Alex Karp, Palantir's chief executive officer, said Wednesday the company respects the retail crowd, who are largely optimistic about its stock, as is institutional investors.
At a virtual conference of Barron’s Investing in Tech, Karp speculated that Palantir’s bold claims, as well as his clear statements as a company and about its mission, helped build the confidence of individual investors.
"We speak [in] clear English about what we're going to do … so we respect the intelligence and rigor of what is usually referred to as individual investors," said Karp.
Palantir went public again on September 30th via a direct listing and quickly became a popular trade with retail investors. Considered mysterious by some, the data mining and software solutions company is particularly popular in places like Robinhood Markets and Reddit.
Shares of Palantir Technologies
was up 1.6% on Wednesday and up 24% in the past 30 days, but only 5.3% year-to-date, FactSet data shows.
For comparison: the Dow Jones Industrial Average
is down 0.3% in the last 30 days, but has increased by almost 12% year-to-date. The S&P 500 index
is up 1.6% on the month and up nearly 13% so far in 2021, while the Nasdaq Composite Index
has increased by 4.7% in the 30-day period and has increased by more than 9% in the year to date.
Karp, a staunch executive, also said Wall Street analysts tend to have a poor understanding of the company, often in an effort to name it.
"Analysts tend to openly butcher this by breaking us down into the Frankenstein monster they might otherwise see in a corporate monster," he said.
Palantir recently reported a net loss of $ 123 million, or 7 cents per share, for the first quarter, compared with a loss of $ 54 million, or 10 cents per share, last year. Palantir's revenue for the quarter rose to $ 341 million from $ 229 million a year ago, while analysts tracked by FactSet forecast $ 332 million. The company gained 11 new commercial customers in the last quarter.
About half of Palantir's revenue comes from government contracts.
Karp said companies need to focus more on software, which he believes will “go from being a luxury product to being what determines whether you survive as an industry…. or as a government. "