The institutional money and retail investors are heading in completely opposite directions on Palantir. Major Wall Street firms dismissed it as overvalued, flagging the premium valuation and waiting for a pullback. Meanwhile, retail traders have been accumulating aggressively, unfazed by the skepticism.

This dynamic is fascinating from a market psychology standpoint. Institutions often rely on traditional valuation models and peer consensus, while retail players seem more focused on growth potential and momentum. When mainstream analysts write something off as too expensive, it sometimes signals exactly where retail sees opportunity.

The divergence between institutional thesis and retail appetite raises an interesting question: who's reading the market more accurately? The answer usually depends on your timeframe and risk tolerance. Short-term traders might get shaken out by institutional selling pressure, while longer-term believers are betting the story hasn't fully played out.

This kind of market split happens across many sectors and assets. It's a reminder that "expensive" is relative—context matters more than the price tag itself.