Institutions Are Loading Up on Palantir

+ bootcamps are going international

Welcome back to Daily Palantir! Today we’re looking at new institutional ownership of Palantir, bootcamp expansion, and more. Let’s get into it!

Institutions are buying

We are starting to see the institutional ownership level of Palantir inch towards 42%.

Here’s some examples of funds buying:

Now, why does this matter? For a company like Palantir, if we can get closer to 60% institutional, we are going to get a lot more stability in the stock and even if the company has a few bad quarters, the upswings or downswings will be less extreme because long term holders will have a thesis in place and not need to get in or out every single quarter.

When institutions such as mutual funds, pension funds, and endowments invest in a stock, it often reflects a vote of confidence in the company's future prospects. These institutions have professional analysts who conduct extensive research before committing substantial capital, suggesting that they see long-term value in Palantir's business model and growth potential.

Institutional investors typically seek stable investments with the potential for steady returns. Their involvement can bring a level of stability to a stock's price, as they are less likely to engage in speculative trading compared to retail investors. This can reduce volatility and provide a more solid foundation for the stock's performance. For a company like Palantir, we’ve been in the 23-25 range for a while, but many factors can affect the stock — having a strong level of institutional support can bring less importance to all these external catalysts. Additionally, institutions are often long-term investors, which aligns well with Palantir's business strategy that may involve long sales cycles and significant upfront investment in product development.

Finally, institutional ownership can attract more attention to a stock from the broader investment community. As institutions build positions in a company, analysts and financial media may increase their coverage of the stock, potentially leading to greater visibility and investor interest. This can be beneficial for Palantir as it continues to expand its market presence and seeks to secure new contracts and partnerships.

Overall, it’s good to see the expansion — now we just need to continue putting up numbers to get more of the big buys coming into the stock.

Summary of ownership in Palantir:

Cathie’s Justification

Cathie Wood recently bought 2M shares of Palantir post earnings — while we’ve known she has been bullish on the company for how they can incorporate LLMs into enterprises via their AIP product, here is ARK’s official justification for why they chose to buy more Palantir:

Seems like her main justification is the acceleration of growth on the back of bootcamps as a way to scale — she isn’t alone. As shown above, many institutions finally realized that this strategy was going to be a winning one over the next few years and decided to bet on Palantir because of it by buying more shares.

Bootcamp Expansion

This was a great tweet that shows the international expansion of bootcamps by Palantir.

Based on an official LinkedIn post, it seems like Palantir will be posting bootcamps for implementing AI in the insurance industry in London and Zurich on March 22nd and April 4th, 2024.

We’ve seen some international expansion of these bootcamps with one that happened with Accenture in India back in December of 2023, but not much outside of that. If Palantir is going to start expanding their successful bootcamp strategy across the world, which has always been the plan, I would expect international comms. revenue to begin going up — the main benefit of this is that the business would be less reliant on US Comms to drive growth and overall commercial can help subsidize the lack of government growth while the company is figuring out how to reaccelerate the government business.

It’s a very positive sign to see them bring bootcamps across the world to clients who, in the words of Karp, are fighting for tickets just to even get access to the bootcamps themselves.

Maybe if these clients want access to Palantir’s software so badly….then….

That’s it for today — thank you for reading and I’ll see you tomorrow in your inbox!