Palantir Technologies (PLTR)

PLTR's numbers were solid: 63% revenue growth, high margins, strong balance sheet, and guidance was raised. Business is good. But the stock dropped, on usual valuation concerns. Also, Michael Burry (famous from 'The Big Short') has bet against the company, and this has worried some investors. EPS of 21c beat estimates of 17c; revenue of $1.18B beat estimates of $1.09B. EBITDA of $606B beat estimates by 21%. Palantir's accelerated sales cycle continues to be fueled by expanding use of its Ontology product with large language models for mission-critical applications. US Commercial customer growth eased slightly to 9% sequentially vs. 12% in the prior two quarters, while remaining deal value growth improved to 30% in 3Q from 20% in 2Q, indicating larger up-front orders. The net retention rate climbed to 134%, with strong results in the Government segment serving as a key driver. Though Palantir's Commercial segment gains outside the US remain tepid, the company likely lifted its US win rates against traditional data-warehousing vendors by using its Ontology offering to differentiate integrations with frontier LLM providers.
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Bury is a great investor. Palantir is a more speculative business model with a strong retail investor following.

Now becoming a core player in AI decision-making. New AI platform driving over 40% revenue growth YOY. US government continues to rely heavily on it for defense and intelligence software. Government sales up more than 50%, and commercial adoption accelerating. PE ratio more than 600x. Value: 2/10.

Hold, or take some profits off the table. On a healthy pullback, she'd take a look at it.

Let it run if you hold, unless the fundamentals change, and the fundamentals are strong.

Added again yesterday. 12-month price target of $180.50. The place to work on AI in Silicon Valley. $363B market cap. So popular because total addressable market is massive. CEO is one of the smartest guys in the Valley. No dividend.

Is up 407% the past year, one of the best stocks on the S&P. Is heavily bought on dips. Their numbers are stunning, but the PE is at nosebleed levels. Is an attractive high-risk stock.

No contest. NVDA is the one to own.

NVDA has run up, but fundamentals are outstanding. Clear technical superiority in AI chips. AI infrastructure buildout will keep order books full for a long time. Major beneficiary of AI capex.

Trading at over 70x EV to revenue. Though it does have a premium in terms of growth rate and profitability, you have to pause and say that some of these valuations have to come back down to earth. Down 20% in the last week. 

Has strong margins and cash flow. Their organic revenue growth is 35% for 2025; hard to find another software company like this. Yes, the PE is rich at 229x and he gets why so many are skeptical. Yes, a pullback is possible.

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.

It reports Monday. He expects a blow-out, because they're getting tons of repeat business from consumer packaged goods to the Federal government.

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.

Q1 earnings were 39% YOY, so they have a big bar to leap over in Q2. Some aren't sure they will. You can take profits now, nothing wrong with that, but he's not ready to.