Palihapitiya says Palantir's premium valuation stems from its uniqueness and lack of alternatives, creating durable cash flows.
“Palantir is both unique and well run, and there's no clear alternative, so there's no place to churn to.”
Palihapitiya argues big tech cash gets little valuation credit, so companies should spend aggressively on products.
“If you actually look at the DCF of the enterprise value of these businesses, it gets very little credit for that cash almost to the point where it's worthless.”
Palihapitiya says Google stock doubled on Gemini success, justifying $50 billion spend for trillion in market cap.
“And so if you wanna make Gemini even more incredible, just get pour another billion users into it. And if that costs you 50,000,000,000, it's okay because you'll make a trillion of market cap.”
Palihapitiya argues hundred-billion-dollar deals signal past value while billion-dollar deals indicate future potential.
“$100,000,000,000 deals are typically about things in the past. What is the future? Billion dollar deals.”
Palihapitiya says Wall Street values tech company cash at zero, so it should be deployed for social benefit.
“We have so much cash on the balance sheets of these companies. Wall Street values it at zero.”
Palihapitiya heard SALP's Anthropic position went unsold and questions why no one reports on valuation concerns
“I heard second hand (so ymmv) that SALP’s Anthropic position was marketed but went unsold. Is this true? Why, if accurate, is no one reporting why nobody bought the private Anthropic portion SALP tried to sell? What does smart, public money think of valuation? Is the below https://t.co/TxfXErosR7”
Palihapitiya claims Anthropic's funding mechanics and FUD drove Dario's position on open source more than belief
“In many ways, Anthropic’s funding mechanics - claims made, FUD, post money valuations have dictated Dario’s position more than anything else. Even if he really believed this. https://t.co/tbBmvnCO0x”