When OpenAI commercially launched ChatGPT at the end of November 2022, shares of Palantir Technologies (PLTR +1.63%) were trading for $6. Today, the stock is trading for around $170.
The obvious catalyst behind Palantir's parabolic rise is its ability to monetize artificial intelligence (AI) in the enterprise software environment. One thing that separates Palantir from its peers is its apparent appeal to Gen Z investors.
Below, I'll detail three reasons behind Gen Z's support for Palantir and explain what makes the company unique.
Image source: Getty Images.
1. Palantir's mission resonates
Younger people are often disillusioned by gigantic companies in large part due to their hollow mission statements and overly corporate image. For a generation exposed to a lot of geopolitical unrest, a business that's acutely focused on national security and meaningful problem-solving through the power of AI makes Palantir interesting.
Supporters see Palantir as an innovative disruptor to incumbent defense contracting businesses that lack a tech-enabled appeal.
NASDAQ: PLTR
Key Data Points
2. Alex Karp's personality appeals
Perhaps the biggest factor influencing Gen Z's affinity for Palantir is the company's CEO, Alex Karp. Karp is the opposite of many public company CEOs. Instead of reading from a script that a PR executive drew up, Karp shares his raw thoughts.
During earnings calls and interviews, it is not uncommon for Karp to go on an intense, philosophical rant to explain what he thinks makes Palantir superior to enterprise software dinosaurs.
Karp's unpolished character resonates with Gen Z, as they view the founder as more of a corporate influencer rather than an unrelatable, media-trained suit.
3. There's a sense of something new
Long before institutional investors with billions of dollars in assets under management (AUM) took a liking to the stock, Palantir was a favorite on social media and online investment chatrooms around Reddit where young people -- and others -- interact.
For Main Street, Palantir is more than a random position in a portfolio. There is a community aspect to Palantir -- one that shares a vision about a misunderstood company that was once glossed over by the so-called "smart money" on Wall Street.
The idea of being an early backer and supporting something generational before everyone else matters to Gen Z.
