20. July 2021 | 09:36 CET
Alphabet, Aspermont, Palantir - Big Data in a new dimension!
Information today spreads in a matter of seconds and is immediately converted into cash by machines with corresponding trading algorithms. It usually takes a few minutes from the original company message for the relevant news services to filter and analyze the information content accordingly. That is because the analysis of a message is, per se, only possible after a professional check. Modern systems with artificial intelligence work with keywords that evaluate the respective characteristics of the news according to an internal scoring and forward them to the decision-maker at lightning speed. We take a look at some of the protagonists in the big data analytics sector.
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ISIN: ALPHABET , ALPHABET INC.CL.A DL-_001 | US02079K3059 , ASPERMONT LTD | AU000000ASP3 , PALANTIR TECHNOLOGIES INC | US69608A1088
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
Alphabet - The octopus in the data universe
Today, there is no way around Google in the field of search engines and Internet advertising. The publicly listed holding Company Alphabet Inc., based in Mountain View in Silicon Valley, was created in October 2015 through a restructuring of Google, becoming the umbrella company for Google LLC and various former Google subsidiaries. While Google founders Page and Brin are now on board the holding Company, Alphabet Inc. is led by Sundar Pichai as CEO.
In 2020, the Company generated USD 182.5 billion in revenue and USD 40.3 billion in profit. With a stock market value of USD 1.8 trillion, Alphabet Inc. is one of the so-called Big Five in the S&P 500. The umbrella company was founded as part of Google's restructuring, first announced in August 2015. The core business of Internet services retains the name Google and is dominant in the Western hemisphere; in China, however, this role is taken over by Baidu.
But that is not all: After Apple, Google is also launching its own virtual credit card. With the Visa card, payment via Google Pay will also be possible for customers who do not yet have a credit card. In theory, the Google credit card is available to all Android users - but just like the Apple Card, it will initially only be available in the USA. To apply for it, customers need the Google Pay app, which Google completely renovated at the end of 2020. Google closes the loop between personal profiles, transaction data, consumer preferences, and account details with this application. The transparent human being in its perfection.
The Alphabet stock is a FAANG stock and one of the strongest performers on the NDX. The stock has already gained 49% since the beginning of the year. Alphabet undoubtedly belongs in any long-term portfolio because of its extraordinary market position.
Aspermont Ltd. - Accelerated growth with capital market services
Do you remember the last few years of the past millennium, when Amazon was ridiculed because it tried to distribute books via the Internet? Now, some 20 years later, there are hardly any goods that can't be purchased via the World Wide Web. The transformation from off to online is already well advanced, and it continues to progress daily.
Today, digitization, in particular, offers endless opportunities for media houses and publishers to scale their original business models and address new customer groups. The Australian media stock Aspermont Ltd. is a capacity in the field of information with capital market relevance. Its business model consists of subscription revenue generation, trading revenue and platform services. With a constantly growing user base, the relevance of the information services offered increases. The revenue potential dynamizes with each new customer, as the cost base does not increase accordingly.
For Aspermont's paying clients, it means a potential increase in the reach of content. Those who want to draw attention to themselves use the various platforms and deploy them integrally. Aspermont combines specialist content with targeted advertising to generate steadily increasing revenues from subscription and transformation models, and its international target clientele is still predominantly from the commodities sector.
In recent years, Aspermont transformed its business from the print world to the digitized world; print editions still exist purely for nostalgia's sake. In early June, the new multimedia product, 'Digging for Climate Change', was launched. It is a first step in providing media coverage of sustainability in raw material extraction. This image cultivation helps companies raise their green profile to convince customers and, not least, investors. The "Everything-as-a-Service" strategy offers everything from a single source and strengthens customer loyalty at all levels.
Aspermont's B2B model can also be rolled out to other areas and offered in all languages. Concerning the planned geographical expansion into Asia and South America, this opens up further growth potential for decades to come. In the half-year figures, revenue per customer increased by 15%, and cash increased to AUD 7.5 million. One could only buy externally.
The share price has worked its way back up to AUD 0.03 in recent weeks, and the market capitalization is now AUD 70 million. The story has medium-term blockbuster character.
Palantir Technologies - Compensation at the highest level
Another company from the big world of data analysis and processing is Palantir Technologies. The Company was co-founded by German investor Peter Thiel and only went public in the fall of 2020. Since its IPO, the share has experienced a rocketing development. Expected revenue in 2021 is taxed to USD 1.5-1.7 billion, up from USD 742 million in 2019. Palantir's primary customers are public institutions that require highly sensitive data and network search algorithms.
Big Data analytics is the buzzword. Palantir is enjoying an increasing number of customers, especially in Switzerland: Credit Suisse uses the software to monitor its employees and defend against financial crime. The reinsurer Swiss Re used Palantir to develop a platform on which health, economic and social data are collected.
What is remarkable about Palantir is not only its business model but also its earning potential. While in the banking industry CEOs are desperately trying to keep their best people with raises, the tech industry is showing how "retention" really works: at Palantir, with a billion-dollar package of stock awards and options that make the software engineer, who previously lived in a shared apartment, a multi-millionaire by the due date. Co-founder and CEO Alex Karp thus received a compensation package amounting to USD 1.1 billion for his services last year, as the "Wall Street Journal" has calculated. About USD 800 million was in stock options and just under USD 300 million in stock awards. His billion-dollar compensation will now be paid out in installments quarter by quarter over the next 10 years - assuming he stays on board as CEO.
Palantir's shares have consolidated decently after hitting a high of USD 37.5, and since then, the price has fluctuated between USD 20 and USD 25. The current valuation anticipates growth over the next 3 years.
The Big Data and Media Analytics sector is spread across many listed companies, which operate very different business models. Google is the clear global market leader, and Palantir is also poised to become unique in its segment. Aspermont Ltd. operates in a niche market and builds a high-growth bridge between the media world and the capital markets.