What's going on?

Palantir saw this coming from a mile off: the surveillance software maker announced better-than-expected quarterly results in its first earnings report since hitting the stock market.

What does this mean?

Palantir�s revenue rose by 50% in the first nine months of the year � double 2019’s�entire�growth. Even better, it recently got another kick thanks to a deal it�s just struck with the US army. But that also neatly sums up investors� biggest worry about the company: it depends on a small number of very big contracts. Lose one, and it�ll make a massive dent in Palantir�s profitability. At least the software-maker seems to be taking the feedback to heart: it pointed out that the proportion of its revenue coming from its 20 biggest customers has dropped from 69% to 61%.

Why should I care?

For markets: I got this.�

Palantir listed on the stock market in September, but it didn�t go down the traditional route of an initial public offering. Instead, it plumped for a �direct listing�, which cuts out investment banks, their related costs, and their knack for stabilizing share prices. That usually means the company�s stock is more volatile in the early days, but not in Palantir�s case: its share price has been pretty steady, even as it�s climbed almost 50%. That might have something to do with the US election outcome, mind you: analysts are expecting the new administration to slash military spending, which could spur demand for Palantir�s (relatively) cheap surveillance technology.

The bigger picture:�O��est la Ciscotheque?

Palantir was joined by Cisco on the list of tech companies with better-than-expected earnings last quarter. Still, it was the fourth quarter in a row that the conglomerate�s revenue had fallen, which is probably because so much of its revenue comes from the sale of equipment for pandemic-stalled data centers and offices.