Palantir Technologies Inc CEO Alex Karp said on Thursday that a period of uncertainty is good for the company while sounding a warning on a “deadly tidal wave” that could wipe out some companies.
What Happened: Karp made his comments on CNBC’s “Squawk Box.” He said, “Bad times are incredibly good for Palantir ... bad times really uncover the durable companies, and tech is going through bad times ... interest rates are the reason.”
He said, “Will this deadly tidal wave wipe out some companies? Yes it will,” reported CNBC.
The executive was more optimistic about companies on America’s West Coast which are in the business of “producing things that actually matter.”
“You will see that the durable companies that come out of this in three, four years,” said Karp, according to CNBC.
Why It Matters: The Palantir CEO warned that the situation outside of the United States was even more worrying.
“I think is going to be pretty bad in the next couple of years politically and economically,” said Karp, reported CNBC.
On the festering geopolitical crisis in Europe, Karp said, “The problem is that failure is not an option for [Vladimir Putin], which increases the threat of nuclear war.”
Palantir reported its second-quarter results on Aug. 8, missing estimated earnings by 133.3%. The company reported earnings per share of negative $0.01 compared, with an estimate of $0.03. So far this year, the company’s shares have fallen nearly 60%.