Surf Air Mobility (NYSE:SRFM) stock is surging higher after Palantir (NYSE:PLTR) revealed a stake in the company. SAM operates as an air mobility provider focused on electric aircraft technology and regional flights. The company became publicly traded last July through an initial public offering (IPO). It also acquired Southern Airways before its IPO, bringing its combined reach to 450,000 passengers across 48 cities.
In a 13G filing submitted yesterday, Palantir revealed a passive 7.1% stake in SRFM stock, equivalent to 5.20 million shares. This filing must be submitted when a shareholder’s stake in a company exceeds 5%. The trigger for the filing was a batch of shares that Palantir received from Surf Air as payment:
“The Reporting Person held 5,205,492 shares of Common stock as of February 15, 2024, including 1,851,852 shares of Common stock received on February 15, 2024 as payment for certain outstanding receivables.”
Without those shares, Palantir’s stake in the company was 4.55%. It’s unclear when Palantir acquired its SRFM shares not received as payment.
PLTR Stock: Palantir Reveals 7.1% Stake in SRFM
The filing and payment also revealed that SAM is a customer of Palantir. So, what does Palantir see in the company?
Earlier this month, SAM announced that it had received early delivery positions for 90 Electra hybrid-electric short takeoff and landing (eSTOL) aircrafts. The aircrafts have a place on SAM’s air mobility and Aircraft-as-a-Service (ACaaS) platform.
“As the country’s largest commuter airline, Surf Air is at the forefront of addressing the growing demand for cleaner, more affordable and convenient travel options,” said Electra founder and CEO John S. Langford. “Electra is pleased to partner with Surf Air in spearheading the decarbonization of regional business aviation through the integration of our eSTOL aircraft into their fleet.”
SAM has yet to file its fourth-quarter earnings or provide a date. During Q3, pro forma revenue tallied in at $28.9 million, up by 6% year-over-year (YOY). SAM presents pro forma numbers to account for the acquisition of Southern Airways during the middle of the year. Meanwhile, net loss increased dramatically to $74.6 million from $21.1 million due to a rise in general and administrative expenses.
For the entire year of 2023, SAM has guided for pro-forma revenue between $107.5 million and $112.5 million, implying growth between 6.9% and 11.8%.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
