Palantir IPO S1 Filing: Is PLTR The Best AI Stock To Buy In 2020? (Analysis).
Palantir Technologies filed their S-1 filing with the SEC for their Direct Listing IPO on the NYSE. Palantir expects their IPO to start trading in September. A Direct Listing IPO is different from a regular stock IPO that has underwriters and a pre IPO price. I will explain this difference and talk about if a Direct Listing IPO is good for Palantir and for stock buyers.
Peter Thiel who is a founder of Paypal and part of the Paypal Mafia, is a founder of Palantir Technologies.
Palantir has two software programs that use artificial intelligence (AI) technology. It may be one of the best AI stocks to go IPO in 2020 so there is a lot of interest from the investing public. Palantir’s two programs, Gotham, and Foundry gather and mine data from many sources and find relationships that you would not normally find. Started in 2003, Palantir Technologies built software for the US government with the Gotham program. Their Foundry program is for commercial use. About half of their revenues are from governments and half are from businesses.
In the S-1 filing, Palantir Technologies shows that they are still losing money, however, the loss is getting smaller and their revenues are growing at a good pace.
They will offer Common A shares (1 vote each) for sale while the three founders Peter Thiel, Stephen Cohen, and Alex Karp the CEO of Plantir, will keep common B shares with 10 votes each as well as Common F shares that enable them to hold 49.999% of the voting stock.
The CEO, Alexander Karp, came out with a letter today defending their work with the US government and said they would not let the Chinese government as well as other governments and corporations not friendly to the West, utilize their AI software.