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Palantir

Fundamentally Speaking:
Palantir Technologies Inc (NYSE: $PLTR) builds software platforms for Institutions. The Company operates two segments: Commercial, which serves customers working on Non- Governmental Industries and Government, which serves customers that are agencies in the US Federal Government.

$PLTR’s strategy to build digital infrastructure for data driven operations and decision-making processes required by data driven companies. $PLTR seeks to become the next industry default software

The Current “Total Addressable Market” (TAM) for PLTR in S1 estimates is approximately 56 billion for commercial operations and 63 billion for government side, making a total of 119 billion. Most businesses that use data are $PLTR’s potential customers.

The Problem: There’s has never been more data than ever before. However, many organisations do not have an integrated data system to manage their data. Therefore, the data is there, but it cannot be effectively used.

The Solution: $PLTR provides an integrated operating system to help organisations to easily aggregate and manage their data. It allows people to make data-based decisions while providing insights/potential solutions to the decisions making process.

The Tailwind: $PLTR is riding the wave of big data. There has been more data than ever. Data is the new oil and $PLTR have the potential to be the new shovel.

The Products: $PLTR offers two main software platforms:  Gotham and Foundry.
Gotham is $PLTR ‘s data operating system for governments to drive global decision making. Gotham was built for analysts at Defence and Intelligence agencies and was first offered in 2008. Gotham was designed to protect the US and its allies, who share western liberal culture. Gotham collects near real time data from millions of sensors, e.g. cars, drones, fighter jets, satellites, operated by thousands of users, and combines it into a single operating system. Gotham also uses AI to suggest actionable plans off real time, for better decision making.

The US Airforce, Space force, Navy and Army all use Gotham. This indicates the US government’s trust of $PLTR, as many life and death decisions are made on Gotham. Gotham is also used in emergencies, such as Covid, by the CDC and the UK department of Health.

Foundry is $PLTR’s commercial version of Gotham, which aims to become the data operating system for the modern enterprise. Foundry integrates billions of rows data across different sources and allows the decision maker to make data-driven decisions. Foundry builds a ‘digital twin’ for organisations. A digital twin allows organisations to run online simulation when they want to implement a new change. The digital twin allows companies to ask “what if” questions and analyse the impact of one change to the entire business. In other words, Foundry aggregates data from scattered sources, allows decision makers to make data-based decisions, provide recommendations to optimise the business, and reveal consequences of each decision.
Foundry provides organisations with a decision and data advantage.

Without Code Both Gotham and Foundry allows people who cannot code to make decisions based off data via visualisation. This is appealing as many today may not be able to code. Identifiable outcomes Not like some SaaS companies, Foundry can generate measurable outcomes, making the decision to use Foundry much easier. For example, a global bank with Foundry is able to access customer information for compliance 90% faster than before.
source data: Fintwit: joshua tai@JoshuaTai0427

Forward Guidance $PLTR expects the following metrics to be reached:

•             $385M in Revenue

•             Adjusted Operating Margins of 22%

For full year 2021 the company expects:

•             Adjusted FCF of $300M+

The company is also focused on maintaining a 30% Revenue CAGR through 2021 into 2025.

The Opportunity $PLTR represents one of the best investing opportunities available in the tech space for a long time. By casting a wide net on a booming “Total Addressable Market” (TAM) and offering some of the best-engineered products in the Big Data realm which $PLTR, is poised to capitalize apon. This opportunity is not without its risks and is bound to subject investors to some headaches regarding controversy and rich valuations.
source data: MT Capital

Technically Speaking: $PLTR’s technical chart setup is indicating the development of a base formation with a range of $28.00 high and $17.00 low. If the stock can close above $28.00 on a weekly basis, the first reachable target is $38.50 (+38%).
source data: Sharenet

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Dylan Bradfield

Portfolio Manager

Dylan joined Sharenet in 2020 to fulfil the role of Portfolio Manager for Local and Offshore client portfolio strategies after having served 13 years as a senior member on the dealing and derivatives desk at Foord Asset Management.

He studied at the University of Cape Town and completed his B.com degree in Economics and Finance, and has also completed all of the South African Institute of Financial Markets (SAIFM) Registered persons exams (RPE).
Dylan is one exam away from completing his CFA designation.