- Palantir’s recent contracts, especially its FDA one, highlight what we’ve known all along, that big data is an unsolved problem.
- We expect the company, due to its unique benefits, to rapidly spread into most companies and industries.
- This, combined with growing margins, means the potential for long-term outsized shareholder returns.
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Palantir (NYSE: PLTR), at more than $45 billion, is a rapidly growing big data company. The company nearly tripled across the course of November, however, as the company continues to expand dramatically, it represents a massive and unique investment opportunity. Palantir’s recent contracts and continued competitiveness highlights this potential.
Palantir and the Military
Palantir is quickly becoming the high tech provider of choice for the U.S. military. Specifically, the U.S. Army research lab has selected Palantir for a $91 million intelligence and machine learned contract. The company has also selected the company for prototype contracts for its next major upgrade batch (for 2023).
While the Press Release avoid looking into the future, there’s some key statements worth paying close attention to.
This marks the first time Palantir’s Gotham software is being integrated with the Army’s latest mission command software application, called the Command Post Computing Environment (CPCE), making Palantir a key partner in accelerating the Army’s modernization. CPCE is now being fielded across the force, providing commanders with better visualization tools, common applications and new server infrastructure. The prototype will work at the intersection of intelligence, mission planning and execution, providing a single, integrated solution to give commanders a global operational picture to make better data-driven decisions.
Specifically, the company is being integrated into the Army’s latest mission command software, CPCE. This is a massive software undertaking that cost more than $200 million to setup, and it’s an essential part of the army’s operations. Palantir being a part of this going forward means the potential for a significant revenue for decades to come.
The military is an old slow moving machine, but they’re slowly industrializing. Palantir is focused on being an integral part of the next wave of military industrialization, which will result in valuable long-term contracts. That will result in long-term stable earnings from an incredibly impressive asset for shareholders.
