Palantir's Future Prospects

Palantir's future lies in developing artificial intelligence algorithms. And artificial intelligence is the ultimate growth industry as computer algorithms provide efficiencies, save costs, increase profits and ultimately contribute to better processes and production results.

Palantir Technologies Inc., the artificial intelligence algorithms production company, is arguably the largest company in the world developing artificial intelligence/ machine learning algorithms that has a scalable product. And actually Palantir has several scalable artificial intelligence products. 

The problem with artificial intelligence is that doing artificial intelligence is very difficult to scale. Since every company is different one has to constantly adapt the machine learning algorithms to the specific case which involves hiring many people and basically turns artificial intelligence into a consulting business. And with the employment of many people that growing a consulting business involves come hire costs and lower profit margins which makes doing artificial intelligence difficult to scale.

Palantir Technologies Inc is trying to solve that difficulty. Yes, still large part of Palantir's revenue comes from doing AI/artificial intelligence/machine learning advisory work, but Palantir Technologies Inc has several scalable products in that area.

Palantir is still heavily loss making. Artificial intelligence, however, is a hot mega trend that is going to basically change everything. Artificial intelligence algorithms are the fourth industrial revolution. I would argue that the current fourth industrial revolution is the most important and most value creating and accretive industrial revolution in history.

And in the information technology industry often the quickest companies get almost all of the rewards. Facebook's slogan "Move fast, break things" is an epitome of that. Palantir has a huge first mover edge in the artificial intelligence area. If the company executes well on its long-term strategy, Palantir Technologies Inc's market capitalization is bound to grow multifold from the current 40.95 billion USD.

Palantir Technologies Inc, of course, has to become profitable in order to become a viable business, because businesses, after all, are opened to earn profit.

All in all, I think Palantir Technologies Inc's technology will sustain its leadership position in artificial intelligence in the near future.