Bloomberg Businessweek - Episode Summary

Episode Title: Palantir Reports Record Quarterly Revenue, Hikes Forecasts
Date: November 3, 2025
Hosts: Carol Massar & Tim Stenovec

Episode Overview

This episode of Bloomberg Businessweek focuses on three major segments:

1. Palantir Technologies’ Record Revenue and Stock Dynamics:
   Insights from a senior Bloomberg reporter and Peter Thiel biographer on Palantir's surging financial performance, its unique position as both a meme stock and real enterprise software provider, and its deepening ties to government and defense contracts.

2. AI Investment Environment and Market Risks:
   Chief Investment Officer Megan Hornman discusses bubble-like conditions in technology and AI-driven equities, the need for portfolio caution, and the tricky balance between chasing growth and managing valuation risk.

3. Deal-Making and M&A in Consumer Goods and Aerospace:
   Reporters break down Kimberly-Clark's major acquisition of Kenvue in the consumer health space, and Archer Aviation's founder explains the state and future of urban air mobility and EVTOL technology.

1. Palantir’s Record Revenue & Investor Mania

Guest: Max Chafkin, Bloomberg Senior Reporter, co-host of Everybody’s Business Podcast
Timestamps: 02:17 – 09:43

Key Discussion Points

• Surging Revenue & AI Positioning (02:17):

  • Palantir recently reported record quarterly revenue, capitalizing on two trends: business demand for integrating AI, and its robust US defense contracts.
  • The company’s government and commercial revenues are now nearly evenly split.

• "Meme Stock" Dynamics & Valuation (03:44):

  • Palantir is compared to Tesla as a “meme stock,” with a passionate retail investor base and a CEO, Alex Karp, who has a cult following.
  • However, unlike traditional meme stocks, Palantir posts real revenue and growth, with a 63% revenue increase this quarter.

• Analyst Skepticism About Valuation (04:13):

  • The company’s forward PE ratios (691 trailing, 320 forward) are extremely high compared to even hot tech peers.
  • Investors' appetite is driven more by social media and community hype than institutional logic.

“We’re talking about a very, very, very expensive stock. … That stock either reflects new dynamics where demand on social media drives price, or just market excess.”
— Max Chafkin, 04:52

• What Palantir Does (05:41):

  • Provides data organization software, deeply entrenched within both military/intelligence (e.g., counter-terrorism) and expanding commercial applications.
  • Sticky product: once adopted, hard to replace.

• Competition & Business Model (07:26):

  • Palantir competes with giants like Microsoft, Amazon, Google, as well as specialists (e.g., Snowflake).
  • Some critics view Palantir more as a consulting firm than a pure product company.

• Political Connections & Influence (08:42):

  • Palantir’s leadership maintains strong ties with the Trump administration, winning significant federal contracts as a result.
  • CEO Alex Karp is widely seen at key administration events, and Palantir is “punching above its weight” in DC.

“If you look historically, the last Trump administration was an incredible time for Palantir...They are punching above their weight in terms of influence.”
— Max Chafkin, 08:52

2. AI-Driven Markets: Bubble or Boom?

Guest: Megan Hornman, CIO, Verdance Capital Advisors
Timestamps: 12:28 – 19:19

Key Discussion Points

• Market Sentiment & Fed Policy (12:28):

  • Markets bounced back due to optimism over Fed rate cuts, thawing trade tensions, and intense focus on AI.
  • Momentum trades driving MAG 7 (big tech) valuations higher.

• Valuation Concerns (13:02):

  • Tech equities, especially the MAG 7, now resemble bubble territory—though not a repeat of the dot-com bust.

“These are all looking a little bit bubble-like...There is the risk here for some valuation correction.”
— Megan Hornman, 13:02

• AI’s Unknowns and Labor Impact (14:13):

  • While AI is transformative, “euphoria” could mask fundamental risks—just as housing prices seemed infallible pre-2008.
  • Labor effects: some jobs will be lost, but overall productivity may improve, especially in clerical sectors.

• Portfolio Strategy in a Bubble-Like Market (16:09):

  • Rebalance portfolios to avoid overexposure to top growth/tech names.
  • Diversification is vital, as momentum trading often ends with indiscriminate selling of winners during corrections.

• Earnings Reality Check & Looking Ahead (17:42):

  • Warns against paying too much for future earnings—visibility out to 2027 is low.
  • Near-term risks include Supreme Court action on tariffs adding market volatility.

3. M&A: Kimberly-Clark & Kenvue Deal

Guests: Ryan Gould (US IPO & Deals Reporter), Red Brown (Consumer Reporter)
Timestamps: 19:38 – 28:21

Key Discussion Points

• Transaction Overview & Risks (20:29):

  • Kimberly-Clark acquires Kenvue, assuming legal risks tied to Tylenol litigation and brand value questions.

• Market Reaction (21:23):

  • Investor concerns echo the Bayer-Monsanto legal woes, but analysts see potential long-term upside if legal overhang is manageable.

“There could actually be no liability at all. … That’s going to be for a court to decide and maybe not for me to speculate.”
— Ryan Gould, 22:12

• Deal Dynamics (23:39):

  • Multiple activist investors influenced the sale; CEO turnover and “strategic alternatives” announcement drove momentum.
  • The acquisition offers synergies in supply chains and global distribution (e.g., Kenvue’s large presence in India vs. Kimberly Clark’s strength in Singapore).

• Everyday Products Amid AI Hype (27:26):

  • The value of essential consumer goods in portfolios remains strong, even as attention focuses on high-tech sectors.

4. Urban Air Mobility: Archer Aviation

Guest: Adam Goldstein, CEO of Archer Aviation
Timestamps: 30:43 – 40:09

Key Discussion Points

• EVTOL Rollout and Regulatory Hurdles (31:13):

  • Archer’s electric aircraft set for test flights in 5 major U.S. cities by June next year, driven by President Trump’s executive order.
  • First phase: no passengers, ramping toward commercial launch post-certification.

• International and Defense Markets (33:01):

  • Initial revenues recorded via partnerships in UAE; expansion plans for Ethiopia and Indonesia underway.
  • Defense contracts expected but not yet announced.

• Technical and Infrastructure Lessons (34:20):

  • Launching in UAE taught lessons about heat and sand—critical for safety and performance.
  • Los Angeles will be a primary launch city, especially with the 2028 Olympics (Archer as exclusive air taxi provider).

• Investor Sentiment (37:09):

  • Despite delays in passenger flight launches, investor interest in EVTOL remains robust; industry IPOs are oversubscribed.

“There is a ton of interest in the eVTOL space. … Investors are very excited about the progress we have.”
— Adam Goldstein, 37:46

• Pilot Certification & Autonomy (38:13; 39:08):
  • FAA is finalizing new certification policy; Archer is nearly finished with policy phase.
  • Full aircraft autonomy is a future goal, but regulation and integration with air traffic remain key challenges.

Notable Quotes & Memorable Moments

• “Certainly shareholders call [CEO] Alex Karp ‘Daddy Karp’...he’s this kind of larger than life figure.”
  — Max Chafkin, 05:07

• “Are you paying for earnings that are now two years forward? … There’s really not much upside if you’re looking at the fair value of the S&P 500.”
  — Megan Hornman, 17:42

• “Did I come into this year thinking that Kimberly Clark acquiring Kenvue would be the fourth largest M&A deal? No.”
  — Ryan Gould, 27:51

• “The FAA coined the term Innovate 28...the first city where you’ll see these aircraft used in mass will be at the LA ‘28 Games.”
  — Adam Goldstein, 36:37

Segment Timestamps

| Segment | Start | End | |----------------------------------------------|--------|--------| | Palantir’s Revenue & Meme Stock Status | 02:17 | 09:43 | | AI & Market Valuations (Megan Hornman) | 12:28 | 19:19 | | Kimberly-Clark/Kenvue M&A Discussion | 19:38 | 28:21 | | Archer Aviation CEO on Urban Air Mobility | 30:43 | 40:09 |

Summary Takeaway

The episode delivers a deep dive into the high valuations and cultural phenomena driving Palantir's success, tempered by traditional Wall Street caution on bubbles in tech. It shifts to the consumer staples sector for insight on M&A resilience against a backdrop of litigation risk, then looks ahead to the transformative potential lurking in frontier tech like urban air mobility. For investors and business leaders seeking context and caution amid market exuberance and technological transformation, this episode is essential listening.