We know who's to blame...
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Started working on this around 4am this morning, I'm often critical of people yelling at a stock or the market for not doing what they deem to be appropriate rather than try to understand what you're missing.
On this one I'm striking out. With TSLA I can see that today's price is not for an auto manufacturer but what the company
could become, do the homework and you can see the path. I can see a TSLA in the future that auto sales are such a small part of revenue there will be talk of just getting rid of it. Now people who don't get that will spend time talking about how many model 3s where sold etc and then be confused by the price action.
Most ardent bulls on TSLA can articulate the vision they are investing in, with PLTR I can't even find hodlers to explain their own vision to me. What does a 1-3T PLTR company look like, what is its business, who are it's customers, what is the moat on that revenue?
The company is so small it's hard to really wrap your head around the dynamics, if you saw a headline"X company receives 3.9B Fed contract." One might thing that's a decent contract nothing particular interesting about it , Lockheed has numerous single contracts 4x that amount. That is PLTR's entire annual forecasted revenue.
PLTR pays it's employees in stock more than it makes in income. Insiders and employees do nothing but sell. I'm actually not trying to be critical I just can't see it. I listen to Karp interviews and again I just come away with nothing that says $235B valuation . Headlines now "PLTR Blows pasts expectations!" That blow past expectations was tens of millions, millions not billions. And investors just increased valuation 30,000 million for a tens of millions beat.
Contagion is real, while I do believe it's always prudent to seek what one doesn't understand vs what the market doesn't understand, this
MAY be nothing but hype gone hyperbolic even more so then when the market for a brief period thought an exercise bike might be the next Apple.