PLTR 'One of One': Why LikeFolio Labels AI Software Giant 'Winner' on All Fronts

0:00Welcome back to Passmark and you're on the Swab Network. I'm Diane Kinghall, alongside Tom White, North Chicago studio. Time now for our cast tax segment for that. We want to bring in our next guest and that is Andy Swanko, Founder of Light Folio, taking a look at Palantir today. Andy, good to see you. Happy Friday to you. All right, let's get right into it. What are the sentiment trends look like for Palantir now? Excellent. You know, this is the one of the best. If not the best performing company in the world right now, the AI tailwind at the back and they're executing at a pace and equality that is almost unbelievable. They delivered you know 70% revenue growth. They've got 57% profit margins and everything that we see at light folio in terms of web traffic tells us that they're only gaining more attention and more institutional caliber traffic to their site telling us that you know every corporation in the world, every government in the world is on their list as

1:04potential clients. And more importantly than that, those potential customers are coming in the door and they're extremely happy with the product and the services that they receive. And so these are turning into long term contracts. You know, like folio web traffic data has been highly correlated with stock price with a little bit of lead time. It's strong right now. It's the strongest in all of the AI sector that we track. And so Palantir is just winning in a very big way and winning bigger and bigger ever quarter. We see that continuing through all through 2026. Andy, I think one of the problems that a lot of people have, even though the commercial side of their business is growing, I think it last quarter grew 137% year over year, is the fact that the valuation, you know, you look at it on a forward valuation. It's 115 times, you know, 2026 earnings. I mean, that's big and that's massive. And especially in a drawdown, it's not immune to moves in the overall market. Can, you know, your sentiment reflect that, hey, you know what? This is one of the companies

2:09that takes AI and allows other companies and governments to use it. And that's been one of the more difficult things out there for people to understand about AI. It's like, hey, we can throw all this money at it. But here's a company that's already using it and they don't really have a competitor in this space yet. Yeah, they bring in these corporate clients into their boot camps. And within days, the client is leaving with something that they can actually deploy in their company that takes advantage of AI. No one else is really doing that at scale. And so when you talk about a valuation, you know, I don't know. The contrary argument to the valuation is that simply it's just too high. The number is too high. But how do you value a company that is one of one in its space with the biggest technology tailwind, you know, in decades at the back? And it's growing, you know, 70% year over year, over 100% among commercial clients and doing it all with a profit margin of above 50%.

3:12There's really no math for that. There's no formula for that for investors. And so the bottom line is you just have to pay up if you want to be invested in this company. You're just going to have to pay an expensive ratio because you believe in the in the future of the company and in the execution of the team, which so far they've given us absolutely no reason to doubt them. In fact, it's just the opposite. At the same time, though, the, you know, macro matters, right? When you think about the big picture and the geopolitical turmoil that's been hitting the market broadly speaking. So, Palantir is obviously not immune to that. Is that something that comes up when you look at, you know, the sentiment indicators as it relates to Palantir? Yeah, it does. But, you know, I think that that can obviously impact valuation as, you know, especially investors get a little skittish about paying 100 times earnings in a macro environment like this. But in terms of a business consequence, I actually think it's just the

4:12opposite. I think that the more geopolitical turmoil, the more economic turmoil there is, the more corporations and the US government are going to turn to a company like Palantir to help them improve their efficiency and maintain their own profit margins. So, I think that the current environment could actually be working very much in Palantir's favor. You know, like the rest of us, I hope that a lot of this stuff gets resolved very quickly. But from a Palantir investor standpoint, you know, it's really not the worst thing in the world for there to be a little bit of chaos and a little bit of pressure on companies to maintain or improve their margins and AI being the solution to that. They're going to go to Palantir. All right. Thank you, Andy. That is Andy Swan, co-founder of Lake Folio with a look at the latest data on Palantir.