Get out of Palantir now!
Palantir has soared from $5.5 to $9 in the past few month on IPO filing hype. This means the valuation is now $18 billion in the private secondary capital markets. Rational? No, insane.
2019 revenue was a mere $700 million and change, below its level in 2015. This is not pure SaaS firm like Datadog but large part of its revenues are derived from implementation and software services, IBM in drag.
This does not warrant a stratospheric valuation. Majority of Palantir’s clients are governments, oil & gas and aviation, all sectors hit by the pandemic. The CEO has never run a public company. Palantir faces serious legal liabilities, insiders have been dumping shares last month on an epic scale. Wall Street institutional investors will not accept this valuation, hence direct listing.
My call? Get real, get out! If I disappear now, their software zapped me for dissing it LOL!
Matein Khalid is the Chief Investment Officer of Asas Capital Management. He has 25 years of experience in international capital markets as an advisor to family offices and fund managers. He has worked for investment banks/hedge funds in New York, Chicago, London, and Geneva. In addition, he has been the CIO of a technology fund in San Francisco, a royal investment office in Dubai and a public insurance company listed on the DFM.