Report Blog Entry
Palantir (NYSE: PLTR) continues to rise since its October public offering, adding 17 billion in market valuation in the past week.
The deets: The company, co-founded by Paypal’s Peter Thiel, is a big data analytics firm contracting for the US government Department of Defence. Some people are chalking the meteoric rise in Palantir’s share price to the election of Joe Biden, who may influence US defense policy in favor of Palantir. Others believe it is due to pure speculation with the company “no longer a stock but a full casino".
Thoughts: Data analysis tools for surveillance are becoming increasingly popular amongst government and commercial customers. However, at 50x expected 2020 revenue compared to other publically traded government contractors that trade at below 3x revenue, the market seems to be taking into consideration these growth prospects.
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Seth
Palantir is the first government contractor to merge datasets between FBI and CIA. I think the bad far outweighs any good that comes from merging the powers of multiple intelligence agencies. It is even more interesting when you read into their products/services offered to other private sectors such as financial. The bureaucracy of government is ripe for disruption from new players such as Palantir. I think they're going to be doing quite well financially in the coming years.