Palantir: Let’s talk

Good morning!

I said recently that I never hoped I’d be more “wrong” about a call than Russia invading Ukraine but it would appear that Mr. Putin is up for more shenanigans

Here’s my playbook.

1 – What to do if Russia attacks

Russia won’t roll into Ukraine directly and never planned to but creating the pretext for an invasion is straight out of the Russian playbook. Apparently, that’s underway according to Ukraine which has accused pro-Russia rebels of attacking a village near the border. Now Putin can ride to the “rescue” if he chooses. (Read)

Current volatility suggests the markets continue to believe this won’t be a big deal but my experience suggests the computers will sell off hard and fast if the shooting starts in earnest.

Most people will panic but that’s a king-sized opening for those with the guts to recognize it.

Get your “buy” list ready!

2 – What Walmart’s results really tell you

People are focused on Walmart because it beat numbers and reiterated mid-single digit guidance. The more important “tell” is that growth continues to drive top-line numbers with both store and website traffic on the uptake.

Critically, the company gained market share too. (Read)

Net, net … this tells me we’re on the right track when it comes to inflation because more Americans want value.

3 – Facebook soon to be a glorified billboard company

Google has now announced that they will be following Apple’s lead to eliminate cross-site identifiers on Android. In plain English, that means advertisers won’t be able to track your behaviour as closely. (Read)

The move could effectively turn Facebook into a glorified billboard company. I can imagine Zuck’s probably in the back room screaming, “but the Metaveeeeeeeeerrrrrrsssseee.”

Apple did this a year ago and wiped $230 billion off Facebook’s market cap almost instantly. Google's “me too” move could send shares sub $200 and possibly as low as $180.

Not getting within a country mile of this stock but putskies could be good for a quick speculative trade. (Read)

4 – Big tech will go right back to the head of the class

First there was the “stay home” trade. Then the “get out” trade. And along came the “more pandemic” plays. Forget those … the real key is companies that’ll help you “stay out.”

Big tech will go right back to the head of the class leaving everyone who fell for the “value rotation” in the dirt.
A word of caution, though …. not all big tech is the same.

If you know which companies to buy, why and how, that’s awesome! If not and you’d like some help, (Click here)

5 – Palantir: what the headlines should say

Headlines are screaming that Palantir beat on revenue but missed earnings estimates. They should read “analysts missed again.”

Analysts are more concerned with being right than being profitable. That’s why they raise price targets after companies have blown through ‘em and almost never issue a sell rating until after the SHTF. Peloton anybody??!!

Nobody knows their company’s better than the CEOs who run them. Wall Street does not listen to analysts when making buy/sell decisions and you shouldn’t either.

Period, end of discussion.

Stay focused:

• FY 2021 Revenue up 41%
• Q4 Gross margins of 80%
• Commercial business growing at breakneck speeds of 132%
• Net dollar retention of 150%

And, finally … institutional ownership has steadily been growing as the stock price fell, exactly as I said it would.

Always do what Wall Street does, not what it says!

Bottom Line

Your stocks don't need to make sense to anybody but you.

Investing is not a community project.

Neither is trading.

The sooner you understand that the sooner YOU can get down to business.

And win!

I’ll be with you every step of the way.

Now, as always, let’s get out there and make it a fabulous day!

Keith