A former NYSE trader explains why he can’t help but be bullish about Palantir.
Transcript:
Stephen Guilfoyle: I just fell for the cult of personality or something. But I listened to Alex Karp. And this guy is like Satya Nadella. When you hear him talk, you say, holy moly, I could never be that smart. I could never be half that smart. He’s just one of those guys. When you hear him speak, you believe him. And when he tells you he doesn’t have competitors that can keep up, you say, wow, he has the force. This guy can’t be caught. They can’t catch this guy. Now, maybe they will catch this guy, and there will be some profit taking.
But I got the stocks under 10 portfolio into this thing around $6. When that product went away and I was able to buy it for myself, I got in around $16. Now I have a $48 target price on the stock, and it’s closing in on that target price. This thing has been a great trade, but when the AI trade does get whacked, at some point, it will get whacked with it, because it needs to. It does not yet have– even though it’s growing by leaps and bounds in terms of customers, it does not have the fundamentals yet to support its valuation.
I think it will. I think the margins, eventually, will be incredible for this thing, because what do they do? They use big data to spy on people and things. Well, I don’t like to be spied on, but if somebody’s going to spy on me, I want a piece of the action. So basically, that’s really how I think of Palantir. If you can’t beat them, join them.
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