Palantir Stock.. It's GAME OVER

Summary

In this video, the host discusses Chris Patel's recent short position on Palantir, analyzing its high valuation and potential risks. They also react to Tom Lee's bullish stance on small caps and Goldman Sachs' stock performance, while weighing in on Ulta Beauty and Super Micro's market positions and valuations.

Takeaways

• 📉 Chris Patel is betting against Palantir Technologies, adding more to his short position on the stock.
• 💹 Palantir trades at high trailing 12-month PE and forward P ratios, higher than the average stock in the market.
• 🚀 Despite high valuations, Palantir's growth and business model are on an uptrend, making it a less attractive short.
• 🏆 Potential S&P 500 inclusion could be a catalyst for Palantir's stock price to rise, as funds would be forced to buy the stock.
• 💼 Palantir's business model is sticky, locking in big corporate customers for years, which is typical for SaaS companies.
• 🔍 Wall Street is actively looking for the next big AI plays, with companies like Palantir being considered as potential candidates.
• 🌐 Palantir is a direct play on the AI movement, suggesting that its fundamentals are likely to continue trending upwards.
• 💡 Tom Lee is bullish on small caps, predicting a significant rally in 2024, possibly exceeding the gains seen in the previous year.
• 💸 Small cap stocks have started to show signs of a rally, with some stocks like Sofi and Revolve seeing double-digit gains in the past five trading days.
• 💼 Goldman Sachs had a strong quarter, with significant growth in fixed income trading and asset management, suggesting potential for new highs.

Q & A

What is the main topic discussed in the video script?

The main topic discussed in the video script is the analysis of Palantir Technologies' stock and the reasons why it might not be a good short position, along with other market insights and stock discussions.

Why does the speaker believe Palantir's stock is not a good short?

The speaker believes Palantir's stock is not a good short because the company's business model is not deteriorating, it's on an uptrend, and there are potential catalysts like S&P 500 inclusion that could drive the stock price up.

What does the speaker suggest as a potentially better short opportunity compared to Palantir?

The speaker suggests Chipotle as a potentially better short opportunity due to its high valuation, consumer slowdown, and recent negative publicity affecting the brand.

What is the significance of Palantir's potential inclusion in the S&P 500?

The potential inclusion in the S&P 500 is significant for Palantir because it could lead to a massive amount of forced buying by funds, which would drive the stock price up.

How does the speaker describe the current state of the retail investor base for Palantir?

The speaker describes the retail investor base for Palantir as stubborn, with many retail investors not being swayed by minor fluctuations in growth rates and being committed to holding their positions.

What is the speaker's view on the role of interest income for Palantir in the near future?

The speaker believes that interest income will continue to be a significant contributor to Palantir's earnings for at least the next 18 to 24 months due to current treasury yields.

What is the speaker's opinion on Tom Lee's bullish stance on small cap stocks in 2024?

The speaker acknowledges that Tom Lee's prediction for a significant rally in small cap stocks might be coming to fruition, given recent market movements and the expectation of the Fed starting to cut rates.

What factors does the speaker believe could affect the performance of small cap stocks like those represented by the Russell 2000 index?

The speaker believes that factors such as economic recession, unemployment rates, and credit card delinquency could significantly affect the performance of small cap stocks.

What is the speaker's strategy for considering a potential investment in a company like Ulta Beauty?

The speaker suggests considering other opportunities like Estee Lauder, which might offer a more direct play in high-end cosmetics and less competition with Amazon, as a strategy for potential investment.

What does the speaker recommend for someone interested in accessing THX stocks?

The speaker recommends visiting THX stocks.com or 1000xstocks.com to apply for access and take advantage of features like conference calls, SEC filings, and stock comparison tools.