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Palantir’s growing relationships with U.S. defense, intelligence and allied government agencies uniquely position the company as a mission-critical software provider. Notably, the company continues to secure major multi-year contracts that magnify revenue visibility and ultimately strengthen its economic moat. Per Yahoo Finance, the company was recently awarded a $795M with the Department of Defense to deliver AI-enabled operation command and in-depth battlefield analytics. Furthermore, announced in early 2025 was Trump’s proposal of an American equivalent to Israel’s Iron Dome (a cutting-edge missile defense system), but on a much larger scale; it is structurally designed to protect the entire U.S. homeland. Intuitively, the architecture relies on several moving parts, but ultimately operates through an AI-powered core. Initially, the program has a proposed budget of $175B, with long-term permissions to exceed $500B. Emphatically, government contracts tend to be long in duration and provide sticky, margin-effective revenue streams.
AppLovin posted their latest quarterly earnings on May 7, delivering a wide double beat against consensus. The company’s topline growth maintained its stellar trajectory with a 40% YoY increase. A big green flag for equity investors is the fact that bottom-line growth by far outpaced revenue growth, with the adjusted EPS increasing from $0.67 to $1.67 on a YoY basis.
I think the major disappointment from the market is the forward-looking comments given during the call. The 2026 FY revenue outlook was trimmed to 775-790m (7-9% growth rate) from 782-790m (8-9% growth rate). Moreover, net retention rate [NRR] will also be affected by elongated sales cycles and buyer scrutiny, as this quarter’s 95% is already bad. The prospect of the business has a 180-degree shift. The market actually expects Asana to raise guidance as the management talked a lot about ‘re-accelerating growth’ in their last call. As the management failed to keep its promise, the market seemed to be losing confidence in Asana.
Looking at tenants, the largest industries represented would be Grocery (10.3%) and Convenience stores (9.9%). Most of the annualized base rent is in the U.S., with around 84.6%, while the UK has 12.6% and the rest of Europe 2.8%. The 3 largest clients would be 7-Eleven (3.4%), Dollar General (3.3%), and Walgreens (3.2%). For the U.S., Realty has properties in 49 states, with no state representing more than 11%.
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