From Nasdaq

June 15, 2025 03:06:00 AM:

For over a century, Wall Street has been a hub for wealth creation, with stocks offering unmatched annualized returns. Despite the benefits of patience, investors often chase high-flying stocks for quick gains, driven by the fear of missing out (FOMO).

Two stocks at risk of bursting bubbles are Palantir Technologies and Strategy (formerly MicroStrategy). Palantir has seen a 2,000% surge since 2023, driven by AI technology. However, its valuation, historical trends, and statistical data suggest an impending correction.

Strategy’s stock has soared by nearly 2,600% in 2023 due to CEO Michael Saylor’s Bitcoin investments. While the approach has gained traction, historical precedents of leverage-driven scenarios and unsustainable valuations indicate a potential downfall.

Both companies face risks from overvaluation and historical patterns, with Palantir and Strategy’s future prospects looking uncertain despite their recent successes. Investors should exercise caution and consider the potential pitfalls in these high-flying stocks.

Read more at Nasdaq.: Statistically and Historically Speaking, 2 of Wall Street’s Highest-Flying Stocks Are in Epic Bubbles That I Fully Expect to Burst