A holding company called Palantir Technologies, Inc. creates software and data integration solutions. The Commercial and Government sectors are how it functions. Services are provided to clients in the private sector by the commercial segment. The Government section offers solutions to both the federal government of the United States (US) and other governments.
The company provides services in the areas of automotive, financial compliance, legal intelligence, and mergers & acquisitions. Palantir Gotham and Palantir Foundry are some of its products. The business, which has its headquarters in Denver, Colorado, was established in 2003 by Stephen Cohen, Nathan Dale Gettings, Joseph Lonsdale, Alexander C. Karp, and Peter Andreas Thiel.
Artificial Intelligence: An Engine for Growth
Artificial intelligence software is cited by proponents of the PLTR stock as a growth engine. With government clients, Palantir has already tapped into the AI possibility for intelligence gathering, counterterrorism, and military uses. Will generative AI boost PLTR stock’s commercial market growth? The software developer has branched out into manufacturing, energy, and healthcare.
Customers of Palantir may employ generative AI in healthcare settings for things like drug discovery. The “Artificial Intelligence Platform,” the newest product from Palantir, was introduced earlier this year. Palantir said during an analyst conference call for its second-quarter earnings. Palantir claimed that its new AI platform is being used by more than 100 organizations. Pricing for AI products has yet to be made public by Palantir.
Basics of the PLTR Stock
Karp and Palantir co-founder Peter Thiel have long-term influence over the company due to Palantir’s governance structure, which grants them super-voting privileges. The palantiri, which are crystal-like “seeing stones” in the “Lord of the Rings” book and film series, are the source of the firm name. Palantir translates to “one who sees from a distance.” Additionally, Palantir engineers frequently modify software to meet customer needs.
As a result, it will take longer to launch “digital transformation” programmes. So it can take some time for Palantir to start making money after winning a contract. The company, situated in Denver, provides three platforms. One is
Nearly 60% of Palantir’s revenue comes from government organisations. It’s a problem when revenue growth slows down. From 40% in 2021 and 47% in 2020, revenue growth fell to 24% in 2022.
Palantir Creates Partnerships
In Japan, the business fully purchased a joint venture that provides Palantir’s software in November 2022. The largest client is Sompo Holdings, a Japanese insurance company. Then, starting in 2023, Palantir started including the joint venture’s revenue in its earnings reports.
The venture had a $50 million annual revenue run-rate, according to a Morgan Stanley analysis, as of 2023. Additionally, Palantir recently increased the scope of its Microsoft (MSFT) cloud computing relationship aimed at governmental organisations.
Palantir and IBM have joined forces globally to hasten businesses’ deployment of artificial intelligence software. Palantir provided its Foundry software to IBM’s cloud computing clients as part of the agreement.
Stock Technical Analysis For Palantir
The Relative Strength Rating for Palantir stock is 97 out of a maximum of 99. Additionally, IBD Stock Checkup reports that PLTR stock has an IBD Composite Rating of 95 out of a maximum potential 99. IBD’s Composite Rating, on the other hand, creates a single, simple-to-use rating by combining five different proprietary scores.
A Composite Rating of 90 or higher is also a characteristic of the finest growth stocks. Institutional ownership has also declined. The accumulation/Distribution Rating for PLTR stock is D-minus, down from A-minus one month ago.
This evaluation looks at price and volume movements in a stock over the last 13 trading weeks. E denotes heavy selling, whereas A+ denotes heavy institutional buying. Consider a C grade to be neutral.