I’m almost done reading Palantir (PLTR) CEO Alex Karp’s new book, The Technological Republic: Hard Power, Soft Belief, and the Future of the West.
It’s a good read.
And Alex Karp is just about the biggest badass in financial markets right now.
It’s funny how he hates on apps that build consumer services.
I chuckle.
When I was in New Orleans last week I spoke with a guy from Sedona who focuses all his time “investing like The Jetsons” (flying cars, new energy, space exploration, etc.)
Karp makes fun of and constantly takes digs at Silicon Valley founders who focus on irrelevant consumer apps that share pictures and deliver food.
Of course, PLTR hit new all-time highs again last week:
He’s only revolutionizing defense all over the world.
The Future Is Real
So we started talking about Karp’s book…
His big theme is that the cool kids these days are doing things on robotics and computing.
Not stupid consumer services…
So, what Karp is saying is happening in real time.
However, the “stupid consumer apps” are working too, particularly those that use artificial intelligence (AI).
DoorDash (DASH) looks great. Instacart (CART) is worth watching.
We’re already long Uber Technologies (UBER)… and it’s working well for us.
A lot of the ARK Innovation ETF (ARKK) stocks are working too.
And Cathie Wood’s flagship fund has its highest short interest ever. A lot of these consumer services apps are in there.
ARKK is also a big holder of Tesla (TSLA).
The way I see it, BYD Company (BYDDY) – the “Tesla of China” – is already making new all-time highs:
Are you going to bet that the Tesla of America isn’t going to follow?
I think this is one of those “rising tides lifts all boats” scenarios.
These are the types of stocks we want to own.
Why Not Both?
I get what Karp is saying, about so much money flowing into consumer services apps with very little serious application.
And he’s revolutionizing security and defense around the world.
And I find myself laughing about it too.
We’re here to make money. For our specific objectives, why not both?
Why not bet on the companies changing the world AND the dumb consumer apps?
Stay sharp,
JC Parets, CMT
Founder, TrendLabs