The first time my team and I looked into Palantir (NYSE:PLTR) stock, all of us thought: “Wow, this sure looks a lot like the cool technology that Batman uses in movies to track down bad guys.” The deeper we dug into Palantir’s Gotham and Foundry products, the more we discovered that, indeed, Palantir is building Batman-like tech for governments and enterprises.
No joke. It’s game-changing technology.
So game-changing, in fact, that we recently added PLTR stock to Innovation Investor — our megatrend portfolio chock full of the world’s most innovative companies.
Each of these companies are in the early stages of using disruptive technologies to fundamentally change the way we live — including how we eat, drink, play, work, and travel. The portfolio’s goal? Score investors 10X returns in the market’s most defining technological megatrends.
Unequivocally, Palantir belongs in our flagship Innovation Investor portfolio.
PLTR stock is world-changing company with enormous long-term upside. In fact, I don’t mince words when I say Palantir’s stock could be a 10X investment opportunity.
Let’s unpack this:
PLTR Stock: Fighting Crime the High-Tech Way
Whether it’s Tim Burton’s gothic version or Christopher Nolan’s seminal trilogy, every Batman film has one thing in common — Batman fights crime using super-high-tech software. With this, he can track, catch, and lock up the bad guys all before breakfast. Yes, it’s fiction. But Palantir is turning that fictional software into a reality.
The company’s Gotham platform enables government customers to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants, to help those customers find what they are looking for — or, as Palantir puts it, find needles in thousands of haystacks.
To-date, this technology has helped the U.S. and allied military personnel plan, launch, and execute missions and operations critical to the safety and defense of democracy. That’s not a light lift. Palantir has developed the world’s only software platform capable of doing it — at a level no one else can replicate.
Soon enough, Palantir’s technology will become a ubiquity within allied nation military operations. And that’s a big deal, because allied governments have a lot of money.
Palantir estimates that its total addressable market in the government space is $63 billion.
Palantir’s market cap today is less than $40 billion. So, through government contract upside alone, PLTR stock has good potential.
Helping Businesses Improve Their Operations
But the real upside of PLTR stock comes from the company’s ability to sell its game-changing technology to commercial enterprises.
As it turns out, businesses also need to find needles in thousands of haystacks. The needles they’re looking for — and the haystacks in which they are looking — are different. But the practice is the same.
That’s why Foundry was born. Palantir is taking its game-changing technology designed for governments, and tailoring it to commercial enterprises.
Palantir is barely penetrating this market today, with the major obstacle to adoption being cost. But cost should come down over time, as the company leverages economies of scale in its government business to drive down platform and operations costs for its commercial solution. That’s the beauty of having these products operate side-by-side.
The addressable market here is equally as large. Based on Palantir’s estimates, the addressable market in the commercial world for its products is $56 billion.
So, when you add it all up, Palantir is developing game-changing technology that has the potential to disrupt $100+ billion in value.
Bottom Line on PLTR Stock
With Palantir stock, you have all the ingredients of a potentially huge long-term winner.
You have an innovative management team. You have a disruptive technology that’s impossible to replicate. And you have a huge addressable market that this disruptive technology will attack to unlock significant long-term economic value.
Plus, you have a highly scalable, highly profitable business model, and a great cash flow situation.
Those are the ingredients of a long-term winner. That’s why I love PLTR stock. And it’s why I added Palantir to my Innovation Investor portfolio — side by side with the world’s most innovative companies.
I’m biased, but I honestly believe it’s the best portfolio in the world for long-term investors. Especially those who want to look past the market noise and instead invest in the big trends reshaping our world.
To find out more about that portfolio, click here.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this video.
By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s the theme of his premiere technology-focused service, Innovation Investor. To see Luke’s entire lineup of innovative next-generation technology stocks (which would make Batman jealous), become a subscriber of Innovation Investor today.