Okay folks, so we've got lots to discuss. The market is going parabolic. You have the NASDAQ going wild as Nvidia attracts hundreds of billions of dollars on AI news. What to know? Number Two: We got to give you the latest on plays, including our Envb play, which has now gone from our original call out price at 203 last week to 698 at highs which is a 243 run and then number three for the main entree.

Today, we're going to be talking about Palantir. the tier of pallet I will break down exactly why Pltr is running like an inflamed Banshee And what you should know. This stock, of course, is one of the most popular stocks perhaps ever in the retail crowd, especially in 2021 and then one of the most hated in 2022, and now it is quickly becoming one of the most popular again. It's funny how the turntables or the table turns something like that.

I'll break down exactly why and what it is that you need to know about this and where this could go. and today's video is brought to you by zip Trader you and our Memorial Day coupon code which starts today. If you put in coupon code memorial50, you will get 50 off the one time V for membership to our step-by-step lessons, our private chat, and our very, very popular daily morning briefings. The market is heating up quite a lot right now, especially in the small cap Catalyst space.

So I think that our morning briefings are going to be very, very useful in the coming weeks, so you might want to check this out now. Okay folks, so let's go ahead and get right to work. So let's start with the market. You have the NASDAQ barreling closer and closer to all-time highs as Tech stock after Tech stock explodes.

But what is insane is what is going on with Nvda. Nvidia is trading like a 2021 meme stock and is pretty much driving the entire NASDAQ index. Today, it broke well above its own 2021 highs In fact. Nvidia short sellers lost 2.3 billion dollars in one day according to Bloomberg and that is 8.1 billion in total losses for 2023 on the stock.

I Smell What? I smell hedge fund tears. They're very Tangy And in the last 24 hours, the stock has popped up more than 25 percent. Sure, a lot of super small cap stocks will rally 25 in a day. That's not unusual cool, but at this kind of caliber at this level it is very, very unusual because it's a lot of money.

This is now a nearly trillion dollar market Cap stock. If you're a couple million dollar market, cap stock will go in up 25 in a day isn't that much relatively speaking. But if you were jumping 25 at this level at Nvidia's level, well, that's hundreds of billions of dollars. Just to quantify how much hundreds of billions of dollars is in.

Market Capital Disney for example, a company that everyone knows and grew up on and not just Americans but people around the world. Well, they are only worth 161 billion Nvidia Jumped much more than that Today you look at McDonald's market cap. 200 billion dollars Nvidia jumped more than that today as well. These jumps are just mind-blowing This is a market environment where there's tons and tons of capital available for any stock that is profiting off this new AI Trend Or people think is going to profit off this new AI Trend Here you have Nvidia Literally adding market caps, market caps worth of generationally successful companies in a single day.

So why is everyone Rush To buy the stock? Well, because they are in the middle of this Gold Rush Everyone and their mother is out to take advantage of this new AI Trend and its potential. but every company that adopts any sort of AI software needs a powerful chip to power that. Ai and investors have been looking head over fist and fist overhead to try to find the next stock that could benefit from this. However, Nvidia is one of the clearest ones and it's already showing huge proof of concept.

Nvda said it expects 11 billion dollars of sales in the three months ending. July Whereas analysts thought it was only going to have 7.2 billion. You were already starting to see a lot of companies panic and try to jump on this. AI Bandwagon.

And how do they do that? Well, They do that through insane research spending in order to research and develop new platforms that are going to deliver. AI While they need really, really good processing power and so they need the chips, and they're going to Nvidia to buy the chips, This is what one analyst said: quote: The transformational Surge in AI spending is paying off much earlier than expected Morgan Stanley analyst Joseph Moore Wrote in a note, we simply have no historical precedent for the magnitude of this step function. Nvda is running right now. So much because investors know that this AI craze is going to be around for quite a long time because it's going to deliver a ton a ton of value to the Future economy and to the economy of the medium and the short term.

For any company that can take advantage of this, any company right now that decides hey, I'm not going to do anything with AI is going to be looked at like a company in the 90s or early 2000s. Who said I'm not going to do anything with the internet and while it's hard to choose who is going to actually be the biggest winner in this, it's not hard to see that you're going to need a big processor lots of processing power in order to win at this. And so all of these people trying to compete are going where well, largely to Nvidia. And keep in mind that according to a new report from New Street research, while Nvidia already controls 95 of the market share for machine learning compatible Graphics processors right now, markets barely want to touch Intel or other competitors to Nvidia, they just want Nvidia because they are showing the proof of concept.

They have some of the best chips out there. They have the manufacturing capacity and the reliability and the reputation to deliver. And so all of a sudden you got the situation where everybody's just going to this one player who is increasingly looking like a monopoly. Orders for Nvidia's A100 and H100 AI chips are truly spectacular.

It's that a strategist at Asymmetric Advisors in Singapore Now bigger picture though. Usually what happens is that when you're heading into a bigger hype Euphoria period for the overall growth sector and the overall Tech sector and sometimes the overall Market what happens is it all starts with one big name that jumps hundreds and hundreds and hundreds of billions of dollars worth of market cap and then everybody else in the market sees that they're like wow. Okay, that one. it's already up massively.

How can we find the next one that's going to run that much that has similar characteristics and can benefit from whatever Trend that one benefited from back in 2020 and 2021. A big player like that was Tesla and then a lot of the other smaller EVS jumped massively after that and then you had the rise of the rest of growth. Tech With this one, it's like likely going to be a lot more powerful because you have all of this potential for AI that could really be segmented through every industry. So as long as markets are going risk on here and that's likely going to be a push and pull process.

but as long as markets continue going risk on, they're going to be looking for these stocks that are riding this AI Trend and trying to find the next one. And we have been seeing this more or less since January but you've never seen this much. Capital Hundreds of billions of dollars in days flow into just a few different names. namely Nvidia Nvidia Nvidia Navajo Video Okay, let's move on to the latest on plays.

Wlds was a knockout this morning. We briefed on it at about 94 cents and then it sold off into Open before bottoming and rallying up to 191. In total, it was a 103 run, briefing price to highs. Now of course, if you had timed it a bit better at or in your support at 68 or 70 cents, maybe you'd have gotten a little bit more, but it still ran more than 100 from the price that we briefed on it at.

and I'd call that a win even if it was a bit at the top of that original mini cycle. But this is a great case study to show you that the most important thing and the thing that you're going to find as well. if you're scouting out your own plays is that you just need to get two things right: the overall direction and the overall Catalyst Because if you can get those two things right, well you're gonna have a lot of wiggle room. And the Catalyst on Wlds was extremely right You at this company that was trading at about 10 million bucks now at 25 million that comes out with this press release this morning that says oh, we are going to be making our Mudra band for the Apple watch available on pre-order and people hear small, unknown company and Apple in the same sentence and they think oof, jackpot and then they pour in.

We've seen this time and time again small companies partnering with a big company or just doing something like in this case that's associated with the big company's product line and all of a sudden and so that is why we briefed on this stock this morning and is a great case study on how you can pair a good Catalyst with some proof of concept and an overall direction. and even if you don't get the perfect time of when you find the stock, it could still run quite a lot. Again, briefing price the highs this was over a hundred percent 103 Actually, shout out to any folks who played this guy successfully in terms of oh show. We briefed originally on OSHA at 6, 29 on Tuesday and it ran to 1208 and then it sold off.

As of yesterday, it showed a bottom and then this morning started building off that bottom. This is one of our main watches heading into tomorrow and next week. Because of this overall trend, previous history doesn't have to repeat itself, but it often tends to. so something that you want to keep in mind as you watch the stock heading into tomorrow and especially heading into early next week.

Okay, let's head over to Envb. Full context here. We originally briefed on Envb at 203 a share on the 18th because it had received a notice of allowance from the U.S Patent and Trademark office that day. it more than doubled up to 451.

It then managed to retain that momentum well into the next day, found a support level at the high twos, and then yesterday morning more than doubled up again for a total run of 243. Briefing price to highs. Pretty fun, but what is going on with the stock? Well, it's had a ton of positive patent news and Pat news. Catalysts are very, very powerful.

right now. Anyone that wakes up in the morning and sees a patent news Catalyst tends to buy the stock and then all of a sudden it goes up huge. So it's all about how early can you find it. We are continuing to watch for new patent news, catalysts, debrief on, and I'm continuing to watch Envb specifically for more and more catalysts because you've already seen two of them and it's not uncommon for a company to put out another press release focusing on a previous Catalyst when they know that previous press releases have caused the stock to go up a lot.

But anyways, folks, if you would like access to our daily morning briefings where we narrow down the catalysts and trade ideas that we believe you should have atop your radar each and every Market Open morning? Well, I will go ahead and put a link to Ziprader you down below and again. Coupon code Memorial 50 will get you 50 off the one-time fee for the program, so make sure to check this out in the next few days. Okay, now for the main entree. let's talk Palantir or as they say in France Palette or as they say in Russia da Palin vodka.

So Palantir after essentially 18 months of getting destroyed, has been running up like an inflamed Banshee from about 7 30 to 1366, which it hit during the after hours yesterday with almost all of this happening after the company reported earnings on the 8th and right now you simply have a lot of companies that got completely decimated during the growth crash coming back as markets are becoming less and less worried about fed hikes and true flation numbers are tanking and quite frankly this was one of the most popular stocks of the 2021 hype cycle in 2020 and we used to make videos all the way back in 2020 on this talk and that was one of our most popular video series. It was a incredibly popular stock and then all of a sudden when the growth crash happened, Palantir got destroyed more than most because you had a lot of retail speculators and that that didn't know anything about the company didn't have a clear plan for the stock, so on and so forth. And then all of a sudden the stock became very, very toxic and we actually made a video on this about eight months ago asking whether Palantir was a buy at 7 28 And my thought process was hey, this is not going to be recognized in this growth hating Market But it's still a very, very good long-term play. Problem was though that the media pumped out bad article after bad article after bad article on this.

So it convinced people that already didn't like the Stock's performance that hey, this company was a hypey scam. But now of course, as the stock has already doubled, what is the media saying? Motley Full of three smart reasons to buy Palantir stock, Palantir fortunes will be made even. Kathy Wood is back to buying the stock. And this of course is how the game is played.

When a stock is performing badly, the media goes and focuses on reasons why you shouldn't buy that stock, why you should sell it, why you should short it, and then when the stock is doing well and it's already run up 100 plus, what does the media do? They focus on reasons why you need to buy it. Now, Why do they do this well? Because they are servicing demand? They know that that is what people want to click on. They want to be confirmed on what the stock is already doing. But why now? Why is this happening to Palantir right now? Well, I see four reasons.

Number one, they are successfully scaling their customers. Number two, their profitability picture is improving rapidly. Number three, they have ongoing route relevancy with new catalysts coming out like once a week now, and number three, they are becoming an AI hype stock in and of themselves. Let's start with number one customers and their scaling process.

So remember, the business model of Palantir is essentially to acquire new customers and grow their exposure to these new customers by scaling them more and more into their platform. For example, if Palantir is working with a power grid company, perhaps they demo with one small section of the power grid, and then if the company likes it, they continue to scale this offer and spend more money with Palantir. The reason that this is important to know is because once the company has scaled well, all of a sudden, Palantir can generate more and more revenue from that client. Why would a company want to scale with Palantir Well, in one of these case studies, Palantir saved BP 60 of production costs.

So if using Palantir can save you sixty percent off your production costs, well, it makes no sense. Not the scale. And the more clients that Palantir can get and scale, the more moolah they're going to make. And the full.

after essentially bashing Palantir for a year and a half now is now reporting that businesses are flocking literally flocking to their platform. Palantir's customer count grew 41 year-over-year in the first quarter. that included a 50 jump in U.S commercial customers to 155 Palantir's q1 Revenue In turn, Rose by 18 year-over-year to 525 million. The gains were wide-ranging Commercial sales expanded by 15 to 236 million, while government revenue increased by 20 to 289 million.

So not only is Palantir successfully getting more and more customers 41 year over year, but they are also scaling the ones they already have. Remember, Palantir's business is to lead with losses. What they do is they get a customer to demo and that's like a marketing expense because it costs money to palantira, cost money for Palantir to demo a client, and kind of work around their infrastructure. But if the client likes Palantir's platform, which we know they do most of the time, well, they'll go and start spending more and more money with Palantir.

and then all of a sudden the whole transaction is very, very profitable. The problem though, and why Wall Street Doesn't like Palantir most of the time, is because if Palantir is onboarding a lot of clients demoing a lot of clients, well, they're going to take a lot more losses from these clients. So Wall Street's like, wait, don't try to get more clients, just try to scale the clients that you already have. The problem though, is that if you do that, you're not going to get the kind of growth that Palantir needs and wants building on that.

The second Point here is profitability. So again, because Palantir's business model is to scale in customers, but lead with losses, it means that their profitability tends to be pretty hampered. But of course, that's a short-term problem because if those customers scale well, Palantir makes a lot more money, and you're starting to see proof of concept that this is exactly what Palantir is doing and they're doing this very, very successfully. Palantir reports we were profitable again this quarter.

In the period ending March 31st, 2023, we earned a net profit of 17 million according to generally accepted accounting principles, and we now anticipate that we will remain profitable each quarter through the end of the year. In addition, for the first time in our history, we earned an operating profit. Last quarter, we generated 525 million in Revenue in the first quarter, a result that surpassed our initial guidance and yet still understates the magnitude of the opportunity in front of us. So what does this say? It says that Palantir scaling so aggressively that now they are able to consistently improve, not just Revenue, but now also increasingly profitability.

Obviously, Wall Street believes that if a stock is invested in its future, well, that's a disaster and you need to short the hell out of that stock, Because guess what, you shouldn't be invested in your future. You need to be investing in making sure that those shareholders get some big dividends. Again, if you're trying to find a stock that's going to grow, they got to be invested in their future. Now, the third reason that Palantir is running right now is because of new Catalyst Announcements New Partnerships For example, Palantir and the Ministry of Digital Transformation of Ukraine struck a reconstruction partnership this morning.

Each partnership is a new opportunity for the media to cover it and spread more awareness to the stock, which tends to drive at least in this current cycle, tends to drive more people into the stock and the price up. Now, the fourth reason and perhaps the most happiest reason for why Pltr is trading like a hype stock right now is because of the AI Trend In a year where chat GPT and AI related Trends have pushed stock after stock to new highs and pushed Nvda back above all-time highs. While any stock that is seen as an AI play will get a lot of extra capital in it, and Palantir has always been an AI play, I Mean its platforms literally segment the thousands to millions of data points and draw conclusions on how a company could improve efficiency. However, recent press releases have caused more emphasis to be placed on this as an AI stock.

Specifically, headlines like this where they're developing greater AI Partnerships with really, really well-known big retail stores and endless other numbers of Industries as well now in totality and I said this earlier this week as well I Don't think that Palantir's earnings were anything crazy I Just think that it reminded markets that hey, Palantir isn't a dying company. it's actually doing what it's set out to do and it's actually investing in itself And that has a positive result over the long term. And because markets are just simply right now in a hype cycle where they want to reward anything that has good earnings, it has been overly beat down and has any sort of AI exposure. Well, it's caused the stock to really, really run huge well.

pltr continued to run well I Could easily see this pushing into 20 or above in this cycle. The momentum just simply hasn't been this strong since 2021 and I'd be sure surprised if it pooped out now. However, if you're somebody that wouldn't want this at seven dollars, you shouldn't want this at 14, 15, 16, or 17 either if you're buying the stock either. Got to have a clear plan to trade the hype and get in and get out in the short term or you got to be someone that's like okay, I'm gonna hold this for many, many years because if you're not in one of those two camps, you're likely going to get destroyed on the stock.

And I Say this because we know so many people did neither of those things in 2020 and 2021. Lots of them wrote it all the way up some 10x in terms of gains and then all of a sudden they lost all their money because they decided to themselves that they weren't going to have any kind of plan for the stock. So folks, my thought process is you either trade it, you have a clear plan to get in and get out, or you invest for the very, very long term. At which case probably you're going to see another dip cycle to buy this at a much better value.

Anyways, that caps off today's video. Let us know what you think about this new market condition and these stocks that are running and we'll see in the next one. Also, make sure to get your 50 offset Trader U with coupon code moral 50 which will expire next week. Have a good one folks, we'll see in the next video.