Palantir Technologies (PLTR)

He bought more. Loves the CEO. PLTR is a pure play in AI.

It's amazing how they've pivoted from government clients to AI-related ones. It's underappreciated, thriving as software struggles and delivers as seen with its last earnings.

Great with AI software execution. It remains underowned. It's no longer about government contracts, but growth comes from corporations. A definite name in AI monetization.

From the chart you can see the consolidation and breakout, and then another consolidation and breakout. That's typically a bullish look. Good uptrend, though a choppy stock. Seeing higher highs and higher lows. Anytime it dips down to the trendline, you should be all over it.

He begs to differ. One of his analysts says to "follow the smart people". Way back when they came out with OpenAI in November 2022, PLTR was the place to go because of its deep pockets. Now people follow the money, and it follows the big boys out there.

He took profit as it got close to its price target. 

 They're building out their commercial  business, which is important given their big exposure to government contracts. They're benefitting from and growing in the AI business, and will continue to grow. A strong momentum name as software has seen friction. 

A name he'll probably hold forever. If you plan to hold for 5-10 years, you don't worry about price action too much, but keep adding to it. He's at maximum position size now, may need to sell bits over time to keep the position size in line. Chart action now will probably resolve higher. Expect more volatility and exceptional growth.

He can't understand what they do for the government, their main customer.

He just traded out of it, as his price target was $23.75. Has done fantastically well. Total addressable market is $119B. Keep it on your radar. Don't touch it here, but pick it up in thirds at $21, $20, and $19.

Big data. Works with US government and military. Bright future. Expectations are huge, trading at 9-10x revenue (not earnings). Which explains the selloff even though numbers "crushed it". Avoid.

They last reported a good quarter and boast a good defence business.

A mecca for AI in Silicon Valley. Really picked up on the Foundry side. As a result, pretty fully priced. 12-month price target of $24.10. Trim a bit. Pretty volatile, so can probably get it around $21.50. Certainly add if goes under $20.

It is not cheap, but it has its merits: growth, balance sheet, market leadership, large contracts, long history, growing cash flow. The main issue is stock-based compensation and a CEO many see as eccentric. But, sales will double from 2021 to 2025,  and it is now profitable. It will we think get into the S&P 500 index in the next year. Its data analytics is already established, and the customer count is growing. It is not risk-free, and many see it as having unsustainable 'cult' status with investors. But the last quarter was very good, and  guidance was strong. We are quite comfortable with it overall, but have a five year plan here at least. 
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Most of business is with government. Big data. Extreme valuations of around 9x revenue, so a lot of future optimism already built in. Doesn't fit his conservative client profile.

We quite like the company and its long term prospects. It data mining solutions used AI before it was trending. It is growing nicely, winning big contracts and is now profitable. The last quarter was very strong. We would be comfortable keeping it. 
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