NHS Cancer, Spanish DoD, SouthWest Disaster | Palantir Bullets #7
This week's Palantir developments and the crowned “Tweet of the Week”
Editor: Emanuele’s Notepad
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PLTR 0.00%↑ this week:
Palantir helps cancer patients receive treatments two days sooner at NHS. A new article from the British TheTimes unveils how Palantir’s pilot helps the NHS reduce paperwork, which, in turn, helps patients receive appointments faster and have a single digital record of their illness. Currently, Palantir has been used by 20 NHS trusts and the NHS plans to roll out Foundry to all hospitals in the summer.
Palantir obtained a ~$270k proof of concept contract with the Spanish Ministry of Defence. Last week we saw Palantir obtaining a ~$90mn contract with the UK. The substantial increase in NATO military spending creates a huge opportunity for Palantir (Palantir Government: It’s now or Never).
Shyam suggests South West Airlines adopt Skywise after a holiday meltdown due to outdated tech. I went into detail in a previous article about how the success of Skywise is crucial for Palantir’s growth (Palantir's Skywise: the Runway to Monopolize the Sky). Skywise, developed between Airbus and Palantir, manages more than 60% of all commercial aircrafts including 55% of Boeing’s fleet. 160+ airlines.
Palantir's Missing Link unveils the “Palantir ecosystem” within the UK Defense is expanding. Babcock and Network Rails are both Foundry users and Ministry of Defence suppliers, which is a Palantir client too. The bigger the network, the stronger the network effects (Palantir: the Biggest Networks Start Small).
Palantir is helping bend the arc of history. In his recent letter, Alex Karp, Palantir CEO, underpins Palantir’s commitment to the front lines in Ukraine differently from other tech companies which “find ways to work with our adversaries.” The full letter can be found here.
Related Tech trends/Macro:
AI software market size is expected to reach $1trn by 2032. Palantir is uniquely set to capture a sizable chunk of it: in September, Palantir was awarded by ICD as the #1 vendor for AI software, ahead of Microsoft and AWS.
2022 was a rare year with Treasuries underperforming a S&P500 bear market. This underperformance is quite peculiar as bonds are typically considered “safe” and a hedge against equity crashes.
Unprofitable tech stocks, where Palantir belongs, dramatically underperformed the S&P500 and Nasdaq in 2022. The raise in interest rates created enormous pressure on the valuations of the sector, despite many companies having no debt (PLTR fights vs a tough competitor). At these relatively low valuations, I expect money managers will not be indifferent to Unprofitable Tech Stocks in the next quarterly portfolio rebalances. Thanks to Maverick Equity Research.
The Growth stocks’ spring is loaded. The relative underperformance of Growth stocks is similar to that after the DotCom bubble burst. Any clear sign of the FED pivoting or inflation reduction could generate substantial performance.
Tweet of the week
Happy new year!
Yours,
Arny
View expresses are my own and do not represent Financial Advice in any way.
I own (many) PLTR stocks.
Great coverage, thank you! Keep it rocking!
Great week this has been. Awesome content, Arny!