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You can invest “in” AI — finding companies that are winning the “dash for cash” because they built their businesses around the revolutionary technology.
And you can invest “with” AI — using that tech to find the “right stocks” at the right price at the exact right time.
And thanks to our own AI-enhanced analytics, TradeSmith is one of the few companies that can help you do both.
And we’re going to help you do both here today.
With a stock.
And with a strategy.
Investing in AI StocksLet’s start with the stock.
A company called Palantir Technologies Inc. (PLTR).
Palantir is a Big Data analytics company. And its corporate tagline “AI-powered operations, for every decision” — says it all.
For example, Palantir’s technology was deployed at the Agua Nueva Water Reclamation Site in Arizona to provide better insight into the plant’s operations. Situated in the Sonoran Desert — one of the hottest deserts in North America — the plant literally delivers “new water” (Agua Nueva) to that arid community.
And Palantir delivered, including:
- A 20% increase in power savings.
- A drop in operational fines.
- And a hefty reduction in greenhouse gas emissions.
And on Monday, Palantir’s shares jumped more than 4% after a price target upgrade from BofA Securities analyst Mariana Perez Mora.
In her research note to clients, Perez Mora characterized Palantir as a “pick-and-shovel” player in the AI arena.
“Most of the corporations eager to use generative AI have compliance, regulatory, ethical, legal, privacy rights, data security, and accountability/oversight requirements,” Perez Mora wrote. “From its experience working with the government and highly regulated industries, [Palantir] has already developed and implemented the architectural design that supports generative AI in a compliant and private world.”
She upgraded her price target from $13 to $18 for PLTR.
The stock is trading above $16 this week — meaning there’s 12% in upside if it hits her target.
And, with a longer-term outlook — as a company that’s already monetizing AI — there could be bigger gains.
But, before racing out to buy Palantir, remember that I said successful investing means you need to invest with AI to find the best ways to invest in AI — and to dodge mistakes.
We can do that with our intelligent-investing system — an algorithm we’ve nicknamed An-E.
Palantir Meets An-EImagine two scenarios.
In the first, you look at a stock and know, with a high degree of certainty, that it’ll be 15% higher a month from now.
In the second, you look at a different stock and know that it’s going to take a 15% haircut sometime in the next month.
You’d buy the first stock, knowing a profit is headed your way.
And you’d avoid the second, feeling sanguine having evaded a painful-and-costly loss.
Imagine no longer.
Both those opportunities are here.
With incredible computing power and AI at our fingertips, the TradeSmith team embarked on the most important research project in our company’s history… one designed to ramp up your gains on stocks — while slashing the potential for risk and mistakes.
We call this incredible system An-E.
And running Palantir through An-E, we came away with a fascinating discovery.
While Wall Street is impressed with Palantir, An-E is not.
At least, not over the next month — where our tools don’t see the upside:
PLTR may be on a run that sent the stock price too high and too fast, as An-E sees the stock trading at $14.55 by July 11.
Instead of the 12% upside we talked about earlier, An-E sees a 7% drop (from the time it made its prediction at $15.65 per share).
I grant you, Palantir could be a good investment for someone with a long-term outlook.
But long-term time frames also connote uncertainty. That’s the power we bring. With a short-term outlook, this can be a signal that now is not the time to invest in Palantir and can help save you from making an emotionally based investing decision.
The classic trap most retail investors fall into is buying high and selling low after they see something like Palantir climb over 4% in a day and “chase” a stock because they fear missing out on further gains.
Then, the stock has a bit of a pullback and retail investors panic sell and lose money.
With An-E, you’re able to see these projected pullbacks and wait for a potentially more opportune time to invest.