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