I WAS WRONG! Palantir's Plan to Dominate AI is Working

I was wrong about paler paler is becoming one of the most powerful AI companies in the world because they have some of the most powerful AI Platforms in the world with paler stock Jumping Up by over 40% after one of the best earnings calls in the company's history there's only one question left to ask is this the top for paler or are there best days still to come your time is valuable so let's get right into it first things first I'm not here to waste your time here's everything I'm going to talk about up front what I got wrong in my previous paler video and why paler 2023 earnings and what they mean going forward and of course my updated long-term outlook on paler stock based on everything I've learned all right let's start with my previous paler video the only way to grow as an investor is to put your ego aside admit when you're wrong and learn from your mistakes so I took all of last week off and reviewed everything I've learned about paler since they went public a little over 3 years ago and it turns out that I did make make a pretty big mistake I've been underestimating paler AIP boot camps in a big way both as a marketing strategy and as a way to build out more use cases for all of their AI platforms paler started running these boot camps long after my time using Foundry and out of the 16 videos I've made on paler so far I've talked about them exactly zero times so I did a lot of digging and it turns out that these boot camps are the answer to basically every concern that I shared in my previous paler video from their goto Market strategy to their commercial business growth during that earnings call you said we have no pricing strategy have you made any progress on pricing strategy since that no and probably even their long-term net dollar retention rate which I'll talk about more when I cover their earnings so I was wrong I missed the big picture on AIP boot camps and they really do change my mind about paler position in this new AI landscape and I'm making this video to make up for my mistake all right to understand why these boot camps are such a big deal investors need to understand why AIP is such a game changer in the first place and to understand that we need to talk about paler other platforms first don't worry I'll keep it short and sweet paler Gotham and Foundry platforms enable data science across an entire organization by giving everyone from Executives and Engineers to sales teams and Human Resources a consistent real-time view of all of their Enterprise data they do that by by helping companies create digital twins which are also called ontologies at a high level an ontology is a map of a company's resources and how they all relate for example an Army regiment is an interconnected network of hundreds of personnel assets facilities and objectives and their relationships would include everyone's ranks and chain of command who is responsible for every computer vehicle sensor or weapon system who has access to what information everyone's current orders and locations and so on that's a lot of sensitive data to keep track of especially since things are constantly changing in real time so ontologies are a great way to organize the big picture of these kinds of large and complex Enterprises and paler platforms help companies build and use these ontologies to do things like analyze data track resources and optimize their own operations both Gotham and Foundry can also connect directly to almost any company asset to receive status updates and even send back instructions like rerouting a vehicle or retasking a military unit that's a huge level of access to give to any third-party software which shows just how much some of the biggest governments militaries and companies on the planet trust paler platforms with their most sensitive data the problem is that Gotham and Foundry are both pretty complicated products themselves and in my experience the learning curve can be really high that's where AIP comes comes in at a high level AIP lets users interact directly with their company's ontology through prompts so instead of coding or manually creating different data sets and dashboards users interact with AIP kind of like how they would with a much more capable chat GPT interfacing with an ontology this way seriously lowers the skill level that's needed to get things done right and get them done fast that's a lot of value but it still leaves the huge challenge of getting all the right data together building out your own on ology and getting AIP up and running in the first place and that's exactly where paler AIP boot camps come in AIP boot camps are Hands-On working sessions where participants can build real solutions to their own company's problems in under a week experts and decision makers go to these AIP boot camps to work directly with paler engineers and build out their own Enterprise grade AI tools and workflows using their own company's data even if it contains sensitive information and speaking of sensitive information I recently found out that dozens of online data Brokers are selling my personal information if you're getting more spam phone calls texts or emails lately they might be selling yours too well after a lot of research I decided to join delete me the sponsor of this video delete me is a hands-free subscription service that will remove your personal information from hundreds of data Brokers you just sign up enter your information and let their experts get to work and wow they reviewed over 20,000 listings for me last month alone and after 7 days you'll get a privacy report that shows you everything they removed so far I recently got my second one and delete me found 38 new data Brokers with over 250 more pieces of my personal information and not just my name and address but my fiance's and my mom's too and I love that after they remove your personal information they'll rescan these websites regularly you even get your own privacy adviser if you want to talk to a real person and make a custom removal request if you care about your data and your family's privacy you can get 20% off their us consumer plans with my code symbol2 at jooin delet me.com symbol2 which I'll also link to below and a big thank you to delete me for supporting the channel and keeping my family's data safe all right so experts and decision makers go to these AIP boot camps to plug in their own data intellectual property and all and use AIP to build out their own AI tools and workflows alongside paler engineers and that means they leave these boot camps with a series of use cases that are close to production ready and enough hands-on experience to finish building and start implementing on top of that paler Partners can run their own boot camps which only makes aip's adoption compound even faster but the final nail in the coffin for my concerns was this quick clip from CNBC where Alex karp highlighted the direct link between paler explosive growth and their IP boot camps how do you see large language models both working with and maybe even competing against paler I mean look our us product I'm not here to push our product but it's like it's growing so quickly that we we're going to have to rebuild the whole company and the reason it's growing very so quickly is in the milit the beginning of the AI Revolution was not large language models it was in the military and we learned a lot of lessons there that are people learning now currently for a business a large language model looks a little bit like self-pleasuring if you want to move from self-pleasuring to transforming your business you're going to have to learn how to manage that model and integrate it into the logic and knowledge of your Enterprise you won't be able to do that as well as you can do with found here it appears that you may be uh on the trajectory to becoming part of the S&P 500 what does that mean to you well look we we we've been profitable now for quite a while we are committed to being profitable the problems that exist now on the battlefield in in the intellectual Arena Arena and in US commercial especially are completely paler shaped problems it's very important for our customers that we have shown the financial strength we have significant profitability billions of dollars in the bank growth that would be nice too and so but it's it's a lot about saying look you're going to rely on us so if you're relying on somebody you'd like to know they're strong and we're strong when you think about the business briefly when we were talking about AI you said at some point we're just going to have to remake the entire business what does that mean um it it look we had our go to market has to be different we're doing all the we did hundreds of boot camps last year as compared to like 72 Pilots the year before it's just a question of embracing the fact that the revolution is bigger than we are yep there's really nothing else to say except I was wrong I'll do better from now on and I'm happy to be a paler shareholder speaking of which I also really like how Alex carp talked about needing to be financially strong not just so paler can get included in the S&P 500 but so their customers know that they can count on paler being there for them over the long term so let's talk about paler earnings next paler posted record revenues of $68 million for the quarter which is up 20% year-over-year their us commercial customer count grew by 55% and their us commercial Revenue grew by a whopping 70% year-over-year that's a massive difference from the 33% commercial Revenue growth that they reported just one quarter ago that's also 11 times the revenue growth that paler saw from the US government which grew just 6% year-over-year while I'm a little worried about the slow growth on the government side I'm much more excited for Pal's commercial Revenue to finally be bigger than their government revenue in the first place to me that's a clear indicator that they really can scale in bigger and much more competitive markets which is key to their overall growth in the long term paler closed 27% more us commercial deals than in the previous quarter which is impressive but that's actually more than double the 62 deals that they closed just two quarters ago so this number is ramping up fast I also think that three-year growth in US commercial customers is a great metric to track and I hope that pounder keeps highlighting this number for investors I expect this multiple to keep expanding for a while and then level off before shrinking as pound commercial customer count starts getting up into the thousands which I have no doubt will happen fairly quickly since they're going to be running hundreds of these AIP boot camps every year and eventually their existing customers will start running boot camps of their own I hope that paler keeps reporting the numbers for these boot camps every quarter as well but this earnings report was not all sunshine and rainbows and I still have some concerns that I shared in my previous paler videos net dollar retention is a measure of how much money recurring customers spend with a company year over-year it's a way to measure how sticky your products and services are with your customers this used to be a number that P your plastered all over multiple slides of their quarterly earnings presentations and even breaking it out by commercial versus government and US versus International two years ago their net dollar retention rate was 141% with the US government and 150% with us commercial businesses that means paler customers were spending 41 to 50 cents more for every dollar they spent with paler the year before today this number is one footnote in the appendix and Pal's net dollar retention rate was just 108% no breakouts and no explanations I hope that Pal's net dollar retention rate will grow as they run more AIP boot camps acquire more customers and flush out their overall monetization strategy for AIP have you made any progress on pricing strategy since that point no either way this is a number that all long-term investors should keep in an eye on another thing that I've been keeping an eye on is their online marketing I ended my previous paler video by saying that they should build a huge fictional data set that they can use for product demos and user training obviously their AIP boot camps are already doing a great job of that but I still think that building a data set that everyone can understand would give paler a way to showcase the power of their platforms to everyone else even if they're non-technical well 2 weeks after my video paler made a video showcasing how AI could help Santa plan the optimal path for delivering presents to children around the world and even decide which present to give each kid based on their age but Santa's mission is times sensitive so before flying to a country AIP can check the weather report and decide how to reroute him on the Fly and just a few days before the Super Bowl paler made another video showcasing how AIP could help a football coach turn the tide of a game by analyzing how different players move and where the ball is at any given time they even built a full ontology to show the relationships between the different entities that make up a football game all of the data frech entity and how it Maps back to the football game that's currently running in real time you can see there's a bunch of different data sources coming together in real time similarly how you have data spread across your Enterprise I've got a bunch of different sources of data that represent what's happening to a player that then we translate into what's going on on the left very cool each one of these objects has a similar level of complexity but all come together now talking in this business language and then when the coach calls a play he can see the new data get written just like how paler platforms can write data to other software and systems like I mentioned earlier they even showed off three different AI assistant coaches each powered by a different large language model like GPT 4 by open AI claw by anthropic and Google's Gemini all three AI coaches had access to the ontology and were tuned to recommend plays with different levels of risks and rewards so the head coach can ask these AI assistants for the recommendations and then weigh all the options just to be clear I'm not trying to take any credit for paler making these videos or imply that they made them because they saw my video I'm just trying to point out that these videos do an amazing job highlighting the power of AIP in scenarios that everyone can understand and it's great to see that paler finds that as important as I do I'm still crossing my fingers that they make a giant ontology of the entire Star Wars Universe to show off even more of their capabilities and how they all fit together either way it's clear that paler is firing on all cylinders I know this video is a little long but I wanted to be thorough because accountability is important I overlooked something big about a company that I cover often and the only way to grow as an investor is to put aside your ego admit when you're wrong and learn from your mistakes so with all that context let's talk about my updated long-term outlook on paler stock next and if you feel I've earned it consider hitting the like button and subscribe subscribing to the channel that really helps me out and it lets me know that accountability is important to you too thanks and with that out of the way here are my honest thoughts on paler stock at the start of the year I made a video about the stocks that I'm buying to get rich in this AI boom without getting lucky paler made the list because it's a pure play AI company that I've always loved for the long term but I put it low on my list because of all the concerns that I previously talked about it's clear to me now that Alex carp isn't just waiting for the world to discover how good paler platforms are he's focused on delivering value when and where his customers need it most and Pal's platforms are still constantly evolving as a result and paler is actively addressing a lot of my concerns around their commercial growth with AIP boot camps as well as videos that use examples that everyone can understand not just subject matter experts so with everything I've learned since I've put out that video I'm moving paler up two spots on my list which is a pretty big move considering how confident I am in each of these companies to begin with and how well this list has performed so far that's why it's so important to understand the science behind the stocks and if you want to see why I pick these stocks here's the video where I walk through it step by step either way thanks for watching and until next time this is ticker symol U my name is Alex reminding you that the best investment you can make is in you

Channel: Ticker Symbol: YOU

Views: 244,067

Keywords: pltr, pltr stock, palantir stock, alex karp, msft, msft stock, microsoft stock, goog, goog stock, google stock, openai, chatgpt, gpt-4, best ai stocks, best stocks to buy now, best stocks 2024, palantir update, palantir stock news, palantir earnings, alex karp interview, cnbc, bloomberg, palantir stock 2024, pltr stock 2024, pltr earnings, ticker symbol you palantir, tom nash palantir

Id: kxqAjzp9ix0

Length: 16min 27sec (987 seconds)

Published: Tue Feb 13 2024