Did You Invest In This?It Fell 10% Overnight...

Markets have been pushing higher lately 📈— but when prices go up too quickly, stocks with crazy valuations are the first to crack.

Just look at PLTR (Palantir).

During our most recent Invest with Pete Live Webinar, someone asked me about it during the Q&A. My answer was simple:

✅ Promising business.
❌ But… valuation? Nuts.

Even after falling -10% yesterday, PLTR is still trading at over 500x PE 😳

As a long-term investor, I always say:

Sure, I’m happy to pay a premium for a good business — but this? It’s a bit too rich for me (pun intended 😅).

⚖️ Risk vs. Reward: What Matters Now

• Timing matters: Strong momentum and institutional demand are real, but any miss on future earnings or contracts could hurt — hard.

• Valuation vs. growth trade‑off: Palantir is bullishly priced. If its AI and government revenue growth continues, it may hold value. But expectations must be met — and then some.

• Crowded trade: With PLTR added to key indexes (like Russell), more institutional inflows follow—but that also sets stage for sharp reversals if sentiment shifts

That said, if you’ve already made gains on PLTR, congrats! But don’t forget to take profits. You don’t want to be left holding the bag when the hype fades 📉

💬 What I Told You on Live Webinar

We highlighted PLTR’s potential impact in defense and AI, but I stressed it was not my core trade—valuations are just too rich right now. Better opportunities lay elsewhere.

It’s a classic investor trap: price can afford extreme optimism for a while, but fundamentals eventually catch up. It’s okay to ride good companies—but never at any price.

📺 Replay Now Available – Watch the Live Webinar

If you missed the session, I went deep into:

• The 12-day war and why it didn’t crash markets

• The “obvious trade” that failed

• And… one high-conviction idea I think could be a banger 🔥

👉 Watch the replay here (for a limited time):
https://investwithpete.teachable.com/courses/smg/lectures/62064209

Let’s keep sharpening our edge together.

Meanwhile, do check this out for latest news on AI development to be an informed investor:

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Happy Hunting!

Pete
Invest with Pete

🚨‼️ By the way, I’ll never PM anyone on telegram or any other social media platforms. If you receive any “Pete” messaging you, these are scammers impersonating me. Pls beware!

The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing.