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Recently, Palantir has been sold, some investors may feel nervous about having shares.
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Alphabets are a variety of technology companies with units covering cloud services, advertising and AI markets.
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10 shares we like more than alphabet ›
The stock market volatility can be nervous. Worse, it is usually clear that investors usually think that they later regret it.
So, given the latest volatility of artificial intelligence (Ai) sector, now is the right time to take a closer look at two important names in space and ask: Now is time to sell time Palantir technology (Nasdaq: bride) and buy Alphabet (Nasdaq: goog) (Nasdaq: googl)?
First, let’s look at Palantir soon. August 4 After publishing a great quarterly report, the shares experienced a sudden retreat with more than 16% decreasing (at the time of this writing).
As always with Palantir, there is a concern about the high value of shares-it exercises eye-catching prices and sales (P/S) ratio, which is greater than 115x. However, the big cause of the downturn seems to be a short seller’s report. In this report, short sellers gave $ 40 at Palantir, about a quarter of the ITS Price from this writing;
Needless to say this is a bomb report stating that the Palantir business model is is overestimated; However, there is one key fact that investors should know: the report source is not neutral. The Citron Research organization, which has released the report, has a short position Palantir, which means that it has a price decline in the price of Palantir.
This does not mean that their arguments are not valid, but it is worth noting.
Now let’s turn to the alphabet. While Palantir stocks decreased late, the alphabet shares have steadily improved. Since this writing, the shares have increased by 8%in the last month, while Palantir shares have only increased by 3%.
So how did the alphabet avoid torpedoes, which was sanking Palantir shares and reduced many other high -flying AI shares? I creep this up to the business model of various alphabet. Naturally, the alphabet has a lot of AI ecosystems. His cloud service section is very leverage to ai costs; It sells smart devices fed ai; And he has his own AI -oriented section called Google Deepmind.
Still the alphabet also has the world The largest The digital advertising business (Google Search) earns about $ 200 billion annual income. In addition, its YouTube business earns another $ 40 billion a year. In other words, the alphabet is not all or nothing aim.