Palantir is a major investor in more than eight innovative companies that are listed through SPAC. By investing in them, Palantir is actually investing in its clients, since the deals involve long-term contracts for their use of the company’s services.
Palantir Technologies (PLTR) is renowned for its contracts with government agencies such as the US CIA, but few consider its merits in the commercial sector, and even less – its significant investments in eight innovative companies that are listed on the stock exchange through SPAC (without the usual IPO process).
According to the latest 10Q report filed with the Securities and Exchange Commission (SEC), Palantir has recently invested $ 132 million in similar companies, and its earlier investments are about $ 240 million. ., the company makes a profit, but currently does not pay dividends.
Shyam Sankar, Palantir’s chief operating officer, said that by investing in emerging companies, Palantir is effectively providing capital in exchange for their multi-year commitment to using its data analysis software.
“Historically, the perception was that Palantir software is only suitable for very large companies and government agencies. We don’t think this is true, ”he says. “With SPAC, we see a historic opportunity to invest in our clients.”
Eight companies in which Palantir invests under long-term contracts:
1. Lilium is a German developer of electric air taxis, a 7-seater jet that can take off and land vertically. Palantir is investing $ 41 million in Lillium under a five-year software services contract.
2. The manufacturer of industrial robots Sarcos Robotics – Palantir has a six-year contract with him and an investment share of $ 21 million.
3. Celularity is a company that develops pharmaceuticals from the human placenta. Palantir is investing $ 20 million in the company, and Ceularity has signed a five-year service contract with the company.
4. Roivant Sciences is the parent company for over a dozen
pharmaceutical companies, biotechnology companies and medical technology companies. Palantir is investing $ 30 million in Roivant under a five-year contract.
5. Babylon Health – Providing App Based Healthcare – Palantir is investing $ 230 million in the company. Palantir uses Babylon for its UK employees.
6. Pear Therapeutics is a developer of an FDA-approved mobile app that allows patients to receive digital prescription drug therapy (PDT) treatments for serious medical conditions. Pear Therapeutics is part of a fast-growing category of medical startups known as digital therapy.
7. Boxed.com is a costco-style online consumer goods store.
8. Wejo – collects and analyzes data from vehicles connected to the Internet to help car manufacturers improve their products with data-driven solutions. Palantir and General Motors (GM) have invested in Wejo’s platform.
Thus, investments in Palantir appear to be more diversified than current shareholders would probably think. If you invest in Palantir stock, you are also indirectly investing in all of these innovative ventures.
Add to this more government contracts with:
Federal Aviation Administration (FAA) – a two-year contract worth up to $ 18.4 million.
longtime contract with the Central Intelligence Agency (CIA) and the US Army (four-year contract worth $ 458 million)
US Department of Defense ($ 823 million multi-year contract)
US National Nuclear Safety Administration
US Food and Drug Administration (FDA)
UK National Health Service (2-year contract worth up to $ 31.5 million)
Palantir’s large private sector clients include IBM (IBM), 3M (MMM), Faurecia, Ringier AG and others.
Palantir Technologies, which is down 40% from its high in January but has risen 130% since it went public on September 30, 2020, may be undervalued today.
Palantir’s share price of $ 23.08 (at the close of trading on Thursday) is far from the high of $ 45 (price during trading on 01/27) and this could be a good buying opportunity today.