One of the notable players in the artificial intelligence (AI) space is: Palantir (NYSE:PLTR). The company has long been considered a consultant to the U.S. government and Western allies, given its close ties to the military.
But over the past year, Palantir has emerged as a frontrunner in the AI revolution. This is largely due to the initial applause following the release of its fourth major product, the Palantir Artificial Intelligence Platform (AIP). AIP’s success has contributed to a shift in the narrative around Palantir, with more Wall Street figures starting to sound the alarm about fraudulent practices in the company’s software.
Wedbush Securities’ Dan Ives recently declared on social media that Palantir AIP is a “launching pad for AI use cases.” His latest research report puts a $35 price target on Palantir stock, implying a 36% upside as of market close on March 11th.
Let’s dig into how Palantir acquires customers and take a closer look at how its software is being adopted across the AI space.
How Palantir is winning in AI
After the release of AIP last April, Palantir began taking a very unique approach to marketing its product. The company has started hosting immersive seminars called “bootcamps” where potential customers can test and demo Palantir’s various platforms and see what role its software can play in their AI ambitions. Can be confirmed.
This lead generation strategy has proven successful so far. In 2023, Palantir has conducted over 500 bootcamps and increased his number of customers by 35%. The rapid adoption of AIP and its role in converting leads into paying customers has helped Palantir grow fuel margins and generate consistent cash flow.
In an environment crowded with financially powerful competitors such as microsoft and AmazonPalantir shows no signs of slowing down.
Use cases are exploding
Last week, Palantir hosted AIP Con 3. At the event, new customers joined his Palantir executives to showcase how the software is used.
Here are some of Palantir’s notable use cases for companies across a variety of industries.
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lenner uses Palantir to streamline its land development bidding process.
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general mills relies on Palantir for its logistics and supply chain efforts.
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Cathie Wood’s Favorites archer aviation uses Palantir to assist with maintenance and flight routing protocols.
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lowe’s deploys Palantir to help with work queues and agent satisfaction.
Should you invest in Palantir stock?
Investors have rewarded Palantir stock after its milestone 2023 performance, with the stock soaring 167% last year. So far this year, the excitement surrounding the whole AI story has pushed Palantir stock up another 45%.
Not surprisingly, this acquisition activity has increased Palantir’s valuation multiple. As a result, the company’s stock is trading at a significantly higher premium than other companies in the software-as-a-service (SaaS) industry.
Palantir is moving at a fast pace to beat the big tech companies. Additionally, Palantir has $3.7 billion in cash and no debt on his balance sheet, which, coupled with stable profits, makes him financially viable compared to many other money-spending software developers. We are in a strong position.
What makes the above list of use cases so encouraging is the diversity of applications that Palantir represents. Companies of all sizes in different industries are using this technology.
Now, as the bootcamp accelerates the conversion of leads to paying customers, Palantir has a first-mover advantage on all these new accounts as they relate to the AI roadmap. This gives the company a lucrative opportunity to collaborate with customers to identify new use cases and expand across the organization over time.
This power relationship supports Ives’ position. AIP serves simply as a launching pad as Palantir continues to penetrate new customer markets and expand within its existing base. Despite the recent stock price rally, I think now is as good a time as ever to buy Palantir stock using dollar-cost averaging.
Should you invest $1,000 in Palantir Technologies right now?
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John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool’s board of directors. Adam Spatacco has worked at Amazon, Microsoft, and Palantir Technologies. The Motley Fool has positions in and recommends Amazon, Lennar, Microsoft, and Palantir Technologies. The Motley Fool recommends Lowe’s Companies and recommends the following options: A long January 2026 $395 call on Microsoft and a short January 2026 $405 call on Microsoft. The Motley Fool has a disclosure policy.
Dan Ives just called Palantir “the starting point for AI use cases.” Here’s what that means:Originally published by The Motley Fool
