It’s not every day that a company with the potential to change the world emerges on the scene. Palantir Technologies is one of those companies. With its innovative data analytics and big data capabilities, this software company has created a new way for people to interact with information. And with government agencies like the US Army investing in their software, it doesn’t seem too far-fetched that Palantir could become our generation’s Microsoft or Apple.
Co-founded by Peter Thiel, Alex Karp, Stephen Cohen, Nathan Gettings, and Joe Lonsdale, Palantir has been in business since 2003 with its headquarters recently relocating from Silicon Valley to Denver, CO. The company is a “data mining powerhouse” and provides software engineering and data analysis, with services offered in compliance, cyber security, information assurance, identity management, data integration and predictive analytics.
On September 30, 2020, Palantir debuted on the New York Stock Exchange with an opening share price of $10 and is currently trading just above $21, having dropped sharply from its top position of $45 in January 2021 and again on June 28 when it met resistance at $27.47.
Palantir software is the big draw for investors, having created a system that allows people to interact with information in a way never before possible. Users can combine data sets and create a streamlined view of what’s going on in their world like never before. Palantir also understands language and can identify connections between seemingly unrelated pieces of data. Their three products are named Gotham, Foundry and Apollo.
Gotham is Palantir’s flagship product and can be used to track terrorist cells, find credit card fraudsters or even predict the likelihood of a car crash. Foundry is Palantir’s real-time operational intelligence software, and Apollo offers more traditional BI (business intelligence) products and services, which helps organizations of all sizes derive measurable value from their information.
The US Army was an early investor in Palantir and continues to use the company’s software for data analysis. While Palantir has a somewhat questionable habit of working with Government agencies and contractors like the NSA, Pentagon, FBI and Lockheed Martin, they are building partnerships with Fortune 500 companies like IBM, Amazon and Airbus as well.
Wall Street, Hedge Funds & The Apes
Palantir is a company that has seen its share of ups and downs in the stock market. Their DPO was highly anticipated by Wall Street but, unlike other successful IPOs like Facebook or Google, Palantir’s debut as a public company was not as successful. It’s been rough making it onto Wall Street’s list of top stocks, but Palantir has been climbing the ladder for some time now and it seems to be outlasting those who are betting against it in an effort to make a quick buck.
Options traders aren’t a fan of the stock and on July 15 purchased over $609,881 worth of bearish put contracts. A few options traders chose a strike price of $16—implying they believe Palantir will fall about 25% over the coming months.
The WallStreetBets community on Reddit (the Apes of Trading), on the other hand, have Palantir listed as the #7 top pick for the month of July, indicating their support for the stock even though it doesn’t fit their usual criteria for selection.
Overall, investors are still betting Palantir will succeed, as evidenced by the high number of “buy” ratings in comparison to “sell”, suggesting that Palantir is certainly a company to keep an eye on.
With data analysis and predictive modeling software solutions on the rise, Palantir has positioned itself as an authority in the field. Often referred to as “The World’s Most Powerful Company”, Thiel and Karp have revolutionized the way government agencies react to crisis in real time. With their software now being used by NYPD in New York City, the US Department of Defense and at least two dozen other federal agencies, investing in this data-mining powerhouse is worth considering.
While the Big Data space is rife with competition, Palantir Technologies continues to grow and innovate every year, so it’s safe to say they’re here to stay!