- Palantir’s stock has surged to all-time highs, prompting me to sell half my stake due to valuation risks while holding the rest for long-term potential.
- I recommend new investors wait for a pullback before buying, as current prices are too risky given the company’s valuation.
- Palantir remains a strong company with growth opportunities, but I’ll reconsider a BUY rating if shares drop closer to $30 per share.
Palantir Technologies Inc.’s (NYSE:PLTR) stock had impressive momentum in recent months and currently trades at its all-time high levels. I’ve used the latest stock rally as an opportunity to sell half of my stake in the company as valuation risks have become too big to ignore. At the same time, I’m still holding the other half of my stake at a decent average purchasing price as Palantir’s long-term potential still looks promising.
However, I believe that buying new shares for new investors at the current price is too risky, and it’s much better to wait for the potential pullback to get a greater margin of safety before adding the position to the portfolio. That’s why I’m changing my rating for Palantir from BUY to HOLD for now.
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