I feel like it’s a great pick for short term swings with all the earnings hype and could hit 35+ again but I don’t really know about the long term (12-24 months)
Tell me if I’m missing anything.
The BULL case
- Institutional ownership is at an all-time high, and continues to trend up.
- The debt ceiling discussion has been recently settled. This will be reflected in the share price soon.
- PLTR may have bottomed. Many institutions have been picking up shares in the 23-24 range.
- Historically, PLTR has been able to go up 5-10% on relatively low volume (compared to its massive float)
- Palantir has surprisingly little debt. It has little risk of bankruptcy.
- PLTR is likely sandbagging guidance in Q2 and is on track to meet consensus estimates for Q3.
- Historically PLTR has always been dumped 5-6 weeks before earnings, and begins to trend up soon after. (This doesn’t mean much though)
The BEAR case
- Market liquidity may start shifting from tech into other sectors.
- There have been lots of insider selling, dilutions, and there is over 1B float
- VIX has been on a downward trend. Institutional investors may be more hesitant to allocate more of their portfolio in growth stocks
- The market is probably going to see a correction soon
- PLTR’s growth in commercial contracts is much smaller than its growth in government contracts.
- PLTR is a glorified consulting company rather than a cutting edge tech company (debatable)
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence or consult your financial professional before making any investment decision.