Discover more from Palantir Bullets
💣 "TAKE THE WHOLE AI MARKET" | Palantir Bullets #26
This week's Palantir developments and the crowned “Tweet of the Week”
Editor: Emanuele Marabella
Hi, I’m Arny. Thank you for joining 1.823 investors who receive the deepest Palantir research. Please hit the ❤️ button if you enjoy today’s article.
PLTR 0.00%↑ last week:
Palantir Q1 achieved its first GAAP Operating Quarter and Guided for positive GAAP Profits for the coming quarters. Despite the stock spiking ~30% after earnings, the results leave investors with some questions that need answering.
CEO, Alex Karp, during the Q1 Call, expressed Palantir’s intention to capture the whole AI (infrastructure) leveraging the unprecedented demand he has seen for the newly launched Artificial Intelligence Platform (AIP).
“Our strategy on AI is to take the whole market. We don’t have a price strategy. We're going to create a lot of value; we're going to get hundreds of customers and we will price it as we go. When you're ahead of the market you need to take territory.” - Alex Karp, Palantir CEO, Q1 Call
Bank of America reiterated its $13 target. I shared previously why I believe Bank of America is the bank which has the best understanding of Palantir (Data is the New Bullet, but Nobody Cares). Other analysts changed their target prices after the earnings: RBC reiterated its $5 target with a Sell recommendation as it hasn’t digested the SPAC saga yet; Jefferies increased its PT to $10 from $8.5 keeping a Hold Rating; Deutsche Bank meanwhile is still convinced with its Sell recommendation despite increasing its rating from $6 to $7; Goldman Sachs raised its target to $9 from $8 keeping a Neutral Rating.
“We continue to see Palantir among the top public players in the world of artificial intelligence (AI)... From 20 years working with the CIA, PLTR is in a unique position to implement new technologies in line with the requirements." - Bank of America
Cathie Wood returns to Palantir after having sold last year due to “competition in Government” as the war in Ukraine broke out. WhileI am not affected by Cathie’s actions, having a big investor entering the stock helps visibility, which is what Palantir’s business needs. Will the ARKK Curse continue? (Palantir: the Arkk Curse Continue)
Scale AI, an AI company born in 2016 and backed by Peter Thiel’s Founders Fund, launched a product similar to Palantir’s AIP. Competitor or collaborator? I discuss this (minute 23:30) and many other topics with @vinceisbullish.
@RalMattMoney shared a brilliant tweet on why Palantir is widely misunderstood. NB: Matt uses Palantir Foundry firsthand 5 days a week.
“The United States commercial business, mostly Foundry just hit $1B in annual run rate in 6 years... Think through this whole thread... sound familiar? AWS took 5-6 years to hit $1B. Is Foundry done? Just began in my opinion, and they just released their Amazon Alexa... AIP.” - @RealMattMoney
The NHS published a tweet underscoring the achievements it has recently reached. Palantir is not directly mentioned but we know it is heavily involved in the process of making the NHS more efficient and has been officially endorsed by Prime Minister Rishi Sunak. Is this a way to make the public perception digest Palantir providing real value to it?
“The number of patients waiting more than 18 months fell to just 10,737 by April – down by more than 90% from 124,911 in September 2021 and by more than four-fifths since the start of January when there were 54,882.” - NHS England
Jim Cramer, who last month said “Palantir is not a real company” eats his words. Now, after the price spiked, he is intrigued by its AI applications on the battlefield. Oh, Cramer…
"I've been very critical of Alex Karp and not just because I thought it was totally unnecessary for him to curse on the conference call, but they had been losing money hand over fist. They made money, $17 million, and they actually forecast GAAP positive, and what they did is pivot." - Jim Cramer, CNBC
Tweet of the week