Palantir hits 52 week low.

Palantir has not stopped growing its earnings and revenue, making now an opportune time to initiate a position near its 52-week low. An effective strategy for a long-term position is to scale in across three buying increments.

Here is the structured breakdown of my investment and selling methodology:

1. Initiating a Long-Term Position

• Research & Setup: I begin by reviewing the company's fundamentals, then identify key support and resistance levels on the chart.
• First Buy (Smallest Position): My initial entry is my smallest, made with the expectation that the stock may drop another 7%.
• Second Buy (Larger Position): If it drops 7%, I buy my second position, which includes more shares than the first.
• Third Buy (Largest Position): My final, largest buy occurs at about 7% below my second purchase.

2. Patience and Flexibility

• Missing the Third Buy: Occasionally, the stock rallies right after my first buy. However, by being patient, I generally get the opportunity to buy a second position. Sometimes, I only get two positions before the stock goes up, and I never get to execute the third.
• Proven Track Record: This type of investing and selling has served me well for a number of years. It is designed for longer-term investors rather than those seeking quick profits.

3. Profit-Taking Strategy

• Initial Profit Target: My rule for selling is to take profits once the stock reaches 21% from my cost basis. Reaching this goal can take months, a year, or even longer.
• Scaling Out: After hitting a 21% profit, I continue selling at every additional 7% increase.
• House Money: I own a good number of stocks where I have recouped all my invested cash plus generated additional profits.
• Buying the Dip: If the stock continues to meet my criteria, I will occasionally buy some shares back when it drops 7% from my last sell.

Record Financial Performance & Expanding Margins Palantir has shattered enterprise software records. It posted an 85% year-over-year revenue increase in its latest quarter, alongside a Rule of 40 score of 145. Total contract values are surging as the company aggressively raises its full-year revenue guidance to roughly \(\$7.66\) billion. With net margins exceeding 40% and accelerating EPS, Palantir is translating massive AI demand into actual bottom-line growth.

Military Replenishment and Defense Modernization The U.S. military is in the midst of a massive "replenishment" and modernization cycle, directly benefiting Palantir's core platforms like Gotham, Foundry, and the Maven AI targeting system.

• The \(\$10\) Billion Army Deal: The U.S. Army consolidated 75 contracts into a 10-year enterprise agreement worth up to \(\$10\) billion, streamlining procurement for Palantir's AI and data integration services.
• Project Maven Adoption: The Pentagon's Project Maven—which uses Palantir’s AI for automated weapons targeting and intelligence—has been made an official program of record with contract ceilings raised to more than \(\$1.3\) billion.
• Navy Submarine Supply Chain: The Navy awarded a \(\$448\) million contract to Palantir to manage and accelerate nuclear submarine supply chains and maintenance, saving an estimated 20,000 man-hours.

Buying the Dip Palantir shares have experienced a sharp, ~35%+ pullback from their previous 52-week highs. This recent dip puts the stock near its 52-week low, trading around \(\$112-\$122\). The decline is largely attributed to broader market rotation away from AI momentum stocks and short-term tech-sector valuation pressures, providing a potentially attractive entry point for long-term investors