NASDAQ Futures are currently -2.5%, the 10 year treasury yield is at 3.2% and the dollar is surging. However I would like to break some news: the world is not ending. In fact, I believe the pain trade is now long for the moment and data analytics leader Palantir (PLTR) strikes me as a nice way to go.
PLTR just reported 1Q22 earnings 20 minutes ago (7am EST). Revenue was +31% and Adjusted EBITDA of $122 million is right around where it was in each of the previous four quarters. PLTR guided 2Q22 revenue to $470 billion which represents 25% growth year over year. The market doesn’t like it because it doesn’t like anything right now. PLTR shares are -12% in the premarket from a 52-week closing low Friday.
While Shopify (SHOP) didn’t bounce Friday as I’d hoped – and is set to open even lower this morning – I still believe the right move is to start tilting portfolios to the long side. I’ll likely do so by buying some PLTR this morning.