Palantir: Top 3 Reasons To Buy Before Q2 Earnings (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• A key coincident indicator tells us that Palantir Technologies Inc.'s ecosystem is rapidly growing., highlighted by key partner growth and a major $10B U.S. Army deal boosting long-term government revenue prospects.
• The up to $10 billion over 10 years deal with the US Army can provide a massive structural lift to U.S. Government growth CAGRs.
• I think Palantir tends to low-ball on guidance and outperform Wall St. expectations. So I expect another strong performance in Q2 FY25 with beats all around.
• Despite sky-high valuations, I see technical and fundamental momentum. But note that any earnings disappointment can trigger a sharp selloff in PLTR stock, as the margin for error is low.
• I'm adding to my position ahead of earnings and will cut this added position if results disappoint. But I am not planning on selling my larger, longer term position in PLTR stock.

Read the full article here.