Will PLTR sky rocket in the next few years?

Challenges:

So far Implementation process of PLTR seems to be similar to standard enteprise systems such as products from Oracle or SAP. The challenges with implementing such solutions is that they are very much a manual process and time consuming. Unlike tech companies that allows implemented solutions to be easily transfered from one company to another company i.e. services (Grab, Uber, Zoom); Social media (Facebook, Instagram, tiktok), even EVS like TSLA, their software are common and easily scalable to mass market with minimal customization for users.

In contrast, PLTR's solutions are mostly all unique to each company, and with 50% of earnings with the military (1) using Gotham, they are bound to non-disclosure that makes it almost impossible to "copy-paste" to another company.

Of course it could be possible that in the years to come PLTR starts to implement mass market solutions of small medium enterprises, this seems to not be the direction so far.

Balancing factor:

The cost of using PLTR is a double edged swords, while it means that many businesses are unable to get access to PLTR easily, those who can i.e. IBM, Amazon, Airbus (2), will likely continue to use PLTR for as long as it brings value to their business considering the high sunk cost into the implementation process. Also government clients are likely to continue to contracts with PLTR considering that PLTR has good product that are leaders in the industry.

Conclusion:

It is no doubt that PLTR has a good business model and on track to make big money but considering the difficulties to scale, based on fundamentals I don't expect it to be another TSLA or multibagger.

Disclosure: I'm invested in PLTR for the disruptive tech.

Reference:

1 https://investors.palantir.com/news-details/2023/Palantir-Reports-Its-Second-Consecutive-Quarter-of-Positive-GAAP-Net-Income-GAAP-EPS-of-0.01-in-Q1-2023

2 https://en.wikipedia.org/wiki/Palantir_Technologies

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Comments

wigglyz
2023-06-22
wigglyz
many forget we talking about the stock not the company which is a good co. the stock is in hands of mm, hedgies, daytraders, ai bots etc. it is not the same.
pixiezz
2023-06-22
pixiezz
Get Out of all tech share investments. They are going to be decimated by the time Summer comes to an end. All had a huge run during the 1st half of the year.
bubblyx
2023-06-22
bubblyx
Hold on to your shares boys, this is perfect opportunity to load up more shares.
frosti
2023-06-22
frosti
If Palantir can locate OBL I’m sure they can locate the Sub lost at sea
vippy
2023-06-22
vippy
Everyone knocking Pltr and screaming sell sound desperate.
AnthonyC
2023-06-21
AnthonyC
Hopefully