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  • Palantir Technologies (PLTR) Stock Rallies On New AI Deal With bp

    Palantir Technologies (PLTR) Stock Rallies On New AI Deal With bp

    Palantir Technologies Inc. (NYSE: PLTR) share are increasing significantly on the US stock charts today, rising 12.94% to $34.26 after the company announced a long-term enterprise partnership with bp (NYSE: BP). Through its state-of-the-art AIP software, this cooperation introduces sophisticated artificial intelligence (AI) capabilities, continuing PLTR’s strategic relationship.

    Developing a long-term Partnership

    The agreement announced today, strengthens a collaboration that has existed for more than a decade and during which Palantir’s software has been essential to bp’s activities related to the production of oil and gas.

    Since 2014, Palantir supported bp’s operations with its cutting-edge technology across a variety of geographic areas, including offshore platforms in the North Sea, the Gulf of Mexico, and the Khazzan gas fields in Oman. bp entered this partnership to achieve its digital transformation goals, aiming maximizing efficiency within its manufacturing processes.

    Integration of Advanced AI Capabilities

    A model-based digital twin of bp’s oil and gas production activities is being developed, and it is the focal point of this new phase of partnership. This sophisticated system integrates dynamic physical asset models with real-time data from over two million sensors, creating a unified operational view through Palantir’s software.

    The introduction of Palantir’s AIP software will further enhance bp’s ability to harness large language models (LLMs), facilitating improved and expedited human decision-making processes. By providing AI-driven recommendations based on comprehensive data analysis, the software aims to accelerate and optimize operational outcomes.

    Ensuring Safe and Reliable AI Deployment

    A key feature of Palantir’s AIP software is its robust data infrastructure, designed to ensure transparency in AI-driven recommendations while guarding against potential inaccuracies, commonly referred to as “hallucinations.”

    The software includes security measures that control the actions of LLMs, coupled with fully auditable digital records of all decisions and actions taken. This strategic relationship not only enhances the efficiency of bp’s operations but also reinforces their commitment to safe and reliable AI deployment.

    Through this continued partnership, Palantir’s advanced technology will remain integral to bp’s ongoing digital transformation, ensuring that the oil and gas giant can safely monitor, optimize, and enhance its production processes.

  • After-Market Movers: A Close Look at Palantir Technologies Inc. (PLTR)

    After-Market Movers: A Close Look at Palantir Technologies Inc. (PLTR)

    Palantir Technologies Inc. (PLTR) has emerged as a significant player in the after-market movers’ list.

    This widely tracked stock is often one of the most active during after-hours trading. With a minor drop of 0.05% in after-hours trading, the stock managed to close at $19.71, indicating a positive shift of 0.20%.

    The post-market volume reached an astounding 4.78 million, contributing to a total volume of 74.877 million. The market capitalization of Palantir stands at an impressive $42.899 million, demonstrating a significant 144.67% increase in performance over the past year.

    Palantir’s AI Focus and Commercial Adoption

    Palantir’s AI Commitment

    From its inception, Palantir has been unwavering in its commitment to artificial intelligence (AI). This dedication has positioned Palantir’s AI tools ahead of many competitors in the industry.

    Such advancement was recognized when Dresner Advisory Services ranked Palantir No. 1 in their survey of AI, data science, and machine learning platforms.

    AI Applications in Various Sectors

    Palantir’s AI technology isn’t limited to any specific sector. It can be applied in diverse fields, including the government for military purposes, hospitals for dispatch, and companies for supply chain management.

    The overarching goal of Palantir’s AI program is to process massive data inputs and provide optimal decision recommendations to its users.

    The Introduction of AIP

    The latest addition to Palantir’s technology suite is the artificial intelligence platform (AIP). This large language model enables users to interact with the software by asking questions.

    This innovative approach further empowers customers to leverage Palantir’s AI technology and make informed decisions in real-time.

    Palantir’s Commercial Success

    U.S. Commercial Adoption

    Palantir’s commercial success story has been a cornerstone of its investment thesis. This success is evident in the US stocks., where the company’s commercial adoption has grown substantially.

    According to its latest quarterly conference call, the U.S. commercial business experienced a year-over-year growth of 52% and a sequential growth of 19%. Moreover, the U.S. commercial customer count increased tenfold in just three years.

    Government Contracts vs Commercial Revenue

    Despite the rise in U.S. commercial revenue, government contracts remain the major source of Palantir’s revenue, contributing to 55% of the total.

    Comparatively, government revenue grew at a slower rate of 12% against commercial’s 23%, resulting in an overall growth rate of 17%.

    Palantir’s Profitability and Stock Valuation

    Profitability

    Another essential factor to consider while investing in Palantir is its profitability. In the fourth quarter of last year, Palantir posted its first GAAP earnings per share (EPS) profit, and Q3 of this year marked the first time Palantir delivered EPS greater than $0.01.

    Although Palantir’s $0.03 per share profit isn’t substantial, it indicates the company’s steady commitment to enhancing its profitability.

    Stock Valuation

    The growing profitability and hype surrounding AI have made Palantir’s stock an attractive option for investors, resulting in a high valuation.

    However, regardless of the valuation method (earnings or sales), the stock is far from being cheap.

    With Palantir’s revenue growth expected to slow down to 18% next quarter, it’s growing slower than its price-to-sales (P/S) valuation. This could be a concern for potential investors.

    Financial Highlights from Q3 2023

    Net Income and Revenue

    In the third quarter ended September 30, 2023, Palantir reported a GAAP net income of $72 million, reflecting a 13% margin. This was the fourth consecutive quarter of GAAP profitability. The company’s revenue grew 17% year-over-year to $558 million.

    Commercial and Government Revenue

    Palantir’s commercial revenue saw an impressive growth of 23% year-over-year to $251 million.

    Specifically, U.S. commercial revenue grew 33% year-over-year to $116 million. On the other hand, government revenue experienced a slower growth rate of 12% year-over-year, amounting to $308 million.

    Customer Count

    The company’s customer count increased by 34% year-over-year. Notably, the U.S. commercial customer count grew by 37% year-over-year, increasing from 132 customers in Q3 2022 to 181 customers in Q3 2023.

    In Conclusion,

    While Palantir’s stock may appear expensive, it’s essential to remember that the company is at the forefront of AI technology, with considerable growth in U.S. commercial adoption and consistent profitability improvement.

    These factors make it one of the after-market movers worth keeping an eye on.

  • Palantir Technologies Inc. (PLTR) is down in the Pre-market; here is why?

    Palantir Technologies Inc. (PLTR) is down in the Pre-market; here is why?

    Palantir Technologies Inc. (PLTR) declined in the pre-market after announcing Q4 and fiscal 2021 results in a press release. PLTR values at $12.85, losing more than 8.73% from yesterday’s closing price. The stock closed at $12.75 at the end of the last trading session. The stock volume traded in the last trading session was 50.31 million shares. The current market cap is around $28.39 billion.

    PLTR: Q4 and Fiscal 2021 results

    • Palantir revenue in Q4 2021 was $433 million. It is a gain of more than 34% compared to the revenue of Q4 in 2020.
    • Fiscal year revenue was $1.54 billion, and it is an increase of more than 40% compared to the revenue in fiscal 2020.
    • The company’s net loss in Q4 2021 was around $156 million.
    • PLTR net loss in fiscal 2021 was around $520 million.
    • The Q4 2021 diluted loss per share was $0.08
    • For fiscal 2021, the diluted loss per share was $0.27.

    PLTR other achievements in Q4 and Fiscal 2021

    Palantir added 34 new customers in Q4, and while in the fiscal year 2021, it reached 147. The company won 64 new customers with an average purchase of more than $1 million in Q4.

    PLTR Outlook 2022

    By 2025, the company expects to have a 30% yearly growth rate. Palantir expects sales of $443 in the first quarter of 2022, with an adjusted operating margin of 23%. They predict a 27 percent operating margin in the fiscal year of 2022.

    Conclusion

    The solid financial statement may be attributed to a significant increase in the company’s commercial activities. When comparing fiscal years 2020 and 2021, the company’s commercial clients climbed by more than three times, reaching 147 in fiscal 2021. Prestigious firms like IBM and Ferrari are among the new clients. The company’s dependence on the government contract makes its revenue steam uncertain. That is why they are increasing their customer base to not rely on the revenue from the government contracts.