3-Stock Lunch: PLTR, HIMS & GPS
Time for today’s 3 stock launch. Kelly, you remember this segment, 333? Yes, 33. We have. And we talk about the stocks here with our trades. Courtney Garcia, senior wealth advisor at Pain Capital Management, CNBC contributor. Courtney, welcome. Let’s talk first about Palantir falling on weak guidance. Shares were actually up 8% during yesterday’s session. Your trade on Palantir. Yeah. And first of all, Kelly, welcome back. Congratulations on #5. It’s, it’s great to see you here to get to Palantir. I actually would stay on the sidelines here. This is something that I would really be cautious of. They did come in with some really strong earnings, but the big problem with them is where they are going forward and is that momentum slowing. So even though you saw corporate revenue growth is up 40%, that’s down from 70% the previous quarter. This is a company that trades at a premium to its peers. You’re also seeing things like the US government and even European government contracts are slowing. So though they have done very well, the bar is set very high. Shares have tripled over the last year with excitement over artificial intelligence. But just with where valuations are in a slowing growth momentum. I would actually stay on the sidelines here on the sidelines on on Palantir quite a year it’s had to, but I guess that’s point Courtney, what about HIMS and hers? It’s off session highs. They surged after that second quarter revenue guidance tapped estimates. It was all the chat this morning. What would you do with this stock? This one I actually think is an interesting opportunity. Again, they also had really positive earnings that just came out, and they’re showing 46% revenue growth year over year. And I think just looking at their revenue growth and their margin expansion is very impressive, and it’s why you can look to them as an opportunity. They’ve really shown a good brand loyalty here. And I think 1 interesting thing to look at is they’ve also stated that they’re going to have some GLP One products, hopefully later this year. Now take that with a grain of salt because some of that is probably already in the forward guidance. There may be some issues with the availability of those, but I would make sure you keep your ears on that. Could that could be a further positive catalyst for them as well? Take the GOP ones with a grain of salt and and chase it with water. All right. Finally, City upgrading gap on consumer demand and trends from from city shares are higher today by more than 1%. Your trade here on the Gap, I would stay on the sidelines here. This is a company that’s really been in transition right now. They’re having to close a lot of their less profitable stores. So think of their gaps and their banana republics as opposed to their old navies, which is where a lot of their revenue currently comes from. But that like discount retailer space of the Old Navy are seeing a lot of competition there. Just bigger picture, what’s happening in the retail space is consumers are really strapped with inflation. So you are having to choose and be very selective of where you’re spending their money. I don’t think they’ve really been able to demonstrate that their brand loyalty is enough in this kind of environment that they are going to keep that consumer there. And I think Athleta has really been their bright spot in the leisure space, but that’s really it’s less than 10% of their revenue and I don’t think it’s going to be enough to carry them through here. So I would stay on the sidelines for the time. That’s interesting In my town, the Gap store converted to an Athleta and it is much more crowded than the old Gap ever was. Courtney, makes sense. Yeah. Courtney, thanks very much. Appreciate it. Courtney Garcia.