TLDR
- Palantir CEO Alex Karp denied the company surveils U.S. citizens during All-In Podcast appearance
- Stock rallied 9% over five days despite ongoing surveillance controversies and leaked NSA documents
- Company shows strong fundamentals with 370% stock gains over 12 months and 94 Rule of 40 score
- Wall Street analysts maintain Hold rating with average price target implying 9.9% downside
- Investor warns stock is overvalued at 90x forward earnings, recommends waiting for pullback
Palantir Technologies stock jumped 9% over five trading days after CEO Alex Karp addressed surveillance concerns on the popular All-In Podcast. The data analytics company has faced persistent questions about its role in government monitoring programs.
During the podcast appearance, Karp pushed back against surveillance accusations. He claimed Palantir represents the “single worst technology to use to abuse civil liberties.” When directly asked about surveilling Americans, Karp responded with a notable pause: “No, we are not surveilling… uh, U.S. citizens.”
The CEO’s comments came as investors continued betting on the company’s government contracts and AI platform adoption. Palantir stock has surged 370% over the past 12 months, defying repeated warnings about overvaluation.
However, leaked NSA documents tell a different story. The 2017 Intercept report based on Edward Snowden files showed Palantir software worked alongside the NSA’s XKEYSCORE program. This system collected emails, Facebook messages, browsing records, and webcam footage globally.
One NSA presentation specifically described Palantir’s integration into “Mastering the Internet,” a joint surveillance project with Britain’s GCHQ. These revelations contradict Karp’s claims that intelligence agencies wouldn’t buy Palantir products.
The company’s government contracts have expanded under the current administration. Palantir plays a central role in White House plans to share data across federal agencies. Critics worry this could create a national database of Americans’ personal information.
Civil liberties experts note that mass surveillance programs routinely capture domestic data “incidentally.” Under Section 702 of the FISA law, the NSA can share this information with agencies like the FBI.
Strong Fundamentals Meet Sky-High Valuations
Palantir’s financial performance remains impressive despite the controversy. The company posted a Rule of 40 score of 94, combining 48% revenue growth with 46% adjusted operating margin. CEO Karp guided for the company’s “highest sequential quarterly revenue growth” in Q3.
The customer base grew 43% year-over-year in Q2. U.S. commercial revenues jumped 93% during the same period. The company also secured new deals including selling its Maven Smart System to NATO.
Five-star investor Bohdan Kucheriavyi acknowledges Palantir is “thriving” but warns about valuations. The stock trades at 90 times forward earnings, far above sector averages. Kucheriavyi compares the situation to Tesla’s “exuberant multiples” before interest rate hikes brought valuations down.
Wall Street Takes Cautious Stance
Analysts remain divided on Palantir’s prospects. Based on 19 ratings over three months, the stock holds a Hold consensus rating. Four analysts recommend buying while 13 suggest holding and two advise selling.
The average 12-month price target sits at $154.47, implying 9.9% downside from current levels. This suggests Wall Street expects the stock to cool off despite strong operational performance.
Kucheriavyi plans to hold his position but won’t add shares soon. He recommends waiting for a “major pullback caused by some macro development” before increasing stakes. The investor believes macroeconomic factors now matter more than company fundamentals for the stock’s direction.
Palantir continues expanding its European presence while maintaining its controversial government relationships. The company guided for accelerating revenue growth in the current quarter.
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