Billion Dollar Unicorns: Is Palantir Losing Valuation?

Market studies suggest that the company may be struggling to maintain that valuation. The data analytics industry is facing stiff competition from giants like Microsoft, IBM, and Oracle. With deeper pockets and advanced technologies including engines like Watson, the tech giants are making their presence felt in the market. Additionally, Palantir has also witnessed the exit of some of its key clients like the Nasdaq and Hershey who have discovered that they could build their own security systems for less. According to a Bloomberg report, investors in the company including GSV Capital Corp and Morgan Stanley have reduced the valuation of their holdings by 11% and 47% respectively. Last March, SharesPost also valued its holdings 34% lower than the valuation two years ago.

Palantir was expected to go public last year, but declining valuations appear to have deferred that plan. Analysts still hope that Palantir will be able to make a turnaround by attracting more corporate customers and managing their costs better. But, if its valuation continues to fall, it could become an attractive acquisition target for the giants it competes with. Reports suggest that last year, Oracle was interested in acquiring the company.

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