Palantir had been selling off for a while, and negativity was rising about the company's prospects.
There are several articles right now citing Palantir's heavy government revenue concentration, stating that's a negative thing.
Why is that negative?
Most of these pundits do not understand how government purchasing REALLY works.
Agencies can use what's called a "sole source justification" to exclusively purchase products from the same vendor, year after year.
If you look at the Palantir situation a little differently, it's actually a positive thing they have heavy government concentration.
Because it's a fairly solid base, and any additional expansion that's successful will only yield greater earnings, and consequently, stock appreciation.
This is why today, after gapping down a full dollar, Palantir rocketed higher around two dollars, because institutions obviously feel the same way.
And as an example of institutional interest, we know Christine Wood from ARK funds is bullish on Palantir.
We must remember that regardless of what the pundits say, the supply/demand nature of the market is what drives our returns.
Is Tesla over-valued?
Yup, but if you ignored that advice and invested based on supply/demand, you would have made several hundred % on your money.
All the CNBC, Forbes, etc. in the world doesn't make a difference if demand is on your side as a Bull, or if supply is on your side as a Bear.