The Reports of Palantir's IPO Were Greatly Exaggerated

Issue 24

06.22.20 - Last week we discussed companies that were highly anticipated to go public with substantiated sources on the matter, Peter Theil’s Palantir Technologies among them. However, Palantir has just raised $500 million from Japanese Insurance firm Sompo. This goes without saying, but this reduces the likelihood of an IPO this year.

There is also the question of Palantir’s true value, as investors are valuing the company well below it’s 2015 $20 billion valuation. Reuters reported that the company’s stock is being traded on secondary markets at valuations between $10 billion and $14 billion.

The company anticipates to book revenues of $1 billion for 2020, it has seen an increase in business as a result of the COVID-19 pandemic, landing lucrative COVID-19 related contracts with the Center for Disease Control and Prevention, the Department of Health and Human Services as well as Britain’s National Health Service.

Source: Reuters