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.
