What are billionaires doing? Sell Palantir, turn around and buy this IPO stock.

Recently interesting: Two hedge fund managers, Israel Englander and David Shaw, collectively cut their positions in Palantir (PLTR) during Q3, while aggressively increasing their holdings in Circle Internet Group (CRCL), a newly listed fintech stock.

Data Speaks:

• Englander's fund liquidated 91% of its position in PLTR and switched to buying Circle.
• Shaw's fund reduced its position in PLTR by 41%, opened a new Circle position.
• Although their positions in Circle are not large, this signal has a bit of flavor.

The problem with Palantir is here: the stock price is 102 times the price-to-sales ratio, the most expensive in the S&P 500 by far (the second is only 32 times). The company's financial report is indeed explosive—Q3 revenue surged 63%, profits jumped 110%, and next year's expected growth is 53%. However, Michael Burry (the guy who shorted subprime back then) is now shorting Palantir, with 2/3 of his portfolio consisting of PLTR put options. The CEO himself sold over $2 billion worth of stock, voting with his actions.

Why is Circle Worth Buying: This company that issues USDC and EURC stablecoins accounts for 25% of the $31 billion stablecoin market. Wall Street estimates that the stablecoin market could reach $2-4 trillion, presenting a huge growth opportunity. Circle's newly launched payment network has already onboarded 29 financial institutions, with another 500 in the queue. The price-to-sales ratio is 6.5 times, and considering a 33% annual growth rate, the valuation is really not expensive.

In a nutshell: The big shots are saying that Palantir is too expensive, and the story of stablecoins has just begun.