Palantir Technologies

Palantir has a specialized data analytics platform, but its competitive advantages appear narrow. The firm has strong ties with government agencies which affords some entrenched contracts, yet these customers are temperamental.

There is no obvious network effect or brand moat; customers could potentially migrate to alternatives from AWS, Google Cloud, or Microsoft Azure if they offer similar AI/analytics tools. Palantir’s own filings warn that its business relies on long sales cycles and a limited number of large customers, meaning each major loss would dent business.

In our view Palantir may have a differentiated product, but durable barriers to entry seem weak, so we rate its moat conservatively.