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☕ Palantir is as good as it gets

Nov 04, 2024

Good morning! 👋

I've got a tight schedule this morning so let’s keep it super tight.

Here’s my playbook.

1 - The election

Seemingly half the US fears their candidate won’t win and half the US fears their candidate won’t lose.

Me?

I don’t have the luxury of taking sides in my capacity as an investment strategist. My job is to help you find a path to profits no matter who takes office.

Not surprisingly, I stick to the facts.

The markets clearly reward investors on both sides of the aisle over time.

More immediately though, it’s a different ball of wax.

As I noted to the super-savvy Stuart Varney this morning, the nightmare scenario is that both sides fight over the outcome for months to come. However, even that is an opportunity with the right names. (Watch)

2 - Palantir: It doesn’t get any better

Team Karp reports this afternoon.

I can’t wait:

Institutional ownership is growing
Customers are falling all over themselves to work with ‘em
Defense is a global growth priority

I’m expecting 20-25% growth this quarter... probably not a $1B quarter but, then again, if there’s one thing I’ve learned about great companies like Palantir over the years it’s that you never say “never.” (Watch)

This chart is as good as it gets.

3 - Warren Buffett selling Apple

Buffett’s cash pile exceeded $300 billion in Q3. (Read)

He’s been selling shares of Bank of America and Apple while not completing any repurchases.

AAPL has been the biggest holding in the portfolio for four quarters in a row but now Buffett has offloaded approximately 25% of the shares.

So, why?

Some people will think this is because Buffett knows something. Others think that he thinks that Apple is about to fall off the face of the earth.

Personally, I think he’s very aware that his days are drawing to a close and raising cash now is a way to present the next generation of Berkshire’s management with maximum flexibility because the question, WWWD - “What would Warren do” is off the table.

Doesn’t faze me.

Not for nothing, but don’t forget Buffett famously missed Apple to begin with only to admit his mistake years later before building it into a magnificent position. His timing could be off again.🤔

4 – Nvidia replacing Intel in the Dow

Nvidia will join the Dow Jones Industrial Average, replacing Intel. (Read)

Good.

I’ve been saying this for a while but “not all tech is the same.”

AMD and NVDA have returned 30% and 205% over the past 12 months respectively while the S&P 500 has handed in a respectable 31% over the same time frame as I type.

Intel no longer represents the best of American ingenuity.

The only surprise to my way of thinking is that it’s taken so long for the switch; shares are off –40% over the past 12 months.

5 – FERC says nope

Don’t say I didn’t warn you.

The Federal Energy Regulatory Commission rejected a request to increase the amount of power the Susquehanna nuclear plant can dispatch to an Amazon data center campus. (Read)

The agreement was viewed as a first-of-its-kind deal that could serve as a model for other power and tech companies.

Talen Energy, Constellation Energy, and Vistra Corp all have fallen on the news.

Oklo, a related clickbait, Wall Street and Furu darling of late is down -7.25%.

Big data AI-related power provisioning is very much on my mind.

In fact, the November issue of One Bar Ahead®, our premium research magazine, is focused on what I believe to be a better, far more immediate path to AI power profits. Plus, it’s got a low beta (which means it’s less volatile) and a healthy yield (which is appealing as we head into a falling rate environment).

Hopefully you’re thinking along similar lines and have this covered. If not, you know where to find me. (Learn More)