Will PLTR sky rocket in the next few years?

‌$Palantir Technologies Inc.(PLTR)$  ‌

Will PLTR sky rocket in the next few years?

Challenges:

So far Implementation process of PLTR seems to be similar to standard enteprise systems such as products from Oracle or SAP. The challenges with implementing such solutions is that they are very much a manual process and time consuming. Unlike tech companies that allows implemented solutions to be easily transfered from one company to another company i.e. services (Grab, Uber, Zoom); Social media (Facebook, Instagram, tiktok), even EVS like TSLA, their software are common and easily scalable to mass market with minimal customization for users.

In contrast, PLTR's solutions are mostly all unique to each company, and with 50% of earnings with the military (1) using Gotham, they are bound to non-disclosure that makes it almost impossible to "copy-paste" to another company.

Of course it could be possible that in the years to come PLTR starts to implement mass market solutions of small medium enterprises, this seems to not be the direction so far.

Balancing factor:

The cost of using PLTR is a double edged swords, while it means that many businesses are unable to get access to PLTR easily, those who can i.e. IBM, Amazon, Airbus (2), will likely continue to use PLTR for as long as it brings value to their business considering the high sunk cost into the implementation process. Also government clients are likely to continue to contracts with PLTR considering that PLTR has good product that are leaders in the industry.

Conclusion:

It is no doubt that PLTR has a good business model and on track to make big money but considering the difficulties to scale, based on fundamentals I don't expect it to be another TSLA or multibagger.

Disclosure: I'm invested in PLTR for the disruptive tech.

Reference:

1 https://investors.palantir.com/news-details/2023/Palantir-Reports-Its-Second-Consecutive-Quarter-of-Positive-GAAP-Net-Income-GAAP-EPS-of-0.01-in-Q1-2023

2 https://en.wikipedia.org/wiki/Palantir_Technologies