Entering text into the input field will update the search result below

Palantir: 3 Reasons And 2 Interesting Ways To Buy The Dip

Oct. 01, 2021 7:30 AM ETPalantir Technologies Inc. (PLTR)16 Comments


  • PLTR is our highest conviction tech investment.
  • PLTR has a lot going for it that we believe will continue to fuel robust performance moving forward.
  • We detail 2 ways to buy the dip.
  • Looking for a portfolio of ideas like this one? Members of High Yield Investor get exclusive access to our model portfolio. Learn More »
Digital transformation concept. Binary code. Programming. Quantum computer.

metamorworks/iStock via Getty Images

Palantir (NYSE:PLTR) is our highest conviction tech investment with a viable path to a $1 Trillion valuation. PLTR has a lot going for it that we believe will continue to fuel robust outperformance moving forward.

However, over the past week shares

If you want full access to our Portfolio and all our current Top Picks, feel free to join us for a 2-week free trial at High Yield Investor.

We are the fastest growing high yield-seeking investment service on Seeking Alpha with 1,000+ members on board and a perfect 5/5 rating from 100+ reviews:

       For a Limited-Time - You can join us at a deeply reduced rate!

           Start Your 2-Week Free Trial Today!

This article was written by

Samuel Smith profile picture

Samuel Smith is Vice President of Leonberg Capital, he has a diverse background that includes being lead analyst at several highly regarded dividend stock research firms. He is a Professional Engineer and Project Management Professional and holds a B.S. in Civil Engineering & Mathematics from the United States Military Academy at West Point and has a Masters in Engineering.

Samuel leads the investing group High Yield Investor investing group. Samuel teams up with Jussi Askola and Paul R. Drake where they focus on finding the right balance between safety, growth, yield, and value. High Yield Investor offers real-money core, retirement, and international portfolios. The services also features regular trade alert, educational content, and an active chat room of like minded investors. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of PLTR 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.

Recommended For You

Comments (16)

Beyond Stocks profile picture
Ahh makes sense. 19 years of 20% CAGR growth. This is totally what investing is all about. I think Tesla is undervalued if they can grow 40% CAGR the coming 19 years. I mean, anyone can say a stock is undervalued this way. Palantir will generate a lousy $35 billion in 2040? Man, it's hard to believe but maybe you know something i don't.
Puche profile picture
I’ve been utilizing both strategies depending where the stock has been trading in its narrow range of $20 - $30 over the last year. When it’s at the high end I sell covered calls. When it’s at the low end I sell puts. Been working extremely well.

I bought a nice size position shortly after the stock initially started trading. I’m planning on being a shareholder for 10++ years!

My two cents! Slow and steady! Good luck to all!
Samuel Smith profile picture
@Puche sounds like you've been making a killing!
Puche profile picture
@Samuel Smith I’ve been rinsing and repeating consistently. It’s been a great ride. If the stock was to breakout of the $20-$30 range, I would expect to adjust accordingly. I’m hoping to continue this approach for many years to come. I have no problem adding to my position at a net price in the $18-$21 range or giving up part of my stock in the $35-$40 range.

As the SA community knows I also own leap options at $50 that were fully paid for by selling other options at various strike prices and expiration dates. I risk free option over the next 16 months.

If PLTR finishes 2021 above $30 I’m going to be very happy. I do expect the range to move to the $25-$35 range and possibly even the $27-$37 range within the next 90-150 days. My two cents again.

Slow and steady! Good luck to all!
sportssam8 profile picture
Nice article! $PLTR is definitely on my radar of growth stocks to add to my current positions. As volatile as Palantir has been, I am not so worried as my cost basis in the stock is reasonable (started buying the stock at $10 after the direct listing on September 30, 2020).
ICE choosing to go with competitors to build a proprietary data analysis network and the U.K.'s DHSC choosing to drop Palantir show that excessive reliance on governments is a headwind and that maybe the software moat isn't as wide as we were led to believe.
Samuel Smith profile picture
@Grad91 time will tell, but I think PLTR is and will remain the U.S. Government's top horse in the A.I. arms race.
traun_legacy profile picture
Stock popped after last earnings for a reason and it was based on fundamentals. This current dip is based on market sentiment, nothing to do with company fundamentals. While it is arguably overvalued, I don't believe this will hold merit for long. Another bullish earnings and this flies to $30+. Although PLTR only IPO'd one year ago, these guys have been at this for 17 years and are ready to take-off.

With regards to Stock-Based Compensation, I don't mind nor believe they are taking money because they don't believe share price will be higher in the future. Again, their money has been tied up in a company for 17 years and they deserve to cash in.
Palintir is going to have a steady, not extreme, LT uptrend. I see 50% price appreciation in 12 months & a 2x in 2 yrs. For SOFI, my highest conviction stock, I see 2x in Feb/Mar 2022, a 3x in 12 months (Oct 2022). Buy them both on any & all dips.
Samuel Smith profile picture
@drbob512 I hope you are right
#1 reason imo is this is gonna be the Monster of all Monster Companies
farmersgroup profile picture
I’ll wait for the November earning report. I don’t follow big investors’ bs. Price may drop again to under $20.
@farmersgroup ..DOUBT that at all
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.