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Stock Strategist

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.

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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.

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