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Is This Defense IT Company's Technology Too Good for Its Own Cause?

By Motley Fool Staff – Dec 26, 2021 at 8:00AM

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In this segment of Motley Fool Live, recorded on Dec. 7, Fool contributor Lou Whiteman discusses an obstacle for Palantir (PLTR 3.68%) as the company looks to expand sales.

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Lou Whiteman: The other thing Palantir is running into quite honestly, their tech is almost too good for a lot of what corporates and governments need. It's too expensive, it's too good. You can get by with a cheaper off-the-shelf option.

It's a great problem to have because we desperately need that technology for some things. This is the company that sniffed out Bernie Madoff. This is the company that found Osama bin Laden. This is great tech, but you don't need the Rolls Royce to go grocery shopping.

I think that's one of the problems that they're having when they go out and try and do commercial sales and also government sales to expand the business. The tech is almost too good for a lot of the jobs and a lot of the cost profiles that they're looking for.

Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool owns and recommends Palantir Technologies Inc. The Motley Fool has a disclosure policy.

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