Palantirs market value exceeds 20 billion US dollars

category:Finance
 Palantirs market value exceeds 20 billion US dollars


It is worth noting that Palantir chose to go public through a direct listing rather than the traditional IPO, which means it did not raise any capital through the IPO, but allowed its investors to sell more shares.

Previously, only two major companies listed directly in the U.S. stock market in this way, one is slack, a software company listed last year, and the other is spotify, a music streaming service company listed in 2018. Asana, another U.S. software maker, also landed on U.S. stocks through a direct listing on Wednesday, and its share price rose nearly 30% in the opening session.

Analysts believe that direct listing is still difficult to become the mainstream of future corporate listing, because new investors may be difficult to make money. Kathleen Smith, founder of Renaissance Capital, a research firm, said: with stocks listed directly, the appropriate starting price is the opening price. Palantirs closing price is lower than the opening price, which means that the first batch of new investors will suffer losses, which makes the direct listing a setback.

Palantir, founded in 2003 to process a wealth of data from global banks and energy companies, is co founded by billionaire investor Peter Thiel.

It is also the companys first listing in 17 years. At present, U.S. technology stocks are still in a rapid upward period. Despite some recent fluctuations, analysts are still optimistic about the long-term upward trend of technology stocks.

Recently, U.S. stock technology IPOs have been active again. First finance reporter learned that uipath, a U.S. - based robotics start-up, has also begun to hire investors to prepare for the U.S. IPO. Wu Wei, President of uipaths Greater China region, revealed at a media conference last week that the latest round of financing has valued the company at more than $10 billion.

Despite strong demand from US investors for new technology shares, Palantirs growth prospects were questioned before it went public. In 2019, Palantir had revenue of $742 million and a loss of $579 million. Moreover, Palantirs customers are excessively concentrated, and there are still only 125 customers since its establishment 17 years ago. According to the data in 2019, the average cost of each customer is only 5.6 million US dollars. But the company said its product and sales strategy was still in its infancy. In Palantirs prospectus, the company identified its potential market as 6000 companies with revenues of more than $500 million. Judging from the first half of this years financial report, Palantirs revenue increased by 50% year-on-year to $481 million, and its net loss also decreased to $160 million from $280 million in the same period. Source: Wang Wenhua, editor in charge of the first finance and Economics_ NF5982

Despite strong demand from US investors for new technology shares, Palantirs growth prospects were questioned before it went public. In 2019, Palantir had revenue of $742 million and a loss of $579 million. Moreover, Palantirs customers are excessively concentrated, and there are still only 125 customers since its establishment 17 years ago. According to the data in 2019, the average cost of each customer is only 5.6 million US dollars.