Palantir Technologies (PLTR)

They have a $178 -million contract with the army, so this will go higher despite hitting a 52-week high today.

After Russia invaded Ukraine, European defence stocks rallied. If you park your ESG, you will see long-term structural growth in defence stocks. PLTR is okay, but prefers defence contractors.

Was downgraded to a hold today. Shares have been parabolic so far this year, but the company has become profitable even without higher defence spending that they have depended on in past years. It's an AI story and are expanding the commercial product division which will grow profits even more.

Believes investors should sell at current price. Anything below $10 is a good price. Valuation way too high right now. Would wait for weakness in share price before buying. Recent earnings were strong, but not incredible. 

High alpha (potential to be a home run), high beta (going to swing around a lot). A lot is already built in to future success. Trades at 8-9x revenue. High degree of risk. Doesn't suit his client profile, his job is to protect their wealth and responsibly add to it.

It has 2 business lines: Gotham the service part and Foundry the mining data part, AI etc. It has a lot more to go because it has the ability to change its pricing and is now compartmentalized. It is well positioned for the long term. His favourite way to pick up stocks is when they move sideways - or on a pullback.

Has done extremely well. Its two platforms give it two horses in the race. Room for lots of players in this playground with an addressable market of $120B. Buy here, and pick up more around $17-18. Momentum of AI euphoria behind it.

Also look at AYX in his Top Picks, a cheaper competitor. PLTR has the government contracts, with longer average contract length, that AYX doesn't.

Does not own shares. Strong technology but valuation very high valuation (12x revenue). Risky investment as profits not stable. Difficult to predict outcome of business. Would not recommend investing. 

Rising profit margins and cash flow. Making a lot of noise in AI, so watch for their AI news when they report in early November. They attract the best clients in gen AI. They've had some new contracts. Two-thirds of revenue are from 20 clients, and 27% from the top 3, so they need to broaden. Watching, but will buy on dips. Expects a lot of volatility. Is now overvalued. Class-action lawsuits are a concern.

The chart shows a base in a cup formation and is now showing a handle, which is good because it could lead to upside. Likely to break out to resistance of $27, which it will likely struggle a bit. Can buy now and sell at $27.

The contract is a validating sign for the company, but in terms of revenue it represents a small contribution to its top line. Analysts expect strong sales and earnings growth rates in the coming years, and the company has improved its profitability levels. In terms of valuation, it trades at a premium valuation (13.3X forward sales and 57.6X forward earnings) due to its high growth rates and operations in an expanding industry. Overall, it has solid market share and growth potential, but due to its high valuation there is room for multiple contraction. For a high-risk investor, seeking long-term growth, we would be comfortable adding here, however, we might expect some choppiness in the short to intermediate term.
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They lived up to the hype and their last quarter. Good.

Tremendous market cap, but has had some issues. Class-action lawsuits as a result of involvement in SPACs. Rising profit margins, great free cashflow. Leader in software stack. Concentrated clients, but they're sticky. Not a buy now, but try for $12-13.

He's been in and out of this name. It's taken off during this generative AI boom. PLTR is the king of AI and machine learning. Their Gotham platform serves government clients while Foundry serves business. The total market is $120 billion. Clients are sticky, averaging 3.6 years per contract. Shares are pricey now. He targets $16.25.

They delivered a terrific quarter.