It's now time to discuss Palanteer, I believe, for the second time for FOMO this week, but definitely warrants our attention when it's down over 6%. So, on some interesting reports here, Marley Kaden is joining us, of course, in studio to help us break down this news where the Army is flagging these high-risk flaws in their network project. So, walk us through this story.Yes, Reuters is reporting that it has seen an Army internal memo about this new prototype that was developed by Palunteer alongside a priv ...

Investment Focus - Sans Capital invests in innovation across various stages, from early-stage ventures in cyber and AI to later-stage companies in defense and AI [3] - The firm is particularly interested in dual-use technologies and is actively exploring opportunities in the space and defense tech sectors [4][5] - Sans Capital is focusing on infrastructure related to space, including satellites, rockets, and hypersonics [6] Space Industry Analysis - The cost of space launch has decreased by 20 times in the last 15 years, primarily due to SpaceX, which aims to reduce it by another 15 times [5] - The reduced launch costs are enabling more satellites and other objects to enter space, with expectations of significant innovation in the next two decades [5] - Potential growth areas in space include global broadband beyond Starlink, on-orbit manufacturing (fiber optics, semiconductors, pharmaceuticals, and potentially mining) [6] Defense Tech Transformation - The defense tech sector is shifting from concentrated primes using cost-plus contracts to more entrepreneurial companies innovating with fixed-price, performance-based systems [8] - AI is playing an increasingly important role in defense tech, with companies like Andril using autonomous systems and sensors for event detection and response [8] Artificial Intelligence - AI is becoming ubiquitous and is expected to be integrated into almost every company's operations in the future [7][9] - AI is a significant component of Sans Capital's investment thesis and is being applied across various sectors, including defense tech [7][8]

Core Viewpoint - BigBear.ai's stock appears undervalued compared to its competitor Palantir Technologies, but deeper analysis reveals that its lower valuation may be justified due to operational challenges and a weaker competitive position in the defense tech sector [2][12]. Company Analysis - BigBear.ai trades at $5 per share, significantly lower than Palantir, which has experienced substantial valuation expansion during the AI boom [2][5]. - The price-to-sales (P/S) ratio for BigBear.ai is 10.2, which seems reasonable compared to Palantir and C3.ai, but this metric alone does not capture the full valuation narrative [3][5]. - BigBear.ai's financial trends indicate slowing momentum and declining growth, contrasting sharply with Palantir's accelerating revenue from multiyear, multibillion-dollar contracts [10][11]. Competitive Landscape - Palantir has established itself as a leader in defense technology, securing critical contracts with the U.S. Army and other agencies, which has contributed to its strong revenue growth [9][11]. - BigBear.ai and C3.ai are limited to niche opportunities, which hampers their growth potential and market position compared to Palantir [10][11]. - The narrative of BigBear.ai as the "next Palantir" is weakening as financial performance diverges, suggesting that its discounted valuation reflects competitive disadvantages rather than hidden value [7][11]. Investment Perspective - While BigBear.ai may seem like a bargain in the current AI market, its low valuation is more indicative of ongoing operational challenges rather than a mispriced opportunity [12][13]. - The company is viewed as a speculative trade rather than a solid long-term investment, given the risks associated with its current market position [14].

Company Overview - Strategy Inc. (MSTR), formerly known as MicroStrategy, reported Q2 earnings that exceeded expectations by 32 times, with earnings of 7 cents per share [1] Analyst Background - The analysis is conducted by Uttam, a growth-oriented investment analyst focusing on the technology sector, including semiconductors, artificial intelligence, and cloud software [1] - Uttam has experience leading teams at major technology firms such as Apple and Google, and co-authors The Pragmatic Optimist Newsletter, which is cited by prominent publications [1]

Core Insights - Palantir Technologies has become a leading player in the AI and defense tech sector, with its stock rising by 80% in the first half of 2025 and 427% over the past year, making it the top performer in the S&P 500 and Nasdaq-100 [1] - BigBear.ai, a competitor in the defense tech space, has also seen significant stock growth, with shares increasing by 357% over the last year, raising questions about its potential to rival Palantir [2] Company Performance - BigBear.ai's stock has experienced high volatility, initially rising after the announcement of Project Stargate, which aims to invest $500 billion in AI projects by 2029 [3] - Despite early gains, BigBear.ai's stock retreated following the Pentagon's plans to cut its budget by 8% annually, which initially impacted defense contractors negatively [5] - The DOD's budget cuts are focused on non-essential areas, allowing for capital reallocation towards tech initiatives, which may benefit companies like BigBear.ai [6][7] Financial Comparison - BigBear.ai reported $160 million in sales with gross margins below 30%, leading to continued losses [10] - In contrast, Palantir generated $487 million in government revenue in Q1 2025, nearly three times BigBear.ai's annual revenue, with gross margins around 80% and a net income exceeding $570 million over the last year [12] - BigBear.ai's price-to-sales (P/S) ratio is around 11, which appears cheap compared to Palantir's P/S ratio of 120, but the disparity is attributed to Palantir's strong profit margins and growth in both public and private sectors [13] Market Position - BigBear.ai's CEO has strategic ties to the government, which may enhance its visibility and opportunities in the defense sector [8] - However, the company is not expected to become a significant competitor to Palantir, which is viewed as a leader in the defense tech space [14]

Top Risers in Secondaries Market - Perplexity's ranking surged 12 places to number 7, fueled by potential $500 million funding at a $14 billion valuation and acquisition discussions with Apple executives [1] - Kraken rose 15 places to number 11, driven by strong Q1 revenues of $472 million and adjusted EBITDA of $187 million, up 19% year-on-year, with IPO speculation [2] - Curser, Cribble, Crusoe, and Glean are new additions to the list, indicating high demand [2] Top Fallers in Secondaries Market - Figure AI experienced the biggest drop, falling to number 15, due to winding down primary fundraising and scrutiny of its $395 billion valuation against minimal revenue [3] - XAI fell to number 8, despite sweetening its $5 billion debt offering at a 125% yield, due to a high burn rate of $1 billion per month and projected $13 billion losses in 2025 [4] - Shield AI fell four places to number 13, which is surprising given the current strength of the Defense Tech sector [4]

Palantir Technologies PLTR analysts highlight the company’s opportunity in AI, government and commercial sectors after first-quarter financial results. Bank of America analyst Mariana Perez Mora maintained a Buy rating on Palantir with a $125 price target.Goldman Sachs analyst Gabriela Borges maintained a Neutral rating and raised the price target from $80 to $90.Wedbush analyst Dan Ives maintained an Outperform rating and raised the price target from $120 to $140.Read Also: Palantir Lauds Musk’s DOGE Cuts, ...