The stock market closed higher on Wednesday as Treasury yields eased from record-highs and back below 4.8%. In the past days, stocks suffered deep losses as bond yields climbed, with the 30-year Treasury yield reaching 5% – its highest since 2007.
Overall, S&P 500 was up 0.8% to 4,264, while NASDAQ grew 1.4% to 13,236.
Tweet of the Day
Many stocks have started to show an inability to make much upside movement and lower highs are steadily creeping into the charts. $PLTR now forming a neat looking bearish flag/wedge pattern after the recent bearish PEG.
Looking for a breakdown next week.Target $13 to $12 pic.twitter.com/UJDNLaxwGj
— Traderstewie (@traderstewie) September 16, 2023
Chart of the Day
Here is the one-year chart of Palantir (PLTR) as of September 20, 2023, when the stock was at $15.
Palantir takes customers data and/or public data, and solves complex problems that a regular program can’t solve. Examples include predicting things on the battlefield, where to seat passengers on a flight, and logistics for COVID-19 vaccines, among others. Management says what is most exciting about Palantir is its ability to launch products that are literally the only products in the market that will change your life and determine who fails across enterprise, both government and commercial.
Palantir has an impressive software platform, and plenty of big name accomplishments in terms of new contracts. However, revenue grew just 13% year-over-year last quarter and profits were slight. David Sharek does not know if the stock is worthy of the premium valuation of a 64 P/E. Profits were just $0.05 a share last quarter, its third consecutive quarter of GAAP profitability and second consecutive quarter of GAAP operating profitability.
In last quarter’s earnings call, management reiterated its new focus on profitability by calibrating expense growth below revenue growth and managing stock based compensation.
Palantir was sold from the Growth Portfolio. David Sharek does not think the stock has enough momentum to move higher.
