Palantir Stock Analysis: Trading After Earnings Plunge

Palantir's Earnings and Stock Performance

• 📉 Palantir's stock plunged following its earnings report, despite a raised full-year sales and free cash flow guide.
• 💡 The stock had experienced a monster move, trading at $25 this time last year and reaching $120 in February.
• ⚠️ A classic double top formation is noted, suggesting potential for further downside.

Valuation and SAS Metrics

• 📊 Palantir is trading at 64 times sales, considered nosebleed territory even for the SAS business.
• 📈 The Rule of 40 (year-over-year revenue growth + operating margins) was 83%, indicating a strong company on paper.
• 🚀 Investors are expected to continue playing Palantir as an AI name.

Trading vs. Investing in Palantir

• 🎯 For new investors, the technicals are crucial due to the high valuation.
• ⚠️ It's suggested that this is not the territory to buy for new investment, but rather a trade.
• 💬 Palantir remains one of the most beloved stocks by retail investors, potentially driving further momentum.
• ❓ The stock's recent movement has defied conventional technical analysis, making it a speculative trade.