Stocks: Why I Like Palantir (PLTR) Stock Right Now

[Recyclersteve]

Here is a stock for potential investors to consider- it is Palantir (PLTR). Reasons I like this stock:

1) Co-founder Peter Thiel is a successful billionaire- he co-founded PayPal and was the very first outside investor in Facebook (now Meta). Thiel paid $500k (NOT $500m) in 2004 for Facebook and sold a majority of his stake for over $1 BILLION in 2012. He made OVER 2,000 TIMES HIS MONEY in just 8 years. Super impressive IMHO!

2) PLTR is involved in Artificial Intelligence (AI), which has gotten a lot of hype this year.

3) Palantir has been GAAP (generally accepted accounting principles) profitable in the past 3 consecutive quarters. One more profitable quarter and they will likely qualify for inclusion in the S&P500. This would require MANY mutual funds to buy the stock at the prevailing market price. Funds don't have the choice of placing a good-til-canceled limit order to buy something for 10-20% less than the current market price like you and I do.

4) Earnings are scheduled for 11/2/23- if the stock gets hit after announcing, I will likely buy more at a lower price.

5) A potential biggie that I've heard nobody talk about- yet. Their software is used for anti-terrorism. They could be a BIG beneficiary from the battle in Israel. And the stock has done very little since the war broke out. That alone tells me that VERY FEW PEOPLE know/understand what I just said.

6) Oh yeah- one more biggie. Gary Kaltbaum, host of Investor's Edge (at garyk.com) is a guy I think highly of, even though he is opinionated and political at times. Last week (I think on Friday) he said he gets more requests for info on PLTR than ANY OTHER STOCK and that includes Nvidia- his words not mine! And Gary didn't even sound like he knew PLTR was an anti-terrorism play.

7) I like that the stock price closed at $16.20 today. It isn't like Nvidia ($400+/share) or Costco ($500+/share) or some which are well above $1,000/share.

If that isn't enough reasons for a potential stock investor to be curious enough to at least do some research, I honestly don't know what it takes!

Good luck to all. I've traded this stock profitably before and bought more shares in the pre-market session today after learning some of what I just told you above.

[natsb88]

The Morningstar analysis is an interesting read. They put a fair value of $11 on PLTR, up from $9 in August. Generally positive outlook for long term growth, but GAAP has varied widely over the last few years and they are not confident in the exec team. "Very high" uncertainty rating. Last major analysis updates were in February though. Adding to my watch list.

[stas3000]

Thanks for the post. PLTR and BKSY are very interesting companies. Both involved in intelligence/surveillance. PLTR made an investment in BKSY at some point. Don't think they've sold out of it although I haven't followed the two companies very closely for a while. PLTR was on the radar of many investors interested in hyper growth companies as its revenue CAGR was quite incredible for a while. That was probably in 2020. I believe its growth moderated since but is still quite high. Nice to see they started breaking even and even posting a little bit of profit. Oh and it is also interesting that there is more talk about it now that the price is up big from the under $10 lows which was not that long ago.

[Recyclersteve]

BKSY (BlackSky) is a company I’d consider to be highly speculative as it closed Tuesday at $1.36 and loses quite a bit of money. So I’d only play this with true gambling money.

Keep in mind that many mutual funds cannot buy stock under $10 a share, and you want to have them on your side. Also, just a small group (2 or 3) of hedge funds could band together to short the stock and hope to get it removed from trading on the NYSE. Watch the movie Dumb Money for some info on how these funds work together to attack companies.

Insiders own a pretty small amount of stock, also a bad sign. If they truly believed in their company, they’d almost certainly own much more.

Caveat emptor- buyer beware!

[stas3000]

BKSY (BlackSky) is a company I’d consider to be highly speculative as it closed Tuesday at $1.36 and loses quite a bit of money. So I’d only play this with true gambling money.

Keep in mind that many mutual funds cannot buy stock under $10 a share, and you want to have them on your side. Also, just a small group (2 or 3) of hedge funds could band together to short the stock and hope to get it removed from trading on the NYSE. Watch the movie Dumb Money for some info on how these funds work together to attack companies.

Insiders own a pretty small amount of stock, also a bad sign. If they truly believed in their company, they’d almost certainly own much more.

Caveat emptor- buyer beware!

Both PLTR and BKSY are highly speculative although BKSY when looked at on its own is next level speculative! The more interesting aspect is the synergy between the two companies. I believe BKSY uses some of PLTR's tools. And for those that own PLTR shares... you kind of get a piece of BKSY anyway if they still have the equity stake in place.

[Recyclersteve]

This was up just over 20% on almost triple normal volume after earnings were announced on Wednesday. I was looking for two big things and got them both:

1) GAAP profitability. This was the 4th consecutive GAAP profitable quarter and gives them an excellent chance of being added to the S&P500. Once that announcement is made (I’d guess in a few days to a few weeks), the stock could run further as large mutual funds are forced to buy the stock.

2) Anti-terrorist software sales. There were several comments made by CEO Alex Karp. This is available for free on SeekingAlpha. If you want Hamas to get their butts kicked, this should make you feel pretty good. Keep in mind that the war in Israel didn’t break out til AFTER the 9/30 quarter ended.

I’m frankly pretty excited about what this stock can do in the upcoming days and months.

[Recyclersteve]

Just this morning Danny Vena of Motley Fool came out with an article about PLTR. He said to buy it hand over fist and hold it forever. If that’s not a strong recommendation, I don’t know what is!

I’m more of a trader. So if this stock ran quickly to $25-30ish (especially if the potential S&P addition was formalized), I’d consider selling as the stock would need a breather.

I’d then look to buy back the stock on, say, a 10-15% pullback.

[Recyclersteve]

PLTR just announced earnings and they are up sharply in after hours. My biggest concern was that they could post even a tiny loss and be forced to re-qualify for S&P 500 inclusion. The short sellers would have likely gotten very aggressive if that happened because re-qualifying would take a minimum of 15 months. Ouch!

Never fear! CEO Peter Karp said on the company website that they posted a GAAP (generally accepted accounting principles) profit and continue to be eligible for inclusion in the S&P 500.

I also like the fact that they didn’t announce on a day like last Thursday when Meta, Amazon and Apple stole the headlines.

I’m quite pleased with the way this is working right now…

[Lemon Thrower]

With a $36B market cap and the 100th stock on the Nasdaq 100 having a cap of $18B, I think they'll get in those indices eventually but I'd be careful about betting that they will get in the first time they are eligible.

SP500 rebalances quarterly but Nasdaq 100 adds companies once a year and they just missed it.

As an aside, I think they are more of a software/defense industry play and true AI. Not generative AI anyway.

https://www.cnbc.com/2023/12/14/fridays ... -risk.html

[Recyclersteve]

PLTR finished Monday’s after hours at $19.61, up $2.89 (17.2%) on a whopping 51 million shares traded. Normally it trades 53 million shares in a full day.

For just the after hours session, that is incredible volume. Anyone who was betting on this one going down has likely soiled their pants by now…

[Recyclersteve]

With a $36B market cap and the 100th stock on the Nasdaq 100 having a cap of $18B, I think they'll get in those indices eventually but I'd be careful about betting that they will get in the first time they are eligible.

SP500 rebalances quarterly but Nasdaq 100 adds companies once a year and they just missed it.

As an aside, I think they are more of a software/defense industry play and true AI. Not generative AI anyway.

https://www.cnbc.com/2023/12/14/fridays ... -risk.html

PLTR was actually eligible for S&P inclusion three months ago. I was definitely disappointed they didn’t make it then. Also, the S&P makes changes AT LEAST once a quarter. Last year, they had seven separate announcements in the first roughly
9-1/2 months of the year.

The next announcement will likely be on Friday, March 1st after the close. That is also an options expiration day. Looking forward to it. That could be a fun one to play.