It works even when the CEO, Alexander Karp, has sold $2 billion worth of shares in three months (!), including over $1 billion in one month (!), as Brent Thill, who follows the case at Jefferies, points out and has trouble understanding how the stock can continue to move weightlessly.

Palantir

We had some fun making a chronology of our main papers on Palantir since the IPO at the end of 2020. The sequence resembles a kind of self-flagellation, so much so that one wonders whether the MarketScreener team has not been bewitched by Sauron or mystified by Saruman.

Here's the conclusion of our October 2022 paper , when the stock had fallen below 10 dollars:

"The case has its dark side - that's part of the story, of course - and a speculative character, closely linked to the Peter Thiel "cult". Love it or hate it, in short. It was way too expensive at the time of the IPO, but it went up to $45 because everyone was buying anything at the time. Today, the stock is back just above the IPO price. It's still very expensive despite the 80% drop since the highs, unless you think the earnings trajectory will at some point catch up with the growth trajectory."

This is what we said last February, when the stock was trading at less than $20:

"Moreover, skeptics who maintain that Palantir is really in the consulting business rather than software development will no doubt be contradicted by a gross margin level approaching 80% - closer to a Lockheed Martin than an Accenture. That said, it's not certain that we can draw a particularly positive conclusion from this, since at the bottom of the table the net margin remains microscopic..."

Finally, here's the opening of the August 7 article, when the stock was trading at $26:

"There's nothing wrong with changing your mind, as long as it's in the right direction. MarketScreener analysts will have plenty of time to ponder this old proverb of British popular wisdom. For while it was tempting to speak ill of the Denver-based firm controlled by the divisive Peter Thiel and run by the whimsical Alex Karp, it has to be said that the latter has been sending out positive signals for some time now."

At this rate, there could be a positive recommendation when the stock price reaches 500 times earnings! Watch out for that moment, because given our track record, it will probably be a sell signal!