Peering Into Palantir's Data Market Disruption
We value the company at $28.2 billion, reinforced by a sticky customer base and positive moat trend.
SEC filings and investor presentations have pulled back the curtain on Palantir Technologies' (PLTR) opaque operations, and we are intrigued by the company’s prospects as an emerging leader in data integration, analytics, and artificial intelligence. We anticipate the company will come public on Sept. 30 via a direct listing; we value it at about $28.2 billion in equity value, or about $13 per share based on an estimate of 2.17 billion shares.
We believe Palantir has a narrow economic moat and a positive moat trend based on customer switching costs, intangible assets, and a network effect. In our view, Palantir’s government and enterprise software has become mission-critical and deeply engrained with clients, the company has unique customer and market knowledge to pair with its AI acumen, and its software platforms become stronger as more users, institutions, and industries rely on its solutions. We believe these sources will strengthen, and despite a lack of profitability today, we anticipate that Palantir will generate robust operating leverage and excess returns in the long run.
Mark Cash does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.