00:57decisions paler introduces those
00:59customers into it ecosystem and slowly
01:01scales them into generating more and
01:02more Revenue as customers use more and
01:04more of their services and they see more
01:06and more proof of concept and they do
01:07this with nearly every commercial and
01:09public sector category but how do you
01:11value a company like this and how do you
01:12predict where it's going to go well one
01:14of the clearest ways to predict where a
01:16company is going is to look at the
01:18current Trend that company is on and
01:20extrapolate that moving forward allowing
01:22a margin for error and luckily for us
01:24paler just released their earnings
01:25yesterday so let's talk net income paler
01:27achieved gap profitability for the sixth
01:29consec itive quarter the sixth one
01:31during the dip in late 2022 early 2023
01:34paler was considered to be done for by
01:36many short Sellers and analyst but so
01:38far the overall trend has been back
01:40upward and aggressive q1 2023 net income
01:43was at 16.8 million bucks q1 2024 it is
01:46at 105.5 million bucks that's more than
01:49a 6X just year-over-year when comparing
01:52the two quarters you look at Revenue
01:53growth you seeing a 21% jump over last
01:56year's q1 now you may look at this 4%
01:59quarter over quarter Improvement and say
02:00okay well that's all right but not
02:03extremely fast growth right but palent
02:05here is trusting that you should analyze
02:06it using the rule of 40 which
02:08essentially says the way to look at a
02:10company's progress to judge a company's
02:12progress is not just focusing on Revenue
02:14growth but also focusing on your
02:16operating margin because obviously not
02:18all revenu is created equal and the sum
02:19of your efforts can't be brought down to
02:22just revenue revenue that generates more
02:24profit margin is obviously going to be
02:25more valuable on a report than Revenue
02:28that generates less margin so need both
02:30to have a good idea of the trend and if
02:33you use the rule of 40 you can see that
02:35the sum of adjusted operating margin and
02:37year over-year Revenue growth is adding
02:39up to an uptrend that is breaking out
02:41pretty damn aggressively in other words
02:43you're getting more sales and of those
02:44sales you're getting a consistently
02:46higher profit margin you're taking home
02:47a consistently higher amount of money on
02:49each sale after your expenses and you
02:51look at overall in the US commercial
02:52segment you're seeing crazy numbers us
02:54commercial is seeing 40% plus
02:56year-over-year growth Plus 69%
02:58year-over-year in terms of of commercial
03:00customer count plus 74% in terms of us
03:02commercial remaining deal Value Plus 94%
03:05year-over year in terms of us commercial
03:07deals closed 12x in terms of us
03:09commercial customer count growth and
03:11then Plus 131% in US commercial total
03:14contract value now these are all great
03:17results but how are they even getting
03:19these results well if you look into the
03:21CEO's letter that he attached with the
03:23overall earnings report they released
03:25yesterday well here are some of the main
03:26points and they explain pretty well
03:28what's going on here behind the sour
03:30quote we were routinely told by
03:31investors that building technical
03:33infrastructure for the Enterprise Market
03:35let alone government agencies was the
03:36shest and quickest way to run a business
03:38into the ground many bulked at
03:40supporting us others insisted we should
03:42focus on catering to the needs of
03:44consumers and many more simply would not
03:46return our Cults the market however has
03:48shifted and quickly our business is now
03:50growing at a scale and Pace that even
03:52our most Ardent Advocates would have
03:54been hard pressed to say was likely or
03:56even possible and this gets to the basis
03:57of why they are seeing such great
03:59results quote we have been investing in
04:01and refining our enterprise software
04:03platforms for years and a growing
04:04portion of the American corporate sector
04:06is now coming to us more aware than ever
04:08of how significant artificial
04:10intelligence and large language models
04:11will be in reshaping the industries
04:13within which they operate so with this
04:16the huge booming AI wave we are in right
04:18now well it's creating this demand that
04:20not only the top companies can service
04:22but really paler can service and palente
04:24here is locked and loaded quote other
04:26companies engage in intricate and
04:27elaborate efforts to sell and Market
04:29their off offerings their resources are
04:31focused on marketing at the expense of
04:33actually constructing the software and
04:34building the systems that they hope to
04:36sell so here the CEO Mr carp is saying
04:38that the big difference between paler
04:40and its competition is that essentially
04:42the competition is all hat and no cattle
04:44and paler is all cattle and no hat quote
04:47we have taken a different approach and
04:48are now investing even more heavily in
04:51simply letting potential Partners use
04:52our software in order to decide what
04:54works and what does not work for
04:56themselves in the last quarter alone we
04:58conducted more than 600 60 boot camps
05:00with organizations across Industries and
05:02sectors providing potential partners
05:04with an opportunity to test and begin
05:06building on our platforms these
05:08Enterprises cannot wait for custom
05:10solutions to be built and they are
05:12unwilling to invest in software systems
05:14that might work someday down the road
05:16now these boot camps are actually a key
05:18success driver for paler boot camps are
05:20a major way to get customers introduced
05:22to paler software and its usefulness and
05:24then lock them in as customers and I
05:26think markets are really starting to
05:27wake up to this and the opportunity that
05:28these boot camps have in fact analyst
05:30over at the Sachs of Goldman said this
05:32quote we continue to view paler as
05:34uniquely positioned to leverage its core
05:37data stitching competencies into
05:39Enterprises that are looking to deploy
05:40AI use cases over 915 organizations have
05:44participated in AI boot camps to date
05:46and 136 deals closed in q1 of 2024
05:50versus 70 in q1 of 2023 Goldman said it
05:54will be monitoring how effectively paler
05:56can convert boot camps into bookings and
05:58revenue considering this goto Market
06:00strategy is still being formalized as
06:02well as to better understand the Cadence
06:04of bookings growth and 1 million plus
06:06deals driving the model so when you're
06:08looking at a 12x in US commercial
06:10customer growth and ballooning numbers
06:12across the board and asking how did they
06:13do that well they did that because they
06:15focused on investing tons of money into
06:17their software instead of focusing on
06:19making a quick Buck by marketing hard
06:21and or shooting money out to Wall Street
06:23and now that is finally paying off okay
06:25but then you go over and you look at the
06:26stock and you see that it's plummeting
06:28so you ask the question well how
06:29earnings be good but at the same time
06:31cause such a liquidation how can paler
06:33beat analyst expectations but still see
06:36the fund managers that hire these
06:38analysts sell out well you have to
06:40understand that people like to buy the
06:41rumor and sell the news in fact if
06:43you're in zip Trader you we actually
06:44started saying Monday of last week to
06:46look for an anticipatory run heading
06:48into earnings because people buy the
06:49rumor and they sell the news and that's
06:51what happened now if you look at media
06:52headlines about this report they'll say
06:54the selloff is because of a weak full
06:56year outlook sure management May indeed
06:59be taking a more cautious approach just
07:01maybe to guidance but for folks on
07:03Twitter and in the media screaming that
07:05this is the end for paler and
07:06recommending massive short positions I
07:08would say that's a bit of a stretch they
07:09raised their guidance to between 2.67 s
07:12and 2.68 n billion they raise their us
07:15commercial Revenue guidance to in excess
07:17of 661 million representing a growth
07:19rate of at least 45% they raised their
07:22adjusted income from operations guidance
07:24to between 868 to 880 million they
07:27continue to expect adjusted free cash
07:28flow of between between 800 million to 1
07:30billion they continue to expect Gap
07:32operating income and net income in each
07:34quarter of this year one real headwind
07:37though for banteer to be fair was some
07:39of the issues that they're seeing in the
07:41overseas markets in fact Commercial
07:43International Business declin by 3% CEO
07:46karp said quote we do have headwinds in
07:48Europe which contribute 16% of the
07:50company's business karp said during the
07:52call Europe is gliding toward 0% GDP
07:55growth over the next couple of years
07:56that is a problem for us there is no
07:57easy remedy for that but at the same
08:00time Pal's overall guidance has been
08:01upgraded and is hot and the overall
08:03trend is hot no earnings report is going
08:05to be perfect across all metrics because
08:07the world is ever changing but if you
08:08look at the overall picture things are
08:10improving so I believe the main question
08:12shouldn't be what is paler stock doing
08:14today but rather what is paler stock
08:16going to do over the coming years and is
08:18this a good dip buy so if you go over to
08:20our spreadsheet that I last presented
08:22and updated back in February well my
08:23view back then was that paler stock in
08:252024 is going to see sales growth of
08:27about 16% and that's to motivate the
08:30pricing Trend that you see here on the
08:31left that 16% with continued profit
08:34margin increases would render a
08:35justification for a share price above 50
08:37in 2025 60 in 2026 69 in 2027 and so
08:41forth obviously these numbers are based
08:43on the business itself in reality we
08:45know that markets can climb much higher
08:47and lower during Euphoria and dysphoria
08:49markets but we can't predict those
08:51swings other than to expect that they're
08:53going to happen at some point but we
08:54can't predict that they're going to give
08:56us a certain price all we can do is look
08:58at what the business itself self
08:59justifies and use that as a price Target
09:02so anyways does this report suggest and
09:05back up the pricing trajectory that I
09:07have laid out here and rather more
09:08specifically does it suggest that my 16%
09:11about sales growth year-over-year Target
09:13will be hit well again paler expects
09:15their revenue for 2024 to be at 2.67 s
09:19through $ 2.68 n billion somewhere in
09:21that range and in 2023 they did $2.23
09:24billion so if they hit the lower range
09:26and they only make about 2.67 billion
09:28that's still 19.7% increase if they hit
09:31the higher range that's about 20.5%
09:33increase now these estimates are seen as
09:35scary Low by analysts and are motivating
09:38some of the sell-off but they are still
09:40a few percentage points higher from
09:42where I have them at but anyways
09:43nonetheless this Revenue boost combined
09:46with a continued profit margin expansion
09:48and continued recognition and
09:49realization of the AI growth curve
09:52should motivate the share price to
09:53balloon to quite a lot by 2025 alone
09:56more than a double from current trading
09:58prices okay so then Charlie let's
10:00approach the main question of this video
10:03why do you believe that millionaires are
10:04going to be made with paler stock well I
10:07need you to understand and internalize
10:09this quote here Alex karp just said this
10:11quote we now earn more profit in a
10:13single quarter than the amount of
10:15Revenue we generated in an entire year a
10:18little more than a decade ago so think
10:20about that for a second think about that
10:22for a momento that's exponential growth
10:25q1 they earned $106 million in profit
10:28he's saying that in an entire year just
10:30a decade ago they would earn that in
10:32total revenue for an entire year and
10:34then all of a sudden your brain starts
10:35clicking on why this company's trend is
10:37so lucrative what if in another 10 years
10:40this year's expected $ 2.67 billion in
10:42Revenue turns into 2.67 billion in
10:44profit in the single quarter I mean
10:46profit margins are going up huge quarter
10:48over quarter and sales are growing
10:49exponentially so you're scaling up to
10:51that reality and you're scaling up to
10:53that reality probably much faster than
10:5510 years just a year ago paler was
10:57reporting just 16.8 million in net
11:00income yesterday they reported 105
11:01million so even in the last year you've
11:03seen a huge huge huge exponential growth
11:06of the paler business model and that is
11:09only going to get faster and faster and
11:11faster in my view so again bigger
11:12picture here if you want to understand
11:14the case for paler to make millionaires
11:16it's because the exponential growth
11:17curve is happening both for profit
11:19margin and sales at the same time that
11:21this massive new industry AI is just
11:23forming from its infancy and paler set
11:25to be a leader in it anyways let us know
11:27what you think about paler stock down
11:28below Mr right in my analysis do you
11:30agree with me or do you disagree let us
11:32know the reasons down below we love
11:33hearing from you and in conclusion a
11:35quick plug what broker should you trade
11:37paler and other stocks on well thank you
11:38for asking that brings us to today's
11:40partner Mumu Mumu is a powerful platform
11:42that delivers speed reliability data and
11:44a vast amount of trading tools and
11:45analytics whether we are talking about
11:47realtime Market data level two financial
11:49news and Analysis Advanced charting
11:51tools smart alerts and more while Mumu
11:52offers a ton of features that are
11:54essential for any active Trader and or
11:56investor mumu's interface is really easy
11:58to work with we've been recommending
11:59them for years and have a great
12:01relationship with them and we would love
12:02to have you on there and they have
12:04arranged an extremely generous 1.5% cash
12:06rewards match on total assets
12:08transferred into their platform
12:10including cash and shares or you can
12:12choose to have 10 free fractional shares
12:13of Magnificent Seven stocks and
12:15excellent incentive to try out a great
12:17platform anyways have a good one folks
12:19we'll see you in the next video
