Bullseye American Ingenuity Fund portfolio manager Adam Johnson joins The 8:30 hosts, Pras Subramanian and Jake Conley, to discuss Palantir's ( PLTR ) upcoming third quarter earnings report and its $2.18 billion quarter and full-year guidance of 80% revenue growth.
The big number here, revenue growth, right? Looking at 2.18 billion. Sounds kind of like, huh, not that big of a deal.
What's $2 billion for the quarter, right? But it would be 85% higher than a year ago, right? So this business is growing, right?
This is the growth we always see out of Palantir somehow.
Palantir is their full year guidance, 80% revenue growth for the year as well, right? So the valuation is 60 times 2026 revenue estimates, right?
That's the problem. But they're all expensive.
Yeah.
So does it have more room to run, right? Does it is this the company that people, you know,
I say we joke Messi of AI, but you know, a lot of enterprise uses Palantir, right? The government uses Palantir. Uh, I mean from what I understand, they're founder products like that are are exceptional.
Yeah. No one knows how they work. But they work.
Yeah.
So to your point, these are all expensive companies.
On a valuation basis, Palantir is unbelievably expensive comparatively.
they figured out how to just grow that thing faster than any of us thought possible. Nvidia did the same thing.
That's right.
Right? And, you know, when you talk about, uh, Microns doing it, um, you know, when you talk about earnings and revenues both going up 3, 4, 500% a year, I mean you it's impossible to model that because you just say, how can I possibly say this company is going to see its top line grow fivefold in a year. It's it's
very hard to do that.
Trying to make the numbers work, right? So RBC talking about, um, how Palters the most expensive SAS AI SAS stock right now in their coverage. 61 times 2026 revenue, right?
times revenue.
Yeah, revenue, revenue.
And that makes me think like that's sort of why your numbers are like how much
how is this making this work? SpaceX and Tesla trade at 15 or 16 times sales.
revenue sales same number, right? Um yeah, 60 times. So Pateer is is uh I guess four or five times more expensive than Tesla and SpaceX.
We're seeing on Palteer, JP Morgan's Brian Essex initiating coverage this weekend, giving it an overweight, setting a December 2027
Wait, which stock?
Pateer. Okay. Setting a December 2027 target of $262 per share.
Their argument here, Palantier is moving enterprises from AI experiments into actual operational returns and the push into sovereign AI.
monetizing.
Yeah.
Yeah.
Which has been a huge talking point for Alex Carp. This is something he's consistently come out and said that look, you don't want to be putting your data as an enterprise, as a business into Claude or into Gemini or into chat GPT and thereby implicitly giving away your alpha.
Right.
This is the the your argument, we lock everything down, we give you control, and then that's how you monetize. That's how you find your alpha and don't give it up.
