Halftime Report
The Momentum Trade Stalls 2/20/25
Feb 20, 2025
In this discussion, Joe Chernova, Kerry Firestone, and Stephanie Link dive into the recent plunge of Palantir stock and its ripple effects on momentum names. They share insights on investment strategies in a shifting market, emphasizing patience as stocks approach key buying levels. The guests analyze the impact of macroeconomic factors on investor sentiment and highlight stock reallocations, including moves towards UnitedHealth and Diamondback. They also discuss upcoming earnings reports for major tech firms and the nuances of risk management amid market volatility.
44:01
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Quick takeaways
- Palantir's recent decline highlights the challenges facing high-multiple momentum stocks amid shifting market sentiments and economic uncertainties.
- The disparate performance of retail giants like Walmart and Shake Shack underscores the varying impacts of economic conditions on consumer spending.
Deep dives
The Palantir Plunge
Palantir is experiencing significant declines, facing its worst two-day performance since 2022 due to shifts in share sales plans and concerns over proposed defense cuts. Analysts suggest that patience is needed as the stock might retest crucial support levels between $84 and $85, where buyers could re-enter if the price holds. The stock's high valuation, with trailing and forward P/E ratios soaring, adds pressure as investors reevaluate their positions in response to negative market sentiment. The unique circumstances surrounding Palantir reflect broader concerns affecting momentum stocks in the current volatile market landscape.
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