Latest news with #AIP
The Citizen
21 hours ago
- Business
- The Citizen
Water department heralds securing $10 billion in funding for Africa
The African Union Water Investment Summit was aiming to raise US$30 billion, but Minister Pemmy Majodina expects more will follow. Minster of Water and Sanitation Pemmy Majodina has celebrated a collective pledge to inject over US$10 billion into African water projects. The financial commitment was secured at the inaugural African Union Investment Programme (AIP) Water Investment Summit held in Cape Town last week. The programme to address the continent's water security was initiated in 2021, with the funds raised in the Mother City to be distributed among almost 40 different countries. Continental investment The water summit formed part of the wide-reaching engagements under the the banner of South Africa's G20 presidency and featured international water ministers and African heads of state. However, the amount raised through the three-day engagements between the nearly 1 700 delegates in attendance is just one-third of the amount sought by African leaders. The water ministry confirmed that 80 projects across 38 countries were demmed a priority and subsequently attracted between US$10 and $12 billion in investment. Majodina said more was expected, but that the grand amount envisioned for investment in Africa's water security was US$30 billion — or R528 billion at this week's exchange rate. Majodina said the attendees identified finance, capacity and data gaps in the water sector, and urged government to break down regulatory barriers. 'Let us eliminate long and unnecessary red tape which undermines and discourages investment,' said the minister. 'We have also managed to showcase a pipeline of bankable water and sanitation projects to prospective funders and investors,' she boasted. South African water woes On Monday, Majodina did not reveal how much of the investment would be allocated to South Africa. Johannesburg alone has previously reported the need for R37 billion to address its water infrastructure backlog. Debt levels are also high, as during a Standing Committee of Public Accounts in June the department of water and sanitation noted that national municipal debt to water boards sat at R25 billion. Regarding the human resources needed to resolve South Africa's water infrastructure problems, the minister stated that the percentage engineers employed at municipal level had decreased from 84.6% in nineties, to 6.4% currently. The Auditor General (AG) of South Africa last year stated that 71% of regional bulk water projects were delayed and that budgets had been inflated by at least R9.4 billion in the last 15 years. 'If the root causes for poor project management are not corrected, there is a risk that other projects may be similarly delayed,' stated the AG. NOW READ: How SA's Lesotho water project costs ballooned from R8bn to R53bn
IOL News
2 days ago
- Business
- IOL News
Over $10 billion pledged at the AIP Water Investment Summit to tackle Africa's water crisis
South Africa's Water and Sanitation Minister, Pemmy Majodina, addresses attendees at the AIP Water Investment Summit. Investment Programme (AIP) Water Investment Summit, which concluded here recently, has secured over $10 billion in commitments, signaling a significant step toward closing the continent's annual $30 billion water investment gap. The three-day summit, opened by President Cyril Ramaphosa, gathered 1,690 delegates, including Heads of State, Ministers, and investors, to accelerate investments in climate-resilient water and sanitation. South Africa's Water and Sanitation Minister, Pemmy Majodina, expressed her satisfaction with the summit's outcome. "In the last three days, we have identified governance, finance, capacity and data gaps in the water sector and together we commit to pay focused attention to these matters," Majodina said. She noted that 80 priority water investment projects from 38 countries were identified, attracting an estimated projection of $10 to $12 billion a year in investments.
Yahoo
2 days ago
- Business
- Yahoo
Prediction: 1 Unstoppable Stock That Will Join the $1 Trillion Club by 2030 (Hint: Not Palantir)
Key Points Palantir saw its value soar as its AIP drives accelerating revenue growth. Its unlikely Palantir can sustain its valuation multiple through the end of the decade. This company systematically increases its operating income, leading to more value for shareholders over time. 10 stocks we like better than Palantir Technologies › Only 10 publicly traded companies are members of the $1 trillion club, meaning they have a market cap of at least $1 trillion. That number has grown considerably over the last few years as stocks have climbed to new all-time highs. Just five years ago only four companies had ever surpassed the milestone. Investors should expect a handful of companies to join the ranks of the megacap stocks boasting a value above $1 trillion over the next five years. Many see Palantir Technologies (NASDAQ: PLTR), one of the hottest tech stocks on the planet, punching its card by 2030. However, there are a few reasons to doubt the company's ability to more than double its market cap within the next five years, despite its recent growth. But another large-cap stock looks well positioned to continue growing over the next few years and that could push its value up to the $1 trillion mark by the end of the decade. Why Palantir will struggle to join the $1 trillion club Palantir saw its stock price explode higher since introducing its Artificial Intelligence Platform (AIP) in 2023. AIP allows an organization to take advantage of large language models to interact with Palantir's core software using natural language. That's expanded the use cases of Palantir, enabling less technical users to take advantage of its powerful data oncology software. It also means an increase in contract size as more customers add AIP to their suite. As a result, Palantir has produced accelerating revenue growth and expanding operating margins over the last two and a half years. Last quarter's revenue growth came in at an impressive 48% with an adjusted operating margin of 46%. Palantir's profitable sales growth is quite impressive. But the stock has zoomed higher much faster than its financial results would suggest it should. It's as if investors expect its ability to produce accelerating revenue growth to go on indefinitely. The reality is revenue growth will only prove more difficult in 2026 and beyond, if only due to the law of large numbers. Palantir's current stock price values the company at more than 100 times revenue estimates over the next 12 months. There's no other company even close to Palantir's size that garners a valuation anything like that. Investors should expect multiple compression over the next five years. And as revenue growth slows down as Palantir gets bigger, the company is unlikely to grow large enough to reach $1 trillion by 2030. The media giant with its sights set on $1 trillion Only a handful of companies stand closer than Palantir to the $1 trillion club, but one of them has a much better shot at getting there by 2030. Netflix (NASDAQ: NFLX), with its $520 billion market cap, still looks a long way from that lofty value, but it's steadily making progress that could propel the stock to nearly double over the next five years. Netflix's management is extremely systematic in its approach to growing the business. Despite consistent price increases over the last decade, it has managed to maintain a very high retention rate. So, even as subscriber growth in its more mature markets slows, it's still able to extract a ton of value out of its viewers. It reinvests a lot of the additional revenue from price increases and new subscribers into additional content to increase value for its users, but it also manages the company's spend toward a target operating margin each year. With relatively predictable revenue from the subscription business, it's usually able to hit the target. The result is steady improvements in operating margin. Management is targeting 29.5% in operating margin for 2025, boosted by foreign-exchange tailwinds, after posting 26.7% margin last year. Netflix's next leg up will come from advertising after launching an ad-supported tier of its streaming service in 2022. Ad sales are now a meaningful driver of revenue growth for the company, with advertising revenue on track to double from its relatively small base in 2025. Netflix recently migrated to its own ad technology, giving it more control over measurement, targeting, and ad formats. It's also investing more in live programming, which will include advertisements for all subscribers. Both should ensure a healthy runway for ad growth over time, albeit with less predictability than subscriber revenue. Importantly, the market for connected TV ads still has a lot of room to grow as marketers are slow to shift ad spend from linear television. Netflix's management has set an internal goal of a $1 trillion market cap by 2030. While I'm not a fan of goals that are reliant on market sentiment, if management sticks to its plan to get to that valuation, it will likely achieve a $1 trillion valuation sooner or later. Namely, management expects to double its 2024 revenue and triple its operating income. That translates into $78 billion in revenue and a 40% operating margin. Both seem achievable given the trajectory the business is on currently. Using excess cash flow to retire high interest debt and buy back shares should support earnings growth and a high valuation multiple of those earnings. An earnings multiple of around 30 times should be enough to support a $1 trillion valuation if Netflix hits those marks. I don't see any of those numbers as unreasonable for the company. Netflix has historically traded well above that valuation, and its pricing power and ad business should continue to propel meaningful revenue growth through the end of the decade. Should you invest $1,000 in Palantir Technologies right now? Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* Now, it's worth noting Stock Advisor's total average return is 1,070% — a market-crushing outperformance compared to 184% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Adam Levy has positions in Netflix. The Motley Fool has positions in and recommends Netflix and Palantir Technologies. The Motley Fool has a disclosure policy. Prediction: 1 Unstoppable Stock That Will Join the $1 Trillion Club by 2030 (Hint: Not Palantir) was originally published by The Motley Fool
Yahoo
6 days ago
- Business
- Yahoo
Is Palantir the Safest AI Stock to Buy in a Volatile Market?
Palantir Technologies (PLTR) has been riding the artificial intelligence (AI) wave for around two decades. However, unlike the majority of players in the field, it went unnoticed until its large government contract wins and rapid commercial expansion brought it to the spotlight. While some admire the company's exponential growth, others criticize it for its unconventional methods. Nonetheless, Palantir has become unstoppable. The stock is up 145% year to date, outperforming the market as a whole, which is up 9.7%. Let's see if the stock is a buy now. More News from Barchart Why This Cannabis Penny Stock Could Be Wall Street's Next Meme Trade Breakout Apple Stock Is Gaining Momentum, Is AAPL Stock a Buy? Peter Thiel-Backed Bullish Is About to IPO. Should You Buy BLSH Stock? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Valued at $441 billion, Palantir develops advanced data analytics software that assists governments, businesses, and other organizations in collecting, integrating, and analyzing large, complex datasets to make better decisions, detect patterns, and solve problems. Its Gotham, Foundry, and AIP platforms are widely used in industries such as defense, intelligence, healthcare, finance, and supply chains. Palantir reported a stellar second quarter. For the first time, the company exceeded $1 billion in quarterly revenue, representing a 48% year-over-year increase. Furthermore, its Rule of 40 score reached 94, indicating a healthy balance of rapid growth and strong profitability, which is a rare combination in the AI sector. The U.S. business remains the growth engine, contributing 73% to total revenue. U.S. commercial revenue surged 93% year-over-year, while U.S. government revenue rose 53% year-over-year. The rate of growth in commercial adoption, which was previously a weaker area for Palantir, indicates a strategic shift that could maintain momentum in the coming years. The company's remaining performance obligations (RPO) reached $2.4 billion, up 77% year on year. Adjusted EPS was $0.16 per share. Big Deals, Bigger Pipeline The second quarter marked a quarter of massive contract wins, with 157 deals worth more than $1 million, 66 deals worth more than $5 million, and 42 deals worth more than $10 million. Total contract value (TCV) reached $2.3 billion, with annual contract value (ACV) at $684 million, both record highs. Notably, Palantir's top 20 customers now have an average trailing 12-month revenue of $75 million, a 30% increase year over year, indicating that once Palantir acquires a client, its footprint within that organization tends to grow significantly. Palantir ended the second quarter with $6 billion in cash, cash equivalents, and short-term U.S. Treasury securities, providing a solid foundation for future product investment. Government: A Deep and Sticky Relationship While the commercial segment is expanding faster, Palantir's government business remains a cornerstone and one of the primary reasons why Palantir may be the safest AI play. The U.S. Space Force has awarded a $218 million delivery order for multi-domain warfighting support. The ceiling for its Maven Smart System contract was raised by $795 million to meet increasing AI demand from combatant commands. Most notably, Palantir signed a 10-year, $10 billion enterprise agreement with the U.S. Army, combining 75 separate contracts into one. These long-term, mission-critical government contracts generate recurring revenue, which provides stability, especially in uncertain market conditions. Palantir's AI platforms are deeply embedded in critical enterprise and defense systems, resulting in high switching costs for clients. Furthermore, unlike many other smaller AI plays, Palantir generates consistent cash flow and margins while balancing growth and profitability. For the full year 2025, the company anticipates 45% year-over-year revenue growth to $4.14 billion to $4.15 billion, with 85% growth in U.S. commercial revenue. The company also anticipates GAAP profitability in all quarters of 2025 and adjusted free cash flow of $1.8 billion to $2 billion. Analysts expect Palantir's earnings to rise by 58.2% in 2025 and 30.8% in 2026. Palantir's stock is expensive, trading at 220 times 2026 estimated earnings. Is PLTR Stock a Buy, Hold, or Sell on Wall Street? Overall, on Wall Street, Palantir stock is a 'Hold.' Among the 21 analysts that cover the stock, four rate it a 'Strong Buy,' 14 say it is a 'Hold,' one rates it a 'Moderate Sell,' and two say it is a 'Strong Sell.' Despite the muted outlook, Palantir stock has skyrocketed this year, surpassing its average target price of $155.78. Its Street-high estimate of $200 implies the stock has upside potential of 7% from current levels. The Bottom Line While Palantir's positioning is strong, critics remain skeptical, citing the company's heavy reliance on U.S. government contracts, which means that political or budgetary changes could impact revenue. Palantir has been working on this by rapidly expanding its commercial business to create a more balanced revenue stream. Palantir's combination of high growth, profitability, established customer relationships, and proven technology may make it one of the safest AI investments available. However, given the premium valuation, risk-averse investors may want to wait for a more favorable entry point. On the date of publication, Sushree Mohanty did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
TimesLIVE
7 days ago
- Business
- TimesLIVE
Ramaphosa urges investors to make capital available for water projects
President Cyril Ramaphosa has called on investors to make more of their capital available for the development of water projects on the continent as a crucial part of the solution to the region's $30bn (R525bn) a year water infrastructure investment gap. He was speaking at the opening of the AU's first Water Investment Programme (AIP) Summit in Cape Town on Wednesday morning, which also formed part of South Africa's activities as president of the G20. Thirty-eight water ministers from around the continent and leaders from other parts of the world, including the United Arab Emirates and Saudi Arabia, are attending. 'Water investment must no longer be an afterthought at climate and finance discussions. It must be at the centre of discussions. It must be financed, tracked and championed. Let us leave this summit with deals, pipelines, partnerships and a permanent global mechanism to sustain the momentum.' According to the African Development Bank, the continent faces immense backlogs and gaps in the development of water infrastructure which will require $30bn in infrastructure investment annually to close, which many countries in the region do not have.
