PLTR is undervalued given strong financials (high FCF, rapid revenue growth); speaker buys more and forecasts ~$250 price.

Literally Karp just told us we should nationalize OpenAI and Anthropic because there's too much liability associated with them. And the only way you can't have the liability exposure that OpenAI anthropic has is if you nationalize them or you use Palunteer which was basically a 26-inute long marketing video on why you should use Palunteer.

First it's helpful to understand a little bit of how Palanteer functions and how they pitch themselves as different. So I drew this on the whiteboard. I think this is a very oversimplified example of what it is that they do.

But basically what you have uh is you have early palunteer which is studying language and huristics. Then the next level you get sort of this ontology. We're going to put data together with algorithms and deterministic solutions.

And now we're incorporating LLMs. And these three things are all different. understanding language, our weights and models, and how we interact with LLMs. Those things are all different together. Palanteer calls that sovereign AI.

Now, I think it's a little bit of a marketing play what's going on. I want to be clear, okay? We'll talk about Palanteer's valuation in a moment, but I think some of this is a little bit marketing related.

A in reverse order, I do actually think Palanteer isn't that expensive right now. I'm going to get into the weeds on that, but I just want to hit that up front. Uh, and I like Palanteer stock.

I buy more Palanteer stock. I got a little bit of Palanteer stock.

I think that is convenient fearmongering by Karp to sell Palunteer products because what Palanteer does is they use their experience with the military to say, "Well, we're so good.

We don't give up military secrets. you should trust us with your company data instead of clawed or whatever else. And in fairness, there are cleaner ways you could keep data using Palunteer systems on prem or whatever.

So you could preserve your data, but you're still paying Palanteer their fee. Palanteer's got a lot of forward deployed engineers to set that up for you. It's smart. Like the system they have is smart, but you have to kind of balance this fear-mongering doom and gloom with he's also trying to sell the product.

But let's look at some of the things else that he said and then we'll look at the valuation for Palunteer. So he argues that these companies are discounting token access to steal your intellectual property that you need to have a good application layer which is this whiteboard right to protect your data.

Such a marketing strategy. Uh they basically the thesis is we deserve all of the intellectual property. All these clients are going to lose money and then they're going to sue.

I wrote the headless CRM as an example. He didn't mention that part. That's gonna just destroy market cap and destroy liabil or create a lot of liability.

He argues that when the nuclear bomb was built, people weren't on payroll and they weren't basically aligned with, you know, the profit incentives that you might get from an IPO at Enthropic.

I don't think it's a coincidence that this is coming, you know, a month before the anthropic IPO. This this sort of let's buy Palunteer instead.

Uh, and so we kind of get the idea here. In fairness, the company's got fantastic financials. I mean, just a quick overview here. We have 10 we have about $9.4 billion of free cash after they pay their bills of like $500 million.

They've got a great balance sheet. On top of that, uh, their revenue is up like 92%, their costs are up 53%. You've got massive pricing power.

So even though he comes across as kind of like an arrogant a-hole doom fearmonger, he kind of earned being arrogant because the company does make a lot of money. They're very selective with their customers.

There are a lot of people who would dream of being able to use the Palanteer software, but they have a line out the door of people who want to use Palanteer and they can't get their hands on it.

As a result, their growth rate has actually gone up from the last time we did this analysis. Uh on average, uh it looks like it kind of got rejiggered. is actually pretty stable at about 47% on Wall Street expectations.

That puts them at about a 23 PEG ratio right now. So price to earnings growth ratio cuz their their PE ratio in fairness is like uh what do we got here? The stock's at 177 divided by 162, their PE ratio is about 109.

And if you divide that by 47% annual growth over the next four years on average, you get about a 23 peg. And my forecast is that they'll probably grow at 50% for the next four years.

At 100 or a buck 62, I personally think they could justify closer to a three peg. It's probably a $250 stock.

So, it's not like, you know, we could justify a 5x here with the current numbers, but I don't think it's a fully priced stock. So, I don't think he's wrong to be calling Palanteer undervalued based on the growth they have.

You can't say it's undervalued just based on PE. But the pricing power is great. The balance sheet is great. The momentum's okay. They had a little runup from when we bought it at 118.

We set an alert to everybody in the course member uh alpha membership for that. If you're not a member of that yet, of course, remember, join us at meetreinvest.com. You get the alpha membership.

You also get uh like I don't know, probably a thousand bucks or 600 bucks in extra value of the reinvest terminal when that comes out in uh November. So, you're getting a free bonus on that.

And we're going to be raising the price uh on the meet reinvest alpha membership. So, join us over there, meet mereinvest.com. But uh I you know, we sent that buying alert at 118 obviously up on that.

I I don't mind buying more though at this price.

Not because of this doomerism, because after all, if you actually think what he's saying is right and it's going to crash the whole market, why would you buy any stock? So that's why I think this is overblown and marketing hype for Palanteer.

He says, "Oh, Daario's an ethical person." This is kind of like what comedians do. You know, comedians will do this. They're like, "Oh, the Jews, they're the greatest in the world.

I've got the greatest friends. The Jews love me." And then they go for some punchline about, you know, making fun of juice, right? Like that's basically what comedians do. That's what he's doing here.

It's like, oh, Dario's great. Dario's great, but he's going to get nationalized and he's blind to it. He doesn't even realize he's the mark

>> that's an important part right there. Daario is going to go into this idea of, "Hey, we do our best with safety, this, that, or whatever." But what's actually really interesting is Daario kind of slaps back at the commentary that he gets from people like Palunteer.

Even though, or people like Carad, Palanteer, even though Car's like, "Oh, I like Daario. He's so smart." Oh, but they're all going to get nationalized and they're going to go to zero and their investors are going to lose a lot of money.

This is Daario slapping back going, you know, people criticized us, but we're doing our best.

But I think it's worth putting a level head on what this is. It is a good company. It's a company that makes great money. They're kind of right to be arrogant, but it's a little too extreme to say the entire market's going to crash and these companies are going to nationalize.

I don't believe that. I do think it's fair that he says, "Hey, there's some work to do on uh, you know, essentially making sure our adversaries don't get ahead.