Odd Man Out

Going into yesterday’s earnings report, Palantir Technologies stood out – as one of the market’s most overpriced stocks:

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Palantir trades at over 80 times sales, an absurd valuation. (Source: ZeroHedge)

While earnings and revenues were solid, it wasn’t enough at today’s valuations. Neither was the company’s increased full-year guidance – usually a catalyst for the stock price to soar.

Not today. The stock was up 5% over the past 5 days. Futures suggest today the stock price will drop as much and maybe more.

No worries. If you were following colleague Ian King’s recommendation, you’re up tenfold in just under two years.

Palantir isn’t just expensive – it’s the most expensive name in the market today.

Investors who own the stock should pay attention. Famed Big Short investor Michael Burry’s Q3 disclosure shows he owns put options on Palantir, which means he’s betting he’ll make a lot of money when PLTR corrects.

~ Addison

P.S.: As you know, since the release of Anatomy of a Stock Market Bubble, we’ve been highlighting signs of a bubble when we see them. The bubble today is largely in AI stocks.

This week on Grey Swan Live! we’ll be joined by bestselling author Harry Dent on the cross-section between AI, shifting generational demographics and a shocking market forecast.

You’ll note, too, Harry is releasing his own “AI Crash” forecast with Grey Swan collaborator Adam O’Dell on Wednesday. To get on the list to receive Harry and Adam’s research findings, click here.

Feel free to send your Grey Swan Live! questions for Harry to feedback@greyswanfraternity.com.

Going into yesterday’s earnings report, Palantir Technologies stood out – as one of the market’s most overpriced stocks:

Turn Your Images On

Palantir trades at over 80 times sales, an absurd valuation. (Source: ZeroHedge)

While earnings and revenues were solid, it wasn’t enough at today’s valuations. Neither was the company’s increased full-year guidance – usually a catalyst for the stock price to soar.

Not today. The stock was up 5% over the past 5 days. Futures suggest today the stock price will drop as much and maybe more.

No worries. If you were following colleague Ian King’s recommendation, you’re up tenfold in just under two years.

Palantir isn’t just expensive – it’s the most expensive name in the market today.

~ Addison

P.S.: As you know, since the release of Anatomy of a Stock Market Bubble, we’ve been highlighting signs of a bubble when we see them. The bubble today is largely in AI stocks.

This week on Grey Swan Live! we’ll be joined by bestselling author Harry Dent on the cross-section between AI, shifting generational demographics and a shocking market forecast.

Feel free to send your Grey Swan Live! questions for Harry to feedback@greyswanfraternity.com.

The stock market “rebalancing” is a polite way to put it. Energy and health care are getting a healthy boost. But tech hardware and software makers are still getting dressed down and have been asked to report to the principal’s office.

The great rotation underway has triggered a series of “Hindenburg Omens.” Five have occurred in recent weeks.

The S&P 500 has traded in a 3.7% range over the past two months — less than half the 20-year median of 8.6%. One of the tightest ranges in modern history.

In trader parlance, the indexes are “flat,” a setup that often materializes before a sell-off at the top after a multi-year bull market.

Goldman Sachs told its own traders to be aware that institutional trading activity resembles a VIX reading near 35. Rather than a reading of 20, where the VIX has been trading over that same 2-month period.

The U.S. software ETF, IGV, tested its April 2025 lows last week and trades roughly 35% below its peak. The “SaaS-pocalypse” in software companies reflects the fear of Citrini’s 2028 scenario happening in real time. That divergence now exceeds the spread seen at the peak of the Great Financial Crisis.

Under the surface, the “great rotation” we wrote about last week is threatening to widen.

Despite its overly-educated 40-million-plus population, on a GDP per capita basis Canada is null. Collectively, the Great White North would rank as America’s second-lowest state, coming in above Mississippi, but below Alabama.

SpaceX is the most valuable private startup in history — and if its success continues, it might become the most valuable public company in history.

After all, as Musk famously said in 2023, “I have never lost money for those who invest in me and I am not starting now.”

For investors, SpaceX has been a wild, joyful ride — and now the journey continues!