Investing Experts

Shorting Palantir: valuation matters

14 snips
Feb 5, 2025
This week, Julian Lin, an Analyst with Seeking Alpha, dives deep into the complexities of stock valuation, warning that we may be experiencing another market bubble. He dissects Palantir's soaring prices and emphasizes why understanding valuation is critical for investors. Lin also critiques Palantir's stock-based compensation and provides insights into its failing valuation grades. His advice? Investors need a careful reassessment of their portfolios amidst high growth opportunities, recognizing the dangers of speculative investing.
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ANECDOTE

Market Bubble Concerns

  • Julian Lin previously identified Reddit as a top conviction pick and stated the market wasn't in a bubble.
  • He now believes the market is in a bubble once again, similar to 2021.
ANECDOTE

DeepSeek and Market Volatility

  • DeepSeek, a Chinese firm, caused a 20% drop in Nvidia and Arista's stock price due to potential competition fears.
  • This volatility demonstrates how aggressively stocks are priced.
ADVICE

Investing vs. Trading

  • Focus on long-term investment theses rather than daily price actions.
  • Consider if the core value proposition of companies like NVIDIA remains intact despite competition.
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