Trading Post Tuesday May 5, 2026
Yesterday was a busy day, and that continued in the overnight session.
Late in the session today, the U.S. announced Operation Epic Fury is concluded, and that offensive operations against Iran have ended. Rather surprising given recent news of imminent ground operations.
The market took it in stride, barely missing a beat as the S&P 500 and NASDAQ 100 (NDX) closed at all-time highs. The NDX is at an all-time high Price to Sales ratio of 6.73 – remarkably, with traditional P/S nosebleed SaaS stocks down and out.
After the close yesterday, Palantir reported results. I discussed Palantir’s overvaluation in yesterday’s Trading Post. Palantir is not growing as fast as commercial AI adoption, and I believe this is the beginning of frontier models getting an edge in. In the intermediate to long-term I see little role for Palantir in the commercial space except as a legacy player for lazy management teams.
Shares collapsed, down $10.12 to $135.91. I continue to hold my short position, established yesterday. Below is a 1 month chart of Palantir stock – it is selling off in the after-hours a bit more as I write this.