$PLTR status

[Adnan5_5 (Adnan)]

Salam to all,

Why Palantir technology Inc is questionable ?
And what should they do to be a Shariah compliant?

[saad (Saad Malik)]

Salaam @Adnan5_5! See my response below to a different post regarding our take on $PLTR.

@plntr & snowflake

There’s quite a bit of sensitivity among both scholars and investors when it comes to companies that operate within defense industries. Given that Palantir earns more than half of their revenue from defense/intelligence contracts, Zoya rates it as questionable so that investors can do further research and make their own decision. [Screen Shot 2021-06-26 at 10.55.17 AM] Even outside the Muslim world, they’re regarded as a highly controversial company.

[FloMo (Jaafar)]

Salam Adnan,
Saad responded, and I would add that for companies which have a mix of commercial/civil and military businesses, most of their profits (bottom line) is made from the government/military business, even if most of their revenue (top line) is derived from commercial/civil activities. This is true for Tech companies but mainly for companies in the Aerospace & Defense sector: The government/ military business is and will remain much more lucrative than commercial/civil contracts. Stocks move on earnings or projection of earnings, not sales. I personally double check these companies and I make sure as a Muslim NOT to invest in any company involved in military activities, even if it is only a portion of their portfolio. So it is really a personal decision, beyond any Sharia compliance status or ESG score. There are plenty of halal opportunities in the stock market.
Hope this help and Allah knows best.

[Adnan5_5 (Adnan)]

@saad @FloMo
Really appreciate your valuable respond. Thanks