By Nigam Arora & Dr. Natasha Arora
AI software stock PLTR is long from $20.15. The stock is trading at $41.22 as of this writing.
Defense
In the defense sector, the need for AI is immense. PLTR has established itself as a leader.
Commercial Traction
PLTR has been trying to expand beyond defense. PLTR is starting to gain reasonable traction in the commercial sectors.
Valuation
At this price, PLTR is way overvalued. However, valuation is only one of the parameters that are used to make decisions.
Technicals
Technically, the stock is breaking out at this time.
There is a group of investors who do not understand valuations and often do not even understand what the stock does, but they buy based on breakouts using traditional technical analysis. This group of investors is buying PLTR.
Sentiment
The sentiment on the stock is very positive. Sentiment can drive the stock higher until it becomes extreme.
Momo Crowd
Momo crowd buys on hopium and momentum. PLTR has a ton of momentum and hopium. The momo crowd is aggressively buying PLTR stock.
Meme Crowd
PLTR has now become a meme stock. The meme crowd lives in a fantasy land and does highly flawed analysis to support their decision to keep on buying their favorite stocks. Meme crowd believes that all they have to do is recruit more people on social media to buy a stock and keep pushing it to the moon.
Zones
For those following the Good Way, the Buy Now rating is (To see the locked content, please take a 30 day free trial).
For those following the Best Way who are also aggressive, the buy zone is $*** – $***.
The new long-term target zone is $73 – $81. Consider this target zone as a mental zone. The reason is that if the meme crowd becomes successful in recruiting more naive investors to go all in on PLTR, they can run PLTR to above $100.
This is a very long term position.
The maximum recommended quantity is ***% – ***% based on personal preference. Consider reducing the position size based on how aggressive you are. Those who start a new position now on a dip in the buy zone may want to initially scale in a smaller quantity, such as *% – 15%.
What To Now
Those in the stock may consider continuing to hold.
Those not in the stock may consider following the parameters given above.
Note: Signal Limited is a Signal(s) with a great record in similar situations but does not meet all of the stringent criteria. Typically, Signal Limited has higher risk-reward.
To take a free 30-day trial to paid services to gain access to more opportunities, please click here.
This post was just published on ZYX Buy Change Alert.
Markets can generate substantial wealth for knowledgeable investors. NOW YOU TOO CAN ALSO SPECTACULARLY SUCCEED AT MEETING YOUR GOALS WITH THE HELP OF THE ARORA REPORT. You are receiving less than 2% of the content from our paid services. …TO RECEIVE REMAINING 98% INCLUDING MANY ATTRACTIVE INVESTMENT OPPORTUNITIES, TAKE A FREE
TRIAL TO PAID SERVICES.
Please click here to take advantage of a FREE 30 day trial.
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.
Dr. Natasha Arora
Dr. Natasha Arora has significant expertise in investment analysis especially biotech, healthcare, and technology. Natasha is a graduate of Harvard Medical School followed by a postdoc at MIT. She has published several peer reviewed research papers in top science journals.
