paler we have some major changes going on in regards to palente tier's business model I'm going to take you through in this video here today I'm going to show you my valuation model on paler stock and show you how much these changes matter for where palente stock pric is going in the future the revenues are going for the future the margins are going in the future and the earnings per share I'm going to take you through all that I'm going to explain exactly all these major changes additionally we're talking about where the stock price is headed from here people are looking and they're like okay where's this baby going are we going 45 are we going 50 5560 $70 I'll speak to you and tell you my opinion on where the stock is likely headed from now okay I'll also take you through the most important things that Alex KP said on that conference call which he said some very important things about the future paler since the end of 2022 pener stock is up well over 500 percentage points now at this point in time I want to say congratulations to everybody that has been part of this community everybody that's made game changing money and you know on the on the way to being lifechanging money for a lot of folks give yourself a pat on the back for studying up on this company putting in the research work and uh obviously you know enjoying the fruits of that work you put in in regards to this one there's one favor I ask from you guys take one second out of your day please and hit the like button on this video that's all I ask in return hit the like button that's all I ask okay if you want to be subscribed here it's free to be subscribed to the channel you can hit that subscribe button down there we just just hit a new all-time high subscribers in the History Channel I appreciate each and every one of you for being here additionally if you're a paler shareholder and you have not applied to join my private stock group you might want to go ahead and do that we have one of the most amazing paler communities out there right and you got to understand there's a lot of people that were not part of paler communities like mine that were selling the stock back when it went to $10 $15 $20 right they didn't have any other people to like talk about this stock with right and they made a lot of bad decisions meanwhile people in the priv stock group they were buying the stock at six bucks s bucks 8 bucks 10 bucks 15 bucks 20 bucks holding the stock right and we've just have a tremendous Community always sharing everything news related stuff that you can't find anywhere else inside that private group and uh it's absolutely amazing so if you want to apply to join us in there that will be the pin comment down there here today okay already this right here if I just had to show you one thing and one thing only from everything I had to show you in this video this would be the thing right in front of your face right there I would show you that before I showed you how much paler beat analyst expectations and my valuations models for the stock this would be if I could only show you one thing this is it okay what I'm showing you there right now is this a very famous thing if you ever have valued more like SAS related type companies right which paler kind of gets put into the software as a service type business model right even though they might differ a little bit they get put in that category and so when you're judging these sorts of business models there's something called the rule of 40 that's extremely important and everybody always looks at and it basically if you're over 40 when it comes to year-over-year revenue growth and then adding adjusted operating operating margin on top if you're over 40 usually that's seen as like a very healthy SAS related number and the more you are over 40 the more special you are so let's say you're at 45% 50% 55% now people are looking like oh my gosh this company's very special they got big Revenue growth they got great operating margins this is a very healthy company if you ever go under 40% people start to worry about you and the further you go under 40% the more people are like H this is not looking very good for this company right paler is at a shocking 68% when it comes to rule of 40 this is ridiculous right this was a time period where people were a little concerned about paler because they were at exactly 40% 42% 38% but then they just been increasing at 46% 54% 57% a shocking 64% last and people are like it can't go any better than that and then they put up a 68% number and now people are like could they be going rule of 70 is this company going to go 70% plus here in the next quarter and it's a real potential so if I had nothing else I could show you in this video that's it and that's just like you're dealing with a very special company when you're talking about these sorts of numbers and ask anybody that's ever valued these sorts of SAS companies and they'll tell you this is ridiculous that's special special like the 1% of the 1% special right additionally when you look at their income statement as company this is an A+ Perfection income statement so look at revenues revenues went to 725 million from 558 million that was like $167 million gain just a year-over-year basis in a 3-month span that's insane cost of Revenue only went up $39 million roughly so gross profit was up around $128 million year-over-year for this company sales and marketing they kept that in check now they increased all these spends but the thing is their revenue was up 167 million so they had a lot of room to weigh up sales and marketing R&D and GNA if they wanted to but they didn't really do it they spent more on all categories but they kept the expenses in check in a major way which just proves Alex karp and the CFO of the company are really watching the expense profile of this company they're really focused on not just growing for growing sake they're really focused on growing big revenues but also the margins of this company income from operations grew to $113 million versus $39 million in the same quarter last year oh my gosh the interest income continues to pour in for this company this is a crazy number like I really want everybody to understand how crazy this next number is they had interest income of 52 million in a 3-month span for basically just having their money in treasuries how crazy is that man I mean they're making over $15 million a month for for just having money in treasuries like imagine that imagine having a life where you can make $15 million plus a month for just having your money in guaranteed treasure it's like crazy crazy right as far as other income expense they had a $8.1 million kind of more one-off expense versus a $3.1 million gain there so that's over $10 million it's like over $11 million of kind of difference there on a year-over-year basis right which kind of hurts profitability but their their their their income from operations so ridiculous it still makes their net income look insane right their net income went to $49 million this year versus $73 million in the same quarter last year so they over 2x their net income that's unbelievable and did they even close to 2x their revenues no their revenue was up 30% so when you can over 2x your bottom line and your top line is up 30% then essentially when you're when so their bottom Line's up over 100% but their top Line's up 30% that means essentially you know 70 cents plus of dollar is heading down to that bottom line that's special that's very very special of the new new new money coming in so basically the way to think about this is for every little bit of extra Revenue dollars paler has coming in a lot of that dollar is making its way down to that net income line that's incredible right look at the balance sheet you want to talk about a fortress balance sheet look no further than this so I mean think this is what's crazy about palente here and you're not going to try find another company like this how many companies have an A+ income statement right and additionally have an A+ balance sheet how many not many not many I'm talking there's probably there's probably there's probably 20 or 30 companies in the entire public markets that have an A+ income statement and an A+ balance sheet like you are the 1% of the 1% and to think this company just got an the S&P 500 and they're already one of the most special companies in the world that's crazy look at this if you add up the cash cash equivalence and marketable securities they well over 4.5 billion dollar that's incredible right jeez if you look at total liabilities total liabilities you add up all the liabilities on the balance sheet they're less than $1.2 billion and they got over 4.5 billion in cash and marketable securities cash equivalent like that's ridiculous total stockholder equity on this company about $4.5 billion versus 33.4 billion at the beginning of this year these numbers are historic now look at this ready to have your Flapjacks flipped start looking at this look at this 54% year-over-year growth in US commercial us Commercial Business is booming for the company additionally they had 133% quarter over quarter us commercial Revenue growth I mean a lot of companies have trouble growing 13% on a year-over-year basis they did 133% on a quarter over quarter basis that's ridiculous now additionally this is where you can get very excited about this company they grew 77% year-over-year us commercial customer count now keep in mind their revenue was not up 77% or even close to that right it was up 54% so the way I would look at this is this essentially means there's likely bigger Revenue growth acceleration probably coming in this company like the revenue growth acceleration might not be done in regards to Palante tier because at some point in time these two numbers are likely going to get much more in line with each other where this number has been far outstripping this number okay because when paler lands a customer they don't always land like a big contract right initially sometimes they do but a lot of times they won't right they have that relationship built there then the company realizes how valuable paler can be their business model and maybe it can save him an extra $100 million uh every two years and so next thing you know right the company signs a $100 million contract with paler over a 5year span right because they look at and they're like man we can get a huge positive Roi on this if we if we go with pal here right now additionally look at this 73% year-over-year us commercial remaining deal value woo that's incredible number there look at get net income for this company generally accepted accounting principles they're they're up to 143 million right from 71 million the same point last year there there it's a big milestone when you can get to nine figures of net income right not that many companies can do that but when you start talking about multi9 figures a year of of Gap net income you're in a very special league and they're going to be there like that and we're talking this is just each quarter we're not talking about on an overall Year we're just talking about per three months oh my gosh right special special now check this out here look at the operating income of this company it went from $40 million at this time last year to $113 million geez like that's ridiculous like almost 200% growth year-over-year no two years ago the Bears were saying paler oh big deal they're starting to make money on the bottom line but you know what they can only make money from treasury bills and that's was their the Bears argument at first they're only making money because of treasuries if you know the FED lowers rates and that treasury money goes away they're not going to make any money right well pener showed them no we're going to make operating income and they started making operating income and then people were like oh it's only a small amount of operating income they can never blow it up to a big number this latest quarter they did $113 million of operating income and that's showing no signs of like going down like they're going to continue to build that numberers significantly like at this point next year we could be looking at this same quarter we could be looking at2 200 million to $300 million of operating income for a Q3 20252 200 million to $300 million of operating income we could be looking like at this point next year keep that in mind now look at the rule of 40 as I spoke about earlier year-over-year Revenue growth plus adjusted operating margin 68% for this company where's a top at I don't know it I'm guessing it's somewhere around 70 to 72% it the Top's probably coming soon in regards this one but who knows maybe it's not like like what happens if they just keep growing this number steadily for like the next 2 3 years like that that's a potential what if next quarter is like 69% then a 70% 72% 73 74 like it that's a potential as well don't rule it out right now us Revenue growth is where the the real strength is for this company right 44% if you look at us commercial Revenue growth 54% and you know a lot of people were too bearish in regards to their numbers here and I'm talking analy and I'm talking a lot of retail investors as well and a lot of people were too bearish with their numbers cuz they forgot that all the big government deals were coming through government had been lagging big time but a lot of government deals came through over the summer right and so that was going to add up to the revenue in this particular quarter and sure enough it did and so US government revenue ended up growing 40% year-over-year so that was a great number by paler commercial Revenue growth 27% overall now keep in mind us commercial Revenue growth was 54% so your brain should tell you something here say something's off what is off International is insanely weak for the company insanely weak for the company because the fact that they did commercial Revenue growth at 27% but the US was up 54% that means International is like lagging bad bad bad right total revenue growth was 30% for the company but yet if you look at us government that was up 40% right look at us Revenue growth us Revenue growth was up 44% but the company's total revenue growth was only up 30% so you bring to say something's wrong here like what's going on International is insanely weak now there's two ways you could look at this right one is you can just say man like paler is never going to be able to do good numbers in Europe like Internationals just insanely weak what is it with those Europeans they not care about technology right um you could look at it that way I look at it a little bit different Europe will adopt these Technologies Europe will adopt palente here you just can't you you can you can resist it at first if you want but you're going to start to understand like paler is going to be a game changer for your business model and for government agencies and so it's just a matter of time before the European market and International in general starts to pick up substantially and start helping paler substantially right and so right now the international business just think of it as a massive headwind on the like oh my gosh like you know you're running picture you're running up a hill and the wind's just coming against you and you're like oh my gosh this is brutal there's paler right now when it comes to international business I don't think it's like going to be like that forever I think actually in 2025 in 2026 that headwind could actually start keyword is start to move to a Tailwind the European market is just slow and that's why Europe does not have the top tech companies this is one of the key Reasons Why Us companies end up running the world right and then Europe just tries to figure out how to regulate stuff but you look at all the top real big tech companies the ones that matter the most the ones that have the hundreds of billions of dollar market cap to trillions of dollars they're all us-based companies because the US moves fast with tech we adopt the technology as we get it going Europeans they're a little slower in regards to getting this Tech over but they will get it no different than they adopted every other technology over time and so just that is something to keep in mind there the European market and International in general it will go from a massive headwind to Tailwind in future years and that's going to help out growth rates substantially that's still coming okay now here's part if you look at total revenue excluding strategic commercial contracts right kind of the spa situation Revenue actually would have been up 32% the quarter this has been another major headwind so we just spoke about International has been a big big headwind on the company this whole Spa situation has also been a headwind on the company for really the past year or so cuz they kind of moved out of that space but this was something that's been weighing against results and it weighed against the results again right 32% would have been their their revenue growth rate if it wasn't for this so This starts to become really a non-factor in 2025 which once again is going to be something that's going to help out penter growth rates so once again this growth acceleration phase that quarter in and quarter out people start thinking like it has to be over like the growth acceleration they can't do it anymore there's no way this might not be done folks we might still be going higher with Revenue growth rates we may go to 31% 32% 33% 35% 37% maybe a 40% number I'm not going to go that far right but the the story is likely not over in regards to growth acceleration right now additionally here check this out we continue to invest aggressively in AIP and the us while driving operating leverage at scale so they show their their Q3 2024 adjusted operating income $276 million and that was a margin of 38% a just operating margin of 38% which is shocking right once again if we look at this quarter last year 29% was adjusted operating margin so they improved 900 basis points 900 basis points on just a year-over-year basis you got to be flipping my flapjacks look at us commercial customer count here 77% growth year-over-year customer count in general was up 39% and Commercial customer count was up 51% and imagine when the European market actually starts rolling imagine that in the rest of world as in general like holy smokers that's going to be no dang Jokers right now additionally check this out they did 100 104 deals in the quarter that were at least $1 million deals once again paler is working with the big money folks right they did 36 deals of at least 5 million but the most shocking number of all them in my personal opinion was that number 16 16 deals in the quarter they did which were at least $10 million incredible number now this is very important here this is very very very important that cash flows to this company so if you look at cash from operations 58% margin $420 million in the quarter but adjusted free cash flow was at a 60% margin $435 million of adjusted free cash flow in the quarter what what and that compares with this same quarter last year they were at 141 million oh my gosh a 25% margin to a 60% margin when it comes to jused free cash flow like these numbers are are are startlingly good like it's ridiculous right this is crazy and we'll talk about in a moment what they're going to do with all this money because it's a lot of money and it's not going to stop coming in anytime soon right no in terms of their their their guidance here they guide it for 767 million to 771 million keep in mind they'll probably beat that number probably now I would not expect a huge beat and the reason being is this quarter they're in now this is October November December quarter right holiday season and you also have the election and so a lot of companies are a little more on edge about doing a deal in this particular quarter a lot of them will be much more happy to do deals in the first quarter of 2025 so q1 so I think they could potentially beat the numbers they put out there but I'm not expecting a gargantuan beat like this past quarter was where they blow analyst expectations cuz they did 726 Mill million this past quarter inless we're at about 703 so that's a substantial beat they beat by like $23 million right I'm not expecting that big of a beat I think it's going to be a much smaller beat next quarter because of the just kind of companies move slow in the holiday season right people are on vacation and you know the election all that stuff has to happen right q1 people get back to work and they start doing deals and like let's let's make this happen right so that's just something to keep in mind there but remember en are at 744 million for this next quarter and their midpoint guide is 7 69 million so basically their midpoint paler midpoint is $25 million ahead of where analysts were at on average that is substantial adjusted income from operations are talking about a mid $300 million like I said the money is not going to stop pouring in it's just going to get bigger and bigger now here's the thing I had predictions I put my predictions on X I don't know if you guys follow me on X or not if you want to follow me I always keep that in the description area of all my videos I keep my Instagram down there and I also keep my X page if you're ever interested in following me on Instagram or X but I posted this on X here today I said my prediction for paler earnings I said EPS comes in at 9 or 10 cents analy were at 9 cents uh the company came in at 10 cents right I said revenue is going to come in 705 to 725 anal at 703 so I was much more my midpoint was basically 715 so I was about $12 million ahead of where analyst were at and they even beat my numbers they they came in with 726 so even though I was bullish they came in and even beat my bullish my bullish outcome which is pretty dang impressive now I said for the December quarter I think the guidance is going to be $760 million to $800 million and other are at $744 million so my midpoint was uh $780 million for the guide the the company came in and guided 7 uh $769 million for their midpoint of the guide right so about $11 million under my midpoint but keep in mind they might still end up hitting my number like they might they might still hit my number or get very close to it maybe they do a 777 oh that would be a good sign right I said if for any reason Alex and the team come under analyst expectations the stock will sell off heavy uh there's a huge quarter for pener right and obviously we see where the numbers came through at so let me show you some big comments Alex carp said on the conference call that are substantial and then we'll go through my valuation models and how much things have changed and talk about where the stock price is going from here so those are some of the biggest the seven biggest things at least in my opinion Alex carp set on the conference call uh he started out the conference call just being funny he said well given how strong our results are I feel like we should just go home so that was that was uh a little ridiculous and funny at the same time like respect okay uh second thing he said I thought was substantial and he has hinted at this for about a year now he's been hinting on this but I thought he came across the most direct I've ever seen him and he basically just flat out said llms are the commodity he says everybody's trying to assign this huge value to llms and they think like llms is where the real value is here and he basically just flat out said llms are a commodity what we do is the special part but L llms are just going to be a dime of dozen over time and I've got to say as somebody that pays attention to what all the big tech companies are doing and then the VC related companies to me it does look like llms longterm will just kind of be commoditized it really does look like that it looks like this there's going to be special work done on other companies when it comes to to AI but I think I think lm's large language models are a little bit more of like a distraction in regards to the whole thing and thinking about like that's where all the value is it doesn't actually look like that right he says and this is I kind of simplified some of this stuff cuz you know Alex karp he can go on like a 20 minute tangent he wasn't that long but he can you know get asked one question he's talking you know Philosophy for 5 minutes right so I simplified some of this guy for you guys okay but basically the gist of it he said the data processing is where the magic is cutting decisions down to one hour that these decisions might used to take 5 hours or 50 hours or things like that right or taking a massive amount of people to try to figure this out now using some a product like Foundry from pener these decisions can be cut down immensely and that is whether you're on the battlefield or whether you're in the uh boardroom right another simplified thing here that I simplified for you guys is basically he said uh the focus is on the product not the sales staff he says we don't want to be a commodity product that everyone is forced to use in hates which is something definitely uh there's a lot of companies that come to mind when you think about companies that people really don't like it I even heard about or like I've studied all the big tech companies and I've heard like even oracles uh product like a lot of people don't like that product but basically you have to use it right I've heard that about a lot of Microsoft products over time that a lot of people don't like Microsoft's products but they just they got to use it and he he's basically saying we're not just going to be a commodity product like all these other folks do and they tie in uh people are actually going to want to use our products and love to use our products right also simplify this but basically the gist of it he said we're focused on margins and high growth not just high growth like many companies in our position cuz basically there's some push back here with paler about okay Revenue growth is at 30% there's such a crazy demand for AIP why not just spend crazy money on marketing and sales go higher go spend another go spend an additional $50 million a quarter on sales staff right $50 million a quarter is going to get you a lot of sales people a lot of sales people and paler could do that right uh why not spend another $50 million a quarter or $20 million a quarter or whatever on marketing and run ads on football games and all these sorts of things right um and basically he said that we we don't need to do that our product's special enough we really focus on our product and we're focused on not just growing to grow we're focused on on at the end of the day having great margins as well right which is which is a good thing I think certainly and that's just a prudent action especially if you ever get into any struggling economy or something like that right now also simplified this but he basically said word of mouth is a huge Salesforce for paler I've talked about this point many times before in regards to paler if you're an executive of a company and you bring in paler uh you know for your company and you think it's a game-changing product and you know helps your business save a bunch of money and then you go get a job in another company being an executive of different role and that company doesn't have paler you're going to say hey we need to bring paler CU it's going to be able to help us for XYZ reason so as paler scales and gets bigger and bigger and more and more customers it's going to be a lot of Word of Mouth that spreads that paler if paler got the real deal holy field product right the the word of mouth spreads from this company to that company this company and people talk at conferences and all these sorts of things and Executives always changing positions and sales staff or all all these folks are always changing from this company to this company right it's rare when somebody works at the same company for 30 40 years nowadays people are in and out of jobs two five years right so this person says hey we had paler my old company helped us save $80 million a year because of XYZ reason it I bet you it could save us a bunch of money let's bring in palente here let's see what they could do for us right next thing you know there's a boot camp that happens next thing you know that that company signing a Foundry Foundry deal right so word of mouth is huge and that's honestly always the best the best sales for you as a business owner right is always word of mouth it's always the the most magical thing right cuz that that comes from like a trusted Source rather than just seeing an ad on TV or an ad online or something like that right and he also said we're we're in it together with you retail investors and uh you know obviously paler got a huge retail Community around it so it's good to see that as well now let me show you valuation model here and how substantially this changes pente future now that we're talking about different sorts of growth rates okay check this out so if we go back a year ago or so everybody was kind of thinking paler was a a 20% Revenue growth story moving forward right in and that was just a year ago like a lot of people were convinced like H paler yeah they're growing but it's just probably going to be like a 20% growth number right so if you run now keep in mind everybody's expecting uh the net income to grow at a way faster clip than Revenue growth which is 100% what should happen right so if you were running your your numbers at let's say a 20% Revenue growth number right and then you were saying net income could grow at a 30% clip right which puts the company at net income margins of 30% in 2028 which isn't crazy like pener should be 30 to 35% net income margins come 2028 right so that would put the company's Revenue a little under $6 billion in 2028 and the net income around $1.7 billion so if you got a A more SAS related company which people once again put Palante here into a SAS category having 20% Topline growth 30% bottom line growth you're going to Comm in somewhere around a 50 to a 70p ratio right because your growth rates are far outstripping in Average stock in the market I mean we're talking about growth rates that are 3x or 4X in Average stock in the market so which means you're going to command likely a 3X or Forex valuation never mind the SAS component in your business which gives you even a bigger uh higher multiple right so so if there was a situation to play out here I mean let me just call it how it is like paler would be a dead money stock for years you wouldn't be able to make any money in regards to this one you'd have to wait till past 20828 to make any substantial money from here right if that was the growth rates for talking about but now we're not talking about those sorts of growth rates now we're talking about 30% growth rates right so now this changes everything for paler and how you think about the return profile moving forward for paler so now if talking about 30% Revenue growth on average from 2025 to 2028 we still once again we don't know where the top is if you exclude the spa situation paler grew Revenue at 32% clip last quarter right uh or if you want to even not take that they grew at 30% right the previous quarter they grew at 27% the previous quarter before that I think they grew at uh I want to say 25% and then it went down and down from there right so they've been growing we don't know where the top is maybe the top for Revenue growth is 33% year-over-year maybe it's 35% maybe it's 37% Maybe is 40% we don't know as of right now all we know is it's likely higher than 30% so when I ran my 2025 to 2028 projections here I'm just saying like hey 30% let's just let's just run it at 30% right so if you run it at 30% then nit income growth should be around 45% right which puts net income margin of this company around 33% because remember they're going to Far Far outgrow the their their revenue in regards to net income percentage not even going to be close right so if you're talking about a 30% Topline grower and a 45% on average bottom line grower in the SAS space you're going to come in somewhere around a 75 to a 95p ratio and that's probably being conservative you're probably going to be in over 100 if you're growing Top Line 30% and bottom line 45% in your SAS you're probably 100% 100 P or more but let's go a little more conservative 75 to 95 right that puts a stock somewhere around $90 to $114 come 2028 which gives you a compound annual growth rate on the low end of 21% and a compound your growth rate on the high end of 29% and that's from here where the stock is at not where the stock was 2 years ago or 3 years ago or today I mean excuse me today or a year ago or something like that that's today right so there's massive compound annual growth still coming in the stock over the next four years if we're talking about these sorts of growth rates now additionally we don't know where the top is for pte growth rates if they get to like a 40% growth rate then you have to throw this model out and you have to run completely new projections because then if you run a 40% number let's say they get up to that number and they can do that for a few years in a row right let's say this foure span then you're talking about net income growth will probably be around a 60% number maybe 65% and then if you're talking about a 40% grower on Top Line and 60% Plus on the bottom line per year then you're talking about a p of like 150 you're going to slap on the stock 125 and then you're compound growth rates at a whole different Stratosphere right so this is why everything is really changing in regards to P tier massively because the growth rates have changed massively so when people say well it's the same company and the stock price is so much more expensive well if you're going to Value this company there's a big difference between valuing this company at a 12% growth rate versus a 20% growth rate versus a 30% growth rate versus potentially a a much above 30% growth rate right this is something to keep in mind here and they've been putting up these numbers in an election here where a lot of companies are kind of like you know scared to make moves they don't know what the next administration's going to do what happens if we get a little more clarity what happens if there's the businesses are are are are feeling a little better about themselves what are paler numbers in that environment and what happens when the international business picks up tell me what growth rates are at then that's why paler has changed forever now here's an open question for everybody and I'll tell you what my opinion is as well pener is going to likely start having cash flow pouring in of 1 to3 billion per year over the next many years right what do you do with all that money there's really five options in my opinion on what paler could do with all that money cuz like I said1 to3 billion dollar a year in cash flow is just going to be pouring into this company and the cash stacks are going to get fatter and fatter for this company so there's really five options in my opinion one is they could buy other softwares maybe smaller softwares that haven't really taken off yet and they can sell that as some sort of software sweet maybe attract certain clientele bases maybe they're having some trouble attracting right get through the door and then sell Foundry and it's kind of a trojan horse situation like that's potential they could do that right they could buy back a ton of stock which is always a potential now ideally the best time to buy back a stock is when your Stock's price has been hit heavily not when you're at all-time highs right so to buy back stock might not be the best thing to do necessarily in the short term it might be you know someday when people freak out over paler growth rates whether that's 6 months from now or 6 years from now or a year from now or whenever that is people eventually they they'll flip out and they'll be like oh you know and that's probably when you go do that big buyback like PayPal for instance is a great example of a company that's got a massive buyback right now and they're buying back billions of dollars worth of stock every year and they're just taking crazy amounts of shares off right pent tier could do that it just I don't know if it's the best decision to do when your stocks at alltime highs right third thing they can do is pay a dividend a potential I don't think that's the best use of capital for paler in my opinion it's too strong of a Growth Company someday paler might be a boring 10 or 15% grower a year when that day comes paler can focus on paying dividends because it'll just be it'll be more of an ATM play it'll be more of a cash flow play and it'll be like you know yeah we don't have the growth rates we used to have back in the day the 30% or more than 30% but you know what now we're just a straight dividend payer and and a buyback company so those are probably plays down the road in my opinion in terms of BuyBacks and paying dividends the fourth thing you could do is you could continue to add you know to your R&D payroll which I think they should continue to add uh to their R&D payroll at the end of the day palente got one of the best workforces out there of any tech company why not continue to spend continue to come out with game changing products and services like you know people imagine paler is this company with you know Gotham and and and Foundry and AIP and the products they have in the market they think like it's just that's going to be what paler has forever no there's products and services paler is going to be coming out a year from now 2 years from now 3 years from now 5 years from now that we haven't seen yet as just shareholders of the company that will be coming out that will probably be gamechanging products for paler that's going to open up whole new market segments for the company and whole new sales opportunities so they can continue to in my opinion you know take a good amount of that cash flow pour that into the employee force and continue to build gamechanging products and services that open your your abilities up to continue to grow at a 30% plus clip if not above that right and additionally they can continue to pour some money into sales and marketing which I think they should do as well why not like like you know don't do go too crazy with it keep an eye on margins like the company wants to do but with this sort of Revenue growth there's no question they have wiggle room to up R&D and up sales and marketing quite substantially over the next few years and continue to build this Beast where they could be a sustainable 30% plus grower on that Top Line I don't see why any reason why they can't if not achieve a 40 or 50% number right there's there's no top in regards to what paler could grow that's an important thing you got to understand there's no top here like sometimes people think like this is a Max like you know paler when they start doing 20% growth people are like oh that must be the max they can't grow anything above that right now it's 30% people think oh they can't grow anything above 30% sure they could they could grow 35% they could grow 40% they grow 50% potentially right so that is my that's where I would Focus I wouldn't really buy out other softwares unless there's just something magical out there that they could see integrating it but I would just continue to pour good amounts of this money into R&D and sales and marketing and then with the excess money continue to buy up treasuries and continue to just make more and more money from treasuries year after year after year because you got to understand even if the yield from treasuries come down a bit right paler could be in a situation where they could still make more money because they have way more money in treasuries than the previous year right keep keep that in mind so and then you just have a for balance sheet and then you also make people feel very comfortable holding your stock even in recessions someday we're going to get a big unemployment recession where unemployment is going to go 6 8 10 12% right I don't know whether that's a year from now or 3 years from now or 5 years from now in that sort of environment people get worried about stocks right when you're in a company with no debt and has billions and billions and billions and billions and billions of dollars of of cash sitting on the balance sheet you're not scared you're like oh this is great like this is awesome right and then you're not even really scared of inflation either CU you're like oh Even If the Fed ever goes up on rates again well shoot we're just going to make a bunch more money on treasuries and we don't have debt so we don't have to worry about rates going up right that's fine for us no where's the stock price going from here so the stock price U $50 is on deck for penter now at this point in time so what I think is a stock heads toward 50 and then I think and when I say heads towards 50 head toward 50 over this next bit of time and then I think the Stock's probably going to take a chill out period for 6 to 9 months that does not mean the stock is going to crash or anything like that it's just going to chill and when I say chill it's going to kind of head it's going to kind of be stuck in like a $45 to $55 range and it's going to go up and it's going to go down they're going to report quarters and the numbers are going to be really good but they're not going to be super exciting in terms of like making everybody flip their Flapjacks and so the stock will just kind of like flounder in that $45 to $55 range for in my opinion 6 to9 months and uh that will be that for a while and then when we start getting closer to 2026 right if we start hearing about continued Revenue acceleration and maybe heading toward a 40% number then we have our next big move for paler and that's when paler moves to a 70 plus dollar stock then at that point in time and we start talking about the stock at a775 somewhere in there roughly okay so there's definitely a lot of room there as far as me personally with my shares I'm holding these tight like a like a little kid holding a teddy bear and and I have 0% interest in selling my shares 0% I have a 5,555 shares in the public account zero and I hold a bunch of shares in the patreon portfolio as well 0% interest in selling like I'm not even like it I don't care put paler at 46 tomorrow 47 put at 50 tomorrow I have no interest in selling the stock and trying to time it out even though I believe the stock will just kind of flounder for 6 to 9 months after that in that $45 to $55 range I still have 0% interest in selling because I don't feel like dealing with the tax implications of that right and then dealing with like trying to time back in no no no knowing with a special company here that continues to Del like to the upside I hope you guys enjoyed today's video I appreciate you all joining me as always if you're looking to access my entire premium course Library become Master stock market millionaire Playbook stock options Mastery dividend investing Mastery if you're looking to get access to my private Discord chat in our unbelievable one of1 paler Community click the pin comment down there apply to join us in there much love and have a great day