Solid breakdown on the accelration. The Anthropic comparison is kinda the elephant inthe room though, right? I ran a DCF on PLTR last month and the premium feels more justified when they're the only pure AI software play. Once foundational model companies IPO with much faster topline growth, even if margins trail, multiple compression could be real. Seen similar dynamics play out with SaaS vs infrastructure stocks in past cycles.
I think that will be the catalyst for rotation. A good listed alternative and extreme focus on revenue growth rate with Anthropic accelerating and PLTR slowing from high levels.
Solid breakdown on the accelration. The Anthropic comparison is kinda the elephant inthe room though, right? I ran a DCF on PLTR last month and the premium feels more justified when they're the only pure AI software play. Once foundational model companies IPO with much faster topline growth, even if margins trail, multiple compression could be real. Seen similar dynamics play out with SaaS vs infrastructure stocks in past cycles.
Particularly if PLTRs revenue growth rate peaks at the same time.
Their “growth gap” in revenue between the actual YoY rev growth rate and the annualized QoQ rate has decline to 6% in Q4 from 29% two quarters ago.
That still means acceleration in the rate for now but that acceleration is slipping away due to magnitude.
If we have Anthropic accelerating once it IPOs when PLTR starts to slow - that’s when the pressure appears as their multiple is extreme.
I think that will be the catalyst for rotation. A good listed alternative and extreme focus on revenue growth rate with Anthropic accelerating and PLTR slowing from high levels.