Palantir delivered strong earnings, and the aftermarket trading we’re seeing is likely driven by two factors: momentum players and a short squeeze. The company’s future looks very promising, but sooner or later, some negatives about this stock may come into play.
First, the stock has had an impressive run this year. However, what concerns me most is the 2.28 billion shares outstanding. The float is simply too large for my liking. I’m taking money off the table. While the outlook remains positive, the high share count and the recent run-up make me cautious. Cash in my pocket is better than risking a pullback, even if the stock moves higher.