Palantir After the Reset: Why I Started Buying a Stock That Is Still Expensive

I bought Palantir (PLTR) on June 29th. One percent, in the growth IRA model portfolio, at a price that would have looked reckless to me a year ago and looks merely uncomfortable now. The stock is down roughly 35% from its 52-week high of $207.52, and it is still expensive. A 35% haircut sounds like a sale. It is not, at least not yet, and the multiple that is left is exactly why I am staging in instead of buying all at once. That gap between a great company and a fair price is what I want to walk you through. Whether this is a good business is almost insulting to ask after the quarter Palantir just had. The real question is whether you can underwrite a price like this with arithmetic instead of faith. I think you can, barely, if you size it like the high-variance position it is. So let's get right to it.