Palantir (PLTR) investors closed off a strong week, with the stock gaining +7.08% the last 5 days, which means it sits at +8.92% YTD.
Palantir has been a cult-like stock among retail investors, but 2022 was a brutal year. However, if this start to 2023 is signaling anything... good things may be coming. As for this weeks news, let's go through it together.
1. Cloudflare Partnership
2. Found"R"y
3. Healthcare Expansion
4. Pension Purchase
LEGEND: Positive News | Neutral News | Negative News
1. Cloudflare Partnership
Palantir announced a strategic partnership with Cloudflare (NET - another fan favorite retail investor stock), where they will be focused on cloud cost optimization. What does this mean? The goal here is to help customers optimize their cloud infrastructure and reduce costs.
As cloud adoption grows (as we can see with AWS, Azure, and GCP posting 20%+ growth rates YoY), the need for managing this infrastructure and cost is raising to the top of C-level's priorities (especially during this economic slowdown). Palantir will be using their Foundry platform (to profit off this wave), and together with Cloudflare will provide customers an industry leading solution to manage their cloud infrastructure, including the ability to monitor and optimize cloud resources in real-time.
2. Found"R"y
Palantir announced an integration this week into their Foundry Platform with Data Science company Posit (formerly RStudio). This goal of this partnership is to provide customers with a robust solution for data science and analytics. The big news is that this integration now allows customers to use "R", a programming language used for data analysis, with the Palantir Foundry platform. I remember some of my Chemical and Biochemical engineering friends in University used "R" regularly, so this is a positive sign to see Palantir expand further into new industries.
Bottom line - this move will enable customers to more easily perform advanced analytics and modeling on their data, helping them make better-informed decisions (isn't this the whole goal of Palantir?).
3. Healthcare Expansion
Palantir (with Foundry) has introduced a quality management system for the life sciences industry - and I think this could be a major revenue source for them in future years. The healthcare industry is massive, and Palantir is dotting their T's in here to make sure they provide value.
The new system should help companies in the life sciences industry comply with regulations and improve the quality of their products. It will allow them to automate and streamline their quality management processes, like document management, change control, and incident management. The system will also provide real-time visibility into the quality of their products, enabling them to detect and correct issues more quickly.
A top 5 GLOBAL pharma company classified an instance of Palantir Foundry as "GxP qualified". "GxP" is essentially a compliance that companies need to meet if they make food and medical products to make sure they are safe for consumers.
4. Pension purchase
The State of New Jersey Common Pension Fund D released that it raised it's holding size in Palantir this week by +2.3% (according to the 13F filing). This equates to a purchase of 22,066 shares, bringing their position size to 981,705 shares.
I always take these moves with a grain of salt. This doesn't mean Palantir is a better or worse investment in anyway - all it means is that they consider Palantir a good enough investment to hold in their fund!
That's it for this week.
We look forward to spending a few minutes with you next Sunday for some new Palantir news!
Disclosure: I am a Palantir Technologies (PLTR) shareholder at the time of publishing.