Video summary
Palantir is currently experiencing a dramatic surge following its recent earnings report, with shares jumping nearly 27% from levels around $125 just yesterday to trade near $160 today. This explosive reaction comes after the company reported revenue growth of 93%, with US commercial revenue surging by almost 150%, metrics that significantly exceeded analyst expectations and signaled a heavy reacceleration in its business trajectory. The stock's performance is part of a broader market shift where sentiment toward software stocks has turned positive, leading to massive gains across the sector including ServiceNow, Salesforce (CRM), Adobe, and Toast. This rally appears driven by an unwinding of short positions held by major hedge funds that had been betting against these technology names while leveraging other areas like forex, resulting in a relief rally for deeply undervalued or suppressed tech stocks.
Despite the impressive momentum, the speaker notes that Palantir is currently trading at overbought levels with its Relative Strength Index (RSI) hitting 90 and facing significant resistance around $160, which has acted as a barrier since March and April. The analyst admits to missing out on an earlier opportunity to buy call options before this spike but remains invested in the underlying shares, acknowledging that while the stock is hot right now, it may need to cool off slightly to find support in the mid-$140s before attempting another major breakout above $160. He warns that a sudden jump of 10% or hitting prices in the low $170s this week would be surprising and likely unsustainable without further fundamental catalysts, suggesting instead that the stock will consolidate briefly to digest these gains before continuing its upward trend if it can clear the established resistance zone.
The broader market context reinforces Palantir's strength as major indices like the S&P 500, Dow Jones, and Nasdaq are all approaching or hitting new all-time highs, indicating a robust bull market that persists despite global geopolitical tensions such as conflicts in the Middle East. The speaker emphasizes that this environment is characterized by alternating periods of intense rallies followed by necessary consolidations rather than sustained flatlines, urging investors not to panic sell during volatility but instead to hold their positions and let time work for them. As other software stocks like Salesforce have rallied over 30% in a month and the iShares Global Technology ETF breaks out of its wedge pattern, the overall sentiment suggests that this sector is entering a new phase where growth stories are being re-evaluated with renewed optimism by institutional investors.
Read the full video transcript
So, Palunteer is going insane right now,
guys. Talk about an earnings reaction,
right? Initially, the stock went up, I
think, 12, 13% in the aftermarket. Now,
we're up almost 27%
and the stock's trading at $160 after
just being literally at 125 yesterday.
So guys, we have to break down what's
going on, the charts, what I'm doing,
and the overall market, which, oh, by
the way, is completely crushing it
today. The S&P hit all-time highs. Same
with the Dow. The Q's are ripping.
Russell's going nuts. And this goes to
show sentiment is turning, right?
Especially in software stocks. A lot of
these names have been moving not just
Palunteer now uh but we've seen Service
Now CRM the IGV toast right which I own
toast and Palunteer for that matter uh
but a lot of these stocks have been
doing well and sentiments changing this
is a good sign so let's break down again
everything that I'm looking at now hit
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You know where to find it. And now,
let's dive into it. So, again, this goes
to show sentiment is changing. And the
writing was on the wall for this uh for
this breakout, right? And I'm kind of
kicking myself because I was about to
buy. I was about to make a yolo trade,
guys, which I don't do too often, but
the writing was on the wall. I had an
inkling. I didn't take the trade. I'm
kicking myself. I was about to buy the
130 calls that expire this Friday, the
7th, and those are up like 400% today.
Would have made a crap ton of money, but
either way, I own the stock. I'm in
shares, so it is what it is. But the
writing was on the wall. We were seeing
the IGV turnaround service. Now, you
know, all these stocks [clears throat]
that you guys probably heard of, they
were getting shorted by big hedge funds
like Leo pulled. He was shorting
software while going Forex leverage on a
lot [clears throat] of these um you know
AI names. And we saw that unwind, the
blow up in the situational awareness
fund. you know, the uh a lot of leverage
came out of the system. Now, the
market's been seeing a relief rally
finally over the last couple of days and
those stocks that were deeply shorted,
right? I'm sure they're still shorted,
but they're finally seeing some relief.
We saw that in Service Now. We saw that
in the IGV ETF. We saw that in CRM, even
in Adobe, we we're seeing it in Toast,
right? All these different software
stocks are finally starting to move. and
sentiment's been changing and all
Palunteer really had to do because it
didn't participate really in that spike
that we saw in Service Now, the IGV,
right? Adobe, CRM, Toast, other software
stocks. It didn't participate in that
run. So, it it was still suppressed. All
Palunteer had to do was crush earnings,
raise guidance, and that's exactly what
they did. And that's all they had to do
for the stock to go ballistic, you know,
and that's what we're seeing. That's
what we're seeing. So, I'm pissed at
myself for not taking that trade, but at
the same time, it is what it is because
the entire market's running, right? You
know, we we we can't be too mad, right?
And I still own shares. So, it's like,
man, what a freaking day. It's finally
starting to catch up here um to where it
was a couple months ago. And it's not
fully breaking out yet. It might, you
know, might here pretty soon. But with
that being said, it is a bit overbought.
Palunteer is a bit overbought. And the
crazy thing is, man, it popped 12% in
the aftermarket, right? Which was a
crazy run. And right at open, it ran
another 10%.
It's It's crazy, man. So, it is a bit
overbought. There's a lot of hype. And I
don't want to say hype there. I I don't
want to say hype, but there's a lot of
momentum in the stock right now, and
we're not through this major resistance
yet. 160 is a major resistance for
Palunteer from back in the end of May,
from back in March, April, right? Big
resistance. So, until we get out of
there, guys, I don't think we're fully
out of the woods yet. But this rally was
much needed. It was um it was it's been
a long time coming, you know, and look
at the RSI. RSI is really overbought.
We're at 90 on the RSI down here on
Palunteer. And again, we're at the
resistance points from a couple months
ago. This is a spot where I think
ultimately will break, but I don't think
it's going to break this go around. You
know, if if Palunteer ran another 10%
tomorrow, that would honestly almost
shock me. I mean, if this stock hit the
170s this week or something like that,
that would be insane. Um, you never know
with Palunteer, right? But that would be
insane. I think the the more likely
scenario here is we actually cool off a
bit. We kind of find support in the in
the 140s, mid high 140s. We we kind of
chill there, then we make another big
move. I think that's how it's going to
play out. But who knows with how you
know with how great the earnings
actually were this might go higher. I
mean look they grew revenue by 93%. US
commercial revenue grew almost 150% and
all these numbers metrics destroyed the
estimates and it goes to show
Palunteer's growth is heavily
reacelerating. You know there was a
point where they were growing revenue
only by what 30 40%. It slowed down a
bit. Now it's reacelerating, man. And if
they if they give us a quarter with over
a 100% growth, I mean, that's going to
that's going to bring the stock uh
probably a lot higher. You know, that
would be something insane out of the out
of the, you know, not out of left field
completely. I mean, we just grew 93% so
100%. I mean, that wouldn't be too out
of the ordinary, but that would that'd
be great for investors, and I think that
would bring a lot more momentum into the
stock. But overall, I think we're due
for a pullback before we start ripping
through 160. But ultimately, I see it
going past 160. So, what a day, man.
What a freaking day. Software sentiments
turning. The entire market's looking
strong and all-time highs are being hit
just like that. That is why you don't
panic sell out of your stocks,
especially if you're in ETFs, guys. Just
hold. Just relax. the S&P spies breaking
out of this channel that it was in for
two months. And that's how that's how
bull markets are. What did I say over
the last couple of weeks and months, you
know, we're still in a bull market.
Despite all the fear, despite all the
volatility, despite what's going on in
the Middle East, we're still in a bull
market. And this is what bull markets
look like. We see periods of time where
the market goes insane, berserk, and
then you get periods of time where we
get consolidation, things flatten out,
things kind of chill out without
actually giving back all the gains. And
then we start seeing another leg up.
This is how bull markets are. We saw
this play out a couple months ago. We
chilled for more than just a couple
months. I mean I I mean SPY was flat all
throughout November, December, February,
January, March. I mean th this this
market was flat for a while. Then we got
the Iran US, you know, situation popping
off. Then we ran for two months. Then we
consolidated for another two months. And
now we're starting to break out again.
This is how bull markets play out. And I
think we're just getting started on this
breakout. I think the cues are going to
follow. I think all-time highs are
coming for the Q's, guys. Same with the
Russell. We're very close on the
Russell. About 20 points away, less than
that as the uh the Q's are right there.
We're we're right there as well. Dow
just hit all-time highs. I mean, what
more could you ask for at this point in
time, guys? Dow pushing 54,000.
Unreal, man. So, let me show you some
other software stocks here. service now.
Although it's not up anywhere near
Palunteer, it's still up a good chunk
over the last couple of weeks. We were
under 100 bucks. Now we're pushing 115.
We hit 120 almost yesterday. Um the IGV
ETF, let me pull this up and show you
guys this thing's completely breaking
out. I mean, we called out this wedge
what, a week ago. Now we're up from 90
bucks to 102. It's clearly breaking out.
Um, we can see stocks like CRM, although
I'm not the biggest fan long-term of
these names. It's not like I'm going out
and I'm buying IGV, CRM, Adobe. That's
not the point. The point is they're
starting to run. Sentiment's changing.
CRM's up from 146 now to 190. It's up
30% over the past month. Stocks like
Adobe, right? Adobee's up from 190 to
250 in the past month. And by no means
are these stocks fully breaking out, but
we're seeing that again. Sentiment
change, the relief rally is intensifying
here, and I'm all for it. Stocks like
Toast, which I'm long. Um, this one is
actually breaking out. It's at
multimonth highs. We're taking out the
highs from the last couple of months.
We're seeing a clear cup and handle play
out into earnings, which are after the
bell today. I'm excited for that. I'm
gonna be on that call. Uh the toast
earnings call. So that's where we're at,
guys. And I and I couldn't be more
excited right now about this market. You
know, we're looking pretty good. What do
you guys think? Let me know in the
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