Honestly, the stock market got completely sideswiped today by Palantir technologies $PLTR. Just picture this the stock suddenly goes off and prints a massive gain of around 30% in just one single session. If you are sitting in front of your charts right now, your heart definitely skipped a beat looking at all that green lighting up your screen.
What actually caused this madness? Well, my opinion is that palantir just dropped a quarterly earnings report that completely obliterated Wall Street's expectations. If we check out what coin bureau shared, their Q2 numbers are genuinely insane.
Looking at those figures, total revenue blew past $1.94 billion, shooting up 93% compared to last year and easily beating the $1.8 billion estimate. On top of that, my favorite part is how their net income rocketed by 225% to hit $1.06 billion, while they also raised their full year guidance to $8.16 billion. My view is that this massive jump was driven heavily by their US commercial sector growing by 149%. No wonder the market rushed in with massive buying volume.
If we look at the GAAP Net income quarterly chart, you can clearly see how clean their profit growth has been.
Based on that chart, my observation is that their net income climbed steadily every single quarter all the way to $1.062 million in Q2. In my personal opinion, palantir is still totally worth holding for the long run. But come to think of it, isn't it weird how this isn't even one of those mainstream stocks that regular folks talk about every day? Yet, from a pure business standpoint, my thought is that it's performing exceptionally well.
However, if we break down the daily chart movement, my warning is that this stock has a pretty wild personality. Before this massive pump happened, my analysis shows it went through a sharp correction, dropping all the way down to around the $106.70 zone. That drop managed to hold firm right at that support level before violently bouncing back and rocketing all the way up to break past the $164.63 zone.
The price action here is super aggressive. When it runs, my experience tells me it can surge in the blink of an eye. But when it pulls back, the crash can hit you hard in ways you would never expect. The volatility is just crazy, so my advice is you really need nerves of steel to trade this thing.
To wrap it up, my conclusion is that Palantir is basically a double edged sword. From a business angle, it is amazing for the long term. But price wise, my view is that it moves too wildly. For us traders, my rule of thumb is to keep risk management tight don't let fomo get the best of you at the peak, or you'll end up getting crushed.
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⛔Disclaimer - This analysis is for educational purposes and reflects personal opinion only, not financial advice. Always practice risk management and use stop losses (SL) according to your own risk tolerance.
