Beware AI stocks trading at rich valuations. How to profit from a pullback using options

Palantir Technologies Inc Notizia

Beware AI stocks trading at rich valuations. How to profit from a pullback using options
Personal Finance,Markets,Breaking News: Markets

Tony Zhang sees further downside in many of the AI-focused stocks and explains how to trade it using options.

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Investors have grappled this quarter with how to value an AI-focused company based on its future revenue potential against its current spend to develop the product. We saw the downside to high capex spending without a clear path to revenue growth in META's decline after earnings. While Palantir is not a direct parallel, it is an AI focused company that trades at a rich valuation.

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