$Palantir Technologies Inc.(PLTR)$ Ok so this common misconception that insiders selling is universally a bad thing really needs to be put into perspective. $Tesla Motors(TSLA)$ yep insiders know what's coming, it's not pretty. So they are dumping, the headwinds are massive. I herd that elons stock is tied up with lawsuits so he can't sell, but just rumours. But it sounds reasonable, I bet he would be selling if he could. Cause Tesla is cannon fodder in my humble opinion.
But palantir faces no headwinds, just huge tailwinds. Yes it's dam expensive. Insiders sell mainly because most of their salaries are in stock based compensation, so they need to sell, not because they want to. Everyone has bills to pay, or fancy toys to buy. But moreover, stock compensation is ongoing, so while in the short term their stock number decreases, long term it's still increasing.
Think about it tiger friends, I am the emotional investor so let me put that lense on insiders selling. I am say the CFO of IDK $Rocket Lab USA, Inc.(RKLB)$ for eg. Adam spice sells stock every quarter. He draws a salary, but he also works 60+ hours every week and maybe takes 2 weeks off a year. His life is rocket lab. If you were him would you think... hey wait I need some of this paper profit to maybe make the most of the tiny spare time? Money isn't everything, but money creates opportunity. Spend Christmas at home with family, maybe do it in a nicer home, or fly everyone to Rome for Christmas, or Rarotonga.
My point! Well rather than speculate... ooooh insiders are selling... maybe just ask them. Peter beck, the ceo of rocket lab sold about 1% of his holdings last year, when asked why. The answer was because I wanted to set up a venture capital fund for other New Zealand startups.
I think the key takeaway here is transparency. Don't listen to speculation, go to the horses mouth, ask insiders why they are selling. If they come back with a plausible answer straight away it's not an issue. If they ignore the question, or give vague answers, sure go down the rabbit hole.
Palantir insider selling doesn't concern me at all. Tesla selling is a serious red flag. Oh an aside, we are all told how important communication is in a relationship right? Tesla insiders sold, musk failed to tell them he was about to pump the stock. And, the latest Elon pump to Tesla employees... well if you follow me you know this is the final box tick for Tesla to zero. If you're a trader, have fun! If you're a long term growth investor, tesla is the black plague
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- windy00·03-26Curious
why rocket lab has growth potential while tesla is a zero sum game? Is it because Elon?
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