SAP, Aspermont, Palantir - AI shares facing reassessment

The missing piece of the security puzzle

In the current phase of geopolitical tensions and possible escalations especially, the technology of the US data specialist Palantir Technologies could tip the scales. Artificial intelligence-based technology for the European military is soon to become a reality, at least if Palantir CEO Alex Karp has his way. Palantir, which generates more than half of its revenue from US government, intelligence and law enforcement contracts, is advising Europe to embrace AI dominance in the military. In the US, people are already convinced of the reliability of the data analytics platform. For example, the Denver-based company received a USD 34 million procurement contract from the US Army to support further development of the Army Intelligence Data Platform (AIDP), an AI-based battle management analysis system.

The Denver, Colorado-based company also received a contract from the Bavarian State Criminal Police Office for the "Vera cross-procedure search and analysis system," the BLKA announced Monday. The Bavarian Interior Ministry said no other company met the strict bidding criteria. "Vera" is to link existing information from various databases available to police. Other German states could join in, as Bavaria has taken the lead in concluding a framework agreement, according to the BLKA. Police forces from the federal and state governments could thus get on board without additional procurement procedures.

Palantir's stock has shown relative strength to the overall market in recent weeks, successfully defending support at USD 9.62. Currently, the title is fighting for the downward trend formed since October at USD 13.17. Should this be broken, the resistance at USD 17.24 would be the next target. Overall, Palantir could gain more and more importance fundamentally due to the geopolitical tensions; from the technology side, the Big Data company has a unique selling proposition.

Aspermont - Facing revaluation

The Data-as-a-Service company Aspermont could also be facing a revaluation soon. After months of bottoming out in the EUR 0.013 area, the launch of the long-awaited platform for raising capital for professional investors on the ASX market could cause share prices to rise similarly to last spring. The conditions for launching a platform for the commodities sector are excellent. They are in a supercycle, and the demand for capital raising in the mining sector is gradually increasing. From a strategic point of view, the platform for the mining sector is likely to be used as a proof-of-concept, which can then be transferred to other sectors of the economy. Likewise, the platform, which will be launched in Australia this year, is likely to be extended to other countries. The global target groups and the required media channels have been well established for years.

The Australian government confirms the importance of Aspermont's platforms. For example, the Kondinin Group, a subsidiary and the business unit responsible for agricultural media and leading information distributor for Australia's farmers, received government grants of AUD 2.3 million, the equivalent of EUR 1.54 million. Alex Kent, Aspermont's managing director, adds, "This USD 2.3 million grant is confirmation that the Australian Federal Government recognizes and supports Kondinin as a brand leader in the Australian agricultural sector. With a market capitalization of EUR 32.21 million, the leading media company is worth a closer look. Details are presented in an earlier article.

SAP - The end of an era

A big bang for the leading European software house SAP - Longtime CFO Luka Mucic is turning his back on the German software giant early after 27 years. The Walldorf-based DAX company announced that Mucic will leave the Company on March 31, 2023. The supervisory board and Mucic had reached an amicable agreement. The sudden decision caused uncertainty in the market and a 2.0% drop in the share price to EUR 101.65.

The British investment bank Barclays also lowered its price target for SAP from EUR 135 to EUR 128 but left its rating at "Overweight". Analyst James Goodman assessed the departure of CFO Luka Mucic, announced for 2023, quite negatively.

Artificial intelligence will become increasingly crucial for all areas of life. Palantir could emerge as one of the main beneficiaries in terms of security, while in B2B media, Aspermont is among the favorites. SAP came under pressure in the short term after an important personnel announcement, but there could be a trading opportunity at the current level.