Okay folks, so Paler just reported earnings and it popped up over 20% today at highs in one of its best single trading days of the last couple of years. In today's video, we are going to break down exactly what they said why this was such a massive shock to the stock market. and we're going to cover an incoming Catalyst for this stock that should hit over the next couple of weeks or months. Which by the way, for those of you who are subscribed already to our completely free emails, well, you were fully prepared for this earning a couple days ahead of time because we sent out a big email blast.

So make sure folks, if you aren't yet in our email list, make sure to sign up with that First link down below: cough cough. Okay, let's start with the tier of the Palen Paler from Bloomberg quote. Paler Technology Inc surged the most in almost 6 months after the company reported the fourth consecutive quarter of profitability and highest earnings since its founding 20 years ago, citing strong demand for new artificial intelligence offerings. Now, after four consecutive quarters, companies are eligible to join the S&P 500.

Which means that Palente now eligible for that index and it is the most heavily invested in index in the world. So anytime someone's going and buying the S&P 500, they're now going to be buying Paler. Now you got to remember folks, that going into this earnings Palente had an average recommendation of Reduce. From the 15 major research firms covering it, they said that this was a loser stock, with many firms outright begging their followers to sell.

Paler once again, flipped them a certain finger and let me tell you, it wasn't the pinky finger. Now for full context though: Palante Had a great year. An Insane Year Yes, I Understand understand that analysts have been bashing the stock all year and they've been trying to bash it to the ground. But quite frankly I mean this has been an incredible year for anybody who's interested in Paler.

I mean Last quarter they announced a$1 billion stock buyback program. They just got a new Army AI contract worth up to 250 million bucks. They were ranked the number one vendor in AI Data Science and Machine Learning. They've had recognition in new and expanded Partnerships for their work in many different sectors ranging from Energy, Web Services, Defense Contracting National Health Services direct Public Sector Utilities, you name it, almost every industry you are seeing, Paler expand more and more into get more and more contracts with and get recognition in while at the same time managing to be profitable quarter after quarter after quarter after quarter.

Now, if you go back to my videos, a few months ago, we broke down my argument for Paler to get to $500 Why? I Believe it will happen and in what time span and my argument had a lot to do with the AI Suite of products that they're scaling out aggressively. There's a lot of companies that got huge allocation this year from Wall Street simply for having Ai and a single press release that they came out with. Well, the difference between them and Paler is that Paler is actually a leader in Ai and is actually selling it to customers who were actually using it. I Know shocker.

Most people on Wall Street are like. all we need is for them to say that they're thinking about potentially. Maybe perhaps their brother, sister's mother is going to be using AI With Paler, they're actually doing it and showing proof of concept quarter after quarter after quarter. Now, before they came out with this AI Suite of products, they really were still an AI company.

But this year, with their next Suite of products, it's hands down some of the most advanced AI in the market. And I'm not saying that because I understand the coding behind it. I'm saying that because you could see that based on how many companies are adopting the software and continuing to use it and spend more and more money with it. CEO Alex KP Said Today Quote: We earn the most significant profit in our company's 20year history.

Now remember folks, the deal with Paler has long been that their software itself has really, really, really high profit margin potential. But but they prefer to reinvest that profit margin potential instead into R&D in terms of onboarding more and more customers and then in the long run, playing for insane profitability. And for years we've been talking about how Wall Street hates that they absolutely hate that they want Paler to be out profits now. However, Paler has been putting in the work and now they're really shooting out the profits and if they wanted to tomorrow, they could cut R&D They could cut onboarding and all of a sudden you have a lot more profits in Wall Street is really impressed, but what they're doing is very strategic and is a long-term game.

Now let's look at their actual number numbers and pay attention to the trend you look at. Customer count: They're up 34% year-over-year with very, very consistent growth. and when you take out the government segment, commercial count is up 45% Now Paler is king of consistency. Once they lock in a new customer, that customer has to go through a very expensive, extensive, and very, very very headach making process in order to switch to a competitor, which probably is subpar.

Anyways, tuner products are such that they are fine-tuned to work with each customer. So they go, and they hire Paler for one part of the business. Paler figures out how to integrate their software in that business with custom variables and all of a sudden it starts increasing efficiency there and all of a sudden Paler platform is all over that company and they have a bigger and bigger and bigger contract. The problem is that this process takes a while to on board.

It costs a lot for both Paler and the company in the beginning in terms of both actual cost and in terms of time and effort. But once it's integrated, it's very, very, very inefficient to unintegrated it. And Palente platforms get better over time, So it really mitigates any sort of reason for companies to unintegrated. Paler software is not a oneandone solution.

It is a reoccurring Revenue model. Once a customer's locked in, they got that customer most likely for a very, very very long time. and again, they're likely going to sell that customer on more and more Paler software uses throughout that customer's business. How do I know this? Well, Because that's what they've been reporting for years.

The trend is so clear it hurts you. Look at the scaling up of Revenue Since 2019, the 20 clients in turquoise have consistently scaled up Revenue as new customers have been onboarded. Yes, I Understand, it's a slow and steady process that compounds exponentially over time. A lot of people say I want everything now.

Paler needs to do everything now. Well, people, that said that a couple years ago. Well, Paler, the company has really, really proven them wrong. again and again and again.

Now, of course, Palander. The stock hasn't proven them wrong. In fact, Palander, The stock has proven them really, really right. You' Think based on that stock that this company is complete garbage.

But still. that is why there's an inefficiency with the stock St And why there's such a big cult following for it. Because those who get it get it and those who don't don't. And today was another example of what happens when people wake up to the real value behind the stock.

Paler has now achieved Gaap profitability for its fourth consecutive quarter. I Could still remember how analysts treated Paler when it dipped from 30.9 million to 16.8 million. They said Paler is over, it's heading for bankruptcy. Please get your money out of the scam of a company and a lot of people did.

It was very, very effective. Short sellers made out like Bandits they got themselves new Porsches They got their Ex-Wives new Porsches But quite frankly I mean if you look at the overall trend of this company, they have done what they set out to do quarter after quarter after quarter, and work that they put in like three or four years ago is now paying off I Can't imagine what it's going to look like in a year or two more now. if it sounds like I'm overly excited about Paler today. It's because I am pretty excited about these earnings.

but again, you have to look at the underlying stuff yourself. Just because I'm enthusiastic about something doesn't mean that you should be too. A Lot of these predictions on the business model. I Said years ago, you're going to see a massive, massive success with Paler.

A lot of these operational efficiency boosts a lot of the customers that are scaling in. The proof of concept there to me suggested that this was going to be a huge winner and I was right in terms of the business itself. I was very, very wrong in terms of the stock price. In fact, Paler stock again has been quite the underperformer.

But again, as you look at this data, you have to ask yourself what the stock is going to look like when markets can no longer close their eyes, when markets can no longer say oh, this isn't ESG compliant and thus I can't invest in it when markets can no longer say oh, I don't like the work they're doing with the government Oh I don't like this or that that they've done Oh I don't like their figureure head when markets are like hey, they're shooting out profits. Maybe it's time that we start allocating into it. Now another thing that I want to draw to your attention is the amount of Revenue that they are making per employee. A lot of analysts skip over this, but this shows their efficiency in terms of actually managing their operations and hiring people strategically and thoughtfully.

In Q3 of 2019, Paler was generating about 299,000 in Revenue per employee Q3 2023. It's at 558,000 that's a lot of revenue generated per employee and a consistent Improvement. A Lot of companies as they grow tend to onboard a lot more employees than they need and all of a sudden you got all these employees walking around like morons not knowing what to do. and all of a sudden the amount of revenue generated per employee goes like this.

but Paler has been very, very mindful. But anyways, folks with Paler overall: I Really believe that you should judge Paler on just two metrics. A lot of people like to focus on things like share-based compensation, marketing expenses R&D expenses. but you should really just look.

If you're looking at this at a long-term perspective, you should really just look at two things: Are they able to scale their old customers into bigger and bigger contracts at a consistent pace, and are they able to acquire new customers at a consistent and regular? Pace If the answer to both of those are yes, Well, in the long run, you're going to see more and more profits shoot out of Paler. That's my personal opin opinion. You could have your own again. I've been talking about Paler for years because of Market environments because of this not being ESG Because of this and this and this and this and that and short Sellers and blah blah blah blah.

Paler has not really had that much recognition as a stock. It's mostly just stagnated within range with certain massive dump cycles and then massive pump cycles and rinse and repeat. But over the long run I Can see this breaking out in a massive massive way and I think if you're looking out a year two, three, definitely five. In my view, you're going to be thinking o I wish that I had had more palent here.

My view: do your own due diligence, but that's my thought process also. by the way, Quick plug. If you'd like to get our now almost daily research reports and ideas for absolutely zero cost, make sure to sign up for our free ZIP Trader emails with that first link down below. Aside from trade ideas, our team also posts very insightful articles on what's going on in the big Tech world with Apple and Microsoft and various Industries and hot sectors, as well as trading and psychology tips.

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