Ferrari, NHS and Insider Selling | Palantir Bullets #2
This week's Palantir developments and the crowned “Tweet of the Week.”
Editor: Emanuele’s Notepad
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Palantir this week:
Palantir announced an Extraordinary Shareholder Meeting. This is the resolution from the settlement against a lawsuit Palantir received because Class F shares seemed to violate sections of the Delaware Code (where Palantir is incorporated). This meeting focuses only on correcting specifications of the voting power of Class F shares. For instance, the New Certificate would delete the “reasonable best efforts” qualification and will require to be specific on the procedures that lead to decisions. For common shareholders, nothing changes so this is not a reason to worry.
Insiders keep selling shares. This is part of their RSU vesting plans. When their RSU get vested they automatically sell a fraction of the shares to cover the related taxes. C-Level people are not selling more shares than those related to tax events. Despite I would love to see executives buying at the current prices, the fact they sell for tax reasons is not negative. It would be worrying if we started seeing massive sales in the open market.
NHS seems to have split the £400mn contract, as activists protest privacy concerns over Palantir being the exclusive provider. Palantir is still set to bid for the £360mn data platform which is the core element of the contract, therefore, the most critical. Paradoxically, Palantir is accused of violating patient privacy, which is exactly what its solutions work against. It seems likely that Palantir will win the £360mn contract as the other bidder is Quantexa, which bids along a consulting consortium, therefore, has a weak offering. However, not capturing 100% of the contract could be enough to manage the complaints of Palantir protesters.
🧙🏼♂️@TheKameroon$PLTR Is still set to bid for the contract to operate the NHS’s main platform. ft.com/content/a9228c…
8:12 PM · Nov 25, 20222 Reposts · 12 Likes
Either Square found that 90% of Foundry links are still active. Considering that active links also incorporate pilots, I consider it a good sign. Join Palantir's Missing Link to stay updated with link activity!
Faraday Future, one of Palantir’s SPAC, is almost bankrupt. Palantir sold part of its position in Q3 (previous Bullets).
Merck has a new biopharma department operating with Foundry called Serono. As a reminder, Merck is one of Palantir’s biggest clients and the only one already having developed two Open Data Platforms, Athinia (Semiconductors) and Syntropy (Healthcare). These platforms are crucial for Palantir’s future growth (PLTR Platforms Unleash Network Effects).
Mattia Binotto, Scuderia’s Ferrari Principal is leaving after a season of gaffes and missed opportunities. This should not impact Palantir’s partnership with Ferrari, which was expanded just 9 months ago.
Related Tech trends/Macro:
M&A activity is standstill due to economic uncertainty, for now. An M&A survey report by Morrison Foerster and Mergermarket highlights how 2023 should be a very strong year: thanks to low valuations, “despite market volatility, global dealmakers continue to prioritise technology acquisitions, especially in heated sectors like artificial intelligence and machine learning.” A renewed interest in the tech space should support valuations.
FED officials expect to switch to smaller interest rate increases “soon.” Interest rates are one of the major causes that keep the Cloud Sector valuation low (Palantir Valuation Tracker). Therefore, any signals that the interest rate hikes would be less intense or that the FED could pivot would be enormously supportive for “growth stocks” like Palantir. The central bank’s next interest rate decision is Dec. 14.
VC investments are collapsing. This is a contrarian indicator, hinting that the market has deflated and therefore, the euphoria has translated into depression. For true investors, depression means an opportunity to buy at good prices.
Tweet of the week
Yours,
Arny
Not Financial Advice. I own (many) PLTR stocks.
Thank you for sharing your thoughts. I read with great interest.
thank you guys, have a great week!