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
Great recap arny
nice take, thank you!