Palantir Technologies and Applovin have been making headlines in the market recently, with both companies experiencing significant growth and success. However, according to CNBC’s Jim Cramer, this “can’t-lose” market may be more dangerous than it appears.
Palantir Technologies, a data analytics company founded by billionaire Peter Thiel, has seen its stock price soar since going public in September 2020. The company’s software is used by government agencies and large corporations to analyze and interpret complex data sets, making it a valuable tool in today’s data-driven world.
Applovin, on the other hand, is a mobile advertising platform that helps app developers monetize their products. The company went public in April 2021 and has since seen its stock price rise steadily.
Both companies have been touted as “can’t-lose” investments by many analysts and investors, with some predicting even further growth in the future. However, Cramer warns that this kind of market sentiment can be dangerous.
According to Cramer, when a stock is labeled as a “can’t-lose” investment, it can lead to irrational exuberance and a lack of proper due diligence. Investors may become overly confident in the stock’s prospects and ignore potential risks or flaws in the company’s business model.
Cramer also points out that both Palantir and Applovin are trading at high valuations, which may not be sustainable in the long run. If the companies fail to meet investors’ high expectations, their stock prices could plummet, leading to significant losses for shareholders.
While Palantir and Applovin may indeed have strong growth potential, investors should approach these stocks with caution and conduct thorough research before making any investment decisions. Blindly following the crowd and buying into the hype of a “can’t-lose” market can be a recipe for disaster.
In conclusion, while Palantir Technologies and Applovin may be exciting companies with promising futures, investors should be wary of the dangers of a “can’t-lose” market. It’s important to approach investing with a level head and a critical eye, rather than simply following the crowd.