We will have the latest on that well tell you what to buy heading into the final strep of the your palantir just began trading. Alex karp will join us in a couple minutes for a first on cnbc interview more power lunch starts right now. Hi, everyone first two big public debuts. Palantir just began trading moments ago, and asana opening up higher as well, plus starbucks higher as counsel upgrades the stocks, saying its actually a good thing for the company. The chip maker micron is lower after reporting earnings yesterday. You can see shares taking a hit, down about 6 . Brian, over to you the idea if we get a democratic sweep of the white house and congress, fiscal stimulus could be very generous for a very long time also noted the thought we might be getting closer to a new round of coronavirusrelated relief, so lets get to ylan mui with the latest on the negotiation. The ylan brian, the treasurysecretar is meeting right now with the speaker of the how in person in one last push to try to get a relief deal done before the election democrats are still preparing to bring their own proposal to the house floor. Whether or not they actually move forward will depend on the outcomes of the discussions happening now between mnuchin and Pelosi Mnuchin is preparing a counter proposal based on the roughly 1. 5 trillion framework put out a week ago by the bipartisan problemsolvers caucus after the meeting with nancy pelosi, hell meet with Mitch Mcconnell, and later today, mnuchin said by tomorrow it will be clear whether we have a deal or we dont. Well, i say were going to give it one more serious try to get this done. I think were hopeful we can get something done the i think theres a reasonable compromise here reporter the democrats do acknowledge theres big roadblocks, the level of jobless benefits and liability protections, but they also say this is the closest the two sides have come to a deal. Back over to you. Ylan, correct me if im wrong, but we had, i guess i could call it a debate last night. Im not sure thats the proper term for it. Either way, lets not forget we have a fight over the Supreme Court. How might that, in addition to whatever it was that happened last night could impact these negotiations reporter the political rancor between the two sides is abundantly clear i think the more sort of Immediate Impact is on the legislative calendar this means the house needs to act this week or potentially early next week in order to give the senate enough time to take this up before theyll well into the Supreme Court nomination battle i think youre seeing a very compressed time frame here thats why it will be up to the next few hours which way this is going to go. All right ylan, thank you very much. See you soon. For more on whats moving the markets higher on this final day of the month and quarter, well go to bob pisani hi, bob. A lot of market moving data points, and we have a lot of uncertainly around the election outcome. Stimulus uncertainty, as we just ahead, and good news balanced against a lot of layoffs, i think well hear more of this, and then hopes for a vaccine right now hopes for a vaccine stimulus is sort of winning out. You see health care up on vaccine and treatment hopes. Banks are up because we had a nice move up in Interest Rates material stocks have been outperformers all throughout the month. Tech started strong, fell apart in the middle of the month, and is ending quite strong, still down about 5 on the month if you look at megacaps today, main reason why the mart is moving, you have them moving all at once, theyre up about 2 or 3 on the week in addition to what happened. Travel and leisure stocks, theres the proxy for the reopening story. Thats a sign the market is more hopeful about reopening. Theyre all up 1 to 2 , as you can see. I also wanted to note, were talking about palantir, it was 10. That 7. 25 was a reference point, but almost 200 million shares in less than an hour. Almost 200 million shares have changed hands. Finally closing out a very, very rough september. I think october will be difficult as well. Materials and industrials up fractionally technology down 5 thats closing very strong at the end of the month banks and energy have just been underperformers consistently month, quarter and for the year. Guys, back to you. Well, luckily, bob, the 72 days i have september are mercyfully coming to an end. Tomorrow is october. It does seem endless. Counting crows have to change their song a long september. As bob noted, its been a tough month for tech in particular what should you be doing, looking, aheading into the Fourth Quarter all right. We are not, i promise, guys, going to bring politics into this howev however, rachel, does last night impact at all hose you frame your portfolios and investing thesis in the near immediate term brian, thanks for having me i think its nearly impossible not to incorporate into the wall of worry the election uncertainty and the possibilities that stem from that, least of which would be a contested or a longer than normal period until we find out who the winner of the president ial election is with that backdrop, we again have to be more grounded in the fundamentals that we can examine and look at, as opposed to the policies that may or matt notice about the implemented so well fall become and continue to look at regardless of what we see in this short term political uncertainty. Yeah, you know, i guess the one thing, mark we can take a hope out of is were not seeing this huge flight to safety were not seeing gold spike today, the investment. X is not soaring in other words, the markets are acting fairly rationally whats your take on the current environment as it affects money, markets and investing . Well, brian, i think as the other guest mentioned, i think probably warranted a somewhat cautious approach, if only because of the things standing in the way of the market remain in place that, of course, is an upcoming election, the uncertainly path around the coronavirus, and of course china continues to loom out there with unresolved issues having said that, with he remain quite bullish on the projects for the reasons of the rebound in Economic Growth and as well another stimulus package, and the fact thats going on in concert with a global impetus behind the scenes around the world. So think thats a setting thats favorable, not only for the economic fundamentals, but the prospects for profit growth, and as a result were leaning into a prorecovery stance with regard to our cyclical and overall asset allocation. I think one from those that stand to benefit from what is already maturing at this junction tur basic terms and industrials. The valuations have been long compelling, however, what they were lacked is a yield curve might actually work, and given that, as well as monies overseas, particularly in the investor equities that would benefit from the increase in consumption around resourcerelated activity also should help with the tailwinds. I notice we talk about it all the time its goods to give you a dime, thats it. The if you were to return to your clients just a one return. Why own anything other than equities unless youre literally terrified of asteroids, locust, whatever else might be coming. When you look strictly at the income, to allocate towards that, but i think bonds at any rate, as any level of income provide balance in a portfolio that said, also you would want to take some of that and look at some other Asset Classes that could provide ballast, including Precious Metals as one of them i think along those lines, is enforcing income allocators to look at the equity market and look for rate companies, strong Growth Prospects that pay a healthy dividend great conversation there, the power i would say of large numbers, guys, best to you both. Thank you for joining us here on power lunch. Brian, thank you very much lets turn to palantir that just made its debut a few moments ago. It was adirect listing, a bit of a different animal. Andrew ross sorkin joins us with the companys ceo alex karp. Thank you for that. We do have alex karp here on a very big day cofounder of the company 17 years ago, alex. Its nice to see you today weve had lots of conversations over the years this has been probably one of the most highly anticipated offeringings in a long time. Almost are year we would talk, i would invariably ask you are you going to go public are you going to list . Invariably you wouldnt. So lets start with why now . Well, first of all, thank you for having me. I would like to thank all those who stuck with us and built this company and our investors. Over the years weve been skeptical about listing, and for lots of reasons, we really needed to build or products can enough protection so we would be ready to launch them into the public space we build out pg, which is our government product, our foundry product, built a way to maintain them so we wouldnt have to scale the number of people we have reached a base where our company is significant we believe being in the public space will help with us our clients, help us grow. Quite frankly i believe the people at palantir who build this company deserved access to liquidity. So we decided this would be a great time for us. So far its an interests prospects and our clients are embracing it im very, very grateful. Ally elects, the single biggest question that epps investors ask is, 17 years in, while you may now have an operating profit, the Company Still is not profitable. Walk us through what the path to profitable looks like . We build these products well before people build them, and that takes money we had built this way of going to market, with foundry, which would allow us to literally supply an enterprise with a completely n ll lly new stack os and maintain them. We grew the company 49 off a 7. 43 base, and the divergence in expenses and growth is dramatic were going to be focused on invigorating or software operating. When youre growing 49 off a 7. 40 base, i think thats a strong indication of what the future could hold. Were superproud of that. I think youre seeing people are looking at the financials. Our company has often been viewed as complex, and needing explanation both moral and financial, but it turns out our financials are quite simple, and you look at the growth, and i think that gives investors comfort. It certainly makes me feel that we made the right decision to invest heavily well over a decade in Building Software the, and youre seeing the results. Do you think, though, profitability is at 2022 proposition . A 2023 proposition can i push you on that well, you can push me, but of course my lawyers will shoot me. I can tell you what i can tell you is we are very, very focused on Building Software a long time before other people building it, supplying it. I think that our year first half will be reflective of the future if im right, that will answer all of your interesting questions. Youll be interviewing me again, maybe not at davos, but virtually, and well see how well do im quite confident well do well. One of the order questions people ask is too how to comp your company is it a s. A. S. Company or a much more traditional Consulting Company . Can you speak to that . I think what investors are seeing, theyre asking the question at this point they used to ask, does it Company Build software for the government then we saw our margins around 80 . I think the real debate has moved significantly away from is this software or services . Another people think were smart, were not smart enough to get 80 margins off a services company. The question is how do you comp it i think investors will have to figure that out. Were not focused on that. Were focused on being the most Important Software company in the world, and people will figure out that value, and were comfortable with investors toying around with it. We are going to deliver the worlds best software with the most efficient way of delivering it investors will decide what that is worth to them, and i think youll find in a number of years there would be a consensus that palantir is a truly special software company, arguably the best in the world. As Everybody Knows you have contracts with various government agencies, obviously, and some of the bluest of the Bluechip Companies in america today, but its a concentrated list of about 125 companies, about 28 comes from the top three. How much of a risk does that pose on one side, but also the opportunity on the other, if were having a conversation like this in 12 or 24 months . How much do you want that list to increase in side . Or do you just want to keep that group effectively, and effectively raise the margin or cost for those clients whats interesting about our client list, people ask to which i respond, these arent just any institutions, and then roughly figure out if theyre using palantir i would say the list of our clirchts is the singlemost impressive list that i have ever seen well over 90 , what does that mean our existing clients, the most important clients in the world are really happy thats what it means so, of course, were going to expand those really happy clients. And then we have apollo allows us to with essential not growing our palantir force at all. Now that we have apollo, and we can do it without, were going to see, with the most interesting clients in the world and they clearly like us, some love us, we are going to expand or client base why . With apollo we can deliver the whole tack in six hours. I dont think any other company ive seen in the world can do that we can deal with efficiency i dont know that any other company will do. We can do this with a small number of people sitting in one office we have, maintaining, updating, providing them with new products they build. They dont have the frankenstein monster that takes two years to build and has to be maintained with human hours or by purchasing new product or compensating salespeople or hiring new i. T. People you dont even like talking to you can actually bike one stack. We are going to increase or revenue with current customers, get new customers, and continue or march. How easy or hard is it as i mentioned, comes from existing customers customers, obviously if a customer wants to leave, they can they look at there product we supply, they compare it to buying 20 products, paying ongun licensing fees that and is the last thing theyre not delivering a road map. Customers can leave you but they by in large dont and its not because of my charming personality. Awlex. How much of that does pose a risk to a time we have this is superimportant, einternally to our government clients. If youre supplying the special forces, those clients have to know they will not be left on the battlefield because Silicon Valley has decided they dont like the war fighter so, of course, that cost us revenue. We only work in certain countries. We have walked away from work because of human rights issues we disagree with very prominent organizations and we engage in dialogue, but its the reason why people may consider investing or not were not going to stand up here and say were here for everybody, and were not going to pretend were going to try to avoid jargon. We will actually tell you what we think, not curated by 50 media people it may have to be curated about i a couple lawyers, but one of the unique thing about palantir, we say things and we actually stick to them. Thats not something that everyone likes, but many of our customers do, and by the way, i think thats a reason why 95 of our revenue comes from current customers. When we tell them we are going to deliver, we are going to deliver. Alex, one of the other questions is, now that you are a public company, as you know, you have three tiers of stock, classes of shares, that is, and to some degree critics have said this is effectively a private company masquerading as a public company. Can you speak to the way the shares are structured and how governments and experts should think of that . Palantir has been in Silicon Valley, up until recently for 17 years. In Silicon Valley, defending the war fighter, providing troops with technology to allow them to come home is very controversial. I do not believe a company like ours that takes consequence quenchally decisions for government clients and nongovernment clients could not be run without a tier structure. I understand why should they have a structure like that, what can i do if i dont agree . The primary reason we fought for the f structure, we need to be able to go to our intel and defense clients and say we will not just blow with the wind. Those shares, for a company like ours, give us a unique ability to have longterm commit miles an hour to the most important clients in the world, both commercial and government. Thats why i believe theyre super important. I also again would encourage people, if thats not something youre comfortable with, there are many shares to buy you should buy palantir shares knowing the shares reflect our views. Alex, weve often have the conversations in davos where globalization has ruled the roost, but the world seems to be shifting how do you think long term that will affect the business of palantir . It will allow a superset who work with subsets. If the world splinters and every country has its own jurisdictions, it would be hard for norm at software companies, because theyre not built to do that it will be good for talon tirr palantir. Finally, if we have this conversation five years from today, what would be the metrics of success for palantir . There was obviously financial metrics, but palantir has recruited and maintained, i believe, the most interesting, most talented, most ethical people i have ever met in five years when we immediate, i think it would be that wasnt you just saying that, its actually true. The products well build will be unique, and they will tilt the course of history in the favor of things that are good and noble, and will not avoid the complexity thats necessary to do that. Alex karp, we appreciate you joining us on this milestone day for your company, and wish you lots of luck we do look forward to that conversation hopefully sooner than five years. Thank you, alex. Kelly, back to you. Thank you it meant a lot to me, bye. Andrew, i did the math at like 11 a share he owns like 33 million shares. Hes printing up maybe not 400 million, but maybe 390 million. Not bad i dont think hell be a seller, if you listen to his words well see. Its a fascinating company as you know, theres been a veil of secrecy around it for so long now its a public compan