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💥 #Palantir ( #PLTR Stock ) just became one of the best stocks to buy now after they announced they will be supporting companies working with #cryptocurrencies and blockchain technology on their Foundry platform. This is HUGE news because it shows that @Palantir is able to work with any kind of data set and at any scale, which is key to them reaching a $1T (yes, TRILLION) dollar valuation, which would be a 20X from here. Don't sleep on this!
Wow. Every time I think I have a good handle on Palantir, they come out with big news that
makes me appreciate the company in a whole different way and makes me even more bullish
on the stock. In case you didn't know, Palantir has quickly become one of ARK Invest's biggest
holdings, weighing in at well over 850 million dollars across all of their funds combined.
Palantir is still just one of two stocks to be in all six ARK Invest funds that are actively
managed by Cathie Wood, with the other being UiPath, ticker symbol P A T H, which is another
stock I definitely need to do a better job updating you on. My goal with these updates
is to share this information with you before it gets priced into the stock, which I really
believe is going to happen faster and faster for Palantir, as more institutions stop thinking
of it as a meme stock and begin understanding what the company actually does. Your time
is valuable, so let's get right into this huge Palantir news.
Palantir has announced Foundry for Cryptocurrencies. Just take a step back and think about what
is going on at a high level here, as an investor. Cryptocurrencies are still largely misunderstood
by the market, even informed market participants like you and me. Most financial institutions
still won't touch it, most governments are giving it a bad rap, and most private companies
getting involved with the crypto market are met with harsh resistance, like Facebook with
their Diem project. In my opinion, Palantir stepping up and creating tools within Foundry
just for crypto says a lot about the future acceptance and widespread adoption of crypto.
And of course, it says a lot about the flexibility and power of Palantir and the Foundry platform.
Here's what the Foundry for Crypto offering entails. Let's start with cross-chain analytics.
Palantir Foundry is cross-chain agnostic and automatically integrates transaction and smart
contract data from different mainchains to enable rich analytics with low or no code,
all the way back to the genesis block. If that sounds like a bunch of meaningless buzzwords
to you, no problem. Let's work through it together. Different cryptocurrencies can exist
on different blockchains, for example, the ethereum network or binance smart chain or
a lot of others. Blocks are basically digital containers where transaction data on that
network are permanently recorded. So you can think of a block as kind of like one page
in an infinite record book. The book itself is a blockchain. Once the next line is written
in the book, it can never be changed or removed, which is one reason that blockchain technology
is considered to be so secure. Since there are different books, or blockchains, Palantir's
solution needs to be able to read any of them and be able to work with all of that data,
going back to the very first word on the first page of that book, which is called the genesis
Okay, if you think of blockchains like books that grow with every transaction, then dApps,
or decentralized applications, are just apps that do something on that blockchain. Just
like regular apps that you use every day, there are all sorts of dApps, including games
and finance apps. When you hear about DeFi, or Decentralized Finance, those are finance-related
apps running on a blockchain instead of on a centralized set of internet servers. Well,
whatever kind of business we're talking about, they're going to need business intelligence
tools to visualize what's going on at a high level, including data dashboards to keep track
of important stats like sales volumes, transactions, returns, technical issues, and so on. Seeing
the stats on all of these things allows business leaders to make decisions like where to focus
resources to grow, where their user traffic is coming from, how their current products
or services are doing, what kind of new products would make sense to launch, and even where
their potential risks are so they can take actions to mitigate them ahead of time. This
is just as true for on-chain businesses running dApps as it is for online businesses running
apps, like the ones you already use on your phone or computer every day.
And just like you already know about online games that want you to spend money and online
banking apps and mobile wallets, you know that fraud is a big risk for any business.
So, Palantir Foundry powers multi-factor Know Your Customer and Anti-Money Laundering solutions
across fiat and cryptocurrencies to detect complex patterns of fraud with robust case
management capabilities and low false-positive rates. Again, let's just break it down at
a high level. When you spend money in a game, you're converting dollars into a different
currency. Roblox has Robux. Fornite has V-bucks. World of Warcraft has gold. Sometimes, these
gaming companies have a separate currency or credit system at the store level too. So,
in the case of digital games, fraud can happen involving dollars, exchanging dollars to store
credits, spending store credits, spending store credits on something in a game, exchanging
store credits for in-game currency, or somehow fraudulently spending that in-game currency.
And if you can figure out how to trick the system at any one of these layers, you can
extract real money because they're all connected. Not that I would know anything about that
So, Palantir can help businesses build up case files based on these complex patterns
of fraudulent activity and help flag potential fraud without getting it wrong too often.
Instead of the digital store currencies and in-game currencies I just mentioned, this
piece of Palantir's Foundry works with digital cryptocurrencies and the fiat currencies you
can exchange them for. I'm sure the nuances are different but I'm just trying to show
you that as an investor, at a high level, you really can understand most of what's going
on with Foundry, even with a crazy new application like cryptocurrency, by a company the media
always claims is shrouded in secrecy. I think it's easy for the mainstream media to point
at a company that has a lot of work with the government, like Palantir, say it's a spooky
and secretive company, and use that as an excuse to not really try and understand all
the parts we can and do see. So, if you're interested in learning more about the different
parts of Palantir, I've put all my content explaining it in one convenient playlist for
you. I'll leave a link to that in the top right-hand corner of your screen and in the
description below. Also, comment below or tweet me at Ticker Symbol YOU with your thoughts
on Palantir supporting cryptocurrencies. Does that surprise you, given the government's
current stance on crypto and your own sentiment about it? Did you see this coming? What do
you think are some other future use-cases that we could see Foundry support?
I'm excited to hear your thoughts. As for me, I think that it actually makes a lot of
sense for Palantir to get into cryptocurrency because anti-money laundering and financial
fraud detection is actually how Palantir got started in the first place. If you didn't
know, Peter Thiel spun Palantir out from PayPal's anti-fraud technologies around the time when
PayPal got sold to eBay in the early 2000s. They realized that the same techniques that
help people track online fraud could be used to stop terrorism and other forms of bad activity.
That's what I think a lot of Palantir's different applications have in common. They build a
deep understanding of what normal activity looks like and then accurately detect activity
that looks abnormal. So, Foundry for Crypto just extends that tool kit to cryptocurrency,
which brings me to the heart of my bull thesis on Palantir: This isn't just about cryptocurrency.
In my previous update on Palantir, I said this:
[clip start 12:54] [As for me, I think investors and analysts aren't really seeing the forest
for the trees with these news items. Palantir is going to add blockchain-focused use-cases
to their Foundry platform thanks to Elementus. If they can handle that, I'm hard-pressed
to think of a use-case they can't handle.]
The reason I said that was because Palantir made a press release about the second cohort
of companies to join the Foundry for Builders program, and we saw a blockchain analytics
company called Elementus on the list. Like I said at the start of this episode, these
news items are changing my investment thesis on Palantir because they're showing me the
commercial use-cases that Palantir is choosing to support, which could give us hints about
future capabilities inside Foundry, just like this one for Crypto. So, if we look at the
rest of this list, guess what we find: a digital media company focused on streaming and promoting
sports and a digital nutrition and food buying marketplace, neither of which are listed on
the offerings page for Palantir Foundry today. We know Palantir has an Auto Racing offering
because of their partnership with Ferrari's Formula 1 team. That auto racing offering
allows Ferrari engineers to look at the digital twin of their car to run race simulations,
analyze sub-systems to avoid part failures, and make real-time decisions during actual
races, all without having to learn to code.
That Auto Racing offering for Foundry is probably going to lead to a more generalized set of
tools focused on transportation and connected vehicles thanks to their partnership with
WeJo, a company that runs a data platform for securing, accessing, and sharing connected
vehicle data at a global level. But maybe the sports part of auto racing with Ferrari
combined with what they learn from working with the European Cricket Network could also
lead to more real-time video or media analytics tools inside Foundry. Likewise, maybe now
that Foodsmart is a part of the Foundry for builders program, combined with the existing
Health and Life Sciences offerings within Foundry, Palantir could add tools specifically
for food and nutrition.
Every time they partner with a new type of company, we as investors need to be thinking
about how this extends Palantir's out-of-the-box capabilities, which makes it easier for them
to partner with other similar companies in the future. Combine that with their crazy
focus on privacy, permissions, and security, and they can get entrenched very deep in every
company that uses them. Getting more and more clients every year and growing your relationship
with each existing client is how you achieve exponential growth. Every time I read news
of Palantir working with new TYPES of companies, I'm more and more confident that Palantir
will hit a trillion-dollar valuation in the future, which is roughly a 20 X from here.
By the way, I'm not the only Alex with crazy hair who thinks that. Here's a quick clip
from an interview with Alex Karp, that Palantir released on October 15th:
[Alex Karp Interview 0:20]
Wait, can he say that? I'm just kidding. I think. Anyway, on the date of that interview,
Palantir was sitting at around a 48 billion dollar market cap. 20 times that would be
960 billion dollars. I think it's just a matter of when. I'm not saying that Palantir will
be a trillion-dollar company tomorrow but I am starting to think it could happen in
the next decade, which would be a 35% compound annual growth rate over the next ten years.
It doesn't sound so crazy when I say it that way, does it? That's why Palantir is going
to have a top spot in the 100,000 dollar portfolio I'm opening on Public dot com when this channel
hits 100,000 subscribers. I know, I know. You're on the edge of your seat! I'm building
that portfolio from scratch to compete directly with ARKK, ARK Invest's flagship innovation
fund, which also holds a lot of Palantir stock. I hope to run this investing project for the
next 5 years, which is ARK Invest's time horizon, or as long as it takes for me to admit defeat.
If you're interested in jumping on that wild ride with me, consider liking this video and
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Thanks for watching and until next time, this is Ticker Symbol You. My name is Alex, reminding
you that the best investment you can make… is in you.
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