🚀 ARK Invest’s GREAT Analysis of Palantir Stock (PLTR)

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recently kathy wood and analysts from
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arkhanvest have shared a lot of fresh
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insights on palantir ticker symbol pltr
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palantir has quickly become one of ark
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invest's biggest holdings weighing in at
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just under a billion dollars across all
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of their funds combined it's also one of
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only two stocks that kathy wood has put
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inside all six of arkhanvest's funds
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with the other being uipath ticker
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symbol p-a-t-h in this episode i want to
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add a little context to a clip from dave
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lee's recent interview with will
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summerlin an arc invest analyst who
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focuses on artificial intelligence and
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software as a service as well as frank
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downing who focuses on cloud computing
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software as a service and crypto assets
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the goal of this episode is to showcase
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palantir's versatility as an artificial
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intelligence and data analytics company
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as well as highlight how they're using
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their growing moat on the government
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side to power their down market
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expansion on the commercial side and
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vice versa because your time is valuable
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i've edited these clips down to just the
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essentials and time stamps are enabled
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for your convenience in case you want to
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skip the clips altogether and go
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straight to my analysis let's start with
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the clip of will summerlin talking to
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dave lee about arc invest's thesis on
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palantir i want to
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ask you about palantir so i know arc you
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guys have been you know buying some
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pounds here and
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have you been able to i don't know
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evolve some thinking and where do you
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current where do you currently stand on
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for example their ai expertise their
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defensible let's say mode or advantage
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and like you know their
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projections to grow revenue let's say
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even 50 or more per year for the next
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five years
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yeah it's it's a great question um you
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know i think there are a couple trends
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that i think are interesting with
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palantir uh you know they got a tail one
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from covid with government contracts and
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i think as we started to exit cove then
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i guess you could argue now start to
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re-intercovet to a degree
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um you know that tailwind hasn't slowed
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down in the sense that while maybe their
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core contracts related to covet are
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running up um we see you know government
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agencies with federal state uh across
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the world
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reintroducing palantir to solve other
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problems within their their agency and
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so i think for for government side of
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palantir i think coveted was actually a
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great beachhead into many organizations
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and agencies across the world that they
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wouldn't have worked with otherwise or
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would have worked with much later in
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their life cycle
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um and so i think there's a strong
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tailwind of sort of government adoption
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in that sense and i think from an
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enterprise perspective uh you know they
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gave an example in their last hoodings
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call
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where uh you know boeing actually
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switched to a joint venture software
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platform of palantir and airbus away
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from something that they home grew with
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microsoft
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i think that's a great sort of
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indication as to what's happening across
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the board with
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enterprises when it comes to palantir
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you know often they're competing with a
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homegrown solution um you know in many
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cases it's palliative versus hey let's
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build this platform ourselves
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uh and you know there are certain
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advantages to doing both but it seems
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like the
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the the choice is tipping towards
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palantir in many cases
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and we think that's going to continue
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also interesting is the sort of move
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down market in the activity with spack
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investments
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and their thesis around this is hey you
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know we're going to invest in a company
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early in its life cycle get them to
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build their company on top of our
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platform and then we'll grow with them
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you know and i think this sort of
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organic story of hey we're going to be
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the platform that helps a company build
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their first product or build a series of
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products and then grow with that company
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is really interesting we saw that with
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twilio
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you know for a long time that's what
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drove twilio's growth is these you know
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companies like uber who use them very
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early on to actually build their
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technology to build their product and
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then you know twilio benefit and that
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they grew with uber
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um
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and you know to me palantir is
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interesting in that that's sort of a new
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customer demographic
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where i think there's a lot of
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greenfield opportunity you have the
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government sector which we just talked
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about that has that kind of tailwind
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continuing and then you also have the
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traditional enterprise you know
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pallentry started uh in the commercial
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side with big enterprises right selling
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10 million dollar contracts to you know
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giant companies
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and i think that's continuing um you
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know i think companies are acquiring
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more data than ever um you know they
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need to start to layer ai on top of all
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of their uh you know all of their their
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their processes in order to stay
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competitive and i think palantir has
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sort of been an advantaged position to
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help those companies through that
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transition uh so overall yeah i think
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it's it's an interesting story um you
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know given all of that and given sort of
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the head start that they had many many
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years ago with the government um i think
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it'll be an interesting story over the
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next five or ten years so first off a
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big shout out to the youtube channel
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palantirvision who also covered this
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clip a few days ago and made me aware of
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its existence if you're interested in
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keeping up with all things palantir i'll
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leave a link to that channel in the
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description below along with dave lee's
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full interview with will summerlin and
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frank downing i think will summerlin did
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an excellent job highlighting two
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important things about palantir that
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apply everywhere from giant government
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contracts down to small and medium-sized
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businesses those two things are that
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every company today is operating in an
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increasingly data-rich environment and
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that palantir is often competing with
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home-grown solutions i worked on a lot
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of government projects during my eight
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years at mit so let me shed some light
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on why i think well summerlin's
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commentary on palantir is so spot on a
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lot of government projects are about
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generating unusual insights or
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processing unusual data sets like data
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that comes from specialized sensors and
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systems for example radar and satellites
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not everyone has access to that data so
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not everyone can really help with that
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data processing other times the data
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itself might not be unusual but the
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conclusions you're trying to draw from
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it could be for example can we process
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google earth data to somehow sniff out
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networks of bad guys even though
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everyone has access to google earth
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systematically sniffing out bad guys is
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the job of a small pool of organizations
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and how they go about doing that should
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obviously be kept under wraps as the
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world becomes more and more data rich
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more and more companies are trying to
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generate more of these unusual insights
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from more specialized types of data to
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do that successfully they often have to
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build their own solutions that's how
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these two ideas are connected and that's
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the space that palantir operates in the
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next point well summerlin makes is that
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companies are increasingly choosing
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palantir over building their own
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home-grown solutions sometimes even
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after their own solution already exists
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like how boeing switched away from
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something they homebrewed with microsoft
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to a joint venture platform built with
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palantir and airbus why do you think
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they would ever do that well havoc
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listen to this quick clip on palantir
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from kathy wood's recent interview with
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bloomberg businessweek and then i'll
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explain how everything fits together
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have kathy talk about palantir and her
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recent buy
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we believe that palantir has
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the opportunity
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to usurp a lot of aws azure
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google compute
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over time it is pushing uh artificial
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intelligence out to the edge and
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palantir because i think it's roughly 60
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percent of its business has been with
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the government
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much of that in intelligence agencies
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talenteer is using technologies that we
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will find out about
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five years from now they we believe are
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so far ahead because of their expertise
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uh in intelligence
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uh that
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it's going to accrue to the company's
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benefit in the commercial space as well
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so they've entered i think a year ago 85
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percent of their business was with the
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government today it's closer to 60
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percent
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uh and so we've got um all of the
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commercial uh side to go so
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uh i i don't think people understand how
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advanced talent here is technologically
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and how its platform technologies
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pushing a out to the edge are going to
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really take share over time
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from the more centralized services it's
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interesting that we're thinking about
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them that way now in the cloud so the
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reason to go with palantir over other
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software companies is because they're
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able to push ai out to the edge meaning
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processing the data right where it's
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generated instead of having to move it
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off site or store it on the cloud that's
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exactly what allows talenteer to work
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with intelligence agencies in the first
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place they bring the data aggregation
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transformation interpretation and
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visualization to the source instead of
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making their clients make concessions to
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use pound here the reason to go with
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palantir over homegrown solutions is
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twofold first palantir now has a lot of
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pre-built use cases that come ready to
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use and get the client maybe 75 of the
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way to the solution they need fairly
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quickly oh you're working with airborne
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camera data no problem we've worked with
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that before so we can at least stand up
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the basics the data handling the
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geolocation basic feature recognition
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and so on the second reason to go with
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palantir over homegrown solutions is
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because as technologies and programming
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languages change or companies lose key
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personnel their own solutions become
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obsolete especially if they're only used
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on one or two small programs within an
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agency when palantir makes updates to
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the models and the toolkits and the
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technologies inside their gotham foundry
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and apollo platforms those changes are
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paid for by and to the benefit of many
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organizations at once meaning that
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they're much less likely to go obsolete
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because any one program office gets its
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budget cut that's what lets them stay
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about five years ahead of their
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competition which isn't able to get
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these kinds of contracts in the first
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place and start learning about all the
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techniques and data that the government
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is using today and the private sector
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won't see that until a few years from
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now don't forget almost every
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foundational technology we rely on from
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the computer to the internet to gps
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started out in the government the other
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two points that will summerlin makes are
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about palantir moving down market
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through their spac investments as well
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as being able to apply their lessons
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learned to traditional enterprise
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companies let me show you one of
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palantir's recent spack investments that
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i feel really brings this point home
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black sky is a company that runs its own
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constellation of satellites to image
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locations around the world multiple
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times per day they now trade under the
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ticker symbol bksy after their
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successful spec merger with osprey
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technology acquisition corp that
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completed just a couple days ago black
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sky collect and analyze satellite
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imagery around the world to do things
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like secure seaports and airports track
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progress of construction sites measure
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stockpiles of materials in industrial
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zones assess damage done by natural or
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man-made disasters and things like that
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think about how many different types of
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companies could benefit from that kind
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of data whether they're building stuff
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moving stuff storing stuff or just want
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to send notifications to different areas
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depending on what they see is happening
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there well on august 31st palutear has
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committed to making an equity investment
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in black sky following the successful
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completion of a joint pilot program that
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they ran together through this pilot
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project black sky automatically
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delivered insights and intelligence to
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pounce your customers within minutes of
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collection without any human interaction
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the ability to deliver worldwide
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intelligence that can inform proactive
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strategic decision making introduces a
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significant advantage to time sensitive
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operations like the security and
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logistics ones i just mentioned to
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extend the benefits demonstrated by the
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pilot project black sky also entered
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into a multi-year software subscription
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agreement with palantir to access
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palantir foundry here's a quote from
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brian o'toole black skies ceo this
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collaboration further enables black sky
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to put the power of real-time
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intelligence in the hands of the user by
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allowing palantir customers to directly
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task our satellites reduce
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decision-making timelines and increase
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the delivery of on-demand insights and
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with our partnership with palantir will
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be able to accelerate our go to market
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plan expanding our pipeline of
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commercial and government customers
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around the world
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so not only does palantir benefit from
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black sky's accelerated growth from
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building on top of foundry but palantir
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also gets to learn about how to pipeline
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and process all of black sky satellite
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data for commercial applications
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remember the google earth example i
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mentioned earlier well it's not a
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stretch to imagine that one day we'll
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all have access to really high quality
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real-time satellite imagery of the
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entire world just like we have access to
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gps in google earth today you can
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already use google earth for a wide
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variety of commercial services from
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navigation to reviews to historic tours
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and just plain digital exploration
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imagine what kind of new applications
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could be built on top of a real-time
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view of the entire world applications
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for logistics planning and execution
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helping emergency services really good
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weather detection and so on and since
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many surveillance satellites today are
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government assets guess who's already
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five years ahead on working with that
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kind of data that's the big moat and key
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advantage that kathy wood and
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arkhanvest's analysts are talking about
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i know it's hard to understand what
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palantir does exactly especially since
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many of the things they work on aren't
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part of our daily lives today i think
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that satellite imagery is a great
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example since it used to be basically
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government only before google and garmin
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and other big tech companies really
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unlocked it for everyone but in low
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resolutions and at slow update rates
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that have been getting better and faster
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over time so hopefully this episode
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provided some clarity on how palantirs
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work with the government and their
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investments in high-tech specs like
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black sky are allowing them access to
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the future versions of those same kinds
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of use cases as well as those data sets
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before many of their competitors and
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before those use cases become
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commercially mainstream if you're
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interested in seeing some of the other
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crazy futuristic companies that palantir
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has invested in i made an episode
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showcasing 12 of their other spac
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investments each of which could offer
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clues about future use cases like the
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ones i just covered i'll leave a link to
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that in the top right hand corner of
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your screen right now and in the
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description below as well until next
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time this is ticker symbol you my name
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is alex reminding you that the best
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investment you can make
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is in you