PLTR in Correction!
So, PLTR at around $90 is about 30% off from recent all-time high of $125, which means deep in correction territory (typically 20% off from recent highs).
I think, there are two main reasons for PLTR slaughter over last 3-4 sessions.
CEO selling 10M shares: Karp had filed to sell 48M shares in 2023. But after recent rise in share price, he decided to revise the number of shares down to 10M from original plan of 48M. Ideally, that should be a plus because less dilution in number of outstanding shares than originally planned.
Defense Budget cuts: defense secretary announced Defense budget cuts of 8% or $50B to cut costs and improve efficiency. I don’t understand why this spooked investors because this is precisely why Defense Department and commercial companies hire Palantir. Half of the analyst community is also split over this.
I may be wrong but IMHO, precisely due to this reason, PLTR will get a lot more contracts from Defense Department & commercial companies than expected and earnings will be a big positive surprise🤣
Just my thoughts, not a financial advice so please do your own research.
IMHO, what’s there not to like, the PE ratio? Come on, all growth companies have very high PE rations in beginning, look at MSFT, GOOG, AMZN, etc.. PLTR has virtual monopoly, very high profitability, long-term clients & contract, fast growing business, great contacts etc etc..
As for me, honestly I was tempted to book some profits and sell some shares at $90.00 today morning but decided to stick with my original decision to hold onto my 4500 PLTR stocks for a very long term.. still have 35% gains left. Not too bad😄!