PLTR Stock – Understanding share dilution – PLTR
So been balls deep in Palantir since it went public in September. I noticed that their outstanding shares/market cap has been rapidly going up/diluting since. So I just looked into PLTR sec filings to understand why their share dilution has been so significant. And I saw that as of end of 2020, they had 1.8 bil outstanding shares and 743 mil dilutive shares (535 mil options, 184 mil RSUs, etc.) exercisable in time.
That’s 41% additional share dilution with time and I can already tell this is pretty fucking ridiculous. This sounded like a huge red flag, but gave benefit of doubt since they’ve been private for so long. I looked up other tech stocks’ sec filings (SQ, FB, GOOG, etc.) from when they initially went public and their dilution ranged from 10-20% (most in the low 10s).
What does this mean? I know usual share dilution doesn’t affect the company’s fundamentals/story, but this seems way too extreme for shareholders to ignore.