By Nigam Arora
PLTR is the most expensive software company. However, considering it is an AI native software company and its growth rate, PLTR deserves a higher multiple, but not as high as it is even after a valuation reset. The stock has fallen from a high of $207.52 in November 2025 to $136.66 as of this writing in the premarket. This range also shows that this is a very volatile stock. PLTR traded as low as $125.88 only last week.
PLTR has become a cult stock for the momo crowd. The selling in PLTR due to margin calls and overall reset in the valuation of software stocks is showing the first signs of ending. PLTR is oversold, and there is also potential for a short squeeze.
The trade will work only if there is strength in the overall market and the software sector bounces from the current oversold condition.
Due to high volatility and the wide trading range, this is suitable only for super aggressive investors.
Zones
The buy zone for the trade around position is $*** (To see the locked content, please take a 30 day free trial)- $*** to scale in.
The maximum recommended quantity is ***%. If you are already holding a core position, adjust the quantity lower.
The target zone is $188 – $193 to scale out.
The stop zone on one half of the quantity is $*** – $*** to begin scaling out. The stop zone for the remaining half is $*** – $***.
Separate From Core Position
The core position is long from an average of $20.15.
Note, the trade around position is separate and distinct from the core position. Trade around positions are a billionaire and hedge fund technique used to dramatically increase returns and reduce risks. Please see Trade Management Guidelines for more on trade around positions.
Signal Limited is a Signal(s) with a great record in similar situations but does not meet all of the stringent criteria for a Signal. Typically Signal Limited has higher risk-reward compared to a Signal over the short term.
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This post was just published on ZYX Buy Change Alert.
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Nigam Arora
Nigam Arora is known for his accurate stock market calls. Nigam is a distinguished master of the macro. He is a popular columnist with over 100 million page views, an engineer, and nuclear physicist by background. Nigam has founded two Inc. 500 fastest growing companies and has been involved in over 50 entrepreneurial ventures. He is the developer of Theory ZYX of Successful Change Management and is the author of the book on Theory ZYX, as well as the developer of the ZYX Change Method for Investing.
