Palantir Technologies Surges Colossal 25% Ahead of 2021 Demo Day

Palantir Technologies Surges Colossal 25% Ahead of 2021 Demo Day

The big data company is now worth over $55 billion dollars on news of a possible 4X in customers on the company’s software ahead of Demo Day.

The big data company is now worth over $55 billion dollars on news of a possible 4X in customers on the company’s software ahead of Demo Day.

Credit | Medium - Palantir Technologies

Palantir, the big data/software company (not a data company), is up over 25% today, possibly following a combination of short-seller Citron Research’s fall off, and an additional tidbit of information given by Palantir about their January 26th Demo Day.

There were no major catalysts for the stock, but there’s still a chance that the surge was from a possible hint at higher revenue from the company in that Demo Day add-on. 

What is Demo Day?

Demo Day is Palantir’s chance to publicly share demos of their latest developments when it comes to their Foundry and Gotham software platforms. These demos are designed to help show examples of how commercial and government customers, Palantir’s two revenue groups, use their software.

It’ll also discuss the latest developments on their Apollo platform’s delivery and infrastructure, along with announcements and demonstrations for new software modules.

Palantir also added the inclusion of new software modules, such as their:

  • “Software-Defined Data Integration (“SDDI”): to integrate with dozens of ERP systems in days
  • Low-Code / No-Code Environments: to deploy operational applications in hours
  • Archetypes: to start business use cases in a few clicks
  • AI-Enabled Mission Command: to support U.S. and allied nations in planning and executing missions.” 

The company goes even further into details, by explaining that the company went from 40,000 Apollo upgrades per week, to 150,000 upgrades, or a 3.75X gain. That’s likely the reasoning behind the 25% gain today, since a 275% gain for one of their 3 programs, would probably translate into a massive revenue boost.

Most revenue = more sales, which means that the company can be worth more, without an increasing valuation, which has recently been an issue with the stock. Since the company’s worth 57 billion dollars now, Palantir could really use any valuation decreases as they can.

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The fall, again(?), of Citron Research..

The second likely catalyst for Palantir stock today, is Citron Research’s apparently demise, due to some really poor shorting decisions.

Citron Research is a short seller, or a company that makes money by betting against companies, in hopes to make money when their reports cause said companies’ stocks to drop.

The company’s had some issues recently with some bad calls, such as long calls on Luckin Coffee, who took part in a massive securities fraud, and short calls with Tesla, Gamestop, and Palantir. Tesla’s obviously been exploding recently, up almost 1000% in the year, and Gamestop recently exploded 1600% within 6 months. 

Citron, as seen above, also happened to give up their short calls on Gamestop, therefore giving the bulls free range over the stock. That resulted in GME exploding upwards of 75% midday, completely crushing Citron’s off, but consistent calls.

Since Citron gave up on Gamestop, one of their most fearsome short calls, that put all of their other guesses on the line, including their Palantir short call, calling the company and the stock a “casino.” 

No longer having a major bear on Palantir’s case, as well as adding some major hints towards a massive revenue gain, is a great catalyst for a stock, even if it’s not literally a catalyst for the stock. Palantir now has more freedom from bears, with a possibly upcoming reduction in its valuation, giving it some more room to grow.