Mentioned in Video:
🚀 #Palantir (#PLTR stock) has been investing in high tech growth #stocks, specifically early-stage #SPAC investments that can make use of their Foundry platform. I did some research and put together all 12 of their SPACs in one place so we can decide if any of them could be one of the best stocks to buy now.
Here's a question for you. What if you had a crystal ball and you could use it to see into
the future? Would you use it to predict what kinds of new technologies will shape the world tomorrow?
Would you look at which stocks are doing the best and invest in those companies today? What if those
companies each had a crystal ball of their own? How much of an advantage would that give them
over their competitors? Believe it or not, this is a question we can answer because of Palantir,
a company named after the indestructible crystal balls from Lord of the Rings, that are known for
their ability to see into the future. Palantir, the company, focuses on making predictions based
lots and lots of data AND they've been making big investments in twelve companies. So, let's gaze
into Palantir's investments and see what we can learn about their vision of the future.
Sarcos Robotics is a maker of highly dexterous mobile industrial robotic systems focused
on enabling the workforce of the future with solutions that enhance productivity, reduce
occupational injuries, and equalize employment opportunities for the jobs around the world
that do not lend themselves to automation. They're building robots-as-a-service.
The Guardian X O is an exoskeleton that users wear to enhance full-body power,
meaning adding strength and endurance to arms and legs to give one worker the power over roughly
three workers. Importantly, the exoskeleton only takes one day of training, which is less than it
takes to learn to operate a forklift, so there's a real total addressible market here. Also,
fun fact about me, my favorite movie besides lord of the rings is actually the edge of tomorrow, a
movie where Tom Cruise spends 90 minutes fighting aliens in what is basically the Guardian X O, so
Palantir investing in Sarcos Robotics is basically a mash-up of all my favorite things. Sarcos also
makes the Guardian X T, a robotic avatar that integrates with many mobile or telescoping bases
that a worker on the ground controls through a virtual reality headset. Between the X
O exoskeleton and X T avatar, Sarcos Robotics has a wide variety of industrial and military
use cases in a world where labor shortages are increasing and companies are forced to do more
with less. I'm not sure exactly how Sarcos will end up using Palantir's services and platforms,
but I bet Sarcos could benefit from Palantir's many department of defense connections. Sarcos
currently trades under the ticker symbol R O T, for Rotor Acquisition Corp,
and will trade under the ticker symbol S T R C if their merger completes later this year.
Fast Radius is a cloud manufacturing and digital supply chain company that focuses on building
infrastructure to design, make, and move things in the digital age. They want to
make ordering custom parts as easy as it is to order groceries. To do that, they have a software
platform called the Cloud Manufacturing Platform, that lets people design and get feedback on parts
before getting them made. The software supports digital simulations of materials
and structures as well as collaborative design. Once the design is finalized, you can store it
inside a Virtual Warehouse, where it is waiting to be ordered before it's made, meaning companies and
individuals no longer need to store physical inventories. The part is made when it is
demanded, not before. The parts are 3D printed at a Fast Radius Microfactory, which are highly
scalable units that act as “factories in a box.” Everything from Fast Radiuses' proprietary data
architecture to their micro-factories are designed to be ‘copy & pasted’ and enable a distributed,
digitally connected network. In my opinion, the mark of a truly disruptive innovator is a company
that's tackling a problem that many different industries and market sectors can point to.
Fast Radius is solving the current problems associated with centralized mega-factories,
slow-moving and easily disrupted supply chains, the massive amount of space it takes to store
physical goods, and the poorly scaling back-end operations many big manufacturers
have today. These problems on the supply side actually create other problems on the demand side
because these inefficiencies cost money, making parts and variants prohibitively expensive if you
don't buy large quantities and if you do buy it, it could still take months to arrive. I think
Fast Radius really nails it with this quote from their investor presentation: “Why can I see where
my pizza is, but not my part?” I can't imagine the mountains of data that Fast Radius is generating
at every step of their value chain, from part design to production to fulfillment, making it
another shoe-in for Palantir's Foundry to generate deep insights that result in optimizing every
step, like automatically recommending design changes to save cost or increase performance,
automatically routing the design to the correct micro-factory for the quickest fulfillment,
and controlling overall material supply to handle all of their aggregate demand. I'm
sure I'm missing about a thousand different things Palantir can help Fast Radius with,
while Fast Radius helps the world revolutionize manufacturing. Fast Radius will be merging
with ECP Environmental Growth Opportunities Corp, ticker symbol E N N V later this year.
Lilium is a company focused on electric vertical take-off and landing vehicles, or EVTOLs.
For people, they want to deliver the feel of a business jet with the convenience of a car. For
cargo, they want to deliver, uh, the cargo. When you combine the revenues for delivering people and
cargo with the revenues from the hardware sales themselves, ARK Invest's Big Ideas report says
that Air Taxis could be a 52 billion dollar per year market by 2030. Lilium expects that market
to be about one third logistics and freight and two thirds aerial taxis for people wanting to move
inter- or intra-city while avoiding traffic. According to their investor presentation, Lilium
has a few distinct advantages in this space. Their battery systems are very energy-dense and
built to scale, meaning they just stack up the same one battery module until they meet their
power and redundancy and safety requirements. Those modules are also fully self-contained,
so if there's a malfunction, they can continue to fly safely as the damage will be contained to the
battery. Their Ducted Electric Vectored Thrust system is low noise, low vibration, and modular
as well. Low noise is important because noise pollution could become an issue as the air taxi
market takes off. Just like the battery cells, they can stack the thrust system modules on the
wings until they have the propulsion they need. All together, Lilium's aircraft have 30 times
fewer parts than commercial airliners, resulting in a very effficient manufacturing process. Lilium
will be building 28 vertiports between Florida and Germany with 315 jets into service in 2025.
You can bet your tailfin that I'm going to take a ride when they finish their vertiport in Tampa.
My guess is they'll be using the Palantir platform for flight planning, charging and
aircraft data management, and other complex operations that require understanding what's
going on with the entire fleet. Lilium currently trades under the ticker symbol Q E L L, which is
Qell Acquisition Corp, and will trade under the ticker symbol L I L M if that merger completes.
Wejo, which is a combination of the words “we journey”, onboards and standardizes
over 14 billion unique datapoints every day from connected vehicles through its
cloud platform called Wejo ADEPT, which stands for Automotive Data Exchange Platform & Technology.
The type of data it takes in is vehicle location, speed, environmental data,
camera data, and more. By partnering with automotive manufacturers, Wejo will be able
to take in automobile data directly from any vehicles manufactured by a partner brand.
That data is then stored in the Wejo data lake and used to inform traffic management,
advertising, remote diagnostics, roadside assistance and even payments. From there, Wejo
is building a market place for other companies to build apps and services on top of that huge
data set. Think apps like traffic monitoring, civil engineering and parking optimization,
EV charging loads, mapping and navigation, and more. This is a no-brainer business for
Palantir's platforms, which focus on exactly this type of data collection, refinement,
and insight generation. The SPAC Wejo is merging with is Virtuoso Acquisition Corp,
ticker symbol V O S O and will trade under the ticker symbol W E J O if that merger completes.
Tritium is a D C F C or Direct Current Fast Charging company focused on infrastructure for
electric vehicles. The way I see it, electric vehicles have two perceived problems today
and they're both related to charging. First, people aren't confident that there are enough
chargers to get them across long distances without taking major detours and second, the
actual charging experience itself is much longer and less convenient than filling up a gas tank.
Tritium's 350 kilowatt DC fast charger can add 20 miles of range per minute and their charging
solution is positioned to supply all types of demand, from consumers to fleet managers
to retail campuses to utilities. That's because their chargers have a very low footprint, allowing
bigger electric vehicles to fit in the charging parking spots. Those chargers are also modular,
meaning they're upgradeable over time and are very easy to service. Tritium's barriers to entry are
their integrated software, firmware, and the data they collect per use in each location,
as well as on things like climate and electrical grid conditions and is fed into a software
management platform called Tritium Pulse. Tritium seems to be a direct competitor to
Tesla's supercharger network and this aggressive focus on data seems pretty unusual for physical
infrastructure companies, which is probably why Palantir invested in Tritium. Palantir's Foundry
will help by managing and visualizing the data to provide insights into demand and different ways
to use their platform. Tritium is merging with Decarbonization Plus Acqusition Corporation 2,
ticker symbol D C R N and will trade under the ticker symbol D C F C later this year.
Boxed is an end-to-end e-commerce platform that focuses on selling
high-repeat essentials in bulk to businesses and individual consumers. Boxed really focuses on
the backroaders and small towners; people who live in Rural areas with houses, buy in bulk,
have a small-business mentality and tend to be anti-Amazon. They have a lot of room to
grow with these kinds of households since they've penetrated less than half of one percent of that
total addressable market. Boxed is creating one of the few omni-channel platforms that
integrates everything from the front-end software to the automation hardware, meaning you can stand
up an entire business only on Boxed. They do everything from the actual storefront experience,
to business operations and supply chain, to online marketplaces and advertising,
to in-house robotics and fulfillment. That's where their relationship with
Palantir probably comes in – using the Foundry platform to get all of this data together
and use machine learning to estimate store supplies and customer demands to predict
shopping patterns and push highly effective notifications to people. I'm sure they'll also
use it on the logistics side to optimize the use of their robots and fulfillment centers.
Boxed is merging with Seven Oaks Acquisition Corp, ticker symbol S V O K toward the end
of the year and I haven't found what ticker symbol they'll choose if that merger completes.
Kredivo as a buy now pay later company in Indonesia. Square just bought Afterpay for
almost $30 billion dollars, making it clear that buy-now-pay-later solutions are definitely a core
part of the future of digital finance. It turns out that many emerging markets,
including Indonesia's, have a broken financial system that makes people skip banks and go
directly to innovative alternatives. Kredivo drives around 3% percent of ALL of Indonesia's
e-commerce. It's the single largest credit payment channel after physical credit cards
and has almost a 50% perent market share there for buy-now-pay-later systems. They focus on deep
data insights to drive on-time monthly repayments and connect customers to merchants and payment
options with low friction. Their whole flywheel relies on data to drive the customer experience
as well as manage risk and funding lines on the supply side. Kredivo reminds me a lot of Square,
if Square started with buy now pay later instead of as a digital wallet and point of sale
platform for vendors. Kredivo is expanding into neobanking, including auto lones, housing loans,
and other wealth products. My guess is Kredivo will use Palantir's platform to analyze mountains
of consumer, vendor, and financial data to increase customer lifetime value by reducing
application approval times, cross-selling and up-selling products and services from different
vendors, and increasing average order values through their buy-now-pay-later offerings. I
also think they'll use Palantir to drive down customer acquisition costs and liabilities by
automatically determine the best dynamic interest rates, credit scores and limits, and speeding up
the detection and resolution of fraud. If you didn't know, Palantir started from fraud detection
techniques and technologies built at PayPal, so Palantir has deep roots in the financial services
space. It's cool to see Palantir come full circle as an investor in the same type of company
that its technologies started from. Kredivo is merging with Victory Park Capital, ticker
symbol V P C B and I haven't found what ticker symbol they'll choose if that merger completes.
AdTheorent is a data science and machine-learning platform for performance digital advertising.
Instead of relying on basic audience segmentation and browser cookies,
which are responsible for those annoying privacy pop-ups you get on every website today, AdTheorent
uses hundreds non-sensitive data signals that are not tied to your identity. Instead, AdTheorent
uses information such as what city a consumer is in and the temperature at the time they logged on,
what type of phone and browser they're using, and so on. This means AdTheorent is focused
on being a responsible data company, which aligns well with Palantir's core values. Besides that,
AdTheorent uses machine learning models on these mountains of data attributes per user to optimize
which ads to put in front of everyone in real time without ever using identity information. As a
result, they're able to outperform other demand side platforms, or DSPs, that rely on cookies
and audience segments by hundreds of percentage points. AdTheorent's focus on using big data and
maintaining user privacy makes it a no-brainer for Palantir's platform, who can help it organize and
optimize how it decides to put which ads in front of people to keep increasing their overall
performance per dollar above their competition who still rely on things like cookies. AdTheorent is
merging with Monroe Capital Acquisition Corp, ticker symbol M A C Q by the end of this year
and I haven't found what ticker symbol they'll choose if that merger completes.
Pear Therapeutics is a prescription software company. Yep, you heard me correctly. Digital
therapeutics are a result of the convergence of technology and medicine and the apps need
FDA approval if they're being used as a medical tool. The interesting thing about
this convergence is the offerings can have software-like margins at therapeutic prices,
meaning very expensive, recurring, high-margin revenues. I first covered digital therapeutics
in my deep dive on Virtual Worlds, where we looked at augmented and virtual reality applications for
brain surgery and exposure therapy for things like phobias and P T S D. Pear Therapeutics
is builting a platform for app-based offerings like cognitive behavioral therapy,
fluency training, and craving/trigger assessments with a clinician-connected telemedicine platform.
And these offerings show REAL results. Patients are more than TWICE as likely to abstain from
substances with the help of prescription digital therapeutics and in most cases,
can replace an in-person therapist altogether. Not just in-person therapists, but 62%
reduction in hospital utilization and a 20% reduction in emergency visits because these
notifications and check-ins and progress reports can form positive feedback loops at faster rates
than traditional, in-person care can provide and can replace the need to turn to expensive
pharmaceutical drugs to manage symptoms. Pear currently has 14 product candidates in various
developmental stages, ranging from psychiatric applications like substance abuse and addiction
therapies to neurological applications like chronic pain, migraine management,
and epilepsy. Pear Therapeutics will probably use Palantir's Foundry to analyze the mountains of
data they generate from interactions with each app on their platform to optimize existing therapies
and discover new use cases. Pear is merging with Thimble Point Acquisition Corp, ticker symbol T
H M A and will trade under the ticker symbol P E A R if that completes later this year.
Babylon Health is a digitally-native healthcare platform that leverages artificial intelligence to
improve healthcare and lower costs. So, Babylon is a telemedicine company kind of like Teladoc
and Livongo, where lots and lots of client data is used to proactively monitor health,
prevent disease, and route patients to the correct professionals. I think in both cases,
Teladoc and Babylon Health, one thing people don't appreciate is that a lot of these insights
are made by interpreting lots of medical data like blood panels and other test results,
so these are application-specific data pipelines and processing techniques. Babylon Health is
taking their data pipelines and processing techniques to the next level with state of the art
natural language processing technology to process clinical information from health records and make
predictions on future health risks. Palantir is probably helping with the entire foundation of the
business here; gathering, cleaning, and processing large amounts of medical and insurance and user
interaction data to virtually connect patients to the proper solutions from across the entire
spectrum of healthcare options. Babylon Health plans to merge with Alkuri Global Acquisition
Corp, ticker symbol K U R I and will trade under the ticker symbol B B L N if that completes.
Roivant is a portfolio of early-stage candidate pharmaceutical therapies that focuses on acquiring
“trapped” projects from larger companies and developing them for narrower applications.
Roivant is in the process of building a machine learning platform for their
internal drug development and selection process. Roivant is heavily involved in computational drug
development, computational physics, and machine learning for things like protein
folding and other proteomics applications. This is probably where Roivant will leverage
their partnership with Palantir – to speed up this process of using data to discover, develop,
and select drugs. They have more than 40 molecules currently in development,
have conducted eight positive phase III clinical trials in a row, two of which
have approvals by the FDA. Roivant is merging with Montes Archimedes Acquisition Corp, ticker
symbol M A A C and then will be trading under the ticker symbol R O I V if that merger completes.
ARK Invest's 2021 Big Ideas Report also mentions the shift from Autologous Cell Therapies to
Allogeneic Cell Therapies. Autologous means the cells harvested from the affected patient,
so one treatment, one patient. Allogeneic cell therapies involve “off the shelf” or
donated cells, meaning one donor can supply treatments to many different people.
One risk of allogeneic therapies is that the patient's immune system can reject the donated
cells, but the reward is being able to scale these therapies and apply them to earlier stages of
disease, like cancer. Celularity makes novel pharmaceutical therapies from these allogeneic
cells. They have a broad pipeline of candidate products across a wide variety of therapies.
Look, I won't pretend to understand what Celularity does, but more and more pharmaceutical
companies are getting into protein folding and modeling, drug simulations and discovery,
and other specialized big-data applications. Palantir could be helping with all of the data
aggregation and processing in their drug and therapy pipelines, allowing them to try more
things faster and learn from their data in new ways. Celularity is already listed on the
NASDAQ, trading under the ticker symbol C E L U. It's currently trading well below it's $10 dollar
SPAC price, so it could be worth following up on with more research in the short term.
Whew! We made it. Those are the twelve special purpose acqusition companies, or SPACs,
that Palantir has invested in. Here's a quick note about SPACs since I get this question a lot.
Special purpose acquisition companies basically exist to raise money and buy another company.
They don't do anything on their own. SPACs usually have two years to complete the acquisition or
they have to return all the money to their shareholders. The SPAC is publicly traded,
so when they choose a private company to acquire, their ticker gets associated with
that company. That's the first ticker I shared in each of these 12 cases. Then,
when the two companies formally merge, the private company that got acquiried is now publicly traded
and usually changes its ticker to reflect its brand. That's the second ticker. If you
hold the shares of the SPAC through the merger, your shares automatically convert from the SPAC
to the company it merged with. It can take a couple days but you don't have to do anything.
Besides all of these companies being SPACs, here are the things I think they have in common: All of
these companies are built to scale very quickly. The companies that are making a physical product,
like Sarcos Robotics and Fast Radius and Lilium, all have very modular designs with very low part
counts compared to their competitors, meaning a small tweak can have a big impact on their
overall performance. Their products can also be used in a wide variety of industries.
Every company on this list is built from the ground up with data in mind,
even if they're operating in markets where data is usually secondary to the actual product,
like automotive in the case of Wejo and infrastructure in the case of Tritium.
ALL of these companies are providing Palantir with unique use cases and data sets which they
can learn from to provide new capabilities and models and support for future companies
down the road. Think about the wide variety of data sets and markets and end-user data
these companies are providing: robotics, air taxis, electric vehicle chargers, e-commerce,
digital banking, advertisement, genomics, prescription software, and more. Think about
how much easier it will be for Palantir to add value to the next robotics company,
the next e-commerce company, and the next genomics company. My guess is they're going to
keep picking companies that offer them the most insight into new use cases in the future, like
augmented and virtual reality, the metaverse, and maybe even blockchain technology.
I think my favorite is Kredivo, the Indonesian Fintech company. In the past, I made an episode
about how digitally native finance apps are going to disrupt traditional banks with lots
of physical branches and infrastucture because apps have significantly less customer acquisition
costs. If you're interested in learning about how Fintech is going to disrupt legacy banks,
check out my episode on that. I'll leave it in the top right hand corner of your screen
right now and in the description below as well. Kredivo is really focused on
maximizing their average customer lifetime value and minimizing that customer acqusition cost from
the beginning and I think that's something Palantir can REALLY help them do. IF,
and I'm emphasizing IF, Kredivo can use Palantir to really move the needle on those two metrics,
I think they could be the Square of Southeast Asia. That's a big deal.
I think the biggest moonshot on this list Fast Radius. If they can really change the face
of manufacturing, design, and the supply chain with their Cloud Manufacturing Platform and 3D
printing Microfactories, we could see a LOT of new industries and businesses popping up because
of it. I'm a huge sucker for 3D printing and a company like Fast Radius could be the key to
making that entire sector mainstream. Leave me a comment or tweet me at Ticker Symbol YOU with your
favorite company that Palantir has invested in and why. Is there one that excites you the most or
one you think will be far more profitable than the rest? I'm excited to hear your thoughts. Either
way, I hope this episode and the crazy amount of resources I've provided in the description below
helped you understand the companies Palantir is investing in, the challenges they're addressing,
and how Palantir's Foundry platform is helping these companies scale fast while providing
Palantir with valuable insights into how to build more capabilities for future companies.
If it did, consider investing in the like button and subscribing to the channel with
all notifications turned on. That's a great way to invest in the channel that invests in you.
Until next time, this is ticker symbol you, my name is Alex, reminding you,
that the best investment you can make, is in you.
If you want to comment on this, please do so on the YouTube Video Here