Even an AI boom can't save this market — fade the Palantir and FedEx weakness
Companies that are supposed to be benefiting from AI are actually seeing their stocks crash, and shipping companies are dropping despite good earnings. This shows the market's internal strength is much weaker than the headlines suggest.
Idea
Palantir, a premier AI software company, is down over 30% in June and hitting a 52-week low, proving that the AI boom is leaving some major players behind. This divergence is a massive warning sign when combined with TSMC's strong AI earnings and Micron's blowout memory demand—if the whole market was truly healthy, strong AI names would be lifting all boats, but they aren't. Furthermore, FedEx is dropping despite a strong quarter due to messy structural transitions, showing that investors are aggressively punishing any sign of operational complexity. This broad-based weakness in logistics and secondary tech names signals it's time to bet against the laggards.
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News sources
- Strong Earnings Demonstrate Taiwan Semiconductor Manufacturing Company Limited’s (TSM) Key Role in The AI-Capex Cycle — Yahoo Finance
- Why Palantir’s stock is having its worst month in years — even in the midst of an AI boom — MarketWatch
- Why FedEx is down after a strong quarter — and its impact on our stock rating — CNBC