BEYOND AI | Palantir Bullets #13

This week's Palantir developments and the crowned “Tweet of the Week”

Editor: Emanuele Marabella

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Palantir this week:

• Palantir will publish its Q4 and FY results tomorrow at 5:00 PM ET, after the market close. Revenues expectations are pretty low at ~$500mn (+16%) and I don’t expect a substantial deviation from those (Palantir Q4 Preview - What I'm looking for). The focus, however, will be on Guidance. From the analysis of the results of the closest comparable (Palantir Q4 Preview - Just Look Nearby) we have precious clues hinting that the demand for digital transformation solutions is actually strong, despite the FX headwinds and the fear of a recession. The market expects a big move in Palantir’s stock price. Will we see a further crash post-earnings? Buckle up! I will stream the results live on my YouTube channel with @ADAMBERGMANshow and Emanuele20x.

  

• Palantir partners with the organic plant-based, vegan meat producer Beyond Meat. This is not a piece of news for Palantir’s Missing Link, who discovered the active link in November!

• Turkey promptly adopted Palantir Foundry after the earthquake that caused +24,000 deaths. @Either_Square found an active link just two days after the shock. This shows how responsive Palantir can be in helping manage crises.

• Bank of America sees Palantir as a beneficiary of AI adoption and is confident in the +30% growth. According to the bank, “Increased urgency on modernizing military and intelligence capabilities may provide significant opportunities for Palantir."

• Palantir has worked on ChatGPT integration since Q2. Last week we mentioned that C3.ai received a boost in attention (and stock price) when it announced its integration with ChatGPT. In reality, Palantir has also been working on this, as in Q2 Shyam declared: “We just launched an experimental feature that leverages OpenAI's GPT-3 to turn natural human language into pipeline logic.” Thank you @Investprosper12 for spotting this.

• Bank of America also shares that no FoundryCon attendees were concerned about how a possible recession would impact their ability to implement Foundry. The success of the event, which brought ~200 current and prospective Foundry customers highlight that the demand for data-driven solutions that bring high ROI is strong.

• On the other hand, RBC is skeptical and sees limited upside in the Government Revenues. RBC also notes that Palantir has a large amount of US federal Annual Contract Value coming up for renewal in Q1/23. This is nearly double the next largest renewal quarter in their tracker.

• Hess (energy), Moog (mechatronics), and Compredict (mobility sensors) are confirmed as clients. Nothing escapes TheKameroon’s eye.

• Parexel, one of the world’s largest clinical research organizations (CROs), is confirmed to be using Palantir. @Either_Square noticed: "healthcare companies rank #1 in DataBase, meaning it’s the single largest industry that is using Foundry. There are more healthcare entities than energy ones”.

• Bids for the NHS’s Federated Data Platform are closed. As we mentioned numerous times, Palantir is in a pole position to be awarded the contract, thanks to its work with the NHS since the Covid outbreak. Is the end of the tunnel near?

• Traffic on Palantir’s website increased by +13% MoM in December. Positive sign.

• Karp in an interview with the French newspaper LesEchos shares “As for our activities with commercial enterprises, they are growing at a crazy rate.”

• In the coming weeks, substantial RSU vesting will occur. This means that we are likely to see selling pressure on the stock. As a reminder, these sales are tax-related and do not represent an explicit intention of selling the stocks.

• Commodity trader Trafigura, a Palantir client, faces a ~$600mn loss after discovering that nickel cargoes didn’t contain nickel. This could be an opportunity for Palantir to pitch further solutions to increase operation monitoring.

Related Tech trends/Macro:

• Google flops the presentation of Bard, its response to Chat GPT.

• Actor Ashton Kutcher considers a $200mn fund focused on AI. This is a further sign that the hype toward OpenAI and its ChatGPT triggered the interest of institutional investors.

Tweet of the week

Meanwhile in the jokeverse… (parody)

Yours,
Arny