Alex Karp May Look Like A ๐Ÿคก, But He Is Actually Just Dumb: How To Know When PLTR Will ๐Ÿš€๐Ÿš€๐Ÿš€๐Ÿ˜Ž And When To Buy In. via /r/wallstreetbets #stocks #wallstreetbets #investing


Alex Karp May Look Like A ๐Ÿคก, But He Is Actually Just Dumb: How To Know When PLTR Will ๐Ÿš€๐Ÿš€๐Ÿš€๐Ÿ˜Ž And When To Buy In.

Alex Karp shit the bed. There is no denying it and no way to sugar coat that truth. Anyone who believed in the larger mission of Palantir or the future of AI got burned badly by the clown car of monkeys that are disguised as PLTR executives.

Karp had an army of loyal investors just like Elon Musk and Tesla. That is more than enough for any CEO to patiently build an amazing company and transform the future.

Instead of doing that, Karp voted to give himself 100% of revenue as a bonus and dumped that steaming pile of dilution all over retail supporters who were holding the stock. Karp has all the voting rights, so of course he voted to give all the PLTR growth to himself.

No one trusts the executive team at this point, and bagholders wonโ€™t see stock price appreciation until PLTR leadership resigns or does something drastic.ย  Why should anyone hold this stock long term when insiders dump it at the first chance they get?ย 

The only thing Karp can do now, short of resignation, is show investors that he actually likes the company โ€“ and the stock โ€“ by buying a few shares. Karp could take $200,000,000 of the $500,000,000 he made through dilution and buy the dip on his own company rather than wait to be issued shares for free.

Karp has all the voting power, so of course he can always just vote himself infinity shares. This is why the PLTR executives are a clown car of retarded monkeys when it comes to building the future.ย If anyone at that company had one ounce of foresight, they would realize that looting the shareholders is a losing strategy long term. Karp may have won round 1, but shareholders will not be lured in so easily in future iterations of the bagholder game.

If Karp bought the dip at these high prices, it would show current bagholders that there is a floor to the share price and, at the very least, that Karp is sharing the pain alongside his investors.ย 

In fact, this is the exact strategy Elon Musk used with Tesla. He didnโ€™t dump shares the moment his options vested. Elon took out loans to exercise his options and held those shares for years. Elon waited until every retail investor who believed in the company during the tough times had 12 months to cash out at 10X their investment before he took profits.

The fact that Elon Musk was willing to share the pain along side the retail shareholders meant that he really did believe in the long term future of his company and it wasn’t just a get-rich swindle. Yes, it sucked to see Tesla dip on good news, but holding was easy because I knew that Elon lost more of his wealth as a percent than me every time Tesla stock crashed.

Just be real: Karp doesnโ€™t need $500,000,000 cash on top of his annual cash salary of $3,000,000 on top of his insane share compensation. He is just a greedy ๐Ÿคก.

Other than an extraordinary move like the one I outlined above, there is nothing that will really restore investor confidence. As things stand, Karp said he would not stop diluting at a rate of at least 10% a yearโ€ฆthat means PLTR’s 35% growth ends up being 25% growth for shareholders after Karp takes his cut.ย 

I totally believe he will invent another reason to vote himself 100% of revenue as well.ย That means you are getting less than half of the CAGR that is currently offered by GOOG: a company that is also in the AI game, is already massively profitable, and has an executive team that has proven they can grow wealthy without burning their shareholders.

So, how do I make money off of this dumpster fire of a company known as Palantir? Easy: wait until PLTR hits $2/share. At this point, Karp will have to stop the dilution or risk getting delisted. Once Karp makes a u-turn, then PLTR will be investable.

TL;DR

If AI actually worked, PLTR would have shorted itself.

P.S.

I made over 100% on this stock by buying at $9/share, selling a few covered calls, and cashing out at $18/share when Karp said on CNBC that he would not stop the dilution and the share price would have to go up in spite of the additional shares. I am writing this DD for all the current bagholders who think that a company that endlessly dilutes their investors is a long term opportunity.

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Submitted February 18, 2022 at 03:25PM by GME_200K
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