Palantir Technologies (PLTR-N)

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.

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.