Palantir's AIP and Bootcamps Drive Growth, But Revenue Impact Not Yet Visible
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Palantir's new AIP (Artificial Intelligence Platform) and bootcamp sales approach are enabling increased scalability and growth efficiency. Customer acquisition costs are decreasing and customer growth is re-accelerating.
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Financial metrics like Rule of 40, magic number, and free cash flows are all trending in a positive direction, indicating improving operational efficiency.
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Revenue impact from AIP and bootcamps is not yet visible, but leading indicators around customer count growth suggest future revenue acceleration.
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Updated DCF valuation model shows Palantir's fair value around $21 per share, meaning the current stock price is appropriately valued. The model uses 11% WACC to account for risks.
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Due to stock price appreciation in-line with fair valuation, the rating on Palantir has been downgraded from Buy to Hold for now until more AIP revenue clarity emerges.