Is This Stock The Next Palantir?
Earnings rundown…
Another week of earnings volatility is in the books, so let’s reflect on how those reports did, and how the subsequent shares performed.
On Tuesday, we saw $UPST (Upstart Holdings Inc.) jump over 20% after reporting an astonishing 20% revenue beat, and 750% EPS beat. Simultaneously we had $DASH (DoorDash Inc.) rise this week, after their Tuesday report continued the trend of steady revenue growth QoQ and YoY.
Wednesday harbored some big names after-hours, including $CSCO (Cisco Systems Inc.), $HOOD (Robinhood Markets Inc.), $APP (Applovin Corp.), and more. After double beats almost unanimously across the board, Robinhood, Applovin, and Dutch Bros made the biggest moves higher – while Reddit and The Trade Desk both played the role of the earnings loser.
Thursday was more of the same, as $DE (Deere & Co.), $DDOG (Datadog Inc.), $COIN (Coinbase Global Inc.), $PANW (Palo Alto Networks Inc.), $ABNB (Airbnb Inc.), and $AMAT (Applied Materials Inc.) all reported double beats on revenue and EPS.
The next two weeks aren’t going to get any lighter! Here is a quick glance at some of the top companies that we’ll hear from. (Shoutout earnings hub.)
Is this stock the next Palantir?
$HIMS (Hims & Hers Health Inc.) is the next Palantir – but better. Let me explain…
Palantir was the parabolic victor of 2024, which kept (and still is) moving higher despite investing’s fundamental protest. As of today, Palantir has a revenue multiple above 55, and a PE ratio above 600, and a PEG above 8 – mostly due to their incredible stock performance ballooning while their financials haven’t. Hims is making their own parabolic move now, up 141% YTD, and 508% in a year. But here’s the kicker:
Hims is doing this all at a *relatively* reasonable valuation.
The big issue I have in Palantir is not their outstanding performance, it's their overpriced current share cost. Hims has performed just as well recently at a much more reasonable multiple. With an RSI of 87 and a PE of 136, is today the best time to be buying? Likely not. However, a stretched short-term valuation is easier to swallow with 56.70% revenue growth, bullish marketing tailwinds, growing product moat, and a huge recurring customer-base.
I implored you to consider buying Hims at $18/share, again at $23/share, again at $30/share, and now we’re sitting right above $60/share. The long term possibilities of this company should not be ignored, and I won’t hesitate to buy more on any sizable retracement.
*None of this newsletter and/or any subsequent content pieces are financial advice. This newsletter and/or any subsequent content pieces are all intended for entertainment and educational purposes only. Please invest wisely under your own accord.*
Fortune Teller:
On Monday I made a handful of predictions about how stocks will perform this week, and now we are going to look back and see how they fared.
Where I was right: “$ALAB will beat their earnings estimates this afternoon, and buzz about their AI potential will start to circle.” – Despite a lackluster stock performance this week, they had a sizable earnings beat.
Where I was right: “The Dow Jones will be the worst performing major U.S. index.” – I figured that the tech-heavy Nasdaq and S&P would outperform as usual, and they did.
Where I was right: “The Trump/Musk relationship will be strained as they quarrel for power.” – I’m going to count this as a win because of all the weird stuff that came out about Musk taking interview questions in the Oval Office with his kid. Might be something to develop over a longer period of time, but it seems inevitable.
Where I was wrong: “$AMD will be the best performing semiconductor stock this week.” – In a shocking turn of events, Intel was the best performing semiconductor. This is a great example of the unpredictability of the stock market.
Where I was wrong: “$COIN will miss earnings on Thursday, and crypto sentiment will start to deteriorate.” – Coinbase shocked me with a relatively positive report on Thursday. Bitcoin is still sitting right around $97,000.
3/5 isn't too shabby! Again, the Fortune Teller segment is made with the intention of showing how unpredictable the stock market is. If anyone tries to sell you on the idea that they can predict stocks with 100% accuracy, they’re lying! Let’s move on.
FlyerPicks Portfolio:
The FlyerPicks portfolio has tripled (3.08X) the stock market’s performance since inception, with just 15 stocks holdings, and you can have full access to it with an upgraded subscription. You’ll also get the Investment Checklist, and each week’s premium-exclusive segment which follows after the FlyerPicks weekly update.
I offer free content Monday, Wednesday, and Friday – but these last two segments each week are for the paid subscribers. Have a great weekend, investors!
For those of you with a paid subscription, let’s jump in.