Opinions
Hap (Robert) Sneddon FCSI
Palantir Technologies
PLTR-Q
PARTIAL SELL
Oct 09, 2024
Stock price when the opinion was issued
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Forget what you paid for something, as that's anchoring to the past. Loves the products, they're spookily clever. But the PE is 200x, so you have to believe that growth continues for 10-20 years without competition or economic slowdown. Be mindful of position size, given the valuation. Businesses can compress their multiples quite easily, without the news getting bad.
He'd take more than a little off the table.
Premium contentPalantir Technologies Inc. is a pioneering data analytics company that provides software solutions to a broad range of industries, including government, finance, healthcare, and manufacturing. Established in 2003, the company has grown to become a prominent player in the data analytics field, offering platform solutions that enable organizations to effectively integrate, visualize, and analyze large volumes of data. Palantir's key products include Palantir Gotham, Palantir Metropolis, and Palantir Foundry. Social media mentions are up 5.1% in the past 24h.
Valuation has expanded, business is growing. Look at selling a covered call. The thing is that all that volatility has made the options very expensive. Looking out to September, you can sell a $175 call for $8.15. That's 5% of the current share price for $15 of upside. Worst case is that somebody buys your position at a $15 increase, but you keep the $8.15 no matter what.
It reports after the closing bell. Owns a small position. A year ago, they were all-in with AI. They already had a proven track record with government. She expects 38% and 53% revenue and earnings growth this quarter. The chart looks exponential, but it will march higher tomorrow. PLTR is one of the few companies implementing AI, a rare pure-play.
He clipped some profits. As a technician, he can easily tell when a stock's overbought or oversold. But when a stock becomes too big a position in a portfolio, that's the decision, not what the market or the company is doing.
He expects his son to be holding this 20 years from now, as AI in this space is just becoming appreciated. However, there will be some profit-taking along the way.