PLTR Boot-camps

Last week I posted why I like Palantir so much, well seems like I am not the only one.

Bloomberg just a released a piece about the effectiveness of Palantir's boot-camps and how they are a serious driver for growth. The article is behind a pay-wall so you will need a subscription to read the full article. But of course time is money, so I am summarizing the main points of the article below.

Practical Demonstrations: Palantir's boot-camps are effective because they allow potential clients to see and use the software in real-time with their own data and operational context. This hands-on approach helps demonstrate the immediate practical value of Palantir's solutions, distinguishing it from theoretical use cases.

Speeding Up Adoption: The boot-camp model helps bypass traditional, lengthy procurement processes. By facilitating direct engagement and quick integration into client workflows, the model accelerates adoption and builds trust, which is essential for forming long-term customer relationships.

Network Effect: Bootcamps create a community of users and advocates well-versed in Palantir's platforms, enhancing the software's value as more clients use and recommend it. This community can organically expand the user base as boot-camp alumni host their events, further driving adoption through word-of-mouth.

Exponential Demand: Critics, like who doubts the scalability of the boot-camp strategy without a traditional sales force, are answered by Palantir’s executives who explain that the exponential demand for their AI solutions makes traditional sales approaches ineffective. Instead, boot-camps are the preferred method because they meet the demand more dynamically and effectively.

Broader Impact and Validation: The strategy not only simplifies the client acquisition process but also contributes to a robust ecosystem where each client’s success feeds back into the system, enhancing the software's capabilities and appeal. This approach aligns with modern purchasing preferences that favor trial before purchase and has gained significant recognition.

Conclusion:

Firms off all shapes and sizes will continue to buy PLTR's software to analyze their operations, meaning these guys will just continue to grow and keep making money. 

Buy PLTR. 

You will thank me in the future. 

Why I love Palantir

So by this point we know how important Artificial Intelligence is... if you watch any financial news they keeping telling you we are living in the AI Gold Rush. And since its a gold rush.. we all want to make money off this by investing in firms that will grow with this AI, right? 

Well, in my professional opinion, the best firm that will capitalize on the data behind AI revolution is Palantir. 

The next PLTR quarterly report (for Q1 2024) is scheduled for May 6 and it's going to be huge. 

However, prior to this, I wanted to highlight exactly why I am so bullish on this company, and why this firm will become the next Microsoft. 

1. Innovative Technology:

Palantir's Artificial Intelligence Platform (AIP) is a sophisticated tool designed to help organizations analyze large amounts of data to find patterns, make predictions, and make decisions. Think of it like a very advanced set of tools that can take a lot of information—from things like financial records to social media data—and use it to help people see connections or trends they might not notice on their own. This can be particularly useful for businesses or governments that need to solve complex problems or plan their strategies based on data-driven insights.

Here are ten real-world examples where Palantir's technology has been applied in various fields at different organizations. 

1. Merck KGaA: Palantir helped streamline supply chain and production processes, enabling more efficient drug manufacturing and inventory management. 

2. Ferrari: The company used Palantir for real-time data analysis during Formula 1 races to make quick strategic decisions and enhance car performance.   

3. Airbus: By employing Palantir's technology, Airbus was able to better manage its global supply chain and manufacturing operations, reducing production times. 

4. U.S. Government (Defense and Intelligence): Palantir's software assisted in analyzing military data to predict insurgent attacks and optimize logistics, improving safety and operational efficiency.  

5. BP: Palantir's tools helped integrate and analyze drilling data, leading to improved maintenance predictions and higher productivity in oil exploration.  

6. JP Morgan Chase: The bank used Palantir's software to detect fraudulent activities by analyzing transaction patterns, which helped prevent potential financial losses.  

7. Los Angeles Police Department (LAPD): Palantir technology was used to analyze crime data, which assisted the LAPD in predicting crime hotspots and allocating resources more effectively.  

8. Credit Suisse: Palantir helped analyze financial risks and client data, aiding Credit Suisse in better understanding market trends and client needs   

9. Scuderia AlphaTauri (Formula One Team): The team implemented Palantir's technology to optimize race strategies and car setups by analyzing performance data. 

10. Pandemic Response (Various Governments): During the COVID-19 pandemic, Palantir's platform was used by governments for outbreak tracking, resource allocation, and managing public health data to coordinate response efforts effectively.

These examples illustrate how Palantir's software can be applied across various industries to solve specific problems by making sense of complex data sets.

2. Diversification Thru Strategic Government and Commercial Contracts:

A significant part of the excitement stems from Palantir's growing list of high-profile customers, which includes government agencies like the Department of Defense and large corporations like Airbus. During times of geopolitical tension or economic instability, secure and efficient data processing becomes even more critical, potentially increasing the dependency of such organizations on Palantir’s software. The long-term contracts with these entities not only provide a stable revenue stream but also a stamp of credibility and reliability that attracts other customers. Diversification! 

3. Growth Potential:

The application of AI and big data analytics is expected to permeate all levels of business operations and national infrastructure. Palantir’s ability to scale its operations and adapt its offerings to a variety of industries—from healthcare to automotive—positions it well to capitalize on this expanding market. Its involvement in AI and public safety projects, like predicting crime hot spots or optimizing supply chains, showcases its integral role in future technological deployments.

Palantir's recent growth has been driven by its AI platform (AIP), which utilizes generative AI to provide businesses with essential insights quickly. Moving away from the slower traditional pilot methods, Palantir has adopted a "boot camp" approach. These boot camps are designed to identify valuable AI applications for clients within just 5 days, allowing Palantir to implement real workflows using actual customer data much faster than the usual one to three-month timeline of traditional pilots. 

A few recent highlights from these boot camps have been Lowe's and GM. Lowe's claims they save $40k a day since implementing Palantir's AIP Customer Service Engine. GM saves something similar after deploying the AIP Supply Chain engine. Big firms love saving money and PLTR is helping them do just that. 

These boot camps are highly in demand and will lead to explosive growth for the company. 

4. Financial Performance:

Palantir has achieved profitability in four consecutive quarters, qualifying it for potential inclusion in the S&P 500 index. This is crucial because when a stock is added to the S&P500, funds that follow the index start buying the stock, driving its price up. The company also reported that its private sector revenue increased by 70% year-over-year in Q4 2023. Additionally, Palantir now serves 221 commercial customers, marking a 55% increase from 2022. And according to internal leaks, that number of commercial customers has increased dramatically already in Q1.

So in short.. the numbers are looking good and May's earning call should confirm this. 

Conclusion:

Firms off all shapes and sizes will continue to buy PLTR's software to analyze their operations, meaning these guys will just continue to grow and keep making money. 

Buy PLTR. 

You will thank me in the future. 

The Ecstasy of Gold

As the prices of gold reaches all time highs (see chart below), I wanted to share this pretty simple image that explains it all. As the whole world complains about inflation, its nice to remembers there are some assets that are true hedges against currency devaluation.

So, should you invest in some gold? Probably. Here's some history...

Over the last 50 years, the perception and role of gold as an investment have evolved significantly. Traditionally, gold has been a favored asset for its dual ability to act as both a hedge against inflation and a "safe haven" during periods of economic uncertainty. In the 1970s, as inflation spiked due to various global economic crises, gold prices skyrocketed, peaking dramatically in 1980. This era solidified gold's reputation as a protective asset against inflationary pressures. However, the following decades saw periods of both boom and bust for gold as global economic conditions changed, with prices dipping in the late 90s and early 2000s, then surging again during the financial crisis of 2008. The advent of gold-based financial products, such as ETFs, has also made gold investment more accessible and attractive, integrating it more deeply into the global financial system.

Addressing the comparison between home prices and gold, it's a fascinating illustration of gold’s purchasing power stability. Roughly 50 years ago, the average price of a home in the U.S. could have been around $25,000, which at the time would equate to about 10 bars of gold, given that an ounce of gold was approximately $35 and each bar could be around 400 ounces. Fast forward to today, although the price of homes and gold in dollar terms has increased, the relative value in terms of gold bars has intriguingly remained comparable; this outlines gold's strength in maintaining its purchasing power over long periods. This characteristic is why gold is considered a hedge against currency devaluation. As currencies lose value due to inflation or other economic factors, gold prices often increase, which helps preserve the wealth of those who hold gold in their portfolios. Thus, investing in gold can be a strategic move to protect against fiscal erosion in the face of unstable economic climates.

Now... if you don't want to invest in gold, you can flock to BTC as many investors call it the "digital gold", however just remember that both gold and bitcoin are currently selling at or near ATHs.