- Palantir Technologies Inc. investors endured a 40% crash recently, but the stock is still up more than 200% over the past year.
- Palantir is becoming an increasingly prominent prime defense contractor with ambitions of leading the DoD’s AI transformation.
- Given the massive scale of the defense budget, Palantir’s opportunities may not have been fully contemplated, justifying the bullish optimism.
- I explain why a plausibly new and potentially more dangerous global geopolitical order could set the stage for PLTR’s dominance for some time.
- With PLTR’s downside observed to be supported as buyers rushed in recently to stem the bloodshed, I argue why it’s time to finally load up.
- I am JR research, an opportunistic investor who identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. I run the investing group Ultimate Growth Investing.
The market reckoning has finally caught up with investors of Palantir Technologies Inc. (NASDAQ:PLTR). What do you expect, right, by chasing momentum on a high multiple stock? Sure, PLTR has undoubtedly beaten the market and also its software peers over the past one year, by a wide distance. Therefore, when profit taking sets in, understandably, investors who bought in the FOMO rush found themselves with nowhere to hide other than taking the elevator down quickly.
I think it’s fair to say that these investors were caught up in a blurred vortex of volatility that clearly engulfed technology and growth stocks, including Palantir investors, as the stock experienced a 40% collapse over the last one month. Still, if you bought the stock in early 2024, you’re still up more than 200%, and some of you could even have used the most recent pullback to buy even more shares.
I made a point about its 200x forward P/E as arguably untenable in my previous PLTR article, so I’m not surprised by the violent shakeout that Palantir bulls have been exposed to recently. And the most pertinent question likely facing these investors now is whether the pain train is over, or if there could be more agony overlooking the horizon for investors hanging in the balance of the bear market.
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