Short Trade Call on Palantir due to Overvaluation

2 months ago

Daniel Pronk

"Now the last point that I want to address is that Michael Bur is shorting Palunteer and Nvidia despite him addressing Meta, Google and Amazon in his tweets. And the reason why I think Bur is shorting Palunteer and Nvidia and not a company like Meta which he actually named in his tweet is simply because Palunteer is trading for insane prices. Okay, it is still trading for 111 times sales and 241 times free cash flows. So, if it ever does come out that the hyperscalers are overstating their earnings, then it could cause a massive deflation to the overall hype and the artificial intelligence sector. I think Palantir is way more overvalued than Nvidia."

The speaker outlines an actionable short trade call on Palantir by emphasizing its extreme overvaluation relative to its sales and free cash flow metrics. He suggests that if the hype fades due to earnings corrections, Palantir stands to suffer the most.

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