QV Alert November (1) – Palantir Technologies

This is the first of a planned new series of simple alerts. Palantir is a timely share to buy. Only shares that are 3G (great chart, story, growth) will be considered for simple alerts. The chart shows a V-shaped reversal that hits all-time highs after breaking higher from a 4-year base pattern.

This is what the company said about its latest quarter.

“We absolutely eviscerated this quarter, driven by unrelenting AI demand that won’t slow down. This is a U.S.-driven AI revolution that has taken full hold. The world will be divided between AI haves and have-nots. At Palantir, we plan to power the winners,” said Alexander C. Karp, Co-Founder and Chief Executive Officer of Palantir Technologies Inc.

Alexander Karp, CEO Palantir Technologies, Q3 2024, 4 November 2024

Palantir has a phenomenally exciting story.

The divide between AI haves and have-nots is rapidly accelerating in this winner-take-all AI economy. What will differentiate the AI haves from the have-nots is the ability to maximally leverage these models in production by capitalising upon the rich context within the enterprise. That’s why our focus on delivering proof, not proof of concepts, continues to pay off.

Years of foundational investments in our infrastructure and in ontology have positioned us uniquely to harness and deliver on AI demand. This is Palantir’s focus. The market has been focused on AI supply, the models. We see this clearly in the progress but also in the capital sunk into these models.

Indeed, the models continue to improve. But more importantly, the models across both open and closed source are becoming more similar. They are converging, all while pricing for inference is dropping like a rock. This only strengthens our conviction that the value is in the application and workflow layer, which is where we excel.

Tapping into this rapidly expanding pool of leverage from AI labor means more than just saving money, it means a massive acceleration of results for our customers. As Ryan mentioned, we have automated the insurance underwriting process for one of America’s largest and most well-known insurers with 78 AI agents, taking a process that took two weeks to three hours. More than the labor savings, this presents the customer with an asymmetrical advantage in the marketplace to buying contracts before the competition has even gotten through 15pc of their process. 

[In AI, an ontology is a specification of the meanings of the symbols in an information system. That is, it is a specification of a conceptualisation. It is a specification of what individuals and relationships are assumed to exist and what terminology is used for them – clear as mud, I know, ed.]

Alexander Karp, CEO Palantir Technologies, Q3 2024, 4 November 2024

Palantir feels like an amazing company.

We have 44pc growth in the most important market in the world, arguably not the only but by far the most valuable market in the world, while having a rule of 68, i.e., the best in the world. And we’re going to maintain the contradiction of having both high margins and high growth. It’s not one or the other. They’re actually interplayed.

And they’re not a contradiction, they power each other. That’s how you know you have world-class products. That’s what you see in your numbers.

Alexander Karp, CEO Palantir Technologies, Q3 2024, 4 November 2024

Share Recommendations (15 November)

Palantir Technologies. PLTR

Palantir CEO and founder, Alex Karp, is something else. This is what one Wall Street trader said about him.

I just fell for the cult of personality or something. But I listened to Alex Karp. And this guy is like Satya Nadella [CEO of Microsoft]. When you hear him talk, you say, holy moly, I could never be that smart. I could never be half that smart. He’s just one of those guys. When you hear him speak, you believe him. And when he tells you he doesn’t have competitors that can keep up, you say, wow, he has the force. This guy can’t be caught. They can’t catch this guy.

Stephen Guifoyle, Wall Street trader, 12 November 2024