2024-02-19 10:19:21 ET
Summary
- I’ve been a long-time user and supporter of Palantir Technologies' products, particularly Foundry, and became a shareholder when the company direct listed.
- Palantir's growth has slowed in recent years, but I believe the company's new products, such as Apollo, AIP, FedStart and OSDK will reignite top-line growth.
- I’m bullish on Palantir's long-term potential but cautious about the current valuations and the need for consistent revenue growth to justify them. I give a hold rating and $25 price target for year-end 2024.
- I’m excited to cover the stock over the coming quarters, expect articles quarterly or semi-annually.
I have known and been following Palantir Technologies ( PLTR ) since 2016. I was first introduced to their employees as they implemented foundry at my employer - Foundry provided us an avenue for better data visualization, assisted us with data flow, and day to day operations to and from our deepwater oil and gas facilities. During the implementation of Foundry, and working extensively with a group of extremely intelligent data scientists and forward deployment engineers, I promised the engineer leading the project that if Palantir ever went public I would be first in line to grab shares. I explicitly told him "I don’t want to just be a stakeholder in Palantir’s success but I want to be a shareholder in its success."
At the time of the direct listing in September 2020, I was moving back to the country from working as an expat overseas. Four years strong of using Foundry first-hand, I had seen the movement they had begun on the commercial side. Use cases and expansion into different industries exploded - I was excited to become a shareholder. On Wednesday, September 30th , 2020, I had just landed at JFK airport and was on the train to Jamaica station as my $10 limit buy order went through. And there it was, I kept my promise, I was a shareholder and stakeholder in Palantir’s (hopefully future) success. I will say, at that time, buying that much stock in any company was a large position for me. But over the next three years, I quadrupled it anyway and the position is where it is today....
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For further details see:
Palantir: A Long-Term Bet With Short-Term Headwinds