Alex Karp, Palantir's CEO, has never been one to shy away from bold statements. His recent declaration that Palantir is "the first company to be completely anti-woke" grabbed headlines. But is this a genuine philosophical shift, or a calculated business strategy? Let's dig into the numbers and the narrative.
Karp frames Palantir's values as supporting free speech, meritocracy, and "lethal technology." He connects these values to the company's financial success, citing a 63% revenue jump to nearly $1.2 billion. US commercial revenue more than doubled, up 121% to $397 million. US government revenue grew 52% to $486 million. He even went as far as to call them “arguably the best results that any software company has ever delivered." (A statement that's, shall we say, open to debate.)
The timing is interesting. Silicon Valley, over the past year, has seen a visible embrace of anti-wokeness and figures like Donald Trump. But correlation doesn’t equal causation. Palantir's growth could be attributed to several factors: increasing demand for data analytics, successful contract wins, or simply riding the AI wave. How much of that 63% bump is directly attributable to their "anti-woke" stance? Hard to say.
Then there's the Michael Burry situation. Karp called Burry "bats–t crazy" for shorting Palantir (and Nvidia), accusing him of market manipulation. Burry's firm disclosed a $912 million short position against Palantir. Now, Karp can dismiss Burry as misguided, but Burry's track record (the Big Short, anyone?) demands attention. He's betting against the company at a time when it's trading at over 300 times projected 2025 earnings. Is that valuation justified, or is it a bubble waiting to burst? That's the key question.
And this is the part of the report that I find genuinely puzzling. Karp claims it's not even clear Burry is shorting them, but then launches into a tirade about market manipulation. Which is it? Is he concerned about the fundamentals, or is this just a personal feud? Palantir CEO Alex Karp blasts ‘Big Short’ investor Michael Burry for bet against his company: ‘Bats–t crazy!’
Palantir's stock tumbled about 9% the day Karp made those comments, despite the company posting better-than-expected quarterly results. Nvidia slipped more than 2%. Maybe Burry wasn't manipulating the market, maybe the market was simply correcting itself.
The company's communications chief, Lisa Gordon, a self-proclaimed Democrat, even expressed concern about Palantir's political shift. That's not a minor detail. It suggests internal divisions, or at least a lack of complete alignment with Karp's vision. The Information removing videos of her interview only adds to the intrigue.
Karp's comments about Fentanyl and border security are also revealing. He positions Palantir as being on the side of the "average American" who's getting "screwed" because all the empathy goes to "elite people." This is a classic populist message, designed to resonate with a specific demographic. But is it authentic, or is it a calculated attempt to broaden Palantir's appeal?
Karp is a smart guy. He knows what he's doing. My analysis suggests that his "anti-woke" stance is less about genuine ideology and more about solidifying a specific brand identity. It's about appealing to a particular segment of the market, one that feels overlooked and disenfranchised. It's a high-risk, high-reward strategy. If it works, Palantir could cement its position as a dominant player in the data analytics space. If it fails, it could alienate potential customers and employees. The next few quarters will be very telling.
