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pal and deer stock just reported their Q3 earnings and I'm seeing shares soar to an alltime high on this stock we'll talk about that we'll talk about the Q3 results I think more importantly the company gave us not only a Q4 Outlook but also basically for the rest of the Year this blows out of the water the previous guidance and really the expectations That Wall Street had for this company we'll talk about that we'll go through the numbers and see how nicely this company is scaling up and then we'll look at this technically as well couple of things when you blast to all-time highs there can be an absence of sellers at that area it could be where sellers materialize but you obviously have an absent of sellers when you get over that critical range this thing could continue to run so we could have some areas of pullback we could have stop losses different types of things if you're in paler if you want to get in paler those types of discussions the other discussion that we have to have is here we have a stock trading at just a 117 * 4 and when you look at it from a price to sales price to anything multiple it's still wildly overvalued so those of you that made the right decision to get into paler what you have to wonder is is that a repeatable strategy or did you more or less just get lucky when it comes to investing in palente tier what is going on investors hopefully you guys are doing well out there got a big one today over the past year excuse me year to date it's up big over the past year you're up 180% on this one up 140 4% year today and even over the past 6 months on paler you're up 64% it doesn't matter what way you slice us this thing is just headed to the moon now you got a $93 billion valuation you're up 133% in the after hours so you're probably north of a 100 billion valuation on a company in a Q3 that put up 725 million not 725 billion $725 million worth of Revenue that was strong 30% growth year-over-year BX expectations the expectations in the quarter was for 703 the high-end estimate was for 724 the company came in at 725 so they've really hit their groove in terms of having Wall Street set expectations and really kind of coming over and above that's why when you look at the Q4 Outlook that the company announced on the most recent conference call was for 767 up to 771 million this is million dollars in Revenue so the expectations for the fourth quarter was for 744 I just told you they're going to do 767 to 770 so they're blowing it out of the park I mean the high-end estimate was for 774 so they're coming way over and above pretty much all of the expectations that were set by Wall Street it's exactly what you want to see particularly with a company with just a Skyhigh nose bed type valuation which is just going to turn off a a lot of investors but this is exactly what you want to see from a growth company from a company again with a high valuation now when we start to look out into next year makes you wonder if it could hold these levels and and continue to have the outperformance because you've had just explosive growth on this stock over the past couple of years can it continue into next year with 20% growth rate look 20% growth rate nothing to sneeze out that's absolutely fantastic but will three to4 billion doll worth of Revenue next year be enough again for a stock worth $100 billion now any comfort it's these financials are absolutely fantastic you're scaling up your Revenue obviously very nicely we talked about that it's a high high gross margin business off of the 725 million you printed 578 to the gross profit side that's why when you look forward to the Q4 even into next year when you start printing High sevens $ 800 million $900 Million worth of Revenue a ton of it is going to flow down to gross profit now what this company has done a very nice job over the past year is controlling all of its other operating expenses selling and marketing went from 176 up to 209 that's not much of a bump research and development 105 up to 117 again not much of a bump in general administrative from 128 up to about 138 so our total operating expenses increased by about 55 million from 410 up to 765 so when you grow your gross profit by over 128 million yeah you guessed it your income from operations are going to Skyrocket from just 40 million last year all the way up to $13 million you flow down to a net income they do benefit from some interest income right here they balloon that net income up to $150 Million last year was about half that about $73 million you flow down to the balance sheet you better believe that considering how much money they're printing to the income side of the interest they have plenty of cash this company has plenty of cash your total current assets sitting at over five billion they basically have no liabilities as a speak up just $ 1.1 billion or about $1.2 billion sitting here at total liabilities so from a balance sheet perspective it's exactly what you want with these types of kind of high PE high growth High beta type of stock you want there to be almost no balance sheet risk and there's there's none of that so it makes you wonder going forward if the company can continue these types of strong results what are they going to do this operating cash flow so your net income on the last 9 month ended you pull that down here strong 390 million last year it was like three times less at $120 million you get to add things back in like stock based compensation it's a big one over $49 million $390 million in net income 49 million in stock-based compensation you got to love the stock market that we're in it's red hot it's as hot as we'd ever seen it so people and investors are just going to look past this now you get a Turnin markets you get a turn turn and sentiment these are the first stocks that are going to get kicked out when your stock based compensation exceeds not only your net income but I believe it was pretty darn close to the revenue number it's in fact about half of a quarterly Revenue number and in fact I think it's off the top of my head it's about a fifth of your 9month Revenue number goes all the way to stock Bas compensation now we understand that these employees are not going to work for free neither Executives and based on the performance of the stock and really the financial results we seeing here they do deserve this type of compensation I'm just letting you know that in worse times certainly we've seen it on the stock chart when stocks get thrown out this is a stock that's going to get dramatically thrown out because these are things not a lot of investors are going to be really falling in love at but your net cash provided of your operating activities over the past nine months is Sensational nearly $700 Million last year it was $400 million they don't really do anything on the investing side yeah they bought some property planting equipment but it's not much that's the beauty of this model is it's high gross margins High operating cash flows you did repurchase some stock which may not be the best use of cash considering the type of interest rate they're earning on it and the fact that the stock is trading at a massive valuation but they did buy back about 45 million but she still got plenty of cash and cash and coents and there's basically nothing to really be too alarmed with here based on the performance if this stock had half the valuation that it had this would be an absolutely screaming buy but again at these levels not only technically but also from a price to earnings price of sales price to anything basis it does make you want to pause just a little bit from an extended valuation we have over an extended over and above an uptrend that really has been intact since probably late 2023 this has been making a beautiful series of higher lows confirmed by a series of higher highs there's a couple of areas back down to Earth where you wouldn't want to see this one kind of chop through it's probably about the $36 level again this is somebody that has a massive profit maybe in paler and maybe you want to lock in it doesn't mean you need to sell your whole position but you want to lock into some gains I'd probably set a stop loss right here at 37 because if you break this 37 level it's a key technical level that goes back all the way to the highs that we made kind of post IPO or post back on this one if you get back into here you're probably making your way all the way back down to the channel back down into 30 that would be the first area that would be rather exciting from a new standpoint investment is probably somewhere back with a three handle on this one until then I think you let this one run if you own shares if you don't own shares and you're comfortable paying a massive multiple on this one well you get back down into something with a three in front of it that could be your first opportunity that was palente Q3 which was absolutely spectacular the Q4 might even be even better that is currently being being priced into the stock in the after hours we'll see how this one goes going forward hopefully you guys enjoyed today's video be back again soon with more good luck with your Investments
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