Palantir (NYSE:PLTR) stock IPO was a cold shower for many small time traders. But this was expected.
Critical voices are now increasing. Analyst Joanne Lipman criticized weaknesses in the Palantir business model in an interview with CNBC and criticized in particular the company’s proximity to the Trump administration. This not only brings advantages for the company, but also has a direct negative impact on the order situation and earnings in the near future.
Joanne Lipman from the Institute for Advanced Study, a recognized journalist and publicist, cannot share the widespread euphoria about the Palantir IPO. Lipman criticizes the proximity to the government and thus the high level of dependence on President Trump and his course.
Will PLTR ever be profitable?
“In 17 years the company has not managed to become profitable,” said Lipman. She notes that it can be seen as a clever move that the Palantir team around Alex Karp and Peter Thiel forced the IPO just before the election. If Trump loses on November 3, the company market cap will nosedive.
The strong dependency of Palantir on Trump orders in the area of immigration surveillance, cybersecurity and the secret services, for example, underpins this thesis. “After the election, some of these projects will be scaled back significantly or they will be dropped entirely,” says the analyst.
Alex Karp, CEO and founder of Palantir, however, spread in the US media that he would not vote for Donald Trump in the November 3rd election and does not intend to “publicly support” him.