Disney Taps Parks Chief to be CEO, Palantir Gives Strong Sales Outlook
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What is the main topic discussed in this episode?
I'm Barry Ritholtz, inviting you to join me for the Masters in Business podcast. Every week, we bring you fascinating conversations with the people who shape markets, investing, and business. CEOs, fund managers, billionaires, Nobel laureates, traders, analysts, economists, everybody that affects what's going on in the market, whether you own stocks, bonds, real estate, commodities, crypto, you really need... I'll see you next time.
Bloomberg Audio Studios. Podcasts. Radio. News. Bloomberg Tech is live from coast to coast with Caroline Hyde in New York and Ed Lovelow in San Francisco.
This is Bloomberg Tech. Coming up, Palantir shares rising after the company exceeded Wall Street expectations with its revenue forecast. We break it down. Plus, Disney Parks chief Josh DeMauro will succeed Bob Iger as CEO. Our conversation with Disney chairman James Gorman about the news later this hour. And it's official. Elon Musk is combining SpaceX and XAI in a deal valuing the merged entity at a whopping $1.25 trillion. And they're private valuations. Let's go to the public ones right now, Ed, because we're back to the normal state of play. Stocks are down. Bonds are down. Dollar is down. Crypto is down. I'm looking at nine tenths percent lower on the Nasdaq 100. Anxiety abound when it comes to software stocks, when it comes to the implications of Anthropix's latest design in the legal sphere.
We've got a lot of pressure to be digging into, but we're also seeing Bitcoin off by another six tenths of a percent. 77,900 is where we trade thus far. Look, the moon music just turning a little bit sour on risk assets. What are you looking at? I'm looking at Palantir and the earnings story. The stock up about 4% right now. At one point in the session, it had been up almost 12%. It's all about its outlook for fiscal 26. Revenues will be about $7.19 billion. That's almost a billion dollars ahead of consensus estimates for what Wall Street expected from Palantir this year. There is a lot inside of that. Let's get the latest. Greg Moskovitz, Mizzou managing director. They remain neutral on the stock. with a revised price target of $195 down from $205.
Welcome to the program, Greg. Interesting, right? You know, this outlook for fiscal 26, the forecast, it projects continued growth and confidence, not at the same rate they saw quarter in quarter. You've trimmed your expectations on the stock a little bit. Why? Well, first of all, thank you very much for having me. This was a stunning quarter, 70% year-over-year growth. And as you said, the 2026 guidance revision versus where the street was was very substantial. So we're looking at 61% revenue growth. The street was at low 40s. They're also forecasting 56% free cash flow margins, which also was well above. The very slight price target revision is, quite frankly, has nothing to do with Palantir's fundamentals.
which again, were better than we expected. It's a function of the very significant multiple compression that we've seen across software in recent weeks. And so we're making an adjustment on that basis. The price target revision in Palantir's case was quite a bit less than many other software companies that we cover because again, the Palantir fundamentals are quite strong right now. Right. The story we've tried to unpick with Palantir is its present-day reliance on the public sector and its growing business in the private sector. What was your interpretation of that story? So what we see from Palantir is for the companies that have bought in, meaning they have signed an initial contract, they've deployed a use case,
in many cases, they are seeing great success. They're seeing insights, data-driven insights using AI technology to significantly enhance that, to enhance these outcomes. And that is increasing the willingness of these customers to continue to spend more with Palantir. It is a bit of a tale of two cities. Palantir software is not cheap, Ed. And so what we're seeing is the customers, again, that are bought in, they're seeing successes. In many cases, they are expanding and expanding very materially.
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Chapters
8 chapters
1
What is the main topic discussed in this episode?
0:00–6:29
2
What revenue forecast did Palantir exceed and what impact did it have?
6:29–7:02
3
Who is Josh D'Amaro and why was he chosen as Disney's next CEO?
7:02–7:59
4
What are the implications of Elon Musk's merger between SpaceX and xAI?
7:59–10:49
5
How is Palantir's growth forecast for fiscal 2026 shaping investor sentiment?
10:49–25:07
6
What challenges is Palantir facing in acquiring new customers?
25:07–31:34
7
How are geopolitical factors influencing Palantir's international growth?
31:34–40:49
8
What concerns do investors have regarding the software industry's future?
40:49–47:03
Speakers
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