The Secret Behind the Growth of Palantir Stock!

Palantir Technologies

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Palantir article and permission to publish here provided by Jean Nichols.

What is the reason people talk about the Palantir stock? Palantir stock has been growing, and many people say it is the best investment of money.

Still, you know that when an investment is riskier, and you can also get higher returns. Palantir stock is also a high-growth stock that is rising with the price. In this article, we will discuss the secret behind the growth of Palantir stock.

Palantir technologies

Palantir Technology is a famous American software company established in 2004 by Peter Theil (Co-founder of PayPal). It is a big data analytics company that works with big clients in the United States. Palantir Technologies provides the software to the big companies to help them analyze, and it primarily provides the software to the government.

The famous software projects of this company are Palantir Gotham, Palantir Foundry, and Palantir Metropolis. The United States defense uses the Palantir Gotham project to analyze counter-terrorism. 

The Palantir stock history

The price of Palantir stock in September 2020 after getting public was 9.5 US dollars. On 30 September 2020, listed the company on the New York stock exchange. In November, the price goes to 27 US dollars. On 29 January 2021, the open price of the stock was $32, and the close price of the store was 37 dollars.

The current price of Palantir stock is 24 US dollars. The data shows how the stock price increased rapidly after the company’s IPO, from $9.5 to $39. Now the price has decreased up to $24. To know more about trading click Bitcoin Digital Auto-trading bot and start earning.

How the price of PLTR increased

The price variations of stock depend upon some company factors, such as providing a high value to their clients, some news, IPO, and external factors also affect the stock price. First, we will discuss how the PLTR stock price increased from $9.5 to $39.

  • Government customers: – The Palantir stock went public in September 2020, and the revenue was increased by 70%, and by increasing the income, the stock price of PLTR also increased. Most of the customers of Palantir are government customers that use their high-tech software for technical analysis. Palantir is also providing software services beyond government customers. There are some big clients also that are working with the company and using their data analytical services. 
  • Commercial growth: – The government makes big decisions on behalf of the data they provide. So, by getting public on NYSC (New York Stock Exchange), the projects are also increased, which increased their commercial growth by 61 percent. Many big companies are also attracted to this service.
  • Focus on customer service: Palantir does not generate revenue immediately by getting the project or new client. There are three stages that you have to complete before getting payment from the clients. The three stages are the acquired stage, expand stage, and scale stage. So, the first thing they do is provide excellent customer service or operations, and they often do it at a loss, but they handle the situation. Then, after the successful operation, the company gets monetized. So, their first and foremost thing is to focus on customer’s operations, and the company that focuses on the customer first gets success earlier. 
  • Q2: – Q2 is the software that helps the financial service providers such as banks and other financial institutions that provide the deposit, lending, transferring money, integrating the payment system, security, data analytics, and many more services. Most of the revenue of the Palantir company comes from banks and financial services by providing them with Q2 software services. The gross margin of 2020 was 80 percent, and now it has improved by 82 percent.
  • High expenses: – The company’s costs are high and not yet profitable because the company spends most of the funding or revenue on research and development and acquiring new customers. You know that the expenses also affect the stock price of the company. They are spending money on innovations and increasing the profit of the company. They take the new customers to the three stages of acquisition, expansion, and sales. So do not think that high expenses mean the stock price will go down. They use the money to research innovations, acquire new customers, and solve the problems of customers.
  • Projects of the company: – There are the three famous products of Palantir technologies. The first is Palantir Metropolis, which provides services to companies like data integrations, quantitative analysis, discovering trends, etc. Apollo and foundry are other products of the company that offer excellent service. 
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Conclusion

From the above information, we have learned the reason behind increasing the stock price of Palantir technologies. The company primarily works on government projects and acquires new customers by spending money on research and innovation to solve customer problems.

Originally written for Supply Chain Game Changer and published on October 31, 2021.
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