Portrait: Alex Karp’s Big Data Giant Palantir Technologies Joins S&P 500 Today!

tamir
Mon, 23 Sep 2024 07:30:51 +0000
Companies, Markets, Technology, Alex Karp, Palantir, Palantir Technologies, Peter Thiel

Alex Karp co-founded Palantir Technologies about 20 years ago with early backing from the CIA’s investment arm, In-Q-Tel. With one foot in the world of covert operations and another in the boardrooms of Fortune 500 companies, Palantir embodies the complex intersection of technology, privacy, and power. As Palantir ascends to the pantheon of the S&P 500, it carries with it the weight of controversy and the promise of revelation.

Company Overview

Palantir Technologies (website), founded in 2003 and headquartered in Denver, Colorado, is a leading software company specializing in big data analytics. The company’s name is inspired by the “seeing-stones” from J.R.R. Tolkien’s “The Lord of the Rings,” reflecting its mission to provide powerful data visualization and analysis tools. The key business areas are:

1. Palantir Gotham: An intelligence and defense tool used by militaries and counter-terrorism analysts.

2. Palantir Foundry: A platform for data integration and analysis used by corporate clients.

3. Palantir Apollo: A continuous integration/continuous delivery (CI/CD) platform.

Palantir‘s clientele spans government agencies, including the U.S. Intelligence Community and Department of Defense, as well as major corporations like Morgan Stanley, Airbus, and Fiat Chrysler Automobiles.

The Share

Palantir reported second-quarter solid results for 2024, with revenue increasing 27% year-over-year to $678.13 million, exceeding analyst estimates. The company’s adjusted operating margins improved to 37% in Q2 2024, up from 25% a year ago. The company’s growth is primarily attributed to the high demand for its artificial intelligence platform, AIP. According to YCharts data, Palantir‘s market cap was $83.31 billion as of September 20, 2024

S&P Global announced on Sep 8, 2024, that Palantir will be added to the S&P 500 index starting on September 23, 2024. Following the announcement, Palantir‘s stock price surged by approximately 13-14% on the next trading day.

The Individuals

Alex Karp – Co-Founder and CEO

Alex Karp, born and raised in Philadelphia, co-founded Palantir in 2003 with Peter Thiel and Stephen Cohen. Known for his unconventional approach, Karp’s leadership style emphasizes ethical considerations and social responsibility. His background in social theory informs his views on technology’s role in society and the need for stringent regulatory oversight in the tech industry.

Alex Karp: In the past you shaped the world through ideas and words. I really came to believe now that the world will be shaped through the embodiment of ideas and words in software platforms. These platforms are so levered that in fact they will shape our life in a way that words used to.

Karp is recognized for his hands-on involvement in employee well-being, including leading meditation sessions at the company. His personal commitment to practices like qigong and tai chi is reflected in Palantir‘s corporate culture, which values balance and mindfulness.

According to Forbes, Karp’s net worth is estimated at $4 billion as of 2024.

Peter Thiel – Co-Founder and Chairman

Peter Thiel, a prominent figure in Silicon Valley, is another key co-founder of Palantir. While less involved in day-to-day operations, Thiel remains a significant shareholder and influential figure in the company’s strategic direction.

Key Shareholders

As of the latest available data:

1. Individual Investors: The general public holds the largest stake, owning about 46-47% of shares.

2. Institutional Investors: They own approximately 39-42% of shares.

3. Vanguard Group: The largest institutional shareholder, owning about 8.8-9.4% of shares.

4. BlackRock: The second-largest institutional shareholder, owning about 5.1-5.6% of shares.

5. Peter Thiel: Co-founder and Chairman, owning about 5.3-10% of shares.

6. Alex Karp: CEO and co-founder, owning about 2.48-2.5% of shares.

7. Individual Insiders: Collectively owning about 13.4% of shares.

Palantir’s inclusion in the S&P 500 marks a significant milestone for the company, reflecting its growth and increasing importance in the tech sector. With its focus on data analytics and AI-driven solutions, Palantir continues to play a crucial role in both government and commercial sectors, addressing complex data challenges in an increasingly digital world.

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