Palantir(NYSE:PLTR) stock is a thoroughbred growth stock. It has an asset-light business model, solid government contracts, and a staggering amount of cash.
In recently reported earnings,it hit the ball out of the park once again. Both revenue and earnings figures beat analyst estimates. And guidance was also upbeat. Then why has PLTR stock lost a third of its value in a recent sell-off?
Well, here is where it gets interesting.
Investors are demanding when it comes to Palantir. They saw the potential, and they liked it. After all, that is what drove them in droves to the stock when it made its colossal debut last year. Much like every other tech IPOthese days, investors made money hand over fist.
But there are a few things peeving stockholders. First, they want the commercial business to start producing the goods. Palantir has an excellent record when it comes to government contracts. But the commercial business is not as successful. Investors want diversification in the revenue mix. Hence, it is a major factor affecting investor sentiment.
Potential regulatory activity is the other issue hanging over PLTR stock like a dark cloud. Due to the close association of Palantir and the defense establishment,certain members of Congress have taken issue with the big data company. In particular, the company’s contracts with the U.S. Immigration and Customs Enforcement (ICE) have come under fire.
However, Palantir is a solid enterprise that is consistently expanding. For example, Palantir has developed a new service that will support compliance regulations for cryptocurrencies. Cryptocurrencies are a hot commodity with an exciting future ahead. With cryptocurrencies being so popular and institutional adoption legitimizing this new industry, it is a potential game changer. The rest of its business is also growing nicely.
Palantir’s Expanding Commercial Business
Palantir offers multiple products to companies and governments for improving information gathering, operational capabilities. Its various platforms have wide applications across industries. The U.S military and other government agencies use Palantir’s investigative analysis capabilities to solve crime in America, abroad, or anywhere where users can apply its data-driven software.
The use of AI in government is widespread. With their Gotham platform, large organizations like Palantir have made it possible for them to integrate massive amounts of data into one operating system, which these powerful programs can then analyze – it allows analysts to perform due diligence on a massive amount of data at lightning speed.
Palantir’sFoundry option is a simple data pipeline that brings together back-end and front-end information so you can access it with ease. This breaks down barriers to understanding. It is especially helpful for those who need help managing or analyzing large sets on their own, whether they’re in corporate America looking at customer relationships across departments or an intelligence agency trying to make sense of unforeseen threats before they happen.
Palantir is expanding its Foundry offering in a big way. The company rolled out “Foundry for Builders,” an end-to-end analytics platform targeting startup companies. Palantir has added 10 more companies to its Foundry for Builders SaaS platform in October of this year – startups from all over are now using it as their go-to growth accelerator.