Palantir After Q1 Earnings: Market Misreads Metrics, AIP Bet Still Valid


  • Palantir’s US Commercial Total Contract Value (TCV) grew by 131% year-on-year in Q1, ahead of Q4 2023’s 107% growth figure. This indicates Palantir is successfully scaling AIP, in my view.
  • I believe the market overreacted to certain metrics reported in Q1, such as Palantir’s overall US Commercial Revenue Growth. In my view, these metrics are not as meaningful as TCV.
  • I see further catalysts for Q2, including the Oracle partnership, announced in April and not reflected in Q1 earnings yet, and the launch of the Mixed-Reality OSDK.
  • Overall, I believe this stock remains an asymmetric bet on AIP. I see Palantir becoming the Salesforce of AI, and my personal target is 5X from current prices.

Palantir headquarters in Silicon Valley

Sundry Photography

In my last article about Palantir Technologies Inc. (NYSE:PLTR), published before Q1 earnings on May 5th, I argued how the company represented an asymmetric bet on its Artificial Intelligence Platform (“AIP”). In this follow-up, I examine the details of the

Analyst’s Disclosure: I/we have a beneficial long position in the shares of PLTR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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