Discover Wall Street’s Hidden Gem: The Surprising Stock Everyone’s Talking About | CNN Business

Recently, Palantir surged onto the finance scene with standout earnings. In its latest report, the company surpassed $1 billion in quarterly revenue, a milestone that caught attention. Notably, a $10 billion contract from the US Army further boosted its profile.

However, with a market cap soaring nearly 600% from last year, Palantir’s stock raises eyebrows. Analysts warn that it’s overvalued, trading at around 100 times its yearly revenue. Currently valued at $420 billion, Palantir outstrips giants like Disney and American Express combined.

Surprisingly, many people outside the tech and finance world aren’t familiar with Palantir or its unique offerings. Founded about 20 years ago, Palantir blends defense contracting and advanced data analytics. The name “Palantir” comes from a concept in “The Lord of the Rings,” where magical stones allow for vision and intelligence gathering.

Palantir’s tools help users, primarily in the military and government, to visualize complex data sets. They sift through vast amounts of information, highlighting trends and patterns. But the company has faced scrutiny for enabling surveillance activities.

• Palantir has assisted in building a controversial database that compiles details on Americans, as reported by the New York Times.
• The technology used by the LAPD has attracted criticism for fostering racial profiling and widespread surveillance, according to civil rights groups.
• Its software also reportedly played a role in the Israeli military’s targeting in Gaza and was instrumental in tracking Osama bin Laden.
• During the pandemic, Palantir assisted health officials in monitoring Covid-19 data across hospitals and local governments.

Founded to prevent terrorist threats, co-founder Joe Lonsdale emphasized the mission of safeguarding civil liberties. Key figures include CEO Alex Karp and Peter Thiel, the tech billionaire known for his controversial views and political activism. Early on, Palantir struggled to find investments until it received backing from the CIA-linked firm In-Q-Tel.

Five years after going public, Palantir remains deeply integrated into government operations. Concerns arise over the dependency on this singular contractor for data needs, akin to the reliance on SpaceX for space launches, as noted by The Wall Street Journal.

Palantir’s ties to political figures also raise eyebrows. Former President Trump praised Palantir’s contributions, stating, “We buy a lot of things from Palantir.” Reports indicate the company received over $113 million in federal contracts during his presidency.

Karp’s leadership style is equally notable. He has spoken about the moral implications of Palantir’s technology, bringing attention to its dual nature of saving and, at times, taking lives. In remarks that echo his unique approach, he stated that the company is “mission-driven,” aiming to protect what he views as Western civilization.

Yet, some former employees disagree with this mission. A recent memo from 13 ex-workers criticized the company for straying from its founding ideals, emphasizing the dangers of wielding its technology irresponsibly. They referenced the fictional seeing stones as a parallel for how data could distort reality in the wrong hands.

Karp, unfazed by criticism, recently remarked on the company’s record-setting quarter, a tone that reflects both pride and defiance. “We’re very proud. And we’re sorry that our haters are disappointed,” he declared.

As Palantir continues to grow and draw scrutiny, its impact—both positive and controversial—remains a relevant topic for discussion, especially in today’s data-driven world.

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