Discover more from Palantir Bullets
Is Palantir Recession Proof? [update]
Update on the previous article.
“The headline is worse than the reality.”-ServiceNow CEO Bill McDermott
Wall Street and companies seem to tell a different story.
Tech business is counter-cyclical in nature.
These macro crosswinds are blowing strong. So the mood is not great but there is no way out except to innovate and drive technology in your company so you digitaze your processes, you move faster and you ultimately win.
Headwinds generate longer sales cycles.
You are going to see the headwind of the dollar right now against well known technology companies (none is going to outrun the currency right now) and probably when you think about energy, the war in Europe, and this reprioritization were talking about you are going to see longer sales cycles in Europe - we saw that-, but doesn’t change the narrative that tech is the only way to cut throught the crosswinds and ultimately get to the other side.
Companies are prioritizing solutions delivering value fast.
There is one serious of change: a new layer in the enterprise. Companies saying “what companies do we want to bet on?” “how do we stank rank the priorities” because they are capacity contrained. But there is a filter now: fast return on investment.
If you can’t put an architecture in there that gives a customer a fast ROI you are going to be post poned to the left side of the list as opposed to the right side where you want to be on.
This interview supports the idea that despite some headwinds from currency effects, Palantir should benefit from the major need for Tech solutions to navigate uncertainty.
Palantir commercial solutions receive recognition
When macro uncertainty rises, companies need solutions with 2 requisites:
Deliver business value fast;
While the vaccine distribution during the pandemic and the current role in the War in Ukraine prove Palantir's efficacy, their brand recognition in the commercial space has been lagging. However, things are changing.
Palantir has just been recognized as a “Leader in Forrester Wave AI/ML 2022”.
This big recognition should speed up the process of Palantir acquiring new clients, especially now its sales cycle has become much faster from ~6 months to ~2 months. (Palantir: this Time it’s Different article).
As Palantir's name appears on these reports, companies will contact Palantir to know more because Chef Information Officers could be “safer” and would face fewer career risks in implementing their solutions.
This is a step in the right direction for exponential growth.
On the other hand, Gartner, the biggest tech research player, still hasn’t recognized Palantir in its “Magic Quadrants”, which is the most famous ranking for IT vendors.
Will we see Palantir leading here too?
I pursue to keep my articles free. To support my work, please share it with your friends and consider becoming a subscriber!
View expresses are my own. Do not represent Financial Advice.
I own (many) PLTR 0.00%↑ stocks.