Thiel of Fortune: Why Palantir Keeps Printing Money Despite Analyst Downgrades

When it comes to the brilliant tech minds of our day, very few hold a candle to Peter Thiel's package of a brain. We all know he’s the real man that put Elon Musk on the map and if it wasn’t for his Magnum XL sized pocket books or his expert guidance… Facebook probably wouldn’t have soared to the behemoth it is today. So it’s no secret that there’s a midas touch aura that spawns up when the mighty Man of Thiel blesses a company. 

(Source: Guardian) 

Which is why it’s no surprise that Palantir Technologies (NYSE: PLTR), founded by the tech wizard himself, is on a tear, riding the AI wave like Al Gore rode Bill Clinton’s presidency. 

(Source: Imgflip) 

So what’s the deal Palanthiel? (Man I’m on fire today hehe). 

Well first up, Palantir’s stock has recently been like a caffeine-fueled squirrel—constantly climbing. 

(Source: InvestorPlace) 

The stock has gained over 52% year-to-date and a cool 8.06% in just the last five days, trading at $25.49 as of July 1. Yet, just when you thought it couldn't get any better, Palantir decided to buddy up with Voyager Space. Yeah, the same Voyager Space that’s been on over 2,000 spaceflight missions, which makes Peter’s old shadow Elon Musk look like he's playing with model rockets.

(Source: IBT) 

But with that said, this partnership is more than just a handshake deal. Palantir is supplying software data management solutions for the planned Starlab commercial space station. If that sounds like something out of a sci-fi novel, it’s because it pretty much is. 

Palantir’s AI systems are now in the mix, helping Voyager Space with everything from defense solutions to managing payloads for International Space Station customers. 

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Now that may sound cool and all, but let’s address the elephant in the room—the buzz killers of Wall Street aka the analysts. Monnes, Crespi, and Hardt recently slapped Palantir with a "Sell" rating and a target price of $20 per share. 

(Source: MarketBeat) 

The reason is because according to analyst Brian White, he thinks Palantir’s valuation is hitting extreme levels, like every white girl in America’s Starbucks bill during Pumpkin Spice Latte season. With a P/E ratio of 211.08, it’s definitely easy to see why. But here’s what’s interesting. Palantir's stock didn’t even flinch - It kept trading higher despite the downgrade. 

(Source: LinkedIn) 

Why? Because Palantir has been raking in defense contracts left, right, and twice on Sunday. Not only did the US Army extend their Maven Smart System contract with Palantir for five more years, at nearly $90 million annually - but $PLTR also signed an additional $480 million deal with the DoD Chief Digital and AI Office. So, while analysts are busy being pessimistic, Palantir’s out here making bank.

(Source: Youtube) 

But what about the actual financials of the company you ask? 

Well in Q1, Palantir’s revenue jumped 21% year-over-year to $634 million. US government contracts alone brought in $257 million, up 12% YoY. This sealed the deal for Palantir being profitable for six straight quarters in a row, pulling in $106 million in GAAP profits. 

And let’s not forget the $19 million deal with the Advanced Research Projects Agency for Health to improve healthcare services using machine learning. “Can I get another Palantini please” - every US Government agency probably. 

Oh and guess what? Palantir’s commercial revenue is also booming, up 40% YoY to $150 million, as their client base jumped 69% YoY to 262 clients. For Q2, Palantir expects to pull in between $649 million and $653 million. So uhh yeah, as we can all see, they’re basically printing money at this point. 

(Source: Giphy) 

In fact, BofA Securities just added Palantir to its top 10 best U.S. ideas list for Q3. Interesting… and this happens all while every analyst with an overinflated salary is issuing downgrades? Yeah makes sense. 

(Source: Medium) 

So what does this mean for investors like you and I? Well while this write-up may sound like a highlight reel for Palantir, it’s completely clear as day that this company is riding the AI boom like a tech cowboy. There’s no if’s and’s or but's about it. 

With AI-driven revenue growth and a strong defense contracting pipeline, Palantir is the stock that keeps on giving. Sure, it’s got a high P/E ratio, but when you’re a crucial cornerstone of the AI industry, you can afford to be a little pricey.

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So while buzz kill analysts try to find every reason to throw stones at Peter and his AI golden child, Palantir might just be the stock to add to a well diversified portfolio. But hey what do I know? I’m just the messenger here. So please act accordingly…

And please, please don’t be like this guy: 

(Source: Reddit) 

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