What is Palantir?
Palantir Technologies is a public American software company that specializes in big data analytics. It performs a deep search of all criminal, financial, medical, communication, and clandestine agency records on the target.
Did you know?
The company’s tech helped locate Osama bin Laden in 2011 and is being used to trace COVID-19 infections, track medical supply chains, and even predict outbreaks in pandemic hot zones.
Detour to the start
Palantir was co-founded in 2003 by Peter Thiel of PayPal fame, went public on September 30, 2020, and its stock price has risen a staggering 166% since then. The company, aside from being highly controversial and in business for over 17 years, has just turned a profit. When whole communities are algorithmically scraped for pre-crime suspects, data is destiny.
Palantir is among us and there’s nowhere to hide if you’re a terrorist or money launderer, but how does it make money and should you invest?
From controversies to straight-up conspiracies, there has been conjecture all around the way Palantir makes money.
Due to the secretive nature of its contract, there isn’t much data available. All we know is that Palantir added 20 new customers in Q2, up 13% year-over-year (YoY). The company’s U.S. commercial revenue grew a whopping 90% YoY in the quarter boosted by it closing 62 new deals each of which were valued at more than $1 million or more. The same report also showed that Palantir exceeded analysts’ expectations for revenue by making $376 million versus the expected $352.3 million. Moving on to the investment aspect – Is Palantir a good investment?
Palantir estimates that its total addressable market (TAM) is roughly $119 billion and some analysts project revenue to reach $9 billion by 2026. It’s on its way there as the company projects annual revenue growth of 30% or more for 2021 through 2025.
The highly secretive company is controversial as it is an advocate of greater surveillance since it aids in its capabilities; additionally, its software has been used to identify working illegal immigrants to aid in their deportation. That being said, the company has a unique product that no doubt serves various clandestine agencies and government contracts are often very lucrative. At the end of the day, if you don’t mind turning a blind eye to the company’s ‘ dealings’, it can be a good investment in the long run.