Palantir (PLTR) may or may not be a meme stock but because of the complexity of its business it has a certain mystique among investors. Where most companies provide a concise description of their business under the “About” section of their earnings releases, PLTR’s says: “Foundational software of tomorrow. Delivered today.”
At any rate, the stock has had a phenomenal run since its 1Q23 earnings report – more than doubling. In that press release, Co-Founder and CEO Alex Karp said: “The depth of engagement with and demand for our new Artificial Intelligence Platform (AIP) is without precedent.” However, PLTR only marginally raised full year revenue guidance by $5 million to $2,185-$2,235 million. Which raises the question: If demand for the new AIP platform is “unprecedented”, why aren’t they making more money from it?
The nutshell is that the stock is due for a breather. I’m looking to sell some PLTR Aug11 $21.50 calls for around 50 cents today to investors that want to speculate on another blowout quarter when PLTR reports 2Q23 earnings this afternoon.