Opinions
Kevin Simpson
Palantir Technologies
PLTR-Q
BUY
May 09, 2025
Stock price when the opinion was issued
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King of the hill in data analytics solutions, especially in AI agents. Likes it for trading options around. On Monday and Tuesday, he sold some puts tiered just under the strike price. He's looking to pick it up at a good price. If it does go lower, you can sell some calls on top of it.
Has enough volatility that you can trade it. It is investable, too, but in the Trump era you need a stronger stomach.
Quite the high flyer. Valuation of 177x forward PE keeps him at bay. EPS forecast growth rate ~31%. Priced for perfection. Decent numbers at last report, guided higher, yet shares fell -- sign that investors are looking for results beyond perfection. Near all-time highs. Heavy reliance on large government contracts.
Well-run, and produces superior technology that pays for itself almost immediately. They have a strong defence business. Growth and margins are expanding. But shares trade at 220x earnings--ridiculously expensive. But traders don't care. PLTR is the most successful speculative stock. He targets $200, seriously. Take profits before you get hurt, because someone always does in a spec stock.
Well-run, and produces superior technology that pays for itself almost immediately. They have a strong defence business. Growth and margins are expanding. But shares trade at 220x earnings--ridiculously expensive. But traders don't care. PLTR is the most successful speculative stock. He targets $200, seriously. Take profits before you get hurt, because someone always does in a spec stock.
One of his most tech-savvy friends described PLTR to him: consulting with AI. Often takes data from multiple, disparate sources, pulls it together, and lets the analytics take over. Very cool YouTube videos :)
There is no fundamental grounding for this stock whatsoever. It's a story stock, a cult stock. There are no valuation parameters to make sense of what you're paying for it. Astronomically expensive.
He just bought it, even though its valuation is very high (192x forward PE). Earnings were fantastic. He likes what they're doing in the commercial side, up 70% YOY, and not just relying on government contracts. They have to grow into their high multiple and it is volatile.