Palantir Palantir Palantir...
After soaring yesterday following raised guidance and better-than-expected revenue, $PLTR is becoming increasingly popular. However, most people don't really know what Palantir actually does...
Palantir is actually one of the most important businesses in the world!
Today we've distilled for you everything you need to know about Palantir!
Let's start -
Palantir builds intelligent systems for governments and private entities.
Governments use its products to integrate all their data into one platform and use it to create digital twins - of themselves!
Then, using the model they built, they can run all possible scenarios to prevent future dangers, improve their operations, increase efficiency, and more!
Palantir has 2 operating systems:
Gotham - used to integrate all data into one platform and then used for decision-making in high-risk environments like a battlefield!
Foundry - does the same on the business and commercial side to cut costs, improve efficiency, create new products, build winning business strategies - and more!
But wait - there's a third product...
'Apollo' is Palantir's third essential product -
It enables multi-cloud and continuous software deployment anywhere possible.
This actually allows developers to write code that works with all cloud services - and then they can do it one-on-one.
They also launched an Artificial Intelligence Platform (AIP) in 2023.
AIP - allows businesses to integrate AI models into their virtual twins and guide these models.
This way - businesses can create AI agents that can perform any task - in real-time.
And it doesn't end here...
*We've included a video for you where Alex Karp explains how Palantir saves its clients millions!
Thus, all the work Palantir does is at the heart of the AI revolution!
We can see this in its revenue growth. (Attached)
In the last 5 years, Palantir has tripled its revenue.
And this is gaining momentum as the company consistently and strategically organizes informational conferences - which are a magnet for its clients.
Today, Palantir aims to establish itself as a must-have product in many industries...
It is active in over 40 industries and has slowly but consistently increased its gross margin.
And here's the catch - once Palantir is implemented - it becomes an impossible task to go back...
Let's dive into the numbers!
Financially - Palantir's balance sheet is rock solid:
It has debt of only $255 million against equity of $4.6 billion...
Its annual EBITDA - $397 million, can pay off all its debt in less than a year...
This is one of the strongest balance sheets we have seen.
Nevertheless - the price seems expensive and 175 times forward earnings with 30% annual revenue growth over the last 5 years...
However, Palantir is a company driven by its vision - and on the surface, the numbers show that it has successfully executed it so far.
Palantir's average revenue per client is over $10 million, and it is growing very rapidly in the number of commercial clients - in 2022 it had 260 commercial clients and now it has 571...
If it manages to acquire 5,000 clients with an average revenue of $10 million per client (according to the data on which the current valuation is based), the company could be valued at $500 billion in the future...
And here the question arises - do you think this is possible in the next 5-10 years?
If we had to define Palantir in one sentence - "Palantir is a company currently overvalued but holds an exceptionally amazing product portfolio."
History teaches us that sometimes companies with exceptional products tend to justify even ridiculously expensive valuations - but is this the case here?
We've said enough - we're interested to see what you think!
Do you think this is just the beginning for Palantir? Mark -
Do you think Palantir is a bubble? Mark -