Charting Huge Gains in Palantir, SoFi and Spotify
When the Market Gods smile upon you, accept their gifts with humility.
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We’ve been very lucky lately.
You’ll notice that I didn’t say, "we’ve been good." Basically, we’ve been doing what we always do, and the market finally decided to cooperate in a big way.
This rising-tide market is lifting most ships, and creating a tsunami of demand for the most favored names. We just happened to be on board when the tide rolled in.
As of Wednesday afternoon:
Palantir Technologies PLTR, a Colorado-based software analytics company, has gained nearly 70% since we first recommended the stock on September 17 (green arrow). There are many reasons to own this stock, but Palantir co-founder and CEO Alex Karp’s appearance on "Real Time With Bill Maher" ultimately convinced me that this is a special company.
Volume has been heavy (shaded yellow) since the company reported earnings on November 4.
I wish I’d bought Palantir sooner, like Sarge, but better late than never. Palantir creates software that makes companies more efficient, so I’ll try to be more efficient in the future.
San Francisco-based fintech provider SoFi Technologies SOFI has gained 72% since we first recommended it on August 30 (green arrow). SoFi’s 50-day moving average (blue) crossed above its 200-day moving average (red) on October 11, and SoFi has been so fine ever since.
SoFi’s revenues have increased by at least 20% for 17 consecutive quarters.
Streaming music service Spotify Technology SPOT has gained over 46% since we recommended the stock on June 6 (green arrow). Spotify is up by over 11% today on heavy volume, despite missing earnings and revenue.
Analysts chose to accentuate the positive, focusing on the Swedish company’s expanding margins. Spotify has now gained 148% year to date.
One analyst seems perturbed by Spotify’s skyrocketing stock price. “Valuation has to matter at some point,” said David Trainer of New Constructs. He’s not wrong, but apparently, we haven ‘t reached that point just yet.
I’m acknowledging these gains while also acknowledging that I’m not doing anything special. I’ve seen too many traders grow overconfident after experiencing a measure of success, and it almost never ends well.
If you’re killing it right now, understand that it’s not because you’ve suddenly transformed into a market wizard. It’s because the Market Gods have smiled upon you. Accept these gifts with humility, and the Market Gods might just allow you to keep your profits when the market makes its inevitable turn.
