Jeff Yass from Susquehanna International sold over 1.5 million shares of Palantir in early 2024, shifting focus to a fast-growing AI stock, Super Micro Computer, despite its recent troubles. The AI trend is booming on Wall Street, with predictions that it could add $15.7 trillion to the global economy by 2030. Still, concerns about Palantir’s high valuation led Yass to make significant cuts to his holdings. In contrast, Susquehanna increased its investment in Super Micro by a staggering 927%, eyeing its potential amid the AI revolution, despite recent accusations of accounting issues. Investors are cautious as the company’s stock has faced significant declines and scrutiny over its financial practices.
Jeff Yass, the head of Susquehanna International, sold over 1.5 million shares of Palantir during the first half of 2024. This move comes as Yass shifts focus towards a rapidly growing but troubled artificial intelligence (AI) stock.
Artificial intelligence continues to be a hot topic on Wall Street, with predictions from PwC suggesting it could boost the global economy by $15.7 trillion by 2030. Investors are keen to follow the activity of major money managers like Yass to see which stocks and trends are garnering attention.
Yass has made a significant decision to reduce his holdings in Palantir Technologies by 61%, selling over 1.5 million shares. While Palantir’s stock price has risen remarkably—up 546% over the last two years—the company now faces concerns related to its high valuation, trading at 39 times its annual revenue and around 116 times its projected earnings.
The stock Market overall is reaching high levels, with the S&P 500 showing pricier valuations, making it reasonable for investors to cash in gains. Despite Palantir’s strong connections with the U.S. government and its cash flow, questions remain about its future growth potential.
Conversely, Yass’s firm has made a big investment in Super Micro Computer, increasing its stake by nearly 10 times in the first half of 2024. This company is seen as well-positioned to benefit from the AI boom due to its strong performance and partnerships, including the use of Nvidia’s popular H100 GPUs in its products.
However, Super Micro has faced scrutiny, including accusations of accounting issues and a delay in its annual report, leading to a significant dip in its stock price. Observers suggest it might be wise to stay cautious with Super Micro until its financial matters are clarified.
In summary, Yass’s recent trading decisions highlight the volatile and rapidly changing landscape of AI stocks, where both opportunities and risks are apparent.
What does it mean that Jeff Yass sold 61% of his stake in Palantir?
Jeff Yass sold a big part of his shares in Palantir, which means he doesn’t own as much of the company anymore.
Why did Jeff Yass sell his shares in Palantir?
The exact reason is not clear, but he might be looking to invest in other opportunities that he thinks could be more profitable.
What is the new AI stock that Jeff Yass is investing in?
Jeff Yass is investing in another company that is also involved in artificial intelligence, but the specific name of the stock was not mentioned.
Is it common for investors like Jeff Yass to move their money around?
Yes, it’s common for investors to buy and sell shares based on Market trends and potential for growth.
Should I follow Jeff Yass’s investment choices?
While Jeff Yass is a successful investor, it’s important to do your own research and consider your own financial situation before following his moves.
