Recently, I've continued to DCA into PLTR despite the sharp pullback, mainly because I believe the market is currently rotating away from software and AI-related names in the short term. Sentiment toward high-valuation software stocks has clearly weakened as investors move back into semiconductors, industrials, and defensive sectors. But from my experience, market themes always rotate. Strong companies with real revenue growth and strategic positioning tend to recover once sentiment stabilizes again.
What gives me confidence in PLTR is that the company is no longer just a 'story stock." Over the past few quarters, Palantir has consistently delivered strong commercial growth, improving profitability, and expanding AI adoption across both government and enterprise customers. Its Artificial Intelligence Platform (AIP) continues to gain traction as more businesses look for practical AI deployment instead of just experimental projects. In my view, PLTR is becoming one of the few software companies that can directly monetize the AI boom at scale.
Another reason I continue averaging down is because pullbacks often create the best long-term opportunities. When a stock rallies too quickly, expectations become overheated, and even good earnings may trigger profit-taking. I see the recent weakness more as a valuation reset and sentiment correction rather than a breakdown in the company's fundamentals. The market tends to overreact in both directions, and fear around software names currently feels much stronger than the actual deterioration in business performance.
Of course, I understand that PLTR remains a volatile stock and may continue facing pressure if interest rates stay elevated or if software sentiment remains weak. That's why I'm using the DCA strategy instead of trying to perfectly time the bottom. For me, gradual accumulation reduces emotional trading and allows me to build a position during periods when most investors are becoming pessimistic. Historically, some of the best rebounds happen when sentiment is at its worst.
Looking ahead, I still believe PLTR has strong potential once the market rotates back into AI software leaders again. If institutional investors regain confidence in software growth stocks, Palantir could quickly become a market favorite due to its strong narrative, improving fundamentals, and expanding AI ecosystem. While short-term volatility is unavoidable, I see the current pullback as an opportunity to position for the next potential rally rather than a reason to panic sell.
As a retail investor, I focus mainly on the US and Singapore markets, combining a mix of technical trading and long-term investing strategies. I enjoy analyzing charts, spotting patterns, and making calculated moves based on both market sentiment and fundamentals. While I'm not a professional, I treat my portfolio seriously and continue to learn and grow with each trade. If you're also navigating the markets and enjoy discussing stocks, options, or market trends, feel free to follow me. Let's learn and grow together as a community.
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| Side | Price | Realized P&L |
|---|---|---|
| Buy Open | 135.30 | +0.46% Holding |
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