Palantir US-Tech stocks plummet – MiMedia defies the storm, Xiaomi makes strategic decisions

Palantir – A test for the stock

Palantir Technologies is positioning itself as a key player in the field of operational AI solutions, but political uncertainties are raising questions. Recent plans to cut the US defense budget could affect the Company's existing military contracts. At the same time, a USD 619 million order for the Army Vantage program underscores the relevance of Palantir's data-driven platforms. The mix of government projects and growing commercial exposure – US customer numbers recently rose 73% – shows a strategic diversification. Yet success hinges on whether the efficiency promises of AI tools hold up in uncertain budget cycles.

In fiscal year 2024, the Company recorded a 29% jump in revenue to USD 2.87 billion, driven by commercial expansion. The adjusted EBITDA margin climbed to 40.5%, underscoring the scalability of the software solutions. The dependency on share-based compensation remains critical, weighing on financial results. Although management is forecasting positive earnings for the first time, confidence in sustainable profitability is being sorely tested by the high valuations, for example, in the price-to-earnings ratio. The commercial portion in the current year will be around 54%, which would be positive given government calls for austerity.

The market sees Palantir as a premium asset, based on the expectation that the more the software's artificial intelligence is used, the better the AI models will become, which in turn will attract new customers. Residual contract values grew by 38% to USD 5.4 billion. Skeptics, however, point out that even with sustained annual growth of 30%, the valuation would remain high in relation to other competitors in the coming years. The key question is whether Palantir can close the gap between expectations and operational implementation. The price setback of over 40% from the high has at least partially reduced the overvaluation. The stock is currently trading at USD 74.94.

MiMedia – Collaboration with Walmart

The cloud company MiMedia is positioning itself in the Latin American market with a groundbreaking partnership. The collaboration with Walmart gives the platform access to over 18 million mobile users of Walmart's subsidiary Bait in Mexico. The integration of the MiMedia Gallery app into Walmart's digital ecosystem, which includes popular apps for financial services and healthcare, is aimed at strengthening customer loyalty. With more than 4,000 stores in Mexico and Central America serving as distribution channels, the alliance not only offers broad reach but also the opportunity to address data-conscious users beyond traditional social media platforms.

MiMedia relies on a manufacturer-independent cloud platform that securely stores media and allows for private sharing. In addition to the Walmart collaboration, the Company has partnerships with technology providers Orbic and Caterpillar. The latter is targeting rugged smartphones for the construction and emergency services industries – a niche market with projected revenue growth of USD 3.7 billion by 2033. By pre-installing its gallery on devices, MiMedia not only taps into new user groups but also generates recurring revenues from subscriptions and advertising.

MiMedia expects 35 million devices to have its gallery installed over the next two years, generating around CAD 4 in revenue per unit. Thanks to margins of 80 to 90%, revenue could rise to CAD 100 million. The expansion into Latin America, where digitalization is booming, along with the integration into Walmart's digital services, underscores the platform's scalability. The business model combines hardware partnerships, AI-powered technology, and access to millions of users – a good basis for long-term market presence. These figures and long-term prospects also explain why the share price is very strong compared to many other stocks. Currently, the stock is trading at CAD 0.465.

Recent Interview with MiMedia CEO Chris Giordano

Xiaomi – Strategic realignments

Xiaomi had a record year in 2024. Revenue rose by 35% to CNY 365.9 billion, driven by the smartphone business, which grew by 21.8%, and the IoT business, which grew by 30%. The Company's operational flexibility is remarkable: Despite a net loss per electric vehicle of around CNY 45,300, the EV segment's gross margin improved to over 20% – an indication of economies of scale. Adjusted net profit climbed by 41.3%, while R&D expenditures increased by 25.9% to CNY 24.1 billion. This balance of investments and earnings discipline highlights Xiaomi's ability to manage growth even in volatile markets.

With 136,854 SU7 electric scooters delivered in 9 months, Xiaomi is establishing itself as a disruptive newcomer. The target of 350,000 deliveries for 2025 and the expansion of factory capacity signal ambitions that go beyond niche players. At the same time, the IoT division is growing into the second pillar of the billion-dollar company. Smart home appliances such as air conditioners, with 50% more sales, and washing machines, with a 45% increase, have driven sales to CNY 104.1 billion. Integrating AI into the HyperOS operating system also strengthens the connectivity of vehicles, household appliances, and mobile devices.

While Xiaomi is catching up in the premium smartphone segment with a market share of 24.3%, dependence on third-party chips remains a cost driver. In-house developments along the lines of Samsung's could create leeway here. The electric vehicle venture remains critical. Although the SU7 Ultra is attracting attention with 19,000 pre-orders, incidents such as a fatal accident in March 2025 are weighing on confidence. In addition, the planned 5,000 new stores in China require considerable capital. Xiaomi's shares have also recently lost around 40%. A share currently costs EUR 4.46.

The tech industry is navigating political and market-related turbulence. Palantir was overvalued and is currently trying to find a bottom. MiMedia is defying the crisis with its Walmart alliance in Latin America, which promises high margins and scaling potential. Xiaomi is impressing with its IoT expansion and ambitions in the electric vehicle sector, but is struggling with production costs and a loss of trust following safety incidents. While Palantir and Xiaomi have seen their share prices slump, MiMedia demonstrates how niche strategies can withstand crises.