Don't Get It Twisted: Palantir Longs Are Gambling, Not Investing
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Rational Techne835 FollowersFollow5ShareSavePlay(16min)Comments(7)SummaryPalantir offers no credible investment opportunity at current prices, with fundamentals-based return expectations capped at an absolute best-case 1.9% annually.PLTR's current valuation demands EPS projections over 5x consensus just to justify a 10% annual return, making any investment thesis beyond speculative.Even aggressive analyst estimates assume a >30% EPS CAGR, yet this still falls far short of supporting current valuations.
Nico De Pasquale Photography/DigitalVision via Getty Images Looking at extreme cases in the investing world offers significant insight into the sort of cognitive distortions and behavioral finance-style mistakes investors repeatedly make. As a result, they offer an indication of the sortThis article was written byRational Techne835 FollowersFollowI've been in the investing world for over 10 years at this point. My interests in writing on Seeking Alpha center around both the larger purview of macroeconomic themes, as well as around microeconomic issues regarding specific companies. In that way, my writing is very opportunistic, just like my investing. My goal, first and foremost, is to be able to articulate my views clearly and in a way that provides value for the reader, even if they disagree with the conclusions I come to. You might not always agree with me, but if I'm able to stimulate some interesting intellectual activity, I will consider that a success. Happy Investing!Analyst’s Disclosure:I/we have a beneficial short position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.