Palantir Technologies will replace American Airlines in the coming reconfiguration of the index.
The pending addition to the S&P 500 index caps off a news heavy quarter with Palantir producing a variety of releases, on a number of fronts, affirming the AI capabilities of the business model.
As important as the S&P inclusion is from a capital perspective, the August 8th announcement of an enhanced partnership with Microsoft for delivery and service of AI technologies, at the heavily siloed US national security operation, is a far greater future driver of revenues and potential profits.
In my view, those at the Pentagon don’t trust Microsoft’s AI initiatives as far as they can throw a stick; hence the requirement to have Palantir oversee AI product rollouts within secure environments.
If this represents a credible, albeit minority, posit, it would appear that Palantir has already achieved the status of gatekeeper within certain sensitive sectors.
Nevertheless, participation of Palantir in a cap weighted index, one of the big 3 worldwide, supports the valuation of Palantir for now and provides the company with an new avenue to grow, via bolt-on acquisitions supported by equity, if needed.
https://news.microsoft.com/2024/08/08/palantir-and-microsoft-partner-to-deliver-enhanced-analytics-and-ai-services-to-classified-networks-for-critical-national-security-operations/?msockid=121424d88a1d61ae3945302a8bd9608e
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