Asserting that Palantir Technologies Inc. (PLTR) had delivered “fantastic” first-quarter results earlier this month, veteran investor Kevin Simpson noted on Friday that he had acquired shares of the very expensive tech name.
Simpson, the founder and Chief Investment Officer of Capital Wealth, made the statements on CNBC.
Simpson Is Thrilled With PLTR’s Q1 Performance
The revenue generated by PLTR’s commercial business surged 70% last quarter versus the same period a year earlier, he noted.
Palantir is “not just reliant on government contracts (anymore), which… were up handsomely in the first quarter,” Simpson added.
Simpson’s Additional Comments on Palantir Technologies Inc. (PLTR)
Addressing PLTR’s extremely high valuation, the investor said PLTR “certainly has to grow into that multiple.” He added that the shares are “a little bit more volatile” than names that he usually owns.
Simpson also noted that he “can write covered calls against” Palantir Technologies Inc. (PLTR) “and bring in massive premiums.”
The Recent Price Action of PLTR
In the last month, the shares have climbed 27%, but they are flat in the last three months.
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This article is originally published at Insider Monkey.
