Is Palantir a good investment?

There is no doubting the fact that Palantir Technologies ($PLTR) is one of those companies that are beginning to make headlines. This company which has proven to be an expert when it comes to big data analytics has raised lots of eyebrows in recent times. 

This post will be revealing everything that you need to know about Palantir Technologies ($PLTR). Is it a good investment and what they do that others don’t?

Brief history of Palantir Technologies (PLTR) and their products

Palantir Technologies (PLTR) is a company which came into existence in 2003. Its founders are Nathan Gettings, Joe Lonsdale, Stephen Cohen, Alex Karp, and Peter Thiel. It is quite fascinating to find out that this company got the idea of its name from “Lords of the Rings”. There are 3 major products which have succeeded in bringing this company to the limelight over the years. These are:

• Gotham
• Foundry
• Metropolis

Palantir Gotham

This is one of the most recognized software for data analytics. It is a platform created to enable organizations in combining, protecting, managing and analysis of big data. This platform has been developed to work with some tools for effective results to be achieved. Through the use of such tools, it becomes possible to carry out full-text, geospatial, temporal, and semantic analysis.

Gotham is used by offices which are into counter-terrorism in the USIC (United States Intelligence Community), investigators of fraud at the Recovery Accountability & Transparency Board, Information Warfare Monitor cyber analysts, and United States Department of Defense. 

Gotham works in a very simple way. It is responsible for the integrating and transforming of raw data into information that is coherent. As data flows into this platform, such is then transformed into meaningful objects like events, things, places and people.

Palantir Foundry

Foundry has been created to reimagine how data is used by people. It does this via removal of barriers between front-end data analysis and back-end data management. Foundry facilitates the sourcing, connecting and transforming of data into any desired shape. Its major aim is to ensure that people are able to work effectively using data without any restriction. Through its front-end capabilities, users can explore the data of their organizations. 

With Palantir Foundry, organizations are able to make their operations analytical. It also ensures transparent data governance and granular data security. Some of the corporate clients who make use of Palantir Foundry are Fiat Chrysler Automobiles NV, Airbus, Merck KGaA, and Morgan Stanley.

Palantir Metropolis

Palantir Finance is what this was initially called. This software was created for the purpose of information management, data integration and quantitative analysis. It connects to various types and sizes of data. These could be public, proprietary and commercial data. Its primary aim/goal is to find out anomalies, trends, and relationships on data.

Simply put, Palantir Metropolis is a software for data integration. It has been developed to unify information that seems to originate from different sources. After the integration process has been completed, it will then begin to analyze such data to aid the decision making process in organizations. It is very useful during quantitative investigation. Some organizations that make use of this software are financial services firms, banks and hedge funds companies.

Gotham is targeted at the military as well as the government. It is a product that is meant to improve security at government level. Metropolis on the other hand is a product that has been developed for retailers and financial establishments.

What Palantir technologies is about

Just as said above, this company is into the development of software which enables major organizations (both private and public) to collect, interpret and manage data. It is a company which has managed to build a solid reputation since coming into existence in 2003. For instance, it hasn’t only handled contracts for the US government. In addition to such, it has been able to secure major contracts from governments around the world. Its goal and mission is very simple to grasp – help organizations interpret their data in the easiest way possible.

Just as explained in the previous section, its products have become very crucial for retailers, hedge funds companies, military, CIA and FBI. There was a period when Palantir software was used by the Pentagon in tracking deployment of roadside bombs. After a series of investigations with the help of such software, it concluded that the remote detonators were garage door openers.

Palantir technology is quite advanced as compared to those of other companies which are into analysis of big data. This has given it the edge in terms of performances and results. There is no other software or system that can interpret big data as quickly as possible like that developed by Palantir. Its data processing algorithm is second to none. This enables it to search through bulky data at an amazing rate.

Why is Palantir unique and different?

On the 26th of January 2021, Palantir took the world by storm with its demo. The first thing you will have to note about this demo day was that it was customer and product oriented. Secondly, it was a huge success. For the first time ever, this company plans to delve into something new which is the release of a proprietary software. Investors were eager to find out how the software functions including its features.

January 26th was a clear demonstration of how Gotham and Foundry software have been developed to function. Apart from being used by manufacturers, commercial customers and government agencies, investors are also going to be shown how Gotham and Foundry are being powered in any surrounding via Apollo, a delivery software.

Simply put, the demo is to enable investors to have a glimpse into the functionalities and features of Palantir software. For instance, it was reported that the administration of former US President, Donald Trump, awarded a contract worth $1.5billion to Palantir to use its software. This decision was facilitated by the fact that big data needed to be stored and accessed quickly due to the pandemic. The problem was that people never knew how such software was being used by the government.

Therefore, the demo held on the 26th of January would provide them with the chance of learning how Palantir software works when used in big organizations (both private and commercial). The software does not just gather raw data. Instead, it has a way of unifying them to facilitate decision making. With this software, data that is supposed to take months and years to unravel can be resolved within a few hours.

What they showed us on demo day?

On the 26th of January 2021, Palantir took the world by storm with its demo. The first thing you will have to note about this demo day was that it was customer and product oriented. Secondly, it was a huge success. For the first time ever, this company plans to delve into something new which is the release of a proprietary software. Investors were eager to find out how the software functions including its features.

The demo was a clear demonstration of how Gotham and Foundry software have been developed to function. Apart from being used by manufacturers, commercial customers and government agencies, investors are also going to be shown how Gotham and Foundry are being powered in any surrounding via Apollo, a delivery software.

Simply put, the demo is to enable investors to have a glimpse into the functionalities and features of Palantir software. For instance, it was reported that the administration of former US President, Donald Trump, awarded a contract worth $1.5billion to Palantir to use its software. This decision was facilitated by the fact that big data needed to be stored and accessed quickly due to the pandemic. The problem was that people never knew how such software was being used by the government.

Therefore, the demo held on the 26th of January would provide them with the chance of learning how Palantir software works when used in big organizations (both private and commercial). The software does not just gather raw data. Instead, it has a way of unifying them to facilitate decision making. With this software, data that is supposed to take months and years to unravel can be resolved within a few hours.

The software of Palantir is not about having solutions simplified for the purpose of scaling. Instead, it is about automating complex information for the purpose of accelerating solutions. At different levels, grunt work is fully automated by PLTR software.

A statement that PLTR later released claimed that customers don’t just have the permission and ability to make use of the software but can also create their own SaaS (Software as a service) products. This means that you can easily create any software from its dash board which doesn’t require any knowledge about coding or experience.

Simply put, in-house tools can be easily built by customers. Do you remember how Microsoft was able to build a platform which enabled customers/users to create macros, graphs, charts and more using Excel? This is one brilliant move from Palantir Technologies.

The Gotham demo

The Gotham demo must have swept many people off their feet. It showed that PLTR is standing head and shoulders above other competitors at the moment. For instance, complex and complicated data was made to look simple. It didn’t just manipulate the data to provide feedback but such was done in record time.

Of course, all of these were carried out based on restrictions and permissions. Gotham can also function at the edge. It could be on ships, aircraft, or even vehicles. That is not all as the tools can also function when offline. Whatever environment it is used in, you can always expect uncompromised performances. There will not be any problem like limited bandwidth or poor access to the internet.

The demo looked like it was straight from a video game which is what made it so impressive. All of the data processing and in the back, combined with the amazing interface is what amazed everyone. Here you can have a look for yourself:

You can have a look at the whole demo day here.

Is Palantir a good investment?

All of these only point to one fact – Palantir(PLTR) has succeeded in taking AI (artificial intelligence) to another level which most individuals and companies never thought was possible. This company is only giving us a glimpse of what AI will be like in the future.

Although the company has really impressive innovations in the AI and data mining fields, some people don’t believe that it is managed right. For example, Forbes describes it as a “cash furnace” due to the fact that they used around $165 million for their operations which wash only 22% of their revenue(2019). It is 323% more than in the previous year (2018) but the revenue didn’t have such an increase. It was up only 25%. Other investors avoid it due to political or ethical reasons.

As one of the most innovative data mining/analysis company, Palantir has a great potential for growth. One of the people who belives in that is Cathie Wood from ARK Invest. This week alone she increased their position to roughly 7.7 million shares of PLTR stock. Her investments are always have something in common and it is innovation.

Having said all of the above, one thing is sure: Palantir is controversial but they really offer products that have less to no competition. Will their stock price rise? No one knows but if they continue developing great software and stay away from political scandals, the sky is the limit.

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