$Palantir Tech(PLTR.US)
Palantir TCV concerns are absolutely silly and the bears are becoming desperate.First, every analyst on the street increased their PTs. You usually don't have analysts, that react to price movements, increase their targets when the stock is going against their bullish call. This quarter was SO good that every single one of them ignored what the stock was doing and told their clients that they think it's going higher.Even Rishi from RBC (Motel 6) had to FINALLY raise his target into the $100s, upgrading Palantir from $90 to $130. You know the numbers were that good when Rishi has to upgrade by $40.Second, this 6% TCV YoY growth completely misses what management said during the call. "We signed multiple 8-figure deals in the quarter that were shorter in duration than usual, as customers rapidly adopted initial Sovereign AI capabilities in their enterprise," noted CFO David Glazer.This also explains why RPO was flat QoQ:"As a reminder, RPO is primarily comprised of our commercial business, as it does not take into account contracts with an initial term of less than 12 months and contractual obligations that fall beyond termination for convenience clauses, both of which are common in most of our government business."I mean the bears have really lost their minds to interpret low TCV and RPO growth as a reason why this quarter was bad. What Palantir is actually saying is they are signing customers that want to get started with deploying Sovereign AI ASAP. That means to get a shorter contract signed so the work can begin and as the value is created, those 8-figure deals can begin to expand out many years...because Palantir is not one of those companies that will get paid and deliver nothing. If anything, I see it as a sign of incredible strength that management is willing to sign contracts on a shorter term basis and immediately begin proving how transformational the Sovereign movement can become and earn their ability to extend those contracts. The fact that the top average revenue per top 20 customer is up from $83M a year to $146M a year, +76% YoY, shows how much value this company is creating and why net dollar retention is now 165%.Customer count at 1090 customers is EXCITING, not a red flag, this is a company that is growing FASTER and more efficiently than any other software company on the planet, and doing so with less than 1100 customers...you would have to genuinely be desperate to think that that is bearish when in reality that means the relationships they have with their partners are truly transformational and they aren't just signing customers to sign them but rather every time they get someone in the door, they can keep them for a VERY long time and monetize that relationship better than any other software company because that customer is actually receiving the value they pay for. Bears, you need a better bear case to take down one of the single greatest companies the market has ever seen. Please, try harder.Source: amit
