Palantir just EXPLODED.. Software Super-Cycle Confirmed.

Palanteer just completely destroyed analyst expectations when they reported earnings this evening and I do believe a super cycle is coming for software generally. We do have other big software stocks reporting earnings this week especially tomorrow with Zeta Global. I've talked about Zeta Global on this channel many times before. I have well over six figures invested in this one particular company that is kind of the Palenteer equivalent, right? It's it's you know Palenteer's on one side of the coin, Zeta Global's on the other side of the coin. What is Zeta's earnings going to look like tomorrow as well? So, here in this video, we're going to do a couple of different things. First and foremost, we're going to talk about Palanteer earnings, how they just crushed it, and what's next for Palenteer. Do I like Palanteer? What What are my thoughts there? Number two, we're going to talk about Zeta Global and their earnings tomorrow and how Palenteer's earnings beat is going to translate into a similar scenario for Zeta Global. We're going to talk about other software stocks that report earnings later this week, like a data dog for an example. And I'm going to talk about this software super cycle that I think is coming. The only thing that I ask you to do is to hit the like button to help push this video out to more people, especially retail investors that need to hear it. Okay, so first and foremost, Palanteer up 11 12% here in after hours following their blowout earnings. This is also causing the IGV, which went up about 3% today, to go up another 1% in after hours. And technically speaking, from a chart perspective, it looks like you're going to have more upside for software, but we'll circle back to that later into this video. So, Palanteer absolutely destroyed their earnings. Revenue came in at 1.94 billion. The estimate was 1.81 billion. So, a fantastic beat there. EPS at 41 cents. The estimate was 35 cents. US commercial revenue came in at 764 million versus the estimate of 716 million. that is up 149% year-over-year. US commercial remaining deal value at 6.2 billion up 124% year-over-year. They issue 2026 guidance with revenue at 8.16 billion versus the estimate of 7.73 billion and operating income at 4.9 billion versus the estimate of 4.5 billion. So just across the board, Palanteer earnings were a banger. And if you guys have been a viewer of this channel for more than the, you know, a couple of weeks, you know that I am very, very bullish on software stocks. I actually think this is the biggest opportunity we're probably ever going to see in our lifetime in the stock market. The simple reason for that is look, software is going to be a massive winner from AI. I I think most logical people would agree with that. Not every software stock, but Palenteer, Zeta, Data Dog, uh, Snowflake, you know, these are going to be massive AI winners, but Wall Street has viewed basically all of software as disrupted. Okay, so that's one aspect. There's a massive disconnection between what's going to happen and what Wall Street thinks is going to happen. The other side of that coin is if we actually look at what makes a stock have a high or low PE. Just at the simplest form, what are the qualities of a high PE stock? Well, it is having a moat. It is having fast growth or faster than the S&P. It is having a high operating margin, high free cash flow, doing share buybacks, having predictable quality management, being a capital light business, right? This is why a lot of hyperscalers for a long time had really high pees because they're selling ads, they're selling software, they're doing this, they're doing that. That's not tied to building factories, let's say. What are other qualities? Well, you you're going to pay more for a company for their earnings if they are low cyclical risk, right? If they're not as sensitive to the economic cycle on top of all the other qualities, you're going to pay more for that company's earnings than a CocaCola. That's a very capital intensive business that is very cyclical to the economy. that is, you know, yes, Coke, Coca-Cola has a moat, but taste and things like that can change. But when I'm looking out there at the markets, yeah, sure, if Meta or Amazon or, you know, Microsoft or some of these hyperscalers are successful in developing high margin tools that people use, right? high margin AI tools or services like they're going to continue to command higher PES but even your hyperscalers which were the high you know some of the highest PE stocks in the stock market they do not possess the same level of quality as software you know software is not spending a 100red $200 billion to generate 30 40 50% growth you know hyperscalers they're not going to have better margins 5 years from now than they have today. Unless they are successful in a AI tool down the line, which is unpredictable. We don't know if that's going to happen. Software is in a position that holds all of these qualities. Low cyclical risk. They're doing businessto business transactions. You cannot just cancel your palenteer subscription or whatever. If the economy sucks, it just it doesn't happen. They're low capital intensive. They're very shareholder friendly. They're high margin. You get the idea. So mixing these two things together, software being some of the highest quality companies out there from a you know what makes a stock have a high PE multiple or not versus how bearish Wall Street is on software. In reality, they're going to be big winners. Mix the two together and I think a super cycle is inevitably coming for software. Again, not for all of software like Adobe. Is Adobe as high quality as Palenteer? Absolutely not. You're smoking rocks if you think that's the case. Okay. Is it possible that another company could come out and offer an Adobe like service or or product for cheaper and take market share from Adobe? Yes. Is that going to happen? I don't know. But it's not even a a a potential for some of these other software companies. So, you do want to be specific in the software stocks that you are buying. Long story short, now you do have a lot of software reporting earnings this week. Um, well, not a lot, but some of the bigger ones. Over the next couple of weeks, you're going to start getting like all of your software reporting. Tomorrow and after hours, Zeta Global reports earnings, and that's the company I really want to talk about um for a good chunk of this video. But you also have Apploven Wednesday and after hours. You have data dog Thursday pre-market. So, while we're not in the heart of software earnings, you are getting some of the more exciting ones this week. So, my favorite software company period is Zeta Global. They report earnings tomorrow and after hours. Let's get through some of the estimates that Wall Street has kind of my thoughts around this. I've I've had asked I've Let me rephrase that. I've had people ask me if I'm like taking a profit before Zeta reports earnings or what my plans are. So, I'll share all of that with you. But, Wall Street expects a positive adjusted EPS of 20 cents per share, reflecting a year-over-year increase of of roughly 43%. Revenue is projected to hit 420.6 million, which could mark a 36.4% year-over-year growth rate. Bullish analysts predict revenue closer to 443 million. Zeta has a strong narrative of execution, beating consensus estimates in 19 consecutive quarters. So Zeta Global, you're probably not going to know this, but Zeta Global has the longest streak in the entire market right now for beating and raising revenue 19 quarters in a row. If they do it tomorrow, it's going to be 20. No other company has beaten and raised revenue guidance 20 quarters in a row or 19 quarters in a I I suspect tomorrow it's going to be 20. It's impressive. It's an impressive feat. Eventually, I'm sure it'll end, but for now, I don't think that's going to be tomorrow. Now, if you look at the current PEG ratio for Zeta Global, it says here their 5-year expected PEG ratio sits at a highly attractive 0.77. Depending on where you estimate, if you think Zeta is going to have higher growth, which kind of what we should expect with 19 beat and raise quarters in a row, the PEG ratio is actually closer to like 0.5. Okay, so a PEG ratio below one generally signals that a growth stock is fundamentally undervalued relative to its future earnings growth rate, making Zeta's fast-paced expansion look relatively cheap. But here's the deal. Zeta recently formed a partnership with Palanteer, integrating Palanteer's foundaries operational data processing governance into Zeta's marketing loop. This is moving into business intelligence. So Zeta is shifting from a pure marketing software tool to a critical AI infrastructure company, allowing it to command larger enterprise IT budgets rather than just CMO marketing budgets. By linking operational data to cross channel customer ROI, Zeta reduces client churn and creates higher data processing fees. Now, Zeta really doesn't have any um customer data churn. Anyways, they have um one of the best net retention revenue rates out there or net revenue retention rates that out there period. It's it's over 120%. The only companies that are like better than Zeta, I believe, is Palenteer might be the only one with a higher net retention rate. That just basically means when people sign up for Zeta Global, they don't cancel it because what Zeta brings is the fourth largest firstparty opted in proprietary data set in the world. So the only companies that have more data are um Amazon, Meta, and I believe Apple. So Zeta Global has more data than X, right? They have more data than um any other company you can think of. What they do is they they say, "Okay, look, we have this massive data pool. We have 92% of the adult US population in our data pool." They go to Walmart or McDonald's and they say, "Look, you want to partner with us? Give us your consumer data, McDonald's consumer data. We're going to bring that into our datab bank and help you really execute advertising." Well, what Zeta Global has recently done with their partnership with Palenteer is now it's all integrated, right? Now, Zeta is integrated with Palanteer, but what Palanteer does is more of the internal aspects, right? Palanteer like helps companies restructure data. They their internal data. They help companies uh make better internal decisions, right? They kind of become the brain of company operations. Whereas Zeta is doing that becoming the brain of external customer operations that could be identifying early trends, helping their you know customers figure out where to build their next location, so on and so forth. There's a million different ways to use external business intelligence. So the partnership between Palanteer and Zeta Global works together like bread and butter, right? like cheese on a burger. Palanteer is the internal side. Zeta is the external side. I mean, and look at him here. Zeta's CEO on the left side, David Steinberg, and uh Palanteer CEO on the right side here, Alex Karp. This was a couple of days ago. Um David Steinberg posted this on his ex account. He says, "Incredible day at the Palanteer Tech Sovereignty Boot Camp. got to spend some incredible time with the man himself working on the Palanteer Zeta global partnership. Let's go with three rocket ships. So CEO Alex Karp says that this is quote just the beginning for their commercial business. He says quote while our US commercial business is on fire. We believe it is nonetheless just nent. Karp writes in a letter to shareholders following the company's second quarter results. Notably, Karp adds, "The results were achieved with a minuscule and shrinking sales headcount. Another way in which we have discarded conventional wisdom in favor of our own unique path." Now, another thing you guys really have to understand why companies like Palanteer and Zeta are going to be so successful and generally why software is going to be so successful is kind of like the real estate agent uh analogy that I use, right? if you wanted to buy my home, we could facilitate that transaction just between us. But why would we hire a real estate agent? Why would a real estate agent do it? Well, because there's a lot of risk, right? So, you don't need a real estate agent to buy or sell a home in every state in America. There's no legal requirement anywhere for that. But 92% of homes are bought and sold with real estate agents because there's a lot of risk there. Well, Palanteer CEO Alex Karp recently went on CNBC famously in the last couple of weeks and said, "Look, companies don't trust OpenAI and Enthropic. They love the capabilities of their products, but they're stealing their alpha. They're literally voluntarily giving OpenAI and Enthropic their trade secrets when they partner directly with them." So one of the reasons why software is going to be so successful is because AI is going to make the software tools better and it's really the only safe way to access it. So while software stocks have been discarded as this loser from AI, it's actually the bridge to enterprise AI adoption. The other part you guys have to understand is right now we're not in the S-curve for enterprise AI adoption. We're just not. It's too early. This is why companies like Snowflake and Data Dog are and data bricks are seeing so much demand right now. It's because companies they have a lot of unstructured data. They have text data next to picture data next to video data next to MP4 and MP3 data all over the place just sitting in in data silos. Well, it takes time to go through that data so AI can actually use it. You can't just let an AI go crazy with all this sporadic data. it's it's it's not going to do anything to help you. It's going to hurt you more than it helps you. You have to restructure that data. And that's why the the actual S-curve the the inflection point for enterprise AI adoption. Why Alex Karp says their commercial business is in that nent stages is because it's true, right? This is not the enterprise inflection moment for AI adoption. You you haven't even started the Scurve yet. The S-curve really doesn't even begin until like late next year. By late next year, there's going to be enough companies that have restructured their data that are starting to get serious about AI, but it's really through 2028, through 2030 when you really see these software stocks explode. Now, markets price things in ahead of time. So, that's why I think next year is going to be a really good year. Wall Street's going to price it in before the S-curve ramp begins. So, next year is going to be a good year. I believe for software but it's really 2028 through 2030 when some of these stocks you know 5 10 20x from here and this is why I think we are entering a super cycle for software stocks it's not one thing it's like four massive critical details that Wall Street is just completely missing or one software it's going to be some of the biggest winners from AI number two software stocks are kind of the last frontier of companies that deserve a 20 30 40 50 times forward PE multiple which they're not even close to that today. And then to state the obvious again, Wall Street, they're super bearish on software. The reality is software is going to be some of the biggest winners from AI. There's a massive disconnect there and that means a lot of opportunity and at the end of the day, a lot of gains for you. And then again, last but not least, this is not something that happens all at once, right? We're not even at the inflection moment. We're not even at the start of the S-curve yet. Like, if the S-curve is is like this, right? You're you're still over here. You haven't even hit the the ramp up of the S-curve yet. And that's why the opportunity is so large right now. You can also see from a technical perspective following today, the IGV is now above its 200 day moving average. Typically, when you break above the 200 day moving average, you tend to keep going, right? That's just the the the fact of the matter. When you break below the 200 day moving average, you tend to continue to fall. When you break below the 200 day moving average, you continue you tend to continue to rise. So, I think that's a pretty fair assessment at this point. everything else included. I think we're heading into a super cycle. And no, I don't think this super cycle just lasts a month. And I don't think it just lasts a year. I think this is a multi-year super cycle for software stocks where some of them, Palanteer, Zeta Global, they could 10 or 20x from here over the next couple of years. Now, it's not all going to happen at once. I I don't think you're going to go from today everyone's bearish on software and tomorrow everyone's bullish, right? It's going to take some time. There's going to be ups and downs, but I do think the general super cycle has started in its baby phase. Now, let me share my direct thoughts about Zeta Global despite I mean the obvious here that look dude ah this is this is comical. Okay, just look at this chart. This is so easy. You don't have to be a technical analysis expert to see this, right? Oh crap. Let me let me do that again. Okay. Shoulder inverse head and shoulders. Okay. Kind of looks like a smiley face when you draw it like that. Consolidation trending upwards. Breakout. The stock's going higher. That's just the fact of the matter in my view. That's what the charts tell me. Okay, where does it go? We'll see what the earnings look like um tomorrow. Uh Zeta Global was up 4 and a half% today. It's up three and a half% here in after hours. Again, they have a partnership with Palanteer. Palanteer's earnings are a pretty damn good indication that Zeta is going to have good earnings. They've beaten and raised 19 quarters in a row. Now, I I you know, it's it's pretty obvious they're going to have good earnings. Well, the RSI is at 59. The chart looks really good. The PEG ratio is bottom of the barrel. Okay. Am I selling Zeta Global before earnings? Absolutely not. You know, I was buying this stock heavily between 16 and 18. If you guys want to come join the trading community, check that link out down below in the description of today's episode. But I don't want to sell Zeta Global until it's hard to justify the valuation today. Zeta Global right now has a fair value fair value between $35 and $60 per share. If Zeta Global by the end of this year was a $100 a share, I would probably sell. Yeah, I'd probably sell all of it because it would be very hard to justify the valuation. If Zeta Global is 60 bucks by the end of this year, I'm not going to sell it, right? Um, that's just the way that I look at it. I've made more mistakes investing, not by investing in the wrong companies, but selling the right ones too early. You know, I bought Palenteer on IPO day at $10 per share. The stock today is $142. I sold Palenteer at around $45 per share. You know, do I regret not buying Palenteer at $10? No. Do I regret selling it at 40 45? Yeah. So yeah, we talked about a lot in this video. Let me know your thoughts on this down below in the comment section. If you have questions, shoot them down there in the comment section. If you guys want to come trade and invest alongside of us where we are finding these high conviction, you know, in my view, really attractive riskreward opportunities that have 5, 10, 20x, you know, opportunities or potential uh going ahead where Wall Street they're just not focused on. You know, I I but we tend to beat Wall Street to the puck. We tend to beat them to the goal and uh hey, speaks for itself. If you guys want to join us, that link is down below in the description of today's episode. Have a fantastic rest of your day and I will see you in the next