Last week, the quarterly reports turned against us. Don’t blame the numbers. The pattern was practically repetitive, with the trailing results beating all expectations and guidance raising the bar even further for the future. Yet the stocks I target took a step to the downside, including Palantir Technologies, Inc. (PLTR), highlights Hilary Kramer, editor of Game Changers.
The good news is that the market as a whole is at a crossroads. The S&P 500 is within a percentage point or so of breaking records again. Maybe that ceiling holds and the bears win this round...but it probably doesn’t and they probably don’t.
The Nasdaq is only a little farther from its moment of truth, being a couple of percentage points from breaking records again. Here too, we could see the mood swing fast in our favor.
Palantir Technologies Inc. (PLTR)
So what about PLTR? We gave back close to 11 percentage points there last week, which means we’d be “only” looking at a 108% gain if we give up on it now and cashed out. If the numbers were actually disappointing, I’d consider it. We could walk proudly away in that scenario because the growth story here would be over.
But that’s not the case. PLTR had a great quarter. The future looks even brighter. The only thing that went wrong is that the market was eager for an excuse to sell and dug deep into the report until one finally materialized.
The story I heard was that international sales were a little light in the mix. Sure. The rest of the world isn’t exactly bouncing back from the pandemic as fast as the domestic market and PLTR primarily caters to US government entities anyway. No surprise, no shock, no sell signal.
As it is, PLTR wound back most of the progress it made over the previous three weeks. We’ve seen it before. If we’re willing to hang around another two-to-three months, we’ll see it again.
And in the long term, we want to give PLTR a shot at clearing $30 before we even consider pulling the plug. It came within 10 percentage points of that threshold recently. Let’s see where the next week takes us.
Recommended Action: Hold PLTR.
