Jefferies’ Top Crowded Software Short Positions: Top 9 Stocks

2. Palantir Technologies Inc. (NYSE:PLTR)

Number of Hedge Fund Holders In Q2 2024: 44

Shares Short % Of Outstanding: 4.36%

Palantir Technologies Inc. (NYSE:PLTR) is a data analytics software provider that caters to the needs of the public and private sectors. It is one of the best-known players in the national security software market, and the firm has also been growing its presence in the US commercial market. On the commercial front–and particularly in today’s AI era–Palantir Technologies Inc. (NYSE:PLTR) benefits from the fact that it has set up teams that work directly with customers to assess their needs and develop specific solutions. This is important for software firms particularly in the AI era as firms might find it difficult to tailor AI to their specific needs. Palantir Technologies Inc. (NYSE:PLTR)’s approach has yielded results as well since the software company grew its commercial revenue by 70% in the second quarter. This was on the back of lucrative deals, with Palantir Technologies Inc. (NYSE:PLTR) adding 96 contracts worth more than $1 million each and 27 contracts worth more than $10 million each.

Scout Investments mentioned Palantir Technologies Inc. (NYSE:PLTR) in its Q1 2024 investor letter. Here is what the fund said:

“The top contributor to return for the quarter was Palantir Technologies. Sentiment improved on Palantir after it reported stronger than expected commercial customer revenue and free cash flow. U.S. commercial growth was especially encouraging, as U.S. commercial revenue was up by a large percentage year over year for the fourth quarter and U.S. commercial customer count grew nearly as much. We expect Palantir to become one of the premier artificial intelligence (AI) software providers, built on its Foundry and AIP platforms.”