Palantir CEO Alex Karp, never one to shy away from controversy, took a swipe at his critics during the company’s Q3 earnings call on Monday, following the release of surprisingly strong results.
“Please turn on the conventional television and see how unhappy those that didn’t invest in us are,” Karp quipped, after the data analytics firm reported earnings that exceeded expectations. “Enjoy, get some popcorn, they’re crying. We are every day making this company better and we’re doing it for this nation, for allied countries.”
Palantir’s stock has seen a remarkable surge, increasing 25-fold in the last three years, propelling its market capitalization to over $490 billion. This meteoric rise gives it a forward price-to-earnings ratio nearing 280. Despite the earnings beat and optimistic forward guidance, the stock experienced a minor dip in extended trading. Analysts suggest this could be attributed to profit-taking or concerns about maintaining the current growth trajectory at such a high valuation.
Karp, who co-founded Palantir in 2003, reinforced the company’s mission, stating Palantir is “going to go very, very deep on our rightness” because it is “exceedingly good for America.” This statement underscores Palantir’s commitment to its core business of providing data analytics solutions to government agencies and large corporations, often within sensitive sectors.
Known for his unconventional and often politically charged remarks, Karp’s leadership style has become a defining characteristic of Palantir. His quarterly shareholder letters, which have become a subject of much discussion, are known to feature quotes from philosophers, religious texts, and even political figures.
In Monday’s letter, Karp invoked the words of Irish poet William Butler Yeats, arguing for a renewed sense of “national experience.” He warned against rejecting a “shared and defined sense of common culture,” arguing its absence could have detrimental consequences. While some see his rhetoric as patriotic, others view it as divisive, adding another layer of complexity to the Palantir narrative.
He further argued, It’s “that pursuit of something greater, and rejection of a vacant and neutered and hollow pluralism, that will help ensure our continued strength and survival,” he wrote.
During the earnings call, Karp transitioned from a discussion on AI implementation to the fentanyl crisis in America, framing it as a “slightly political” issue.
“I want people to remember if fentanyl was killing 60,000 Yale grads instead of 60,000 working class people, we would be dropping a nuclear bomb on whoever was sending it from South America,” he declared. This statement generated a considerable amount of media attention.
Karp also addressed Palantir’s controversial work with U.S. Immigration and Customs Enforcement (ICE) and the Israeli military. Palantir continues to provide data analytics tools critical to these organizations. This has made the company a target for activists that take issue with the missions of these organizations.
Back in 2023, Karp delivered a blunt message to tech industry employees critical of Palantir’s government contracts while speaking at the World Economic Forum in Davos, Switzerland.
“You may not agree with that and, bless you, don’t work here,” Karp stated.
Palantir derives over half of its U.S. revenue from government contracts. Following the October 7th attack by Hamas, Palantir supplied tools to Israel and affirmed its strong pro-Israel stance. Karp has stated emphatically that he is ok with this stance leading some employees to leave and expects more to do so in the future.
Following the Oct. 7 attack, Palantir took out a full-page ad in The New York Times, saying it “stands with Israel” and held its first board meeting in Tel Aviv, Israel, a few months later. Karp has said the company has lost employees due to his staunch Israel stance, and he expects more to leave.
“We’re on the front line of all adversaries, including vis-à-vis China, we’re on ICE and we’ve supported Israel,” he said on the earnings call. “I don’t know why this is all controversial, but many people find that controversial.”
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