Palantir (PLTR) is a widely followed software infrastructure stock that investors added to ahead of its quarterly results. The stock initially rallied close to $26 before ending last week at $20.60. Why is the stock on sale?
Palantir still has poor valuations at a P/E GAAP of over 170 times, when the sector median is 29.6 times. More worrying is the executive stock-based compensation, which hurts its shareholders. Its revenue growth of 20% Y/Y is not high enough to justify the lofty compensation to the CEO and the executive team.
Wait for PLTR stock to fall in the high teens before betting on a rebound.
In the online dating sector, Match (MTCH) fell by around 10% before attracting speculators. Though the downtrend will continue, traders may bet on the growth in the Hinge app offsetting the anemic revenue growth of 9% Y/Y to $860 million. Tinder may increase growth rates if the structural redesign works out.
Roblox (RBLX) is a gaming stock that investors should consider. Analysts at MoffettNathanson upgraded its rating to Neutral from Sell. It issued a $26 price target.
Since consumers are cutting back sharply on gaming spending levels, Roblox’s free-to-play will build its user base. When the economy improves and inflation slows, parents will contribute to their kid’s spending on the platform.
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