Lanceljx
08-05 11:22

Once the short squeeze fades, the share price has to be supported by fundamentals rather than forced buying.


For Palantir, the key questions are:


Can 90%+ revenue growth remain elevated, especially in commercial AI?


Can operating margins and free cash flow continue expanding?


Can management justify its premium valuation through sustained execution?



If growth remains exceptional, investors may be willing to support today's valuation. If growth normalises while expectations stay sky high, multiple compression could outweigh earnings gains.


Snap's rally is more fragile. Improving losses and revenue are encouraging, but it still needs to demonstrate durable profitability and stronger advertising growth.


Ultimately, short covering accelerates a rally, but it does not create lasting value. Once that buying pressure disappears, the next move depends on whether long-term institutional investors continue accumulating because earnings keep exceeding expectations. In this market, earnings are replacing narratives as the main driver of share prices.

Palantir Surges 29% — Did Short Sellers Just Lose $3 Billion in a Day?
Palantir +29.45% Tuesday, taking the whole after-hours gap and then some, and carrying the S&P 500 and the Dow to records together. The move has put roughly $3 billion of mark-to-market losses on the shorts, and the covering feeds the tape. Fundamentals are underneath it: Q2 revenue +93% year-over-year, commercial revenue up ~150%. Snap ran the same script, +14.88% on 19% revenue growth and a net loss narrowing to $164 million from $263 million. The app layer has moved from story to earnings — but the last leg was short covering. What holds the price once there's nothing left to cover?
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