$PLTR has a tool to REDUCE DILUTION
$2bn Net Cash Palantir could be used to reduce the dilutive impact of the RSU from Stock-Based-Compensation, which I discussed profoundly in a previous article (Palantir - When Will SBC Ease?).
From Palantir's 2020 Executive Equity Incentive Plan we can see Palantir could do the same of what $SNOW aims to do:
"using our strong cash position to transition to a net share settlement for vesting of employee RSUs in almost all countries. This will help us further manage dilution"
RSU Cash Settlement means that the company could pay employees in cash rather than issuing new shares at the vesting period when the employee is entitled to receive the shares.
> Rather than Issuing new shares for $100k ( so 10,000 shares at $10 per share), the company could pay $100k to the employee in cash.
Cash provides optionality.
Do PLTR currently have a buyback program in place?
@investmenttalk No, as a buyback fetishist I would like it (maybe 200-300mn out of the 2bn cash)
However it would not be the best choice from a business perspective, they are in the heart of the acquisition phase where they need to spent a lot to get new clients + given the geopolitic instability and their role maybe is better they are ready for the worst