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Lockheed, Dev. Community, AWS | Palantir Bullets #3
This week's Palantir developments and the crowned “Tweet of the Week”
Editor: Emanuele’s Notepad
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Palantir this week:
Lockheed Martin seeks to empower Aegis with Palantir Apollo. Aegis is the most important Combat System deployed by the US Navy and several other countries (Japan, Spain, Norway, South Korea, Australia, and Canada) over 110 ships. This deal allows Palantir to be one step closer to NATO Countries. In addition, it also reinforces Palantir’s role as an “incumbent” within the US Government collaborating with other defence companies. Previously, I explained why Apollo is a game-changer (Palantir Apollo: Welcome to the Trojan Horse).
Palantir strikes a 10y deal with Cleveland Clinic for its Virtual Command Center. Palantir will help Cleveland manage patient flows (manage patients from hospitality to discharge) with the support of AI. Cleveland is considered one of the best hospitals in the US with 6,026 beds. We don’t know the deal value, but it underpins how Healthcare is becoming a pillar of Palantir’s growth. By showing that Palantir can manage such complexity, it would then be simpler to sell to smaller hospital operators in the future. Healthcare represented $153mn in 1H22 (~17% of Palantir’s Revenues).
AWS launches a Supply Chain Platform aimed at “saving costs and improving efficiency by having a holistic picture of the entire supply chain.” Tech behemoths proposing this type of solution can increase awareness of the need for such a solution. This would, de facto, facilitate Palantir’s messaging and mission. AWS’ solution, like Microsoft’s, seems to be simply a repackaging of existing solutions they have, rather than a new groundbreaking product. “Same pizza but fold it over and call it a calzone” - @TheInvesttoLive
Palantir is finally building a Developer Community. Axel Springer, a German Media company and Palantir client, is going to host the world’s first open developer meetup about Foundry. A developer community is crucial to scale; if software engineers are eager to build on Palantir, they would become advocates of its solutions and facilitate sales. Another Foundry Developer Meetup is set for December 13th in Paris. I am craving a Codestrap video on this.$PLTR Director of Partnerships - France: "I am pleased to announce a new step to support the extension and scale up of our Foundry Developer community in France." 👀🤫$PLTR @PalantirTech Director of Partnerships - France: "Keep your eyes open ...😲 we are preparing a new learning experience that we know you'll love. That's all I can say for now" 👀 🤫 https://t.co/UN8ZknuvMQLord Grim @lordgri52420459
Shyam Sankar, Palantir COO, sells 50.000 shares unrelated to RSU vesting. The sale represents ~2% of his shares, similar to the sale he pursued in August of 50.000 shares sold after having exercised options for 100.000 shares. Not encouraging, but given the size, not worrying. As TJ underlined, it’s profit-taking.
Wejo strengthens its relationship with Palantir and Sompo. Wejo is one of the most prominent SPAC investments as it is collaborating with Palantir to build an open platform focused on EVs. Wejo’s Net Revenue increased to $2.6 million, up 632% compared to the third quarter of 2021.
Related Tech trends/Macro:
In November, Big Tech doubled the layoffs from the previous high in June. Among the notable names in the firing spree: Twitter, Amazon, Meta, Salesforce. Meanwhile, Palantir keeps hiring aggressively (+35% employees YoY).
Anduril raised $1.5bn, valuing the company at $7bn pre-money. This is +66% vs. the valuation it obtained 18 months ago in the previous financing round. Anduril is the most prominent Defence Tech startup along with SpaceX and Palantir, with “half a dozen NATO clients” and “hundreds of thousands” of dollars in Revenue. This means that it was valued at more than 10x EV/Sales, while Palantir trades at ~7x EV/Sales NTM. The market still doesn’t appreciate Palantir as a Defence stock.
Snowflake keeps growing fast at +67% YoY in Q3. Its consuption based pricing models prove to be extremely convenient during times when recession fears lengthen sales cycles and discourage big deals (Palantir Copies SNOW’s Pricing Model).
Salesforce Revenues grew 14% despite being heavily affected by FX. Similarly to Palantir, longer sales cycles marginally slowed down Salesforce’s business. However, by making one step back, the business is growing even despite a tough comparison from the 20-21 spike in tech investments and the recessionary environment. Salesforce’s stock, down ~45% year-to-date, is suffering more than the business. Subscription Revenues are just better.
The FED hints that they could reduce the intensity of the rate hikes from December’s meeting. This created a bullish wave at the beginning of the week. However, the Nonfarm Payrolls, released on Friday were more positive than expected, which doesn’t incentivize the FED to pitot.
Tweet of the week
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Not Financial Advice. I own (many) PLTR stocks.