Picking Up More Shares of This AI Holding After Selloff

Symbol	Transaction Type	# Shares Traded	Recent Price $	Shares Owned After Trade	% Portfolio
PLTR	Buy	180	$135.50	1,565	3.6%

After you receive this alert, the Pro Portfolio will buy 180 shares of Palantir (PLTR) at or near $135.50. Following the trade, the Portfolio will own 1,565 PLTR shares, roughly 3.6% of its assets.

Following the post-earnings selloff in Palantir shares, which, in our view, did not accurately assess what is going on at the company and its business, we are scooping up some additional shares for the Pro Portfolio.

With Wednesday's climb pushing the market into a deeper oversold condition and the S&P 500’s RSI now at 73.65 as I write this, and the Nasdaq Composite’s at 75.98, we are not taking as large a bite of PLTR shares as we might in a more neutral market condition. We are leaving some room in case developments arise that foster a market pullback, and that could weigh on PLTR shares along the way.

There are three reasons for why we’re not waiting for such an event.

First, PLTR shares are down 10% or more post-earnings.

Second, we are reading that the U.S. Army is creating a “Right to Integrate Hackathon” that aims to make U.S. weapons systems communicate more seamlessly and integrate artificial intelligence. Let’s remember that, a few weeks back, the Pentagon named Palantir’s Maven AI system an official program of record sharing the system would provide “the latest tools necessary to detect, deter, and dominate our adversaries in all domains.”

That suggests an enviable position as the U.S. Army’s first phase of this hackathon effort focuses on air defense systems, drones and missiles, with more than 50 platforms expected to be involved. Other participants include Lockheed Martin (LMT) , Northrop Grumman (NOC) , RTX (RTX) , Boeing (BA) and General Dynamics (GD) , alongside L3Harris (LHX) . Our thinking is that this could lead to a combination of new customers for Palantir and deeper relationships with others.

Third, while we kept our $220 price target and One rating intact, some are upgrading their rating on the shares, like Argus, while others are lifting their price targets past ours. Argus upgraded PLTR shares to Buy from Hold with a $190 target, while Citi reset its price target at $225, as did Rosenblatt.

More Pro Portfolio

(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to toggle the chart to sort by Purchase Date.)

At the time of publication, TheStreet Pro Portfolio was long PLTR shares.