1193:02:47,286 --> 1193:02:50,485 All [Music] right, welcome back to this week's edition of the Tech Corner. I'm George Sillis, senior markets contributor here with the Schwab network. On this week's Tech Corner, we're going to be covering Palenter Incorporated.Just a note, we actually talked about Palunteer Incorporated back in February this year. If you wish to watch that original video, please click the link above. Now, Palunteer Technologies is a software company specializing in building and deploying p ...

In this articlePLTRPeople walk by a banner featuring the logo of Palantir Technologies (PLTR) at the New York Stock Exchange (NYSE) on the day of their initial public offering (IPO) in Manhattan, New York City, U.S., September 30, 2020.Andrew Kelly | ReutersaWhen Palantir hit the stock market in September 2020, there was a lot that could go wrong. The Covid pandemic was sweeping across the globe, society was in lockdown and markets were volatile.Meanwhile, Palantir was operating at a loss while dealing with ...

Core Viewpoint - Palantir Technologies has been one of the best-performing stocks in the S&P 500 this year, with a stock price increase of over 140% [1] Group 1: Growth and Performance - Palantir's software, focused on AI-powered data analytics, has seen significant growth, particularly in the commercial sector, which is expanding rapidly [4] - The company's AIP product, which automates workflows through AI agents, has been a major growth driver, contributing to a 48% year-over-year revenue increase in Q2 [5] - The U.S. commercial segment experienced a remarkable 93% year-over-year growth, reaching $306 million, indicating substantial room for expansion given its small customer base of only 485 [7] Group 2: Valuation Concerns - Despite an 81% revenue increase since the start of 2023, Palantir's stock has surged by 2,740%, highlighting a significant mismatch between stock performance and business fundamentals [8] - The stock is currently trading at 134 times sales and 284 times forward earnings, which is considered excessively high compared to industry standards [9] - Historical comparisons show that even high-growth companies like Nvidia have not traded at such elevated valuation levels, suggesting that Palantir's stock may be in a bubble [11] Group 3: Investment Outlook - The current valuation implies that Palantir will need to achieve several years of exceptional growth to justify its stock price, which may not be realistic [12] - There are two potential scenarios for Palantir's stock: a significant decline or underperformance relative to high expectations, making it a less attractive investment at this time [12][13] - While Palantir's business performance remains strong, the stock is driven more by hype than by actual results, leading to a recommendation against investment due to its high valuation [13]

Core Thesis - Leidos Holdings, Inc. is viewed positively due to its stable cash flows, significant backlog, and potential for re-rating in stock value, contrasting with the higher-risk profile of competitors like Palantir [1][4]. Company Overview - Leidos operates as a mission services and systems integrator, primarily serving the Pentagon and U.S. government, with 44% of its revenue derived from National Security & Digital programs and 30% from Health & Civil contracts [2]. - The company offers comprehensive solutions including secure networks, sensors, cloud migrations, cyber defense, health IT systems, and long-term mission operations, leveraging applied AI for enhanced decision-making [2]. Financial Performance - Leidos generates approximately $17 billion in annual revenue and has an earnings per share (EPS) of $10.7, characterized by thin but stable profit margins [3]. - The company trades at a forward P/E ratio of 15 and an EV/EBITDA of 11, indicating a modest valuation compared to competitors [4]. Market Positioning - Leidos is positioned as a service-heavy provider, focusing on integration and operations, while competitors like Palantir are product-heavy, monetizing software platforms [3]. - The company has a substantial backlog of $46 billion, suggesting strong future revenue potential [4]. Investment Outlook - Analysts suggest that Leidos could see a re-rating towards a fair value of $250–300 per share, representing a potential upside of 25–30% [4]. - In terms of risk/reward, Leidos is considered a more stable and underappreciated investment opportunity compared to Palantir, which is priced for high growth and carries more risk [4].

Group 1: Insider Selling - Palantir and Tesla insiders have sold a net total of $12.7 billion in stock over the last three years, with Palantir executives selling $5.4 billion and Tesla insiders selling $7.3 billion since September 15, 2022 [2][6]. Group 2: Palantir Technologies - Palantir launched an AI platform called AIP in April 2023, which has significantly increased customer count and revenue growth, with demand for AI being exceptionally high [5][6]. - The company is recognized as a leader in AI and machine learning platforms, and its unique software architecture positions it well to capitalize on the growing AI market, projected to grow at 38% annually through 2033 [7]. - Palantir shares are currently trading at 204 times 2026 earnings, making it the second-most expensive stock in the S&P 500, indicating potential overvaluation [7][12]. Group 3: Tesla - Tesla has lost its position as the global leader in electric vehicle sales to BYD, facing declining automotive sales for three consecutive quarters due to brand damage and an aging vehicle lineup [9]. - The investment thesis for Tesla is shifting towards autonomous driving and robotics, with ongoing tests for robotaxis and plans to scale production of the humanoid robot Optimus [10][12]. - Tesla's approach to autonomous driving relies solely on computer vision, which is more cost-effective compared to competitors, but current revenue from these initiatives is negligible [11][12]. - Tesla shares are trading at 160 times 2026 earnings, making it the third-most expensive stock in the S&P 500, suggesting that only investors with strong belief in Tesla's future in autonomous driving should consider owning the stock [12].

Investment Rating - The report maintains an "Overweight" investment rating for the defense industry [3]. Core Insights - Military intelligence is not a future concept but a current reality, driven by advancements in artificial intelligence and technology [3][19][28]. - The military sector is undergoing significant transformation due to the integration of AI, which is reshaping defense strategies, operational capabilities, and equipment systems [17][30]. - The global military AI market is projected to reach approximately $21.003 billion by 2027, with the U.S. military AI market expected to grow to $3.133 billion by 2025 [9][10]. Summary by Sections Military Intelligence: New Quality Combat Power - Military intelligence is characterized by self-perception, decision-making, execution, learning, adaptation, and enhancement capabilities [3][18]. - The current era is witnessing a rapid evolution in military operations, with AI technologies being pivotal in this transformation [19][28]. Transformation of Defense Systems - AI is not just upgrading equipment but is fundamentally changing the defense system, structure, and operational models [3][30]. - Companies like Palantir have seen significant market success, with stock prices increasing by over 1263.68% since the onset of the Russia-Ukraine conflict [3][8]. Main Application Paths of Military Intelligence - AI encompasses various technologies, including machine learning, robotics, computer vision, biometrics, and natural language processing, which are applied across different military domains [8][9]. - The military AI market is expected to grow significantly, with the U.S. market projected to reach $3.133 billion by 2025 and the global market reaching $12.428 billion [9][10]. Key Industry Segments - The report identifies several companies involved in the military AI sector, including aerospace electronics, Chengdu Huami, and others focusing on computing power, sensors, algorithms, and intelligence analysis [10][11].

Wall Street's AI fever just crowned a new star. Palantir Technologies Inc PLTR, once a niche data analytics shop, now flaunts a $396 billion market cap on just $3.3 billion in recurring revenue. Its sky-high 93x ARR multiple makes Nvidia Corp's NVDA surge look modest and dwarfs peers like Salesforce Inc CRM and Adobe Inc ADBE, noted a chart posted on X. Track PLTR stock here.But this market worship feels eerily familiar: Cisco Systems Inc CSCO once wore the same crown at the height of the dot-com boom – bef ...

Core Viewpoint - Palantir Technologies is experiencing a decline in stock value, with concerns about overvaluation and insider selling impacting investor sentiment [1][2][3] Group 1: Stock Performance and Valuation - Palantir's stock is down approximately 2.5% over the last 30 days, raising concerns about a potential correction due to its high valuation metrics [1] - The current price-to-earnings (P/E) ratio stands at 517.27, indicating significant overvaluation based on traditional metrics [1] - Analysts have set a price target of $136.61 for Palantir, suggesting an 11.52% downside from the current price of $154.40 [12] Group 2: Insider Selling and Its Implications - Recent insider selling has raised alarms among investors, as it may indicate executives are aware of negative information that could affect stock value [3][9] - Most recent insider trades were executed under a Rule 10b5-1(c) plan, which is designed to prevent insider trading and indicates that these sales were pre-planned [4][11] - Insiders often sell shares to diversify their wealth or cover personal expenses, rather than signaling a lack of confidence in the company's future [10] Group 3: Stock-Based Compensation (SBC) Concerns - Palantir has faced criticism for its high levels of stock-based compensation, which totaled $1.57 billion as of June 2025, reflecting a 30% year-over-year increase [7][8] - High SBC can lead to dilution of existing shares, negatively impacting shareholder value and making the stock appear more expensive on a per-share basis [6][12] - The exclusion of SBC from "adjusted earnings" presentations may obscure the true cost of compensation, potentially misleading investors about the company's financial health [12] Group 4: Recent Partnerships and Business Developments - Palantir has formed a new partnership with Lumen Technologies, which is leveraging Palantir's Foundry and AIP programs to enhance its operations [13] - The partnership with Lear, a global automotive leader, has reportedly generated $30 million in cost savings in the first half of 2025, showcasing the effectiveness of Palantir's platforms [14]

Core Insights - Palantir is recognized as the "first stock of AI commercialization" due to its rare simultaneous breakthroughs in growth, profitability, cash flow, and government-enterprise relationships [1] Group 1: Financial Performance - Palantir's total revenue surpassed $1 billion for the first time in Q2 2025, achieving a year-on-year growth of 48% [1] - The adjusted operating profit margin stands at 46%, with a GAAP net profit of $327 million and a net profit margin of 33% [1][7] - The free cash flow rate is at 57%, indicating strong cash reserves [1][7] Group 2: Government and Commercial Growth - Palantir operates on two fronts: government contracts and commercial growth, with significant contracts from the U.S. Army and Space Force [2] - U.S. commercial revenue grew by 93%, with a 64% increase in customer count and a 222% rise in total contract value [2] Group 3: AI Integration and Application - Palantir emphasizes the deployment of large language models (LLMs) in real-world scenarios, enhancing operational efficiency across various sectors [3][4] - The company utilizes a Forward Deployed Engineer (FDE) model, embedding engineers within client organizations to integrate technology into daily workflows [4] Group 4: Sales Strategy - Palantir adopts a unique sales approach by minimizing traditional sales teams and focusing on product effectiveness and customer referrals [5] - The deployment engineers directly address client issues, leading to organic growth through customer recommendations [5] Group 5: Ethical AI Use - Palantir advocates for empowering frontline workers with AI tools, aiming to reduce resistance to technology among non-technical users [6] - The company maintains a commitment to ethical practices, addressing privacy concerns proactively [6] Group 6: Market Position and Future Outlook - Palantir's market capitalization has exceeded $400 billion, placing it among the top twenty companies in the U.S. stock market [7] - The company has raised its annual revenue forecast to $4.15 billion, with commercial business growth expected to exceed 85% [7] - Future challenges include expanding into new industries and regions while maintaining the uniqueness of its AI technology [7][8]

Core Insights - Palantir aims to redefine global order by leveraging data to influence national security, military strategy, and financial systems [1] - The company's core competency lies in its unparalleled big data processing and analytical capabilities, integrating vast and chaotic data streams into actionable insights [2][3] - Palantir operates as both a traditional tech company and a covert intelligence agency, serving a diverse clientele from government agencies to major corporations [4] Company Structure and Culture - Palantir's organizational structure is unique, lacking traditional titles and hierarchies, instead designating all employees as "Forward Deployed Engineers" [7][8] - The company rejects conventional corporate hierarchies and focuses on a flat structure that empowers engineers to make decisions directly [14][19] - This approach fosters a culture of rapid response and innovation, allowing engineers to address client needs without bureaucratic delays [19][25] Operational Model - Palantir's operational philosophy emphasizes action over deliberation, encouraging engineers to engage directly with clients to solve complex problems [25][26] - The company has transitioned from a highly customized service model to a more modular and platform-based approach, creating reusable components from successful client solutions [35][36] - Palantir's products are not merely software; they involve collaborative implementation and optimization, akin to a joint operation rather than a standard SaaS model [41][44] Market Position and Strategy - Palantir focuses on high-value, long-term clients, particularly in government and defense sectors, establishing a strong customer lock-in effect [44][47] - The company has achieved significant growth, with a 43% increase in customer count and a shift from predominantly government clients to a more balanced commercial client base [48] - Palantir's long-term strategy mirrors that of other successful companies, prioritizing market presence and customer relationships over immediate profitability [50][51] Corporate Philosophy and Values - Palantir positions itself as a defender of Western values, selectively choosing clients and markets based on its political stance [53][55] - The company's culture is described as rigorous and mission-driven, contrasting sharply with the more relaxed environments of typical Silicon Valley firms [56][59] - Employees are expected to embody a strong commitment to the company's mission, often working under high-pressure conditions [60][61]