Palantir Stock- Is Palantir Opening the Pandora’s Box of Artificial Intelligence & Big Data? (PLTR)

0:00 A palantir employee once said the world has just been recording mountains and mountains of data and has no idea what to do with it palantir is a company that creates highly customized software solutions to help its customers analyze big data from multiple different sources to identify patterns or relationships it is actually even rumored that palantir's gotham software which is known to be used by many agencies within the us government was responsible for helping

0:31 Track down terrorist osama bin laden so the navy seals could take him out and just for the record palantir has never actually confirmed this rumor but they have not taken one of the many opportunities given to them to deny it either although palantir software has definitely been a force for good in society thus far there are definitely downsides to opening the pandora's box of big data today on nine to five investing i'm going to cover palantir perhaps the most controversial

1:06 Company to ever go public on a u.s stock exchange nine to five investing palantir actually just completed their direct listing at the end of last month september 2020 which is actually different than a traditional ipo in the sense that the company is not looking to issue any more shares they're not looking to raise any more capital they're just simply giving their current investors and employees liquidity the ability to sell their shares very easily and so

1:46 Now you or i could own shares of this software development slash consulting tech unicorn named palantir i felt compelled to make a video about palantir because it was a request from a subscriber but also because i believe this could be a very interesting long-term investment however this investment comes with its own set of unique controversies just to give you guys a brief overview of the content of this video we will start out by talking about palantir's business and who their

2:21 Customers are then we'll move into the big moral questions surrounding this company and then ultimately we'll round it out with me telling you why i believe palantir is a good candidate for a long-term investment if you are new to the channel if you are new to 9-5 investing please consider hitting that mouth-watering subscribe button because i will do my very best to bring you the most informative and entertaining videos about today's game-changing stocks

2:52 Palantir is an american company that was founded just a couple of years after the tragic 9 11 terrorist attacks with the purpose of keeping western countries particularly the united states of america dominant in the fields of artificial intelligence and big data to promote peace and prosperity now with palantir's founding purpose in mind it is important to realize that palantir's customers are going to be limited to western countries such as the united

3:26 States if chinese president xi jinping called up the founders of palantir offering 1 billion billion with a b in exchange for their services the founders of palantir would almost certainly just hang up the phone to get a better idea of exactly what this company is trying to accomplish it helps to start by researching the origin of the company's name the name palantir actually comes from the lord of the rings palantiri are basically just these magical stones

4:07 That certain people who display great will and wisdom could use to see events in the past present or future going on anywhere within their world so with this in mind palantir does seem like a very good name for this company because they are using big data that is obviously from the past to try to anticipate events in the future each of palantir's customers is receiving a software package that is highly customized for their specific needs and i believe that this is part of what

4:52 Makes it so hard to understand exactly what palantir is doing because every customer every client they get is going to be so different however the broad very generalized description of what palantir is doing is they're helping their clients pull data from potentially dozens of sources store it securely and safely then use highly specialized algorithms to find unusual patterns in the data so they can draw conclusions and make decisions don't nobody understand the words that are

5:26 Coming out of your mouth man now i realize that description might still sound kind of broad and not very relatable so i'm actually going to quickly go over an example of how palantir software is helping a client sift through just ridiculous amounts of data to find relevant information in 2019 the national center for missing and exploited children received about 18 million reports that had more than 60 million images and video and get this guys they only had 25

6:03 Analysts to sift through all of this to find relevant information palantir has actually worked very closely with the national center for missing and exploited children to build out data analytics software that allows the staff of just 25 analysts to actually efficiently be able to sift through this overwhelming amount of data that comes in the doors every day so they can make the proper connections with the old and the new data to basically be able to

6:35 Find and arrest these that try to take advantage of children the palantir software actually uses artificial intelligence algorithms to sit through the overwhelming amount of data to find the relationships or the pieces of information that truly matter that truly lead to an individual being arrested or a child that is missing being recovered and it does this in a way that would really not be practical or even possible for one of these 25 analysts that work at the center for missing and

7:12 Exploited children to do manually i mean think about it like this a report submitted 10 years ago that kind of just ended up being a cold case there was no arrest made there was no child saved as a result of this report could suddenly become relevant again because of a report submitted in 2020. palantir's algorithms might pick up on very subtle details in each case and then basically recommend to the analysts that they should look at these two reports together without the software from palantir this organization would never realistically be able to sift through this massive volume of data to find what they need to make the most arrest possible and to save the most children possible from this horrible exploitation since the inception of the working

8:02 Relationship between palantir and nick mc in 2010 they have actually been able to save an additional 350 children from exploitation i don't use the word hero very often but you are the greatest hero in american history and now moving away from that specific example public records show that federal authorities have used palantir's data platform to track down insider traders insurgents terrorists and drug smugglers way back in the early days of palantir they actually

8:40 Only had one customer this was the central intelligence agency and they gave them about two million dollars to start their business and start doing work for the cia in the years that followed palantirs start with the cia they went on to win more government contracts from organizations such as the fbi the department of defense and most controversially the immigration and customs enforcement agency although palantir got its start as a government contractor

9:11 Over the last several years they have been working to expand more into the commercial space as well and palantir has seen some great success moving into the commercial sector as about half of their revenues in 2020 are being derived from the commercial sector and half are being derived from the governmental sector notable customers from the commercial sector include fiat chrysler airbus and bp now that we have a basic understanding of what palantir's

9:41 Business actually is and the customers they service let's briefly talk about that ethical dilemma that i mentioned earlier in the video that kind of arises whenever you're mixing big data and artificial intelligence volunteer has already helped many organizations use big data and artificial intelligence to make the world a better place these data analytics tools are powerful and thus far have mostly been used for the greater good however even the ceo of palantir alex

10:16 Carp acknowledges that these powerful data analytic and artificial intelligence tools have the potential to become a double-edged sword in a big way it is easy to brush aside the ethical dilemmas that come from artificial intelligence and big data until they are actually affecting you ever heard of the term big brother from george orwell's famous dystopian novel called 1984 in orwell's dystopian world each and every citizen is constantly being monitored by these

10:52 Telescreens that watch every move they make and listen to every single conversation that they have citizens are constantly reminded not to rebel against the government because quote big brother is watching you so let's just get a little dystopian here just a little bit and ask ourselves what if this could become the united states government one day now i am all for using big data and artificial intelligence to foil terrorist attacks and arrest those that are exploiting children

11:27 But what if eventually that government surveillance goes too far i mean guys for better or for worse understand artificial intelligence is going to get smarter and smarter we are not hitting a ceiling for artificial intelligence in 2020 it's just not the reality so imagine this imagine the technology gets better and better and eventually the government can constantly scan hundreds or thousands of databases including phone records text messages gps

11:59 Coordinates from your phone social media posts you name it the government could start learning more about the average citizen than the average citizen is really comfortable with the government knowing no oh my god we're screwed we're screwed we're really really really screwed i mean do we really want to live in a society where the government or even palantirs corporate customers are able to learn so much about an individual that they might be able to predict things like

12:26 Hey what are they gonna eat for breakfast next wednesday morning i fully back palantir's mission to make the world a safer place through big data and artificial intelligence i especially respect palantir's mission in comparison to facebook's mission which is basically just to mine as much data as they can about you and sell it to the highest bidding advertiser after drawing this very relevant distinction between the two companies we still do have one

12:57 Very relevant question to answer and that question is when does surveillance by the government using big data and artificial intelligence solutions by palantir for the greater good just go too far unfortunately there is really no way to know just when these artificial intelligence and big data tools become too powerful alex carp the ceo of palantir understands this ethical dilemma and the way he addresses it is he basically says that if western countries such as the

13:33 United states do not develop these artificial intelligence and big data tools then the other countries in the world that are adversarial to the united states and the western countries will and with those tools they will crush the western countries so his argument is that it is coming no matter what the western countries might as well be the ones to usher the technology in now that we've discussed these complicated ethical issues with no real solution let's talk about palantir

14:06 Stock as an investment my personal opinion is that palantir stock is a unique opportunity for a great long-term investment palantir has been around for 17 years and never actually reported a profit on an annual basis however their revenues are growing extremely strongly with about 30 percent growth expected in 2021 and on top of that their margins are up trending now this is exactly what i like to see with any earlier stage technology company robust revenue growth alongside

14:42 Increasing margin just given the research that i have done on the company i really do believe that palantir will start turning a profit within the next five years i personally believe that if palantir's focus was on making money then they would have been profitable a decade ago their primary focus is basically building up that software as much as they can building up that competitive moat if you will as much as they can now that being said i believe that they built

15:12 Their competitive moat their software to a very high level and it's going to be very hard for any competitor to catch them on that and that is something i love to see in any investment that i'm making competitive moats now if you're considering investing in palantir stock there is actually one major thing that you should know that is a problem for a lot of investors it's not personally a problem for me but a lot of people have an issue with this basically the founders of palantir

15:42 Structured this corporation in a way to where they will always hold 49.99 of their voting power even if they sell a bunch of their investment they still own 49.99 of the voting power in this corporation so basically uh they're making the decisions here not the shareholders the founders are going to be making the decisions this is going to be a strictly founder-led company so at the end of the day you just have to ask yourself do you want to be involved with a

16:14 Company where the founders are basically making all the major decisions in the corporation without any real input from the shareholders and for me i don't really care because i do believe that palantir's founders are probably the best ones the most qualified the most competent to be leading palantir and making all the major decisions so this personally does not bother me now i am personally considering making a long-term investment in palantir but i'm waiting and seeing

16:45 What happens because they did just start this direct listing so there could be a lot of selling pressure coming from insiders given what i personally understand about palantir's business i believe that this company will continue to grow its revenues and reach profitability especially because they're offering something that no other company to my knowledge can offer them who knows what will happen with palantir and their technology in the long term

17:14 However i will say that the whole big brother situation arising from the technology of big data and artificial intelligence becoming too powerful is pretty unsettling talenteer or do you believe that palantir will become even more of a detriment to society than facebook already is please let me know your thoughts in the comment section below and if you haven't already consider subscribing to nine to five investing today because i will strive to bring you the

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