Palantir (PLTR -3.98%) stock got hit with another round of sell-offs in Tuesday's trading. The company's share price closed out the day's trading down 4% and had been off as much as 6.2% earlier in the session.Palantir's valuation pulled back today in conjunction with new bearish coverage from Jeffries. Brent Thill, the investment firm's lead analyst on the stock, published new coverage on Palantir this morning and maintained an underperform rating on the stock and a one-year price target of $60 per share. ...

Shares of Palantir Technologies Inc. (PLTR) are down 26% from their record high on Feb. 18 and have mostly traded in the red over the past month. Palantir faced a recent decline despite being the market favorite for the past year with a 266.9% surge, outpacing NVIDIA Corporation’s (NVDA) 33.8% gain. The stock was also the best S&P 500 performer in 2024. Image Source: Zacks Investment ResearchSo, let’s analyze the reasons behind this downturn, and why the Palantir stock is still a buy.Why is Palantir Stock P ...

Readers of mine will know that I have been a Palantir fanatic since the day of its direct listing, and, from the start, the reason for that fanaticism was principally related to the company's culture:Whether you're just getting started or are an analyst at a hedge fund, Louis has served folks like yourself throughout his career in equity research and investing. Learn moreAnalyst’s Disclosure: I/we have a beneficial long position in the shares of PLTR, SNOW either through stock ownership, options, or other d ...

One Wall Street analyst remains decidedly bearish.Palantir Technologies (PLTR -3.16%) fell further on Tuesday, slumping as much as 6.4% and continuing the downward trajectory that began last month. As of 11:35 a.m. ET, the stock was still down 3.9%.The catalyst that sent the artificial intelligence (AI) software and data mining specialist lower was the opinion of a Wall Street analyst.Too far, too fast?Palantir has been on an epic run over the past three years, gaining 575% (as of this writing), but has fal ...

Archer Aviation is using Palantir's artificial intelligence (AI) software to disrupt the antiquated aviation industry.Last year, shares of air mobility company Archer Aviation (ACHR 5.13%) and enterprise software specialist Palantir Technologies (PLTR 1.29%) gained 59% and 340%, respectively -- handily outperforming the returns generated by the S&P 500 and Nasdaq Composite.Last week, Palantir hosted an immersive seminar, during which investors learned how the company's customers are leveraging its artificia ...

Three years after the launch of OpenAI's ChatGPT, the generative AI hype cycle is getting long in the tooth as investors grow impatient with the lack of value being created on the software side of the industry. Artificial intelligence (AI)-related tech companies like Palantir Technologies (PLTR 1.29%) and Tesla (TSLA -4.68%) are now struggling to justify their optimistic valuations. They also face the unraveling of political hype, which boosted their stocks after Trump's election victory in November. Let's ...

Palantir Technologies Inc. (PLTR) has experienced a 31% decline in its stock price over the past month, a drop largely attributed to the broader market downturn and increasing concerns over cost-cutting measures from the incoming administration. Losses spread across the sector. For instance, NVIDIA (NVDA) has gained 13%, International Business Machines (IBM) has climbed 6%, and Oracle (ORCL) has gained 17% in a month. Image Source: Zacks Investment ResearchBeing a volatile stock, this level of pullback is n ...

A Wall Street analyst believes Palantir’s (NASDAQ: PLTR) expanding artificial intelligence (AI) ecosystem, marked by major partnerships, could be a key catalyst for the company’s stock growth.The positive sentiment on the stock could serve as a significant boost for PLTR, which, despite impressive growth, has faced lingering fears of a possible crash amid concerns over potential overvaluation.Notably, as of March 17, Palantir’s P/E ratio of 755.67 points to investor confidence but raises concerns about the ...

Core Viewpoint - Palantir's stock is regaining a bullish trend, targeting the $100 mark due to positive projections from its AI tools and a recent partnership with Databricks [1][2]. Group 1: Stock Performance - Palantir's stock closed at $86 on March 14, up 8.3%, marking a 5.7% gain over the week, ending a three-week losing streak [1]. - The stock has fallen nearly 40% from its all-time high of $125, raising concerns about its future performance [3]. Group 2: Strategic Partnerships - The partnership with Databricks aims to integrate Palantir's AI-powered operating system with Databricks' data engineering and analytics platform, expanding market reach [2][3]. - This collaboration is significant as Databricks has been a competitor in securing U.S. Department of Defense contracts [3]. Group 3: Revenue Growth and Valuation - Palantir's revenue growth has slowed from 47% in 2020 to a projected 29% in 2024, contrasting with the rapid growth seen by top AI companies like Nvidia [4]. - The company's forward P/E ratio stands at 135x, raising concerns about potential stock price corrections if growth expectations are not met [5]. Group 4: Defense Spending Concerns - Anticipated cuts in U.S. defense spending could threaten nearly half of Palantir's revenue, given its status as a key contractor for the Department of Defense [4]. Group 5: Insider Selling Activity - Recent insider selling, including a transaction by President Stephen Andrew Cohen who sold over $310 million in shares, is viewed as a bearish signal [6]. Group 6: Future Predictions - DeepSeek AI's R1 model forecasts a potential bullish run for Palantir by April 1, with a base case target of $110, contingent on strategic partnerships and stable market conditions [7][10]. - Two scenarios are outlined: a bullish case where the stock could reach $120-$130 and a bearish case where it could drop to $60-$70 [8].

Core Insights - Palantir's stock price has decreased by 37% from its all-time high of approximately $125 reached on February 18, raising concerns about its volatility and future performance [1] Company Overview - Palantir, which went public in October 2020, has a history of strong government and military client relationships, notably assisting in the War on Terror [2] - The company has experienced significant hype cycles, particularly related to generative AI and political events, which have influenced its stock performance [3][8] Financial Performance - Despite synergies with generative AI, Palantir's revenue growth has slowed from 47% in 2020 to 29% in 2024, indicating that the new technology has not significantly impacted growth [5] - Over the past five years, Palantir's stock price increased by 722%, slightly surpassing Nvidia's 704%, highlighting the extent of hype in its valuation [6] - The company's adjusted EBITDA stands at $379.5 million, but this figure includes $281.8 million in stock-based compensation, which can dilute existing shareholders' equity [7] Market Challenges - The election of Donald Trump initially boosted Palantir's stock, but his administration's plans to reduce federal spending could negatively impact the company's revenue, particularly from U.S. government clients, which accounted for 42% of its revenue in 2024 [8][9] - The Pentagon's projected budget cuts of 8% annually for the next five years could further strain Palantir's financials [8] - Internationally, Palantir's revenue from clients like the Ukrainian armed forces may also be at risk if geopolitical dynamics change [9] Valuation Concerns - With a forward price-to-earnings (P/E) ratio of 135, Palantir's stock price does not reflect the challenges it faces, including moderate growth and high stock-based compensation expenses [10] - The significant drop in stock price and ongoing challenges suggest that further declines may be likely [10]