Hey everybody, this is Tom Nash coming to you from the beautiful Cypress As you can see in the background and today's video I Want to talk to you about Palantir and why Palantir is running up now. The past few videos I've been warning people that parent here is basically going through a formal phase and it's running up too fast. but nevertheless I've still been very consistent with saying that Palantir is a 500 stock. For me personally, this isn't financial advice.

My opinion might be an accurate, might be wrong, Might be the railings of madman. no click, nothing. That's much nothing. Don't buy nothing now.

So let's talk about the other side of the equation, right? We talked about my warnings and my basically kind of issues with it running up too fast. But let's talk about why: I Think this is a one trillion dollar company. Eventually, not tomorrow. but in a while.

And here's the thing. Palantir doesn't really compete with any particular brand or company. This is how it works. Foundry is a platform.

That platform is being used by clients to build whatever they need on. Foundry One example is Airbus Airbus in 2017, basically built a whole new thing on Foundry and it has its own name. It doesn't really matter for that video, but that system basically not only made Airbus Production Way more efficient, cutting production times for the A350 by tens of percents. It also made things more efficient down the line.

Everybody who's buying in you know, jet from Airbus now is getting Foundry which means airplanes on the ground, time is shorter and efficiencies with Moqs with Logistics it's a scheduling and you name it now there is is. Basically they don't have a competitor. and basically that's what Peter Thiel was intended building. which is a product.

Uh, that's creating an industry in which it is a monopoly. That was the whole idea. You should read zero to one by Peter deal because he's specifically named that as a strategy. Now if Palantir doesn't compete with anyone, so how come you know they're not growing like 300 per year.

Well, that is because they're competing with their own clients. And let me explain what it means. Now Palantir comes in with The Foundry platform to a Fortune 500 company, which is, you know, their playground. That company already has something grown that they've built themselves.

probably combination amalgamation, some sort of a hybrid, some front. They Frankenstein some sort of a software that basically serves as what Foundry is supposed to do, but it's much slower, much more expensive, and much less efficient. But most often, these platforms that were homegrown by these companies have caused tens of millions of dollars and have caused these companies a lot of headache and took years to make. And then here comes Palantir.

Just after this company has spent so much money on this and are offering for this company to basically reset everything and pay a whole new fee. Don't forget that the top 20 clients of Palantiers spend about 50 million dollars per year, give or take. So that's not a cheap system. so it's A Hard Sell So they're competing with the clients themselves with whatever they have homegrown and there's a lot of psychological barriers to this thing.

If I was the guy who built this and I'm the gatekeeper, it's not always in my best interest to let Palantir in. And you know, see the CEO and the board because you know it's going to make me look like an idiot, so to speak, right? So they've been getting a lot of pushback because of that. But here's the thing. The few companies that have made that leap like Tyson Foods for example, like Airbus And there's other examples.

They have basically increased their competitiveness in such a way that at this point these guys don't have a choice. And that's why Parent Fear is running up right now. because people are seeing what's going on in the financials. But the financials are lagging.

So the financials for two quarters in a row were, you know, absolutely beautiful. Gap Profitability and growth projections. Everything is nice, but these financials are just a result of what's actually going on. You know, if the company was not good, if the product wasn't sticky, then Palantir wouldn't have had a two billion dollar annual sales cycle and it wouldn't have had 110 net dollar retention and they wouldn't have.

you know their top 20 clients spending 50 million dollars per year. That's what I'm saying. So essentially what's going on right now is that basically the light bulb on Wall Street is starting to turn on and a lot of these institutional investors are slowly starting to buy in. But the problem is a lot of retail money is flowing into this because of Fomo, because of the greater pool Theory, etc etc.

quick Buck et cetera et cetera. And eventually there's gonna be a few pullbacks on the stock price and they'll wash out. But I do believe that at this point. Um, everybody understands that Palantir has no competitors, the product is sticky because it works and they'll only get better.

I Do believe that it's going to take them at least a decade to get to that point where I see them, it's a 500 you know per stock company and in that process it's gonna be a lot of bumps, a lot of bruises, a lot of pain, and I think penalty is going to punish a lot of Traders along these times and it's going to reward a lot of long-term investors like myself now. I Got in at 18 I bought at the height I bought the lows. It doesn't really matter I'm in for the Long Haul and that's my opinion I'm going to stick to it. Thank you so much! Shout out from Cyprus I'll see you next video.