Selling Bed Bath & Beyond After Nice Profit

(This is a reprint from analysis I did for Doug's Diary on Wednesday with the exception of an updated chart. This piece belongs here as much as it does there.)

AI darling and two-time Sarge "stock of the year" Palantir Technologies (PLTR) will release the firm's fiscal first quarter financial results after the closing bell on Monday, May 4 also known as "Star Wars Day." After a two-to-three-year run for the ages, the stock, which has struggled of late, is still up 27% over the past 12 months. However, the stock is down 24% over the past six months.

For the period to be reported, Wall Street is looking for an adjusted EPS of $0.28 on revenue of about $1.55 billion. Results like that would compare more than well to the $0.13 posted by Palantir for the year-ago comp on year-over-year revenue growth of better than 74%. That would be the 11th consecutive quarter of accelerating annual sales growth for this firm. Of the 22 sell-side analysts that I know that track PLTR, 18 have revised their earnings estimates higher since the start of the quarter, while zero have reduced their estimates. Four analysts have left their estimates unrevised.

The Chart

Readers will note that the shares of Palantir sold off from late December 2025 into mid-February 2026. Palantir then developed a double-bottom pattern of bullish reversal that ran from the start of 2026 into the present with a $162 pivot. That pivot just happens to appear at the peak of what became a very small double-top pattern of bearish reversal. This pattern formed in the middle of that double top.

The stock is battling to try to retake both its 21-day EMA and 50-day SMA. Recapturing both of these lines would help to get both swing traders and portfolio managers on the same page and force them to increase long-side exposure. It appears on Friday that PLTR has indeed taken back that 21-day line and is flirting with the 50-day line as well. One key item to watch would be the 200-day SMA, which has proven to be stiff resistance as the already mentioned double top developed.

Looking at the indicators, relative strength is almost perfectly neutral but is improving. The daily MACD is struggling as well. Within that indicator, the histogram of the nine-day EMA is resting just barely in positive territory, while the 12-day EMA and the 26-day EMA are both running below the zero-bound with the black line trying to overtake the gold line. While the technical pattern and set-up appear to be less than all-out bullish to me, I remain long the stock, but I have taken a little something off (in the Sarge-folio, not in this portfolio) ahead of earnings. My current target price is $194.

Upcoming Portfolio Earnings

-Palantir Technologies after the closing bell, Monday, May 4 (Star Wars Day)

-Ocular Therapeutix (OCUL) ahead of the opening bell, Thursday, May 5.

-Snap (SNAP) after the closing bell, Friday, May 6.

Thursday's Intention vs Thursday's Actual Trade

Intention: Sell (write) one (SOFI) August 21 $20 call for about $1.10

Actual Trade: Sold one SOFI August 21 $20 call for $1.02

Friday's Intentions

I'm intending to sell on strength on Friday and buy on weakness. That's trading 101.

-Sell 100 shares of (BBBY) at or close to the last sale of $5.47 closing the position (up 10% on Friday)

-Buy 10 shares of (VELO) at or close to the last sale of $13.42. (down 4% on Friday)

Current Positions

Long 100 shares of BBBY at $5.05. Last sale: $5.47.

Long 50 shares of (EVLV) at $6.0898. Last sale: $7.25.

Long 25 shares of (MBLY) at $8.92. Last sale: $8.65.

Long 150 shares of OCUL at $8.305. Last sale: $9.44.

Short one OCUL $12 June 19 call at $0.65, Last sale: $0.53.

Long 125 shares of (ONDS) at $9.4749. Last sale: $9.84.

Short one ONDS $13 June 19 call at $0.84. Last sale: $0.47.

Long 10 shares of (PL) at $37.18. Last sale: $35.53.

Long 10 shares of PLTR at $141.29. Last sale: $143.78.

Long 10 shares of (RKLB) at $65.173. Last sale: $80.37.

Long 125 shares of (SIDU) at $2.725. Last sale: $3.31.

Long 100 shares of SNAP at $5.9034. Last sale: $6.19.

Short one SNAP $7 June 19 call at $0.45, Last sale: $0.41.

Long 175 shares of SOFI at $15.9573. Last sale: $16.17.

Short one SOFI August 21 $20 call at $1.02. Last sale: $1.01.

Long 40 shares of VELO at $10.93. Last sale: $13.42.

Cash: $389.54

Portfolio Value: $10,931.49, +9.3% from inception on March 24.

At the time of publication, Guilfoyle was long BBBY, EVLV, MBLY, OCUL, ONDS, PL, PLTR, RKLB, SIDU, SNAP, SOFI and VELO.