To The Moon

What’s happening?

• Heavy recent drop: Palantir plunged ~9–9.4% on Tuesday (August 19), marking its worst daily drop in the S&P 500 and extending to a five-day losing streak, amounting to a 12–15% pullback from its August 12 all-time high of $190.

Why the slide?

• Valuation concerns: Palantir's valuation sits at ~214 times forward earnings—well above the S&P 500 average (~22×) raising alarm among analysts.

• Profit-taking after a strong run-up: The stock has soared ~118% YTD (and ~409% over the past year), prompting investors to lock in gains Barron's.

• Short-seller pressure: Andrew Left of Citron Research called Palantir “detached from fundamentals,” suggesting a valuation closer to $40—a sharp contrast to current levels.

• Broader tech sell-off and AI fatigue: The decline is also tied to caution around AI hype and elevated tech valuations, impacting other names like Nvidia.

Mixed analyst sentiment: Only a minority of analysts rate PLTR a “buy” (e.g., 7 out of 29), with price targets ranging widely from as low as $45 to as high as $210.

Is it just a pullback or something bigger?

Signs point to a healthy pullback rather than the end of Palantir’s upward journey:

• The selling has clear catalysts—valuation concerns, profit-taking, and AI-related caution—suggesting a natural market correction after a torrid rally.

• Some technical insights suggest price levels around $155 (resistance) and $153 support as key zones to watch .

• There’s no indication of a severe structural breakdown—just a resetting phase amid overheated sentiment.

Quick Trading-Assistant Snapshot

• Insight: $Palantir Technologies Inc.(PLTR)$ appears to be undergoing a classic pullback after strong gains—motivated by valuation pressures, short-seller commentary, and broader tech sector weakness. It hasn’t collapsed—it’s resetting.

Key Levels:

• Resistance near $160

• Support around $153–$155

• Deeper support may emerge near $131–$142 if momentum continues downward .

Options / Strategies:

• Short-term traders: Consider long positions or call options on dips toward support, with tight stops—say below $153. Potential targets in the $160–$165 range .

• Value-oriented or cautious investors: A pullback toward the average target (~$127.50) could offer a lower-risk entry point .

Long-term thesis: While overvalued now, Palantir still holds strong government and commercial contracts plus AI tailwinds. Still, pay attention to cyclical volatility and sentiment shifts .

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Disclaimer: This is not trading advice. Always conduct your own analysis and risk management. Markets are fluid, and past performance doesn’t guarantee future outcomes.