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Palantir: Climbing “The Wall of Worry,” Attractive long-term play in AI / ML

Like a lot of stocks that started trading publicly during the pandemic bubble, there has been a lot of skepticism associated with Palantir. For example, naysayers decried that it wasn’t profitable (now it is), the company could never successfully expand from government to commercial (now it has), stock-based compensation was too high (now it’s not) and the whole big-data theme was dramatically overblown (however, machine learning and artificial intelligence are now big revenue growth drivers). In this report, we review the business, the financials, current valuation and risks. We conclude with our strong opinion on investing in Palantir.