When picking a stock to hold onto for the long-term, how much weight do you put behind who's in charge of the company?
From Tesla's (TSLA) Elon Musk to Apple's (AAPL) Tim Cook, many on Wall Street have found themselves putting their money behind visionary leaders, leading the path forward with revolutionary products.
However, there remains at least one sleeper agent in the world of big tech.
Related: Why Palantir stock is a 'generational' play
In this sneak peek from TheStreet Pro's recent live call, veteran Wall Street trader Stephen 'Sarge' Guilfoyle explains why he's putting his money behind Palantir (PLTR) and CEO Alex Karp.
Catch more from Sarge plus commentary from Wall Street veterans Carley Garner and Doug Kass here.
Transcript:
Stephen Guilfoyle: I just fell for the cult of personality or something. But I listened to Alex Karp. And this guy is like Satya Nadella. When you hear him talk, you say, holy moly, I could never be that smart. I could never be half that smart. He's just one of those guys. When you hear him speak, you believe him. And when he tells you he doesn't have competitors that can keep up, you say, wow, he has the force. This guy can't be caught. They can't catch this guy. Now, maybe they will catch this guy, and there will be some profit taking.
But I got the stocks under 10 portfolio into this thing around $6. When that product went away and I was able to buy it for myself, I got in around $16. Now I have a $48 target price on the stock, and it's closing in on that target price. This thing has been a great trade, but when the AI trade does get whacked, at some point, it will get whacked with it, because it needs to. It does not yet have-- even though it's growing by leaps and bounds in terms of customers, it does not have the fundamentals yet to support its valuation.
I think it will. I think the margins, eventually, will be incredible for this thing, because what do they do? They use big data to spy on people and things. Well, I don't like to be spied on, but if somebody's going to spy on me, I want a piece of the action. So basically, that's really how I think of Palantir. If you can't beat them, join them.
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