If you are a Palantir shareholder….GET READY!
Summary
Tom’s main thesis is that market volatility, specifically the recent 16% monthly drop in Palantir, is a psychological test that separates successful investors from the 90% who lose money. He attributes the recent price decline to profit-taking ahead of earnings, macroeconomic concerns regarding tariffs, and algorithmic trading patterns rather than any deterioration in Palantir's business fundamentals. Tom emphasizes that while the stock has dropped from approximately $171 to $150, its long-term trajectory remains exceptionally strong, up 2,400% over the last three years.
Tom provides a market outlook where he expects increased 'bipolar' volatility as earnings approach. He advises against trading in and out of positions during these periods, suggesting that 'doing nothing' or increasing a dollar-cost average (DCA) is often the superior strategy. He cites historical examples, such as a drop in February 2025 where the stock fell from $125 to $70, as moments where high-conviction buying led to 100% returns within a year.
Mentioned Stocks
Reasoning: Tom believes the drop from $171 to $150 is a 'tempest in a teapot' caused by sentiment and not fundamentals. He points to strong metrics: a 91 growth score, 85 profitability score, and 16.3% net margins. He argues that the business is healthy with new deals and that long-term investors should use this dip to increase their positions, citing his own success buying a previous dip from $125 down to $70.