- As speculators circle around Palantir from both the long and short sides, trading volatility has obscured the fundamental picture as to whether the company commands a sustainable competitive advantage.
- In this article, I intend to have an under-the-hood look at Palantir as a 'digital resources' play to answer that all-important question.
- I believe its Gotham, bundled with forward-deployed field service representatives, has surmounted the barriers to entry and now enjoys switching cost advantage and emerging network effect.
- As it diversifies into adjacent commercial verticals through Foundry, Palantir will benefit from economies of scope and scale. Profits will ensue.
- Shareholders are betting on Palantir's success in completing the digging of a wide moat. The less anticipatory investors may want to wait until such a moat becomes reality.
For further details see:
Palantir Technologies: An In-Depth Look At Whether It Have A Sustainable Competitive Advantage