PLTR - Palantir After Q1 Earnings: Market Misreads Metrics AIP Bet Still Valid

2024-05-24 16:59:37 ET

Summary

• Palantir's US Commercial Total Contract Value (TCV) grew by 131% year-on-year in Q1, ahead of Q4 2023's 107% growth figure. This indicates Palantir is successfully scaling AIP, in my view.
• I believe the market overreacted to certain metrics reported in Q1, such as Palantir's overall US Commercial Revenue Growth. In my view, these metrics are not as meaningful as TCV.
• I see further catalysts for Q2, including the Oracle partnership, announced in April and not reflected in Q1 earnings yet, and the launch of the Mixed-Reality OSDK.
• Overall, I believe this stock remains an asymmetric bet on AIP. I see Palantir becoming the Salesforce of AI, and my personal target is 5X from current prices.

In my last article about Palantir Technologies Inc. ( PLTR ), published before Q1 earnings on May 5th, I argued how the company represented an asymmetric bet on its Artificial Intelligence Platform ("AIP"). In this follow-up, I examine the details of the latest earnings and go over some new elements that I see as catalysts for Q2 - namely the Oracle partnership (not reflected in Q1 earnings yet, in my opinion) and the launch of Mixed-Reality OSDK....

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