🔥 PLTR Stock | Palantir Could Be Worth Trillions - Here's Why - YouTube

Humanity is undergoing a massive transformation. 

More and more, the foundations of  our future are being defined by data 

and, more and more, decisions based on the  digital world are reshaping the physical one.

Today, Gathering all the right  data in one place is no easy task. 

Generating meaningful insights  based on that data is even harder.

And bringing those insights back  to physical world is harder still.

But if the foundations of our future are defined  

by data... why are most companies  still so bad at understanding it?

And even worse at turning that  understanding into meaningful results?

I'd like to share my future vision  of a company called Palantir.

A company that helps the biggest institutions  make data a part of their foundation

Helps people make meaningful  insights based on this new foundation

And, of course, leverage those insights to manage  risks and make impactful changes in the real world

To understand how Palantir can do this  across every industry and discipline

We first need to talk about  the challenges with big data,  

artificial intelligence, and  the idea of a digital twin.

Hey there. My name is Alex and I used to be  a rocket scientist and radar engineer at MIT,  

where I focused on big data, artificial  intelligence, and automated decision support  

for government programs, the exact kind of work  that Palantir helps some of their biggest clients  

do at scale through their Gotham platform.  Palantir has another platform, called Foundry,  

that's extending their reach to private  institutions and even start-ups through  

their new Foundry for Builders program. Because  Palantir's technologies are industry-agnostic,  

I believe they can keep expanding  down-stream into new markets  

by eventually offering software products  to more small and medium sized businesses  

and maybe even individuals. So, in this episode,  I'll cover the important things Palantir is  

doing today and how they could scale that to a  Trillion dollar valuation in the far future. 

If you enjoy this type of research and analysis,  consider liking this video and subscribing to the  

channel with all notifications turned on. That  way you'll be the first to know when I come out  

with new research, regardless of how YouTube  tunes its algorithm. Let's dive right into it.

Palantir builds advanced data analytics software  for government and other large institutions. These  

same institutions tend to have the hardest time  with big data at scale because they were built  

well before the world went digital. Palantir's  software analyzes huge sets of data from many  

sources to help organizations make better  decisions, often in near real-time. So, where  

I think Palantir REALLY adds value is  by helping these large, older companies  

quickly make what's called the "digital twin"  of their organization. It's called that because  

it's a digital representation of their physical  stuff. For example, the digital twin of a huge  

logistics company could look like a count of all  of the assets it has at all of its locations,  

that updates when things are moved in  the real world. Everything else Palantir  

provides depends on this digital twin,  so Palantir really has to get this right.

To enable that, Palantir's software actually  needs to solve several key big data challenges,  

EACH of which are big enough to  build entire companies around.  

Let me walk you through them. The first step  is bringing all of a client's data to the  

right place, or places. That means working with  the client to identify the right data sources,  

build the right integrations, and transport  all of the data from those sources  

to the right storage locations. Initially,  that could scare investors because it makes  

Palantir sound like a consulting company, but  Palantir has done a great job of making this  

mostly plug and play to the point where new  clients can be stood up in a matter of days.  

That's one reason their clients love them; they  reduce the time to value from years to hours.

There are serious challenges with this step  because privileged or classified data needs  

to be stored in accredited spaces, can only  be transported through certain channels,  

and accessed by certain people, all of which  can change over time. By the way, that challenge  

isn't unique to the government; think about  medical records, financial records, or even just  

protected programs that big companies don't want  every employee to know about or have access to.  

So, if only some people in an organization  can or should have access to these data,  

that company has to be able to manage access and  permissions to all the different pieces of it.

In addition to that, data protocols  and formats are always changing,  

so Palantir needs to be able to  make secure fixes and updates  

to these connections over time. That's one of  the main features of their Apollo platform,  

which is the continuous integration and delivery  software that powers Foundry and Gotham. Apollo  

can deliver automated updates without disrupting  operations. Being able to roll out these software  

updates through even the most secure channels to  the most locked down computers is why Palantir can  

power mission-critical operations. That's a pretty  big differentiator because, as it turns out,  

not many companies can actually  do this reliably and at scale.

Okay, now that a client has the right data  flowing to the right places through the right  

pipes with the right permissions, that data needs  to go through ETL, which stands for extraction,  

transformation, and loading. Data needs to  get checked for errors and inconsistencies,  

cleaned up and reformatted. It also needs to  be made searchable, usable in models, and so  

on. Derived data might need to be created,  like calculating total revenue from  

sales quantities and prices or calculating  energy from measurements of power and time.  

If it's privileged data, it might need to get  anonymized or encoded or tagged a certain way,  

or maybe the system needs to  generate a separate audit log  

alongside the data. The devil is in the details  here and these details vary company by company.

Then, that extracted and transformed data needs to  be stored somewhere for the rest of the software  

to load it and act on it. That's called data  warehousing and every big company also has  

different data warehousing requirements based on  their corporate culture, industry accreditation  

and compliance requirements, and other constraints  imposed by their own clients. More details,  

more devils. Remember, Palantir is doing this for  some of the biggest enterprises on the planet,  

so they're pros at navigating  through all of these extra hoops.

Palantir deserves our attention as investors  exactly because they automate these  

steps of data connection, aggregation,  transformation, and storage in a secure,  

compliant, industry-agnostic way  to help companies make data a part  

of their foundation. Palantir helps people  make insights based on this new foundation  

through all the other cool decision support  tools their platforms offer: Search,  

analytics, modeling and simulation, artificial  intelligence, visualization, reporting, and so on.

Here's a quick example of how Palantir brings this  all together to empower clean energy companies:

There are plenty of companies that  do data analytics, visualization,  

and reporting, similar to the dashboards  that Palantir builds. Instead,  

let's stay focused on the capabilities  I think really set Palantir apart.  

We already talked about their ability to rapidly  digitize their clients business to build and  

interact with its digital twin. One way to do that  is by running data through models and simulations.

In the wind turbine example, the company might  want to look at the effects of different weather  

conditions. So, they can do something as simple  as run a simulation of a single turbine through  

different wind speeds and directions or something  as complex as hook their entire digital twin  

up a global weather model and analyze how  different weather conditions impact the  

power production of all their turbines together.  They can then steer the turbines in their digital  

twin to simulate the best angle for turbine  and see the difference in power generation.

The first notable thing about this is how easy  Palantir makes it to do everything I just said  

due to their modular design and good  graphic interface. In my opinion,  

good user interfaces are kind of like the SATs.  

Remember those? Nobody cares if you have a good  user interface; that's what's expected. Everyone  

cares if you have a bad one. It's just a box that  Palantir needs to check and they do check it.

The more impressive thing is that this  connection between digital and physical  

is bi-directional, meaning if the simulation  finds a better way to angle the turbine blades,  

a user can send that information directly to  the turbine control system and move them in  

real life or just output the set of instructions  for a human to verify before doing it themselves.  

This ability to hook into external systems,  whether they're command and control systems  

for wind turbines or drones, or communications  like emails and texts, allows these digital  

systems to affect the physical world. Think  about how confident a client has to be in  

Palantir's software to allow it to connect  directly to their wind turbine control system.

There are a few more capabilities I want to  quickly point out before talking about how  

Palantir can expand into small businesses and  the consumer market over the next decade. First,  

they have out of the box use cases, called  archetypes. The archetypes allow specific Palantir  

projects to get up and running fast by deploying a  template that gets you most of the way there from  

the get-go. Palantir is constantly expanding  their set of out of the box solutions with  

the types of use cases they're solving over and  over again across their clients. This is huge for  

winning clients, because Palantir can walk in and  demonstrate real value add in a matter of hours.

Second, Palantir supports third party  models. What this means is someone,  

whether it's an academic institution, research  lab, or one of Palantir's customers, could make  

a better wind model that Palantir can then deploy  to everyone that wants it. When I worked at MIT,  

I got to alongside engineers at MathWorks, the  creators of MATLAB, on this same type of stuff. We  

would help them refine different signal processing  models and functions and then they'd update that  

package for all of their clients. When they  worked with engineers at Stanford on their machine  

learning code and pushed an update, I benefitted  from that as well. Whether you're a utility  

company managing wind turbines or a government  agency managing airborne drones, you always want  

access to the latest and greatest wind models,  even if they're not made by Palantir. In this way,  

Palantir kind of acts as connective tissue across  its clients, allowing an improvement from one  

company to propagate everywhere else that benefits  from it, just like MATLAB did for me at MIT.

Speaking of Palantir acting as connective tissue,  

the third capability is Foundry's ability to  create collaboration spaces BETWEEN companies.  

Here's the head of the Foundry program explaining  how Palantir is thinking about this problem:

Palantir's ability to create secure collaboration  spaces across organizations is huge. Remember,  

we're not talking about emails and  phones here. We're talking about  

organizations with very strict policies on  information security, limited access data,  

legal and compliance standards, and so on.  The more enterprise clients Palantir gets  

on their platform, the more I think will  want to join it for this reason alone.

Palantir is often criticized for relying on  government contracts, but I think this is  

a mistake. Thinking about Palantir's platforms  as this connective tissue between organizations  

means shareholders should want them to penetrate  as much of the government sector as they can.  

Not just to lock in those long-term, stable  contracts, but also to access models,  

tools, and processes that most other  companies simply can't access. To me,  

that means Palantir benefits  from some serious network effects  

and we want them to fill that network with  as many hard use cases as possible upfront.

With that said, let's talk about Palantir's future  and how they could expand beyond their government  

and enterprise clients, to small business and  individuals. Palantir recently announced that  

it will roll out Foundry for builders, which is  an initiative to get early stage companies to use  

the Foundry platform as a subscription service.  Because of the way Palantir can help a company  

quickly build its digital twin, I don't really  see it having too much competition in this space.  

Most other solutions either focus  exclusively on one aspect of business,  

like customer relationship management or  workforce management, or they only cover a  

small piece of Palantir's value chain, like only  focusing on data visualization and reporting. 

Palantir being able to offer an end-to-end  solution for many different types of businesses  

make it a compelling option for any company  that wants to do as much as they can with as  

few different ecosystems and tools as possible.  Spoiler alert: that's every company, which means  

this is a real moat for Palantir. Also, once a  company builds on top of Palantir, they'll be  

very hesitant to move away from it because they'll  probably have to find multiple expensive pieces of  

software to replace it. Palantir will focus on  startups with high growth potential, starting  

with companies already connected to their existing  clients, then move to the broader market. I think  

this idea of thinking about Palantir as connective  tissue between organizations really has some merit  

and I'm really excited to see how their ecosystem  of archetypes and models continues to evolve.

Now let's talk about the ultimate market. What  could a company like Palantir ever offer an  

individual like you and me? Well, what if it  treated meaningful collections of individuals  

as an organization? For example, what if  Palantir came out with an internet browser  

that learns all about you,  pools you with users like you,  

and recommends content and commerce based  on what's going on in your pool of people? 

It could be like Amazon, but for everything.  Hey, people in your area are stocking up on  

toilet paper and soap. Here are the closest stores  with some left, or a link to order some online.  

We think this may be linked to the following  local news items. Here are other recommendations  

for things to read and do, based on these  insights. As you do different things,  

like book travel or buy a car or upgrade your  phone, Palantir could dynamically adjust which  

pools of people you belong to and the  types of recommendations it would make.

What if Palantir integrated with a lot of other  services and provided you with a universal login,  

kind of like how Facebook and Google do today?  Then, when you log in with your Palantir account,  

it adds that data to your data pool to  make cross-service recommendations? Hey,  

people who liked this show on Amazon Prime  really love this movie on Netflix. Hey,  

people who downloaded the fitness app  you just got end up listening to these  

4 playlists on Spotify more than any others.  Hey, people who subscribe to Ticker Symbol:  

YOU tend to be really, really, ridiculously good  looking. I'd pay a buck or two a month for that.

My point is, we will never know what kind of large  scale, cross-platform pattern of life insights  

could be unlocked unless there was a company  that could aggregate all of our data together  

and compare it to everyone else's,  which Palantir is very capable of doing.  

Also, if there's one company I'd trust  to keep all my data safe, it's Palantir.

Comment below with your thoughts on these  ideas. Would you subscribe to a service like  

that for a couple bucks a month? Do you have  your own ideas for services Palantir could  

offer to individuals in the next 5 to 10  years? I'm excited to hear your thoughts.

Palantir's next earnings call is only a few weeks  away, so I'll do a follow-up episode on their  

finances, how their business units are growing,  the crazy amount of SPACs they're invested in,  

and all of the other things we should  go over when we focus on Palantir's  

stock. Comment below or tweet me at ticker  symbol you if you want me to cover anything  

else in that video, including Palantir's  founders or more about their platforms.

Likewise, I hope this episode helped you  understand more about what Palantir does today  

and their path to expanding  in new markets in the future.  

If it did, let me know by investing in the  like button and subscribing to the channel  

with all notifications turned on. Then you'll be  notified as soon as my next Palantir video drops  

AND it's a great way to invest in  the channel that invests in you.

Until next time, this is ticker symbol  you. My name is Alex, reminding you,  

that the best investment you can make, is in you.