Yes, I do follow Palantir products and stock as I have a small “try out” position in my US portfolio. Its products are being used by many developed country governments for various purposes. They primarily build analytic software by converting unstructured to structured data and finding smart relationships between various entities. That way they provide actionable insight on cost saving/possible terrorist attacks/tracking entity activities etc… As government orders are a bit lumpy, they want to sell their products to commercial customers as a subscription basis.
Their products require a stiff learning curve to know its usability. It requires quite a bit of manual process to tag various entities for software to generate actionable insights. It also requires significant effort to navigate through its software for locating/generating desired output.
Here comes the Generative AI for their rescue. Now the user does not need to click many times to reach a specific screen/generate specific output. User just needs to ask a specific set of questions (as we do using chatGPT) to obtain the desired output. This significantly improves usability and reduces the learning curve for users to use their complex software. Also this is a rare software company which is GAAP profitable. These are the reasons why stock is shooting up to the moon since reporting last ER.
Having said all that, I doubt these gains are sustainable for the long run. I think at best stock is a “Show Me” story, at this point of time. Even after many years in operation their commercial customer counts are mere 200 or so. Soon they need to ramp up onboarding commercial customers to report above average revenue growth and justify present stock gains.
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