Palantir IPO: what you need to know

How to trade or invest in the Palantir IPO

You’ll be able to trade or invest in Palantir shares as soon as the company goes public. There are two ways to take a position on the Palantir initial public offering (IPO) and share price. You can trade on the price of shares rising and falling with CFDs, or you can invest in the company directly by share dealing.

To trade on Palantir shares, follow these steps:

1. Learn more about the Palantir IPO
2. Decide whether to trade or invest
3. Create an account
4. Open and monitor your position

When is the Palantir IPO?

The Palantir IPO doesn’t currently have a set date but some sources are stating 24 September 2020 as the date the company will carry out its listing. Speculation has been mounting for a number of months, and it reached a peak when the company released a prospectus for the listing on 25 August 2020 – indicating an IPO is on the horizon.

The Palantir IPO is a direct listing, meaning that no new shares will be issued. Instead, it’s an opportunity for current shareholders to sell their Palantir stock – if they so choose. According to the prospectus, the venue for the sale will be the New York Stock Exchange (NYSE).

What is Palantir likely to be valued at when it lists?

The most widely cited valuation for Palantir is $20 billion. In the prospectus, the 17 year old company revealed that it has never made a profit, and reported a net loss of $579.6 billion for 2019.

But, for the first half (H1) of 2020, Palantir reported revenue of $481.2 million, with company insiders expecting to see it top $1 billion before year’s end.

What could the Palantir share price be when it lists?

The target share price for the Palantir IPO has not yet been confirmed, but we do know that shares have been privately traded in the past for between $4.50 and $6.50 for the year ended 31 December 2019.

From 1 January 2020 to 21 August 2020, similar transactions were carried out for between $4.19 and $8.50 a share, with a volume-weighted average price per share of $5.35 in this same period.

Why is Palantir listing?

Palantir is listing ahead of growing investor interest in this historically secretive big data company, and to enable current shareholders to sell their stocks on the open market. Palantir is likely to cause a stir when it lists – particularly if the company can achieve its reported revenue target of over $1 billion for 2020.

Who are Palantir’s current investors?

Palantir has so far attracted investments from the likes of Sompo Holdings, True Capital Management, Fujitsu, Founders Fund, Fidelity, BlackRock, Morgan Stanley and Tiger Global Management.

Sompo Holdings led the way in the latest round of fundraising, with a $500 million capital injection in a corporate round of investing that took place in June 2020. So far to date, Palantir has raised around $3 billion in venture capital.

What’s the outlook for Palantir?

The outlook for Palantir is exciting, especially since the company has historically been clouded in secrecy. The company’s work in big data analytics and links to governments and public and private organisations is also something to note.

Reports suggest that Palantir has been working alongside other companies in the UK to develop a Covid-19 database for the National Health Service (NHS). It has also been working with the US government to develop a Covid-19 tracker. The success of these projects would no doubt strengthen the company’s outlook, which is already strong for 2020.

What is Palantir’s business model?

Palantir’s business model is based on big data analytics. The company operates business-to-business (B2B), and its data analytics platform is used by clients including the CIA, Centre for Disease Control, the US Army, the US Navy and the National Security Agency (NSA).

How has Palantir been performing?

As previously mentioned, Palantir has never reported a profitable year. But, for the first six months of 2020 the company reported revenue of $481.2 million.

Who are Palantir’s main competitors?

Palantir’s main competitors include Tableau, Tyler Technologies, Verint and Splunk. These are all technology companies that focus on business intelligence or data management. Splunk is the largest of these companies, with a market cap of almost $35 billion at the time of writing (1 September 2020).