Palantir Technologies (PLTR)

It hit a new high today, so don't reach for it here, if you don't yet own it. There will be chances to buy it lower later. If you hold it and are long, have a stop in place. $66 is a critical price point, being previous resistance. The volatility won't go away on this stock.

It doesn't fit his company and clients. PLTR is too risky. He couldn't sleep at night owning this. The trailing 195x valuation is excessive. True, this stock can continue to rise, but it wouldn't change his mind. 

Forget judging this on PE, but rather use the Rule of 40: the revenue growth rate + EBITDA margin = 40 or more, it's a winner like PLTR. It's one of the fastest growers in cybersecurity. Up 340% this year after a major breakout.

Melted up, forcing a lot of analysts to raise price targets. He's taken 2/3 of his profit; maintaining the final 1/3, and just moving the stops up underneath it. At last quarterly earnings, everything seemed to be firing on all cylinders. Doesn't look to be turning over; seems independent of hardware/software side. Really focused on data analytics.

Not totally clear what it does; some sort of AI and global surveillance. Look at stock options being granted to see how often shares are diluted. Plus, look at earnings today and future projections; any wobble could cause the stock to fall.

Is up 253% this year, better than Nvidia, and the delivered a great quarter. Gains have come from US defence contracts.

A Trump presidency will invite more computer hacks. This is the one in cybersecurity. He doesn't care about its high PE. This can go higher.

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.

Investors are viewing PLTR as one of the leaders in AI. Essentialy, the company helps other companies utilize AI in their businesses. investors theorize that, since EVERY company will likely need to use AI to stay competitive, PLTR has a multi-decade opportunity and a nice lead already.  It certainly is expensive. But we like the earning trend and momentum and the sector. We would not consider it a sell but it is going to remain volatile. 
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Easy to own tech names like this if you write covered calls, because of the volatility.

Blown through price targets. He's taken about 2/3 of his position off, still holds about a 1.5% position. Enterprise contracts have really started to flourish. His researcher in Silicon Valley tells him that PLTR really seems to be the place attracting the best talent on the data analytics side, thereby delivering enviable customized products.

Unless you can point to slowing growth in their commercial business, PLTR is in the momentum sweet spot. They are pivoting from government contracts to commercial as they build AI. Entering the S&P helps, sure. It's returning to their Nov. 20221 high, and he targets $50.

Wait for it to settle down a bit but he is looking for it to be a $100 billion company in the longer term. There is potential for it to get back to $35. One of his rules is that companies that have high multiples have to be making money and produce an actual product.

It is a meme stock and has momentum because retail investors keep piling into it. It's not so much a stock, but a barometer of enthusiasm of a business that may or may not be doing well.

Likes it and there's a bright future in this, driven by AI, but how much is already baked into the stock? Trades at 100x PE and 28x sales, very rich.