On Friday Palantir announced a new contract with the Federal Aviation
Administration to provide data analytics tools for aircraft certification.
The company said the one-year FAA
contract with two additional option years is valued at a maximum of $18.4
million. The enterprise software maker will support the FAA's aircraft
certification activities, including the monitoring of the Boeing (BA) 737 Max
fleet's return to service.
president of Palantir USG, said the following about the agreement with the FAA
that should have PLTR stock gaining today.
“We are proud to be partnering with
the Federal Aviation Administration to support their critical safety mission.”
Palantir's years of proximity to the
government have helped it win multiple contracts, strengthening its potential
for future gains. Palantir derives 56% of its revenue from government clients
-- its single largest customer.
As Palantir penetrates various branches
of government, its business becomes more "sticky" and difficult to
displace; as their managing data is very integrated and seamless. Palantir's
Gotham platform can connect various government departments, enabling data from
one to aid another. The company's 2020 annual report stated that Palantir wants
to be the "default operating
system" for all mission-critical data across the US government.
Why the Recommendation for
a palantir Options Call Trade on wednesday?
The Major Catalysts for
earnings report was a boon for Palantir stock. Prices were limping into
the event, having fallen nearly 60% from their peak. The sales numbers were
good enough to bring buyers swarming, and PLTR stock has been marching higher
reported $0.04 earnings per share (EPS) for the quarter, hitting the consensus
estimate of $0.04. The company had revenue of $341.20 million for the quarter,
compared to analyst estimates of $332.22 million. The company’s revenue for the
quarter was up 48.8% compared to the same quarter last year. Research analysts
predict that Palantir Technologies Inc. will post 0.08 EPS for the current
denying the rebound in PLTR was aided by optimism’s return to growth stocks. The
Nasdaq has toed the bullish line ever since, finally bursting to a fresh record
Fed meeting always runs the risk of upsetting the market mood, it maybe that
the Nasdaq’s push to new heights bodes well for stocks like PLTR.
government business is enjoying robust growth as their Q1 results revealed that
total government revenue surged by 76% year-over-year during the quarter. Even
more impressive, US Government revenue shot up by an eye-popping 83%.
clearly the dominant machine learning, artificial intelligence, and data
analytics provider on the U.S. Government's vendor list as they keep winning
major contract after major contract, including prestigious contracts with the
U.S. nuclear stockpile and expanding its partnership with Space Force.
enormous room to run with this revenue as their government revenue does not
even make up a meager 10 basis points of total U.S. defense spending and their
U.S. Government total addressable market is estimated at $26 billion while
their total Gotham addressable market is estimated at ~$60 billion.
the Artificial Intelligence technology race between the West and China is only
just now beginning to take off; a competition that PLTR claims as central to
PLTR's aggressive platform reinvestment and marketing efforts, strong Gotham
growth momentum, lengthy sector growth runway, and major geopolitical
tailwinds, it is only reasonable to assume that PLTR will continue to generate
rapid growth in this sector.
is still managing to achieve significant success with Foundry. PLTR estimates
that its total addressable market here is ~$60 billion as well, though the
global big data market is expected to grow at a CAGR of 22.4% through 2030 as
artificial intelligence, machine learning, and data analytics take the global
economy by storm.
In Q1, PLTR
reported encouraging 72% year-over-year U.S. commercial revenue growth while
adding 11 new commercial customers alongside 29% revenue growth per existing
customer. That said, total commercial revenue growth underwhelmed in Q1 at a
mere 19%, reflecting poor penetration in international commercial efforts.
only currently controls a very small percentage of their estimated total
addressable market, but is clearly rapidly grabbing share in the United States.
We also have reason to believe that PLTR will be able to accelerate their
commercial growth moving forward as they are pursuing several aggressive
initiatives towards that end:
investing tens of millions of dollars into businesses that operate in
industries at the forefront of innovation and data-driven disruption like
robotics and healthcare.
using this as an opportunity to expand Foundry's reach and assist these
companies in their development and competitive standing by leveraging its own
technology. It is estimated it will be around ~$3 billion in total 2040 market
cap based on a total investment of ~$200 million at 15% annualized returns.