Opinions
Chris Thom - CIM, DMS, FCSI
Palantir Technologies
PLTR-Q
DON'T BUY
Feb 11, 2025
Stock price when the opinion was issued
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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.
Premium contentPalantir Technologies Inc. is a public American software company that specializes in big data analytics. Founded in 2003, the company is headquartered in Denver, Colorado. Palantir's platforms, including Palantir Gotham and Palantir Foundry, are designed to integrate and analyze data from various sources. The company serves a broad range of customers including commercial enterprises and government agencies, primarily focusing on defense, intelligence, and law enforcement sectors. Social media mentions are up 27.5% in the past 24h.
Doesn't own high-PE tech names like this, and shares have run up so much. Maybe wait for a pull back to $90-100 to enter. In this case, he'd sell a put: sell the May $100 put for $8.85; this will generate nearly 9% over 3 months if the stock doesn't drop more than 12%. Can't recommend this. Then again, you can make money if this stock doesn't rise above current levels.