The stock market rally has been hit by a massive shock. Several concerns have come together at the same time to create a big selloff. However, the markets may be fearful, but as long as companies can continue to grow their earnings, their share price will recover over time.
Tech companies may face increasing skepticism amid this latest market selloff. But even high-flying tech companies are high-flying for a reason. That’s because they’re capable of massively growing their earnings, even right now.
That includes big data giant
Palantir Technologies (PLTR). Shares surged following an earnings beat, and as the company raised its full-year guidance.
Palantir has seen earnings surge 377% over the past year. Revenues are up over 27%. In a potentially slowing economy, those are fantastic numbers, and will likely keep the share price trending higher.
Plus, Palantir has $4 billion in cash on its balance sheet and less than $300 million in cash. They’re a tech company unlikely to face any danger from changes in the credit market or interest rates anytime soon.
Action to take: Investors may want to buy a small stake now, and use any future pullback to add to that position.
For traders, the December $34 calls, last trading for about $1.65, could see high double-digit returns or better in the months ahead on a further gain in shares.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.