$Palantir Technologies Inc.(PLTR)$

With just over 100 customers and practically no earnings to speak for, shares of Palantir Technologies surged more than 250% in just 3 months out of the IPO gate. The erratic stock price movement fits the build of a textbook bubble stock. On one hand, Palantir is blessed by the large revenue contribution from steady multiyear government contracts which serve as a pipeline for long-term low-risk income. On the other hand, Palantir’s growth is limited by the absence of a commercial Cloud ecosystem which is the key for future share appreciation. At this early stage, as the growth opportunity is more important to investors than the company’s profitability, PLTR may be fairly valued between $28-$33.