Palantir's Strong Q1 Earnings Fail to Impress Wall Street Amid Valuation Concerns

Analysts call for big declines in Palantir despite solid earnings; Goldman sees more than 25% drop

Many analysts on Wall Street still not sold on Palantir even after the company posted first-quarter results and raised its full-year guidance. The firm reported in-line earnings and topped revenue estimates in the first quarter and upped its full-year outlook. CEO Alex Karp told investors on the company's earnings call that Palantir is in the "middle of a tectonic shift in the adoption" for its software, especially in its government segment. But while a few analysts raised their price targets on the stock following the results, many maintained hold or sell-equivalent ratings as concerns remain that Palantir may be overvalued. Among these are Goldman Sachs and Morgan Stanley. Goldman sees more than 27% downside, while Morgan Stanley calls for a nearly 21% decline. Shares were down 8% in the premarket. That said they are up more than 63% year to date. PLTR YTD mountain Palantir stock in 2025. Some shops, such as Loop Capital and Wedbush, had a more constructive outlook on the stock following the report. They reiterated their buy-equivalent ratings and bumped higher their price targets. Here's a look at some of the takeaways from Wall Street analysts. Goldman Sachs: maintains neutral rating, raises price target to $90 from $80 Analyst Gabriela Borges's new price target still signals downside of 27%. "We continue to view Palantir as well positioned to continue to deliver best-in-class growth given the secular trend towards enterprise AI adoption; the continued push for efficiency and technology adoption in the US government; and adoption of Operation Warp Speed among new defense entrants, traditional defense companies, and the broader manufacturing industry." Cantor Fitzgerald: raises price target to $110 from $98 but keeps neutral rating Cantor's new target calls for roughly 11% downside from Monday's $123.77 close. "Palantir's strong results indicate continued strong investment from global organizations in leveraging AI to improve both business outcomes and operational efficiencies," analyst Thomas Blakey wrote on Tuesday. "The company is well positioned to benefit from these trends, in our view, supporting continued dynamic growth." Morgan Stanley: raises price target to $98 from $90, maintains equal weight rating Analyst Sanjit Singh's forecast implies nearly 21% downside for Palantir stock. The analyst said his fundamental view on Palantir remained unchanged following first-quarter results. "[We're] raising target to $98 but valuation [is] too expensive to underwrite a reasonable return at ~95x CY27 FCF keeping us EW as we await a better entry point," he said. Mizuho: underperform rating, increases price target to $94 from $80 Analyst Gregg Moskowitz's outlook implies more than 24% downside for Palantir. "We remain quite impressed by PLTR's recent execution, and given its strong positioning and execution, there's no denying that it is deserving of a premium valuation," Moskowitz said. "However, valuation cannot and should not be irrelevant, and we find it very difficult to justify PLTR's very high multiple - 60x CY2026E revenue - that in our view already discounts material acceleration and upside versus consensus expectations." Deutsche Bank: reiterates sell rating, raises price target to $80 from $50 Analyst Brad Zelnick's forecast equates to more than 35% downside. "Our FY26 estimates increase 6% on revenue and 13% on operating income but with the stock trading at 57x our CY26E revenue in [after hours] trading, our main concern continues to be valuation," Zelnick said. RBC: reiterates underperform rating and $40 price target Analyst Rishi Jaluria's price target signals nearly 70% downside from Monday's close. "Overall, Government results were better than expectations, but our concerns about the runway for growth and product differentiation remain. Commercial came in slightly below consensus. While 2025 numbers move higher on guidance ahead of consensus, we question conservatism and if estimate revisions are priced in from here. Jefferies: keeps underperform rating and $60 price target Analyst Brent Thill's price target points to a decline of more than 50%. "Fundamentals are clearly alive, but we think irrational valuation at 56x CY26 rev skews risk/reward negatively." Loop Capital: reiterates buy rating, raises price target to $130 from $125 The firm's new price target signals upside of 5% ahead. "In terms of the stock, you can gripe about valuation, and that's legitimate, but it's difficult to find fault with the fundamentals. Bottom line, the market for enterprise AI is enormous, is at a tipping point as small-scale pilot programs move into production and AI use cases grow exponentially across all industries, and we believe PLTR is uniquely positioned as one of the category leaders in the space," analyst Mark Schappel wrote. Wedbush: maintains outperform rating, raises price target to $140 from $120 Analyst Dan Ives' new target signals upside of 13%. "We view Palantir as a generational tech name that we see as a trillion market cap over the next three years with PLTR being a core name in the AI Revolution theme over the coming years."

Palantir's AI boom isn't enough for Wall Street

Palantir (PLTR) reported strong first-quarter results after the close on Monday, showcasing rapid growth across its U.S. operations -- but that wasn't enough to satisfy Wall Street. Shares of the AI and data analytics software provider dropped as much as 15% on Tuesday, a sharp slide for a stock that's risen almost 1,000% in the last 5 years. The military contractor's revenue rose 39% year-over-year to $884 million, topping forecasts, and GAAP net income came in at $214 million, or $0.08 per share. Adjusted earnings per share were $0.13, with free cash flow hitting $370 million for a 42% margin. The highlight was Palantir's U.S. commercial business, where revenue soared 71% year-over-year to hit a $1 billion annual run rate. U.S. government revenue was also strong, up 45% from a year ago. CEO Alex Karp described the company as delivering "the operating system for the modern enterprise in the era of AI," pointing to a record $810 million in U.S. commercial contract value booked during the quarter. In a brassy letter to shareholders in which he quoted both Nixon and Saint Augustine, Karp spoke of how: "The rush towards large language models, as well as the foundational software architecture that is capable of making them valuable to large organizations, has turned into a stampede." "What was once a relatively orderly process of assessment and evaluation of these novel technologies has evolved into a ravenous whirlwind of adoption as an increasing number of institutions grasp the magnitude of the shift that is washing over industry and government," he wrote. Per the earnings release, Palantir "closed 139 deals of at least $1 million, 51 deals of at least $5 million, and 31 deals of at least $10 million." Customer growth remained strong, up 39% year-over-year, and the company raised its full-year revenue outlook to as high as $3.902 billion, with adjusted operating income projected at up to $1.723 billion. The company expects second-quarter revenue between $934 million and $938 million, and ended the quarter with $5.4 billion in cash and short-term Treasuries. Still, investors may be balking at valuation and decelerating sequential growth -- overall revenue grew just 7% quarter-over-quarter. With AI hype already priced in, expectations are sky-high, and even a solid beat wasn't enough to keep shares afloat. The Rule of 40 -- a metric combining revenue growth and profitability that's often used to assess high-growth software companies -- came in at 83%, the company was quick to point out. It's a strong figure but short of the 100% mark some investors may now be using as a benchmark. The drop also comes as broader enthusiasm for AI stocks is tested. In a new note, Goldman Sachs (GS) warned that recent tech gains in stocks may resemble "bear market rallies," with valuations vulnerable to any signs of slowing momentum. For richly valued names like Palantir, that bar may now be higher than ever. What's more, Palantir did not break out international performance, but with overall revenue up just 7% from Q4, some analysts suspect global sales may be flat or under pressure -- especially as U.S. growth now dominates the top-line.

Palantir Stock Slumps as Strong Results May Not Have Been Strong Enough

Palantir (PLTR) shares tumbled Tuesday despite the company's better-than-expected sales and raised outlook, as investors may have wanted more from the AI software darling. The stock plunged more than 12% to about $108 in recent trading, though even with Tuesday's losses, the shares were up over 40% for 2025 and 400% over the past 12 months. Palantir "continues to capitalize on the demand wave," Wedbush analysts said following the results, which showed the company's Artificial Intelligence Program "gaining further traction moving forward." The analysts kept their "outperform" rating and raised their price target to $140 from $120. Bank of America, which also issued a "buy" rating, maintained its target of $125. Still, Jefferies analysts said that while Palantir's "fundamentals are clearly alive," they hold the stock comes with an "irrational" valuation. The analysts maintained an "underperform" rating and $60 price target, which would imply nearly 45% downside. Morgan Stanley, which holds a "neutral" rating, said Palantir has shown "elite level performance in software," but similarly argued its high valuation makes predicting future share growth "extremely challenging." The firm nudged its price target up to $98 from $90.

Palantir Stock Is Up 55% YTD Heading Into Earnings Next Week: What's Going On? - Palantir Technologies (NASDAQ:PLTR)

Palantir Technologies Inc PLTR stock is trading higher Wednesday, despite broader market weakness. The relative strength may be driven by continued momentum following a wave of new defense deals, as well as rising investor interest ahead of its upcoming earnings report on May 5. What To Know: Palantir is building battlefield systems through the TITAN program, developed with defense giants like Northrop Grumman and Anduril. Palantir said it delivered its first two TITAN systems to the U.S. Army last month. Palantir also announced in a social media post about two weeks ago that it entered into a new partnership with NATO Allied Command Operations (ACO) to provide AI-enabled warfighting technology. The company's Maven Smart System is expected to empower warfighters to leverage AI in core military operations, enhancing intelligence fusion and targeting, battlespace awareness and planning and accelerated decision-making. Wedbush's Dan Ives said Palantir remains one of the firm's "top names to own" following the announcement, calling it a "major win" for the company. Other analysts are more cautious, with RBC Capital analyst Rishi Jaluria reiterating an Underperform rating on Tuesday with a price target of $40. The slew of recent deals for Palantir has investors looking ahead to earnings next week. Analysts expect Palantir to report earnings of 13 cents per share and revenue of $862.83 million, according to estimates from Benzinga Pro. Palantir shares surged to new highs last quarter after the company easily exceeded estimates, driven by strong U.S. revenue growth of 52% on a year-over-year basis. Palantir's customer count increased 43% year-over-year after the company closed 129 deals worth over $1 million during the quarter and 58 deals worth more than $5 million. Palantir shares broke through a key technical level around $97.75 last week and began surging back towards all-time highs. The stock is up more than 400% over the past year and has already climbed approximately 55% so far in 2025. Investors are now shifting their attention to next week's earnings, scheduled for May 5, to see if the rally can continue. PLTR Price Action: Palantir shares were up 1.37% at $117.66 at the time of writing Wednesday, according to Benzinga Pro. Read Next: As Growth Falters, Sentiment Slips, Economist Says 'Risks To The Economic Outlook Are Increasing' Image Via Shutterstock. PLTRPalantir Technologies Inc$117.651.35%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum99.41Growth86.93Quality-Value2.43Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Palantir (PLTR) Stock Is Up Over 400% Ahead of Monday's Earnings Report: What's Going On? - Palantir Technologies (NASDAQ:PLTR)

Feel unsure about the market's next move? Copy trade alerts from Matt Maley -- a Wall Street veteran who consistently finds profits in volatile markets. Claim your 7-day free trial now. Palantir Technologies Inc PLTR shares climbed 5.4% to $122.52 during Friday's session, near their all-time high and up over 400% over the past year, as investor enthusiasm builds ahead of its Monday earnings report. The rally follows a string of high-profile defense deals and ongoing momentum from its fourth-quarter performance. What To Know: Palantir recently delivered two battlefield TITAN systems to the U.S. Army and announced a new partnership with NATO Allied Command Operations to provide AI-powered military technology. Its Maven Smart System aims to enhance battlefield decision-making through advanced AI. Read Also: Starbucks Stock Plunges 10% This Week On Earnings Miss, Recovers Losses Analysts are meanwhile divided on the stock; Wedbush's Dan Ives remains bullish, calling the NATO deal a "major win," while RBC Capital maintains an Underperform rating. In the fourth-quarter, Palantir posted $827.52 million in revenue and 14 cents in adjusted EPS, beating estimates and growing U.S. revenue by 52% year-over-year. The company closed 129 deals over $1 million and ended the quarter with $5.2 billion in cash. For the first-quarter, Palantir expects up to $862 million in revenue and sees full-year 2025 revenue hitting up to $3.76 billion. With the stock up over 444% over the past year, investors are watching closely to see if the upward trend continues. Read Also: Qualcomm Stock Falls 6% This Week Despite Q2 Earnings Beat How To Buy PLTR Stock Besides going to a brokerage platform to purchase a share - or fractional share - of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument. For example, in Palantir Technologies' case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment. According to data from Benzinga Pro, PLTR has a 52-week high of $125.41 and a 52-week low of $20.50. PLTRPalantir Technologies Inc$123.095.93%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum99.44Growth86.89Quality-Value2.39Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Dan Ives Calls Palantir The 'Missing Piece' In AI Puzzle, Expects 'Good News' From Alex Karp's Company On Monday - Palantir Technologies (NASDAQ:PLTR)

Prominent Wall Street analyst Dan Ives has highlighted Palantir Technologies Inc. PLTR as "the missing piece in the AI puzzle" just a day before the company's highly anticipated earnings report on Monday. What Happened: "Karp & Co. are a major barometer for the pace of U.S. commercial AI projects and initiatives and we expect good news from the Messi of AI on Monday," the Wedbush Securities analyst wrote on social media platform X on Sunday, referring to Palantir CEO Alex Karp. Ives said Palantir remains "one of our top tech names to own." The endorsement comes as Palantir shares trade near all-time highs, surging 392% in the past year. During Friday's session, the stock climbed 6.95% to $124.28 amid building investor enthusiasm. Palantir has secured several high-profile defense contracts recently, including delivering two battlefield TITAN systems to the U.S. Army and announcing a new partnership with NATO Allied Command Operations to provide AI-powered military technology. The company's Maven Smart System aims to enhance battlefield decision-making through advanced artificial intelligence. See Also: 'Curtain Call For The Captain:' Tim Cook, Bill Gates, Mark Cuban And Other Top Business Leaders React As Warren Buffett Bows Out Why It Matters: In the fourth quarter of 2024, Palantir posted $827.52 million in revenue and 14 cents in adjusted earnings per share, beating analyst estimates. U.S. revenue grew 52% year-over-year, and the company closed 129 deals worth over $1 million. Get StartedStart Futures Trading Fast -- with a $200 Bonus Join Plus500 today and get up to $200 to start trading real futures. Practice with free paper trading, then jump into live markets with lightning-fast execution, low commissions, and full regulatory protection. Get Started For the first quarter of 2025, analysts expect earnings of 13 cents per share on revenue of $862.83 million. The company has projected full-year 2025 revenue of up to $3.76 billion. While Ives remains bullish, not all analysts share his optimism. RBC Capital maintains an Underperform rating with a $40 price target, highlighting the divided sentiment on Wall Street regarding Palantir's valuation. Karp recently defended the company's role in defense technology, saying at the Hill & Valley Forum that "the obvious solution to war is to have the West have the strongest, most precise, deadly weapons possible... so that we can minimize unnecessary innocent deaths." Read Next: Bitcoin, Ethereum, Dogecoin Slide As Traders Turn Cautious Before Fed Meeting: Analyst Foresees BTC 'Correction' To $86,000 Image Via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. PLTRPalantir Technologies Inc$124.537.17%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum99.44Growth86.89Quality-Value2.39Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Palantir Climbs Above $126 In Overnight Robinhood Trading: 'So Many Bears Out There,' Says Lawrence McDonald - Palantir Technologies (NASDAQ:PLTR)

Palantir Technologies Inc. PLTR reached an all-time high in Sunday overnight trading, topping at $126.28 on Robinhood's 24-hour trading platform after closing at $124.28 on Friday. What Happened: Bear Traps Report founder Lawrence McDonald reacted to the milestone on the social media platform X, writing: "So much fear, so so many bears out there :)" The stock surge comes just ahead of the company's first-quarter earnings report due Monday, with analysts projecting earnings of 13 cents per share on revenue of $862.83 million. Wedbush Securities analyst Dan Ives highlighted Palantir as "the missing piece in the AI puzzle" in a Sunday social media post. "Karp & Co. are a major barometer for the pace of U.S. commercial AI projects and initiatives and we expect good news from the Messi of AI on Monday," Ives wrote, referring to Palantir CEO Alex Karp. Palantir shares have surged 392% over the past year amid growing investor enthusiasm about the company's AI capabilities and government contracts. The company recently delivered battlefield TITAN systems to the U.S. Army and announced a partnership with NATO Allied Command Operations to provide AI-powered military technology. See Also: Dave Ramsey Blasts Budget Slackers Who Bail On 401(k)s During Market Turmoil: 'Short‑Term Temper Tantrums' Get StartedStart Futures Trading Fast -- with a $200 Bonus Join Plus500 today and get up to $200 to start trading real futures. Practice with free paper trading, then jump into live markets with lightning-fast execution, low commissions, and full regulatory protection. Get Started Why It Matters: In the fourth quarter of 2024, Palantir reported $827.52 million in revenue and 14 cents in adjusted earnings per share, beating analyst estimates. U.S. revenue grew 52% year-over-year, with the company closing 129 deals worth over $1 million. Palantir has a consensus price target of $69.76 from 25 analysts, according to data from Benzinga Pro, with a high of $125 from Loop Capital and a low of $7.50 from Wolfe Research. The latest targets from RBC Capital, Morgan Stanley, and DA Davidson average $76.67, implying a 38.44% downside. Palantir shows a positive short- to long-term price trend, according to Benzinga Stock Edge Ranking. It scores well on growth and momentum but lags on valuation. Sign up to learn more. Read Next: Apple To Split iPhone Launches Starting 2026, Foldable Model May Debut With iPhone 18 Pro: Report Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image Via Shutterstock PLTRPalantir Technologies Inc$124.530.20%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum99.44Growth86.89Quality-Value2.39Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

PLTR Stock Over 9% In Tuesday Premarket Trading, But This Analyst Remains Bullish, Predicts $1 Trillion Valuation In 3 Years - Snowflake (NYSE:SNOW), Palantir Technologies (NASDAQ:PLTR)

Palantir Technologies Inc. PLTR shares dropped 9.19% in pre-market trading on Tuesday, despite the data analytics company raising its revenue forecast on strong demand for artificial intelligence products. What Happened: Wedbush Securities analyst Dan Ives defended the company's stock on CNBC, calling Palantir "the Messi of AI" and predicting a trillion-dollar market cap within three years. "They are leading when it comes to AI revolution," Ives said. "If you look at the bears, they hate it at 30, despise it at 50, absolutely say it's expensive at 100, 125." Palantir "is a core AI Revolution gem to own over the coming years," Ives wrote on X. The company reported first quarter revenue of $883.86 million, beating analyst estimates of $862.83 million, with earnings of 13 cents per share meeting expectations. U.S. commercial revenue surged 71% year-over-year while the customer count grew 39%. Jefferies analyst Brent Thill, maintaining an underperform rating, acknowledged the strong fundamentals but questioned the sustainability of Palantir's valuation at 65 times revenue. "There's not a single software stock that we've ever covered that trades at this multiple and sustained it," Thill noted, pointing to historically lower multiples at companies like Snowflake Inc SNOW. See Also: Bill Ackman Says Inflation Has 'Largely Been Wrung Out,' Pushes For Temporary Pause On China Tariffs To Shield US Businesses Get StartedStart Futures Trading Fast -- with a $200 Bonus Join Plus500 today and get up to $200 to start trading real futures. Practice with free paper trading, then jump into live markets with lightning-fast execution, low commissions, and full regulatory protection. Get Started Why It matters: Ives countered that valuation-focused investors "missed every transformational tech stock last 20 years," adding that institutional investors have been "way wrong" while retail investors recognized the company's potential. Fundstrat's Mark Newton supported the bullish view on X, noting the "post-close weakness has not violated uptrend" and that PLTR "remains attractive on weakness." CEO Alex Karp cited a "tectonic shift" in adoption, raising full-year revenue growth guidance to 36% and U.S. commercial revenue growth to 68%, describing the growth as "surging and ferocious." Price Action: Palantir stock closed at $123.77 on Monday, down 0.41%. In pre-market trading on Tuesday, the stock dropped 9.19% to $112.40. Year-to-date, it's up 63.65%, and 390.96% over the past year, according to data from Benzinga Pro. Read Next: Bitcoin, Ethereum Flat, Dogecoin Dips Even As Trump Calls Crypto 'Popular:' Analyst Says BTC Build-up Good, Predicts ETH Uptrend After Fed Meet Image Via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. PLTRPalantir Technologies Inc$112.38-9.20%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum99.44Growth86.98Quality-Value2.32Price TrendShortMediumLongOverviewSNOWSnowflake Inc$166.47-0.83%Market News and Data brought to you by Benzinga APIs

PLTR Stock Falls 9.19% In Premarket Trading, But This Analyst Remains Bullish, Predicts $1 Trillion Valuation In 3 Years - Snowflake (NYSE:SNOW), Palantir Technologies (NASDAQ:PLTR)

Palantir Technologies Inc. PLTR shares dropped 9.19% in pre-market trading on Tuesday, despite the data analytics company raising its revenue forecast on strong demand for artificial intelligence products. What Happened: Wedbush Securities analyst Dan Ives defended the company's stock on CNBC, calling Palantir "the Messi of AI" and predicting a trillion-dollar market cap within three years. "They are leading when it comes to AI revolution," Ives said. "If you look at the bears, they hate it at 30, despise it at 50, absolutely say it's expensive at 100, 125." Palantir "is a core AI Revolution gem to own over the coming years," Ives wrote on X. The company reported first quarter revenue of $883.86 million, beating analyst estimates of $862.83 million, with earnings of 13 cents per share meeting expectations. U.S. commercial revenue surged 71% year-over-year while the customer count grew 39%. Jefferies analyst Brent Thill, maintaining an underperform rating, acknowledged the strong fundamentals but questioned the sustainability of Palantir's valuation at 65 times revenue. "There's not a single software stock that we've ever covered that trades at this multiple and sustained it," Thill noted, pointing to historically lower multiples at companies like Snowflake Inc SNOW. See Also: Bill Ackman Says Inflation Has 'Largely Been Wrung Out,' Pushes For Temporary Pause On China Tariffs To Shield US Businesses Get StartedStart Futures Trading Fast -- with a $200 Bonus Join Plus500 today and get up to $200 to start trading real futures. Practice with free paper trading, then jump into live markets with lightning-fast execution, low commissions, and full regulatory protection. Get Started Why It matters: Ives countered that valuation-focused investors "missed every transformational tech stock last 20 years," adding that institutional investors have been "way wrong" while retail investors recognized the company's potential. Fundstrat's Mark Newton supported the bullish view on X, noting the "post-close weakness has not violated uptrend" and that PLTR "remains attractive on weakness." CEO Alex Karp cited a "tectonic shift" in adoption, raising full-year revenue growth guidance to 36% and U.S. commercial revenue growth to 68%, describing the growth as "surging and ferocious." Price Action: Palantir stock closed at $123.77 on Monday, down 0.41%. In pre-market trading on Tuesday, the stock dropped 9.19% to $112.40. Year-to-date, it's up 63.65%, and 390.96% over the past year, according to data from Benzinga Pro. Read Next: Bitcoin, Ethereum Flat, Dogecoin Dips Even As Trump Calls Crypto 'Popular:' Analyst Says BTC Build-up Good, Predicts ETH Uptrend After Fed Meet Image Via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. PLTRPalantir Technologies Inc$112.50-9.11%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum99.44Growth86.98Quality-Value2.32Price TrendShortMediumLongOverviewSNOWSnowflake Inc$166.47-0.83%Market News and Data brought to you by Benzinga APIs

Palantir Is A 'Retail-Driven Story,' Says Top Analyst As PLTR Stock Falls 9% In After-Hours: 'Not A Single Institutional Investor...Talks About This' - Snowflake (NYSE:SNOW), Palantir Technologies (NASDAQ:PLTR)

Palantir Technologies Inc. PLTR reported better-than-expected earnings Monday evening, yet the stock tumbled 9.25% in after-hours trading. What Happened: Despite the strong results, two well-known analysts are taking very different positions on Palantir's future. Dan Ives of Wedbush remained firmly bullish. "You could print this press release off, frame it, and put it in the Louvre," Ives said during an appearance on CNBC. "I believe this is going to be a $1 trillion market cap in the next 2 to 3 years." However, Brent Thill of Jefferies disagreed. While acknowledging Palantir's strong fundamentals, he remained cautious about the company's high valuation. See Also: Mark Zuckerberg Overtakes Jeff Bezos To Become World's Second-Richest Person As Meta Stock Soars Palantir has now met or exceeded Wall Street's earnings and revenue expectations for seven straight quarters. Yet the company's valuation, which some analysts say reflects 65 times its revenue, is drawing comparisons to previous tech high-fliers like Snowflake Inc. SNOW, whose valuations came back down to earth. "This is a retail-driven story," Thill said. "There's not a single institutional investor I talk to that even talks about this." Ives pushed back on that view, arguing that institutional skepticism has left many money managers behind the curve on one of the most transformative companies in AI. Why It's Important: Palantir posted first-quarter revenue of $883.86 million, surpassing analyst expectations of $862.83 million. The company also raised its full-year revenue guidance to between $3.89 billion and $3.90 billion, well above previous projections. Get StartedStart Futures Trading Fast -- with a $200 Bonus Join Plus500 today and get up to $200 to start trading real futures. Practice with free paper trading, then jump into live markets with lightning-fast execution, low commissions, and full regulatory protection. Get Started Palantir projects second-quarter revenue between $934 million and $938 million, again topping analyst expectations. The company currently has a market cap of $292.05 billion. Price Action: Palantir shares have gained 64.61% so far this year and surged 390.96% over the past 12 months. On Monday, the stock dipped 0.41% during regular trading and slid another 9.25% in after-hours trading, closing at $112.32, according to data from Benzinga Pro. Analysts have set a consensus price target of $69.76 for Palantir, based on input from 25 firms. The most bullish projection comes from Loop Capital, which issued a $125 target on March 13, 2025. The latest updates from RBC Capital, Morgan Stanley, and DA Davidson average out to a price target of $76.67, indicating a potential downside of 31.74% from current levels. According to Benzinga Edge Stock Rankings, Palantir boasts a strong growth score of 86.89%, underscoring its robust performance. Click here to see how it compares to other stocks. Read Next: Mark Zuckerberg Warns Of 'Serious Disadvantage' As China's Data-Center Blitz Could Let DeepSeek Leapfrog US AI Labs Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Image Via Shutterstock PLTRPalantir Technologies Inc$112.32-9.62%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum99.44Growth86.89Quality-Value2.39Price TrendShortMediumLongOverviewSNOWSnowflake Inc$167.30-0.21%Market News and Data brought to you by Benzinga APIs

Wall Street Is In Love With Palantir's Recent Flawless Execution, Yet One Analyst Asserts "Valuation Cannot And Should Not Be Irrelevant," And Another Thinks The Stock Will Remain "Range-Bound"

This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy. The market is hell-bent on punishing the shortfalls instead of rewarding the beats over consensus expectations this earnings season. So, when one looks at the confounding ~9 percent decline in Palantir's share price despite having delivered a near-flawless quarterly result, it is important to remember that this macro paradigm is responsible for Palantir's aberrant price action, with shortfalls in relation to the unrealistically optimistic whisper numbers providing the requisite bearish ammunition for now. For the benefit of those who might not be aware, Palantir is an AI-powered Software-as-a-Service (SaaS) provider that allows companies and government agencies to gather and analyze reams of data, enabling the detection of hidden patterns within complex datasets. The AI powerhouse announced its earnings for the first quarter of 2025 on Monday, boldly highlighting its 'Rule of 40' score, which stood at an eye-watering 83 percent in Q1'25. As a refresher, this rule posits that a company is healthy if its growth rate plus profit margin either equals or exceeds 40 percent. As far as specifics are concerned, Palantir managed to grow its revenue by 39 percent year-over-year in Q1 to $883.9 million, handily beating Wall Street's consensus expectations pegged at ~36 percent. Critically, Palantir delivered a trifecta of beats by exceeding consensus expectations on its top-line and bottom-line metrics as well as raising its guidance, with Mizuho analyst taking pains to note that the company's management "raised its FY25 guidance by much more than the 1Q beat." According to Morgan Stanley, Palantir is "firing on nearly all cylinders," with the company managing to close "139 [government] deals over $1 million in TCV, including 51 deals over $5 million and 31 over $10 million," culminating in an acceleration in its year-over-year quarterly revenue growth to over 45 percent. On the commercial side of things, Palantir inked a record $810 million worth of deals in Q1, corresponding to a year-over-year growth of 183 percent. Do note that Palantir was a tad weak in the international commercial segment, where it reported a negative year-over-year growth of 5 percent. Overall, Wall Street analysts remain ecstatic, with Goldman Sachs analyst Gabriela Borges going on to note: "We continue to view Palantir as well positioned to continue to deliver best-in-class growth given the secular trend towards enterprise AI adoption; the continued push for efficiency and technology adoption in the US government; and adoption of Operation Warp Speed among new defense entrants, traditional defense companies, and the broader manufacturing industry." Borges does introduce a cautionary note, though: "Our positive view of Palantir's growth is balanced by longer term ecosystem risks (the industry moving from peak custom to more off the shelf adoption) and the stock premium valuation." This cautionary note echoes that from Mizuho, whose Gregg Moskowitz thinks that "valuation cannot and should not be irrelevant, and we find it very difficult to justify PLTR's very high multiple - 60x CY2026E revenue - that in our view already discounts material acceleration and upside versus consensus expectations." Elsewhere, Wedbush analyst Dan Ives highlighted that Palantir is "gaining traction in Europe with its recent NATO partnership as more organizations look into scaling more use cases across operating systems." As we noted recently, Palantir's Maven Smart System is a "battlefield situational awareness platform" that aggregates and analyzes data from multiple sources to present a holistic picture of the battleground. Ives concludes by declaring: "We view Palantir as a generational tech name that we see as a trillion market cap over the next three years with PLTR being a core name in the AI Revolution theme over the coming years." Similarly, Jeffries analyst Brent Thill highlighted Palantir's impressive guidance, "with CY25 rev raised >6x the 1Q beat driven by AIP demand and implying 36% y/y growth vs 29% in CY24 alongside 44% opm and ~43.5% FCF margin." Thill, however, also cautioned on valuation: "Fundamentals are clearly alive, but we think irrational valuation at 56x CY26 rev skews risk/reward negatively." William Blair analyst Louie DiPalma expects Palantir's revenue growth to slow down in H2 2025, leading to a multiple compression for the high-flying stock, which is now back near its all-time highs. Consequently, DiPalma expects Palantir shares to remain range-bound over the next year relative to the current price levels.

Palantir Stock A 'Core Name In AI Revolution': Analysts Expect $1 Trillion Market Cap In 3 Years - Palantir Technologies (NASDAQ:PLTR)

Palantir Technologies PLTR analysts highlight the company's opportunity in AI, government and commercial sectors after first-quarter financial results. Bank of America analyst Mariana Perez Mora maintained a Buy rating on Palantir with a $125 price target. Goldman Sachs analyst Gabriela Borges maintained a Neutral rating and raised the price target from $80 to $90. Wedbush analyst Dan Ives maintained an Outperform rating and raised the price target from $120 to $140. Read Also: Palantir Lauds Musk's DOGE Cuts, Calls It 'The Right Thing For The Country:' Government Resembles A 'Marbled Wagyu' Bank of America: Palantir's first-quarter revenue beat and raised guidance shows accelerated growth, Mora said in a new investor note. The analyst highlighted that the first-quarter revenue beat came from strong demand for both commercial and government markets. Mora said the $125 price target is part of a "longer-term valuation methodology" for the stock. "We think this valuation fairly captures the beneficial position to national security and US government/allies' digital modernization efforts, a leading role in artificial intelligence-powered platforms, opportunistic partnerships, strong balance sheet and strong profitability," Mora said. Goldman Sachs: Palantir is "still gaining momentum with AI strategy," Borges said in a new investor note. Borges said the debate on the medium-term ecosystem remains. "We believe the enterprise ecosystem continues to turn to Palantir as a proven way of executing AI strategy while alternatives are relatively more challenging to adopt," Borges said. Palantir can also benefit from the defense tech industry, which is on track for "meaningfully more traction," Borges adds. "We continue to view Palantir as well positioned to continue to deliver best-in-class growth given the secular trend towards enterprise AI adoption." Wedbush: Palantir bull Ives raises the price target after the Q1 results. He again refers to the company as the "Messi of AI." "The company continues to capitalize on the AI demand wave with its AIP product moat gaining further traction moving forward," Ives said. The analyst said Palantir's multi-million dollar deals in the pipeline show the company's "land and expand strategy" is working. Ives also highlighted Palantir's traction gains in Europe with a recent NATO partnership. "We view Palantir as a generation tech name that we see as a trillion market cap over the next three years with PLTR being a core name in the AI Revolution theme over the coming years." PLTR Price Action: Palantir stock is down 14.1% to $106.30 on Tuesday versus a 52-week trading range of $63.40 to $125.41. Palantir stock is up 41.3% year-to-date in 2025 and up over 320% in the last year. Read Next: EXCLUSIVE: April's 20 Most-Searched Tickers On Benzinga Pro -- Where Do Tesla, Apple, Palantir, Nvidia Stocks Rank? Image: Shutterstock PLTRPalantir Technologies Inc$107.78-12.9%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum99.44Growth86.98Quality-Value2.32Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Palantir (PLTR) Shares Fall Despite Strong Q1 Earnings, Raised Guidance: What's Going On? - Palantir Technologies (NASDAQ:PLTR)

Palantir Technologies Inc PLTR shares are down 11.4% to $109.62 this week, despite delivering solid first-quarter results and lifting its full-year outlook. What To Know: The company reported first-quarter revenue of $883.86 million, topping analyst estimates of $862.83 million, with adjusted earnings of $0.13 per share matching expectations. Revenue surged 39% year-over-year, led by a 55% jump in U.S. sales, including a 71% rise in U.S. commercial revenue. Customer count climbed 39% year-over-year, with 139 deals over $1 million closed in the quarter. CEO Alex Karp highlighted growing enterprise adoption of Palantir's AI software, calling the company's progress "unparalleled." Management raised full-year revenue guidance to $3.89-$3.90 billion, up from $3.74-$3.76 billion. Second-quarter revenue is forecast between $934 million and $938 million, also above estimates. Despite the upbeat forecast, investor sentiment turned negative this week, triggering a sharp sell-off. Analysts remain mixed in sentiment. Wedbush sees Palantir as the "Messi of AI," raising its target to $140, while Goldman Sachs maintained a Neutral rating. Palantir's expanding AI footprint and strong government ties remain key themes as it scales operations globally. How To Buy PLTR Stock Besides going to a brokerage platform to purchase a share -- or fractional share -- of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument. For example, with Palantir Technologies, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within the segment. PLTR Price Action: According to data from Benzinga Pro, Palantir has a 52-week high of $125.41 and a 52-week low of $63.40. Shares closed Wednesday down 7.96% at $110.48. Read Also: * Fed Keeps Rates Steady, Warns Of Rising 'Uncertainty About The Economic Outlook' Photo: Sundry Photography via Shutterstock PLTRPalantir Technologies Inc$109.870.93%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum99.34Growth87.32Quality-Value2.70Price TrendShortMediumLongOverviewGot Questions? AskHow will Palantir's AI software impact tech firms?Which government contracts could Palantir secure next?How might investor sentiment shift after this sell-off?What does Palantir's revenue guidance suggest for competitors?Which ETFs include Palantir and other AI stocks?How will U.S. sales growth affect tech investments?Which companies could benefit from Palantir's partnerships?How might Palantir's customer growth influence market trends?What risks do investors face with Palantir's stock?Could Palantir's expanding footprint attract new investors?Powered ByMarket News and Data brought to you by Benzinga APIs

Should You Buy Palantir Stock Before May 5?

So far, 2025 has been a tough one for growth investors. After nearly two years of parabolic gains witnessed in the technology sector, the stock market has started to take a breather thanks to ongoing turbulence around President Donald Trump's new tariff policies. While traditional no-brainer artificial intelligence (AI) opportunities such as the "Magnificent Seven" have lost their allure for the time being, enterprise software darling Palantir Technologies (PLTR 0.71%) is still managing to win over investors. As of market close on April 29, shares of Palantir have gained 53% this year -- making it the top performer in the Nasdaq-100 by a mile. With first-quarter earnings scheduled for next Monday (May 5), investors may be wondering if now is a good time to hop on the Palantir train. Let's dig into what investors should expect from the Q1 report, and assess if buying the stock right now is a good idea. What should investors expect from Palantir's Q1 report? Back in February, Palantir published financial results for the full year 2024. In the report, management included the following financial guidance. Data source: Palantir investor relations. As the table above illustrates, Palantir previously forecast $860 million in revenue and $356 million in adjusted operating income at the midpoint of its guidance. To put this into perspective, this would represent roughly 36% top-line growth and 57% growth in operating income. Normally, I'd say that this level of sales growth and profit margin expansion may be a bit aggressive. However, AI has been more than just a reliable catalyst for Palantir over the last couple of years. The introduction of the company's Artificial Intelligence Platform (AIP) has transformed Palantir from primarily a data specialist working with the U.S. military to a more prolific software platform used by some of the world's leading enterprises in the private sector, too. With that in mind, there are a number of items that should be top of mind for investors heading into Palantir's earnings report next week. A number of factors could change Palantir's near-term trajectory The first, and probably most obvious, point I'll bring up is the tariff situation. Even though it may seem like the tariff rhetoric has been dragging down the stock for a while now, it's actually been less than a month as I write this. At a high level, investors do not yet know how dramatically tariffs are impacting corporate budgets. It's entirely possible that large enterprises (Palantir's target customer) are operating under tighter cost controls and may reduce spend in areas such as software or IT. On the flip side, though, Palantir's AI software can actually help businesses create detailed models to analyze how tariffs will impact their operations -- allowing them to form new strategies in real time. In addition, investors already know that the Pentagon is in the middle of a hefty cost-reduction exercise, seeking to reduce its budget by 8% annually over the next few years. Considering more than 50% of Palantir's revenue comes from the public sector -- much of it from defense engagements with the military -- it's entirely possible that the company's main source of growth could be in jeopardy. However, as I expressed in a prior article, Defense Secretary Pete Hegseth appears committed to enhancing the Pentagon's reliance on critical software infrastructure. For this reason, Palantir could actually benefit from operational changes at the Department of Defense (DOD) and be in a position to replace legacy providers that are not performing up to par. My overarching point here is that tariffs and budget reductions at the DOD could potentially be tailwinds or headwinds for Palantir -- and at this point in time, investors simply don't know how these situations are impacting the company yet. Is Palantir stock a good buy right now? As the chart below shows, Palantir stock clearly has quite a bit of momentum fueling it right now. Just over the last month, Palantir stock has climbed by 35% while the S&P 500 and Nasdaq Composite were both basically flat. With earnings right around the corner, I think it's a coin toss as to which direction Palantir stock could go following the Q1 report. PLTR data by YCharts Generally speaking, I don't encourage investors to follow momentum stocks. Many times, these stocks can be heavily influenced by day traders and leave unsuspecting investors holding the bag when they least expect it. Given the number of variables that could dictate the next direction of Palantir stock, I think it's best to wait until Q1 earnings are published before making a decision to buy. My hope is that Palantir's management will provide details about how tariffs and the budget cuts at the Pentagon are impacting its business. At the very least, this would help clarify what the company's near-term prospects look like and if the guidance shared above is still attainable. From a longer-term view, however, I still see Palantir as a great opportunity for growth investors. I think the prudent approach to an investment in Palantir is to use dollar-cost averaging over the course of many years. Buying at different price points and at different junctures throughout the AI revolution should help mitigate some of the risk surrounding a volatile stock such as Palantir, while making the precise timing of your buys less of a concern.

Should You Buy Palantir Stock After Its 57% Gain in 2025? Wall Street Has a Clear Answer for Investors. | The Motley Fool

Palantir Technologies (PLTR -1.91%) was the best performing stock in the S&P 500 (^GSPC 0.63%) in 2024. The company saw its share price surge 340% as robust demand for its artificial intelligence platform led to impressive financial results throughout the year. Palantir has maintained its momentum in 2025. Its year-to-date return of 57% means it is once again the best performer in the S&P 500, partly because investors have shown a clear preference for software and services companies that may escape tariffs unscathed. However, Wall Street clearly thinks investors should avoid the stock at its current valuation. Among the 27 analysts who follow Palantir, the media, target price is $96 per share. That implies 20% downside from the current share price of $120. Read on to learn more. Palantir develops data analytics software for commercial and government organizations. Its core products, Gotham and Foundry, let customers apply machine learning models to complex data to uncover insights and optimize decision-making. Its artificial intelligence platform, AIP, enhances the core products with support for large language models. Palantir sees itself as the only software company that can help businesses operationalize AI -- that is, move AI capabilities from prototype to production in a manner that creates real operational value. CEO Alex Karp told analysts, "We are the only company in America, the only relevant market, that will allow you to do useful things with large language models." Palantir reported strong fourth-quarter financial results that crushed expectations on the top and bottom lines. Customers increased 43% to 711 and the average existing customer spent an additional 20%. In turn, revenue increased 36% to $828 million, the sixth straight acceleration, and non-GAAP net income rose 75% to $0.14 per diluted share. The company is well positioned to maintain that momentum. Forrester Research recently recognized Palantir as a technology leader in artificial intelligence and machine learning platforms, awarding AIP higher scores that similar solutions from Alphabet's Google and Microsoft. That makes the company a key player in a very large addressable market. International Data Corp. estimates AI platform sales will grow at 40% annually to hit $153 billion by 2028. Palantir will announce its first-quarter financial results after the market closes on Monday, May 5. Wall Street analysts expect another exceptional print. The consensus estimate says revenue will increase 36% to $862 million, while adjusted earnings increase 62% to $0.13 per diluted share. However, the market may have greater expectations given that Palantir beat the consensus earnings estimate by an average of 13% over the last six quarter. Failure to meet those high expectations could cause a steep sell-off, especially when the stock trades at more than 100 times sales, a valuation multiple few software companies have ever attained. Further ahead, Wall Street estimates Palantir's earnings will increase 35% in 2025. That consensus makes the current valuation of 290 times earnings look very expensive. Those figures give a price-to-earnings-to-growth (PEG) ratio above 8, which screams overvalued. Traditionally, PEG ratio above 2 or 3 are considered high. With that in mind, the most prudent course of action for prospective investors would be to wait for a better entry point before purchasing the stock. That doesn't mean shares won't rocket higher after the company reports earnings next week. But the risk-reward profile is heavily tilted toward risk right now, which means there are better places for investors to put their money.

Should You Buy Palantir Technologies Stock Before May 5? Wall Street Has a Nearly Unanimous Answer That Might Surprise You. | The Motley Fool

Analysts rarely see eye to eye on anything, but an astonishing number share a similar view on the data mining and artificial intelligence (AI) specialist. The dawn of artificial intelligence (AI) in late 2022 caused a paradigm shift in technology that is still ongoing. The potential of generative AI to increase productivity and streamline processes has business leaders lining up to reap the rewards of this veritable financial windfall. But many executives simply don't know where to start. That's where Palantir Technologies (PLTR 6.65%) comes into play. The company provides the systems and expertise to deliver real-time, data-driven solutions -- and it's hard to argue with the results. The stock has gained more than 415% over the past year (as of this writing) and is up 1,710% since AI went viral to kick off 2023. Unfortunately, the surging stock price has seen a commensurate increase in Palantir's valuation, and some investors have become justifiably skittish. Despite the nearly universal sticker shock, some believe that Palantir's epic run is just getting started. Let's review what's fueling Palantir's current success, what could drive the stock to new heights, and what Wall Street believes. While generative AI stole the spotlight in recent years, Palantir has a long and storied history of AI development. The company has worked behind the scenes for more than 20 years, developing sophisticated algorithms for U.S. intelligence agencies and law enforcement. Palantir was founded out of the rubble of 9/11 with the idea that an AI-powered system could pore over information from disparate systems, linking seemingly random data points that would act as a trail of breadcrumbs and stop potential terror plots in their tracks. Palantir quickly concluded that its data analytics and AI systems would be equally adept at providing elegant solutions to otherwise complex business problems. By diving deeply into siloed enterprise systems, its software can provide actionable intelligence based on data-driven insights. However, when generative AI burst on the scene, Palantir recognized the unprecedented opportunity. Just months later, the company introduced its Artificial Intelligence Platform (AIP), which leverages company-specific data to unearth individualized solutions. However, it was the company's go-to-market strategy that was pure gold. Most managers are eager to benefit from AI but simply don't know where to start. Palantir engineers are paired with executives and developers at "boot camp" forums to solve real-world problems with AI. "These immersive, hands-on sessions allow new and existing customers to build live alongside Palantir engineers, all working toward the common goal of deploying AI in operations," Palantir said. The success of this strategy is undeniable. In the fourth quarter, Palatir's revenue grew 36% year over year, while adjusted earnings per share (EPS) soared 75%. That's just the tip of the iceberg. Palantir's U.S. commercial revenue -- which includes AIP -- rose 64%, while the segment's customer count jumped 73%. Additionally, the segment's remaining deal value -- which provides insight into the company's future growth potential -- increased 99%. This wasn't just a one-off, either. Palantir's revenue and earnings have accelerated in each of the past seven quarters, with no signs of slowing. Given the company's track record of consistent execution and expanding profitability, you might be surprised to find that Wall Street is decidedly bearish on Palantir's prospects - but that requires context. The stock's parabolic move higher in recent years has been accompanied by a commensurate rise in its valuation. Palantir is currently trading for 210 times forward earnings and 57 times forward sales, which many would agree is egregiously overpriced, but those numbers come with an asterisk. The most commonly used valuation metrics tend to fall short when measuring high-growth stocks like Palantir. For example, using the less common and more appropriate forward price/earnings-to-growth (PEG) ratio, Palantir sports a multiple of about 1, which suggests the stock is fairly valued. Nonetheless, many on Wall Street remain leery. Of the 25 analysts who offered an opinion on Palantir in April, only four rate the stock a buy or strong buy, 16 recommend holding, and five rate it underperform or sell. That means 84% of analysts don't believe Palantir is a buy right now. It's worth noting that Wall Street is generally focused on the next 12 to 18 months, and Palantir's growth story is likely to play out over the next decade. One representative view comes courtesy of Argus Research analyst Joseph Bonner, who noted late last year, "The market tends to punish highly valued tech stocks." That call was prescient: between Feb. 18 and March 10, Palantir stock slumped 39%. This helps to illustrate that while the future looks bright, the near term is likely to be marked by wild volatility. To be clear, the current environment is fraught with uncertainty. The backdrop of inflation, tariffs, and fear of a pending recession has some investors battening down the hatches. However, Palantir could actually benefit from the economic uncertainty, according to Ark Investment Management CEO, Cathie Wood. "When businesses and consumers are scared, they'll change the way they do things, and that's usually good for the companies that are helping others do things better, cheaper, faster, more creatively, and more productively," she said. Wood went on to say that Palantir is well positioned for an AI-driven future. "We think Palantir is going to be one of the biggest beneficiaries as companies try and make themselves more efficient and move into the AI age," she said, "You've got the C-suite really trying to figure this out, understanding strategically that if they don't jump into the AI age, they'll be left behind." In fact, Wood goes further. In a post on X (formerly Twitter) on Saturday, Wood said, "CEO Alex Karp believes that [Palantir] will become the largest pure-play enterprise AI software company in the world. I believe him." That said, it's critical that Palantir shareholders adopt a long-term view, as the stock price is likely to continue to be volatile. One strategy for investors who are intrigued but don't yet own a stake is to buy a small position and be prepared to add opportunistically during stock price declines. Another strategy is dollar-cost averaging, in which investors build a position by adding set dollar amounts over time, which results in adding fewer shares when the price is higher and more when the price is lower. Being a Palantir stockholder isn't for the faint of heart, but adopting a long-term outlook and building a stake over time can be effective strategies for what will probably be a volatile but potentially lucrative investment.

Palantir Stock Is Flying Higher Today -- Should You Buy This Red-Hot AI Stock Before May 5? | The Motley Fool

Shares of Palantir (PLTR 6.33%) are rising on Friday. The company's stock gained 5.8% as of 12:14 p.m. ET but gained as much as 6.9% earlier in the day. The leg up came as the S&P 500 gained 1.3% and the Nasdaq Composite lost 1.6% on the day. Shares of the artificial intelligence or AI-powered analytics company received a boost today after the latest jobs numbers were released. The report painted a better-than-expected picture, easing fears of a recession. The Bureau of Labor Statistics reported stronger-than-expected job growth for April. Nonfarm payrolls increased by 177,000 jobs, far surpassing economists' expectations of 133,000, while the unemployment rate held steady at 4.2%. Another metric that includes people who consider themselves underemployed and those working part-time jobs, dropped -- another positive sign. Many had feared the report would show signs that Trump's tariffs were leading to a weakening job market, but at least for now, the market looks mostly healthy. Since the company deals in software, it is more shielded from the impacts of Trump's tariffs than many in the AI space, at least directly. But many of its clients aren't so lucky and could start tightening their belts if their bottom lines are meaningfully hurt, leading to lost contracts for Palantir. While today's report is encouraging, we're not out of the woods yet. Palantir stock carries a hefty premium, trading at nearly 650 times earnings. That is really an incredible multiple. When investors are willing to pay such a premium, they expect the company to deliver perfection, more or less. That makes Palantir's stock especially vulnerable to changes in the macro environment. While the company's earnings call on May 5 will tell us more about how much it expects to be affected by the tariffs or their downstream effects, I can't recommend Palanitr at its current valuation.

Stock-Split Watch: Is Palantir Next? | The Motley Fool

Palantir (PLTR 6.77%) is up about 18-fold from its low in 2022. The big data stock has become a popular stock as its Artificial Intelligence Platform (AIP) has brought its customers eye-popping productivity gains. Now, as its stock rises back to record levels, one might wonder whether Palantir is a stock split candidate. Let's take a closer look. Indeed, Palantir has had an incredible run. In the fall of 2022, the stock had briefly fallen below $6 per share. With its massive gains, the stock now trades above $110 per share. Interestingly, Palantir cannot credit artificial intelligence (AI) in a general sense. The company has long relied on AI and machine learning to conduct its analyses and make its recommendations. However, it was not until the release of its generative AI-driven AIP that the company's results went to the next level. In its most recent earnings call, Palantir highlighted how a global insurer reduced a two-week process to just three hours. Another company, Anduril Industries, increased the efficiency of its response time to supply shortages by as much as 200x by using Palantir's software. As a result of such gains, its 2024 revenue was almost $2.9 billion, growing 29% yearly, including a 36% annual gain in the fourth quarter. That allowed the company to earn $462 million for the year, up from $79 million in 2023. Amid such gains, the stock has risen considerably, moving higher by more than 400% over the last 12 months. Still, those gains bear little relation on its stock split status. That's because Palantir, like every other stock, has the right to split its stock anytime the company chooses. Hence, one cannot rule that scenario in or out completely. Nonetheless, as mentioned before, the recent stock surge takes it to the $110s per-share level. While that is a massive increase, that does not necessarily take it to a price level worthy of a stock split. For example, when looking at stock splits from other top companies, Nvidia and Broadcom did not split last year until their pre-split stock prices exceeded $1,000 per share. Also, another possible motivator is price weighting. This is especially true for the stocks that comprise the Dow Jones Industrial Average. The Dow is a price-weighted index, meaning a component's influence over the index is based on its nominal stock price. To mitigate that influence, the 30 components may split their shares periodically. Palantir is not a Dow 30 stock. However, only eight of the 30 Dow stocks currently have a price below Palantir's, so even by its more stringent standards, Palantir does not look much like a stock split candidate. Investors might also question whether Palantir can maintain the current stock price amid high multiples. While one could dismiss the price-to-earnings (P/E) ratio above 600, the forward P/E ratio exceeding 200 indicates its high valuation may not be an anomaly. Additionally, the company's price-to-sales (P/S) ratio of approximately 100 is far above the S&P 500's median sales multiple of 2.8. That is added confirmation that Palantir's stock price is probably years ahead of itself. In the current stock-trading environment, a stock split for Palantir either now or in the near future is highly unlikely. For one, Palantir's nominal price is well below levels where other companies are splitting, even the ones pressured by the Dow to maintain lower nominal stock prices. Also, one might question whether Palantir can even maintain its current stock price in the near term. The recent gains have taken its P/E and P/S ratios to nosebleed levels. Thus, one can argue that situation prices it for perfection, meaning it could experience a massive decline if it shows any sign of imperfection. Hence, instead of wondering whether Palantir's stock is going to split, investors may want to ponder whether to continue holding the stock at all.

2 Magnificent Artificial Intelligence (AI) Stocks to Buy in May and 1 to Avoid | The Motley Fool

Two industry-leading AI stocks are historically cheap and begging to be bought, while another highflier -- up more than 1,700% since 2023 began -- won't live up to the hype surrounding it. For much of the last two-and-a-half years, the bulls have been in firm control on Wall Street. While a confluence of factors is responsible for lifting all three of Wall Street's major stock indexes to new heights in 2024 (and early 2025 for the S&P 500), it's the evolution of artificial intelligence (AI) that stands head-and-shoulders above other catalysts. The broad-stroke excitement with AI is that it allows enabled software and systems to reason and act on their own. Looking a bit further down the line, machine learning, when coupled with AI capabilities, can lead to software and systems learning new jobs and skillsets, all without human oversight. The global addressable market for artificial intelligence is vast. In Sizing the Prize, the analysts at PwC pegged it at $15.7 trillion by 2030. This figure includes an estimated $6.6 trillion from productivity improvements, along with $9.1 trillion from various consumption-side effects. But as previous next-big-thing innovations and technologies have taught investors, not every cutting-edge company is necessarily worth buying. As we move into May, two magnificent AI stocks stand out as no-brainer buys for a multitude of reasons. Meanwhile, one of Wall Street's AI darlings appears priced for perfection and is worth avoiding. The stock market entered 2025 with one of its priciest valuations in history. In many instances, AI stocks were leading the charge, with valuations that were well beyond historical norms. But this isn't the case with Google parent Alphabet (GOOGL 1.69%) (GOOG 1.83%), which is one of the cheapest AI stocks on the planet. Alphabet is best-known for its world-leading internet search platform, Google. Data aggregated by GlobalStats finds that Google has controlled an 89% to 93% monthly share of worldwide internet search when looking back more than a decade. Google's near-monopoly status ensures strong ad pricing power and relatively consistent operating cash flow for its parent company. But while advertising is Alphabet's foundation, AI-driven cloud infrastructure service platform Google Cloud is its future. Google Cloud became recurringly profitable in 2023 and is currently generating $49 billion in annual run-rate sales. Cloud-service margins are considerably higher than those associated with advertising, meaning a faster growth rate for Google Cloud will disproportionately benefit the company's bottom line. Alphabet is investing aggressively in AI hardware to give its Google Cloud customers access to generative AI solutions, as well as large language model technology. The ongoing integration of AI solutions into its cloud infrastructure service platform should sustain or accelerate Google Cloud's double-digit growth rate. Another reason investors can trust in Alphabet is its hearty cash position. It closed out March with $95.3 billion in cash, cash equivalents, and marketable securities, all while generating $36.2 billion in net cash from its operations through the first three months of 2025. This boatload of capital allows the company to invest in faster-growing initiatives, as well as to reward shareholders by repurchasing its own stock. Shares of Alphabet can be scooped up right now for less than 16 times forecast earnings per share (EPS) in 2026. This equates to a 31% discount to its average forward price-to-earnings (P/E) multiple over the last five years. April was a month marked by heightened trade tensions between the U.S. and China, the world's No. 2 economy by gross domestic product. In spite of these ongoing risks, the time to pounce on one of China's most important AI-powered tech stocks, Baidu (BIDU 2.37%), has arrived. Similar to Alphabet, Baidu's core business is ad-driven. With few exceptions, Baidu has sustained a 50% to 85% monthly share of China's internet search market over the trailing decade. Even though Baidu's influence is limited to its home market, it's clearly the top choice by China-based businesses looking to market to consumers. Not to sound like a broken record, but this translates into predictable cash flow and reasonably strong ad-pricing power. However, it's Baidu's non-online marketing segment that's likely to be its premier growth driver in the latter-half of the decade, if not well beyond. For instance, even though Baidu's net sales advanced by a low-single-digit percentage during the December-ended quarter, AI Cloud revenue surged 26% and helped lift non-online marketing segment sales up 18% from the prior year. Like Alphabet, Baidu is willingly spending on AI solutions for its cloud infrastructure service platform. But there's more to Baidu's AI ambitions than just cloud services. Baidu is the parent of Apollo Go, which is the world's (thus far) most-successful autonomous driving company. In January, it surpassed 9 million cumulative rides since its inception. It's also the first autonomous vehicle (AV) company to be granted a permit to conduct testing on public roads in Hong Kong. If the global addressable AV market is even a fraction as large as some analysts have suggested, Baidu can be an absolute juggernaut. Baidu is also sitting on a mountain of cash. It ended 2024 with the U.S. equivalent of around $19 billion in cash, cash equivalents, restricted cash, and short-term investments. There's plenty of capital to invest in its AI-driven future. Lastly, Baidu stock can be picked up for less than 8 times forward-year EPS. Even accounting for U.S.-China trade war tensions, this is historically inexpensive. As a reminder, not every company associated with a next-big-thing trend is necessarily going to be a winner. Though its shares have risen by more than 1,700% since the end of 2022, AI-fueled software-as-a-service (SaaS) solutions provider Palantir Technologies (PLTR 6.77%) is a stock worth avoiding in May. To be objective, Palantir does deserve some degree of valuation premium. Though it contends with small-scale competitors, there isn't a company that can replace the services Palantir provides through its Gotham and Foundry platforms at scale. Irreplaceability is hard to find among publicly traded companies, and sustainable moats tend to be rewarded. Palantir has also been growing sales at a lightning-fast pace. Gotham, which provides federal governments with data collection/analytics, as well as tools to conduct military missions, continues to benefit from robust, multiyear contracts won from the U.S. government. Palantir's ability to generate recurring profits has gone a long with the investing community. But there are three big headwinds Palantir is up against in 2025, and all of them suggest its share price is (eventually) headed lower. To begin with, it's unclear if the Donald Trump administration plans to increase defense spending. With the Pentagon, in February, proposing $50 billion in annual cuts over the next five years, Palantir's top-tier growth engine (Gotham) could shift down a gear or two. Secondly, every next-big-thing trend for more than 30 years has navigated its way through a bubble-bursting event. This is to say that investors have always overestimated how quickly a new innovation would gain utility and widespread adoption. Though Palantir's multiyear contracts via Gotham and subscription revenue from Foundry would buoy short-term sales, investor sentiment tied to a bubble-bursting event would almost certainly weigh on its stock. Third and most important, Palantir's valuation is far beyond historical norms. Prior to the bursting of previous bubbles over the last three decades, industry-leading companies peaked at price-to-sales (P/S) ratios of 30 to 43. Palantir Technologies' stock is tipping the scales at a P/S ratio of 101! No industry-leading company has ever been able to maintain such an outsized premium over an extended timeline.

Palantir Investors Just Got Spectacular News From CEO Alex Karp | The Motley Fool

Investors continue to underestimate the artificial intelligence (AI) specialist. After an unrelenting run that spanned more than two years and resulted in stock price gains of more than 1,000%, Palantir Technologies (PLTR -0.27%) is taking a well-deserved breather. The company got its start designing artificial intelligence (AI) solutions for the U.S. defense and intelligence industries before turning its gaze to enterprise. That move proved to be prescient, as the demand for generative AI helped drive accelerating sales and profit growth. Some investors have become increasingly apprehensive about its valuation, but the future remains bright. The company released its financial report after the market closed on Monday. Not only were the results robust, but the increase in Palantir's full-year guidance illustrates the strong and ongoing demand for its AI expertise. Let's review the results and what could lie ahead for Palantir. In the first quarter, Palantir generated revenue of $884 million, up 39% year over year and 7% quarter over quarter. This resulted in adjusted earnings per share (EPS) of $0.13, which climbed 63%. To put results in the context of expectations, analysts' consensus estimates were calling for revenue of $862 million and EPS of $0.13. The results were driven higher by U.S. commercial revenue that soared 71% year over year and 19% sequentially -- well ahead of management's guidance for growth of at least 54%. U.S. government revenue played its part, jumping 45%. Strength in its customer metrics helped fuel the blockbuster results. Palantir's customer count grew 39% year over year, driven by a 65% increase in U.S. commercial customers. The underlying agreements that drove the results also turned heads, as Palantir closed 139 deals worth at least $1 million. Of those, 51 were worth at least $5 million, and 31 were worth at least $10 million. Many of these contracts are laying the groundwork for the future. The company's remaining performance obligation (RPO) -- or contractually obligated sales not included in current revenue -- climbed 46% year over year to $1.9 billion. It's always a good sign when RPO is growing faster than current revenue, as this shows the company is setting the foundation for future growth. Palantir left no doubt that AI was responsible for its robust results, as businesses are increasingly turning to its Artificial Intelligence Platform (AIP) as a means to tap into the AI revolution. Company-sponsored "boot camps" pair Palantir engineers with users to deploy AI and solve real-world, mission-critical business problems. The sessions have proven wildly successful, as evidenced by the number of seven- and eight-figure deals penned within weeks or months of attendance. Palantir boosted its full-year revenue guidance for 2025 to $3.9 billion, up from $3.75 billion just last quarter, which would represent year-over-year growth of 36% at the midpoint of its guidance. The biggest contributor to this growth spurt is the U.S. commercial segment -- which includes AIP -- as the company is now guiding for growth of at least 68%, up from management's forecast for 54% growth just last quarter. In Palantir's letter to shareholders, CEO Alex Karp said the move to AI "has evolved into a ravenous whirlwind," and the legions of companies adopting large language models "has turned into a stampede." While there's little question that Palantir is executing at a high level, Wall Street has sounded the alarm about the company's exceedingly high valuation. Of the 25 analysts that offered an opinion in May, only three rate it a buy or strong buy, 15 rate it a hold, and the remaining six have underperform or sell ratings. Nearly all the bearish calls cite the stock's egregious valuation as a reason to avoid Palantir. It isn't difficult to understand why. The stock is currently selling at 398 times earnings and 65 times sales, which most investors would agree is lofty. The stock's frothy multiples have led to extreme volatility, so it won't be a good fit for every investor. If you have any doubts, consider this: Between mid-February and early April, Palantir stock plunged 41% -- on no company-specific news. Estimates regarding the market value of AI vary wildly, but generative AI is expected to contribute between $2.6 trillion and $4.4 trillion to the global economy over the coming decade, according to global management consulting firm McKinsey & Company. If Palantir can continue to blaze the trail of AI adoption, its stock price will likely be much higher five to 10 years from now, but investors will need a strong constitution to stay the course. Given its track record of growth, I believe Palantir shareholders should buckle themselves in for the long and bumpy ride ahead. For those looking to take the plunge, it might be best to buy on any significant decline or dollar-cost average into a position.

Palantir Stock Drops 9% Despite a Stellar Earnings Report Featuring 71% U.S. Commercial Revenue Growth | The Motley Fool

U.S. enterprise demand is voracious for the company's artificial intelligence (AI)-powered software platforms. Palantir Technologies (PLTR -0.27%) stock dropped 9.3% in after-hours trading on Monday following the artificial intelligence (AI)-powered data analytics company's release of its earnings report for the first quarter of 2025. It's safe to assume the main reason for the stock's decline was that the quarter's earnings "only" met Wall Street's consensus estimate. Granted, earnings growth was great, but simply meeting analysts' expectations is not usually good enough to prevent a post-earnings decline for a stock with a sky-high valuation. In other words, extremely high earnings growth expectations were already priced into Palantir stock. Going into the release, Palantir stock was trading at 238 times estimated earnings for the forward one-year period. For some context, shares of Nvidia, the leading AI chipmaker, and Broadcom, the leader in custom AI chips, were trading at 26 and 31 times forward projected earnings, respectively. As for the report's other key metrics, Palantir's first-quarter revenue breezed by Wall Street's expectation. The company's second-quarter revenue guidance came in notably higher than analysts had expected, and it significantly raised its full-year 2025 guidance for many metrics. Data source: Palantir Technologies. GAAP = generally accepted accounting principles. Calculations by author except for revenue growth, which was provided by Palantir. Investors should focus on the adjusted numbers, which exclude one-time items. Wall Street was looking for adjusted EPS of $0.13 on revenue of $862.1 million, so Palantir met the profit expectation and easily exceeded the revenue one. It also surpassed its guidance, which was for revenue between $858 million to $862 million. The company doesn't issue earnings guidance. Palantir generated cash of $310 million from running its operations during the quarter, up 139% from the year-ago period. Its adjusted free cash flow was $370 million, up 149% year over year. The company ended the quarter with cash, cash equivalents, and short-term investments of $5.4 billion, up from $5.2 billion last quarter. It has no long-term debt. All percentage growth figures are year over year. Q2 guidance: Going into the release, Wall Street had been modeling for Q2 revenue of $899 million, or 33% growth, so Palantir's guidance easily beat this expectation. Annual guidance: Data source: Palantir Technologies. YOY = year over year. *Calculations by author except for total revenue and U.S. commercial revenue growth guidance, which Palantir provided. In short, Palantir turned in a stellar report. Granted, the stock fell, but it's not the company's fault that many investors have unrealistic expectations for near-term earnings growth. In Nov. 2024, I wrote that Palantir stock has what it takes to be the "next Nvidia stock" -- a massive long-term winner. I still believe Palantir stock is a buy -- but investors need to be careful given the stock's sky-high valuation of 238 times forward projected earnings. Only folks with long investing horizons should consider buying Palantir stock. And if you do decide to buy it, it's imperative to dollar-cost-average (DCA) your way into your full position. That means investing the same dollar amount in the stock at some fixed interval, such as quarterly. This method will ensure that you don't risk buying all your shares in the stock right before a significant decline.

Why Palantir Stock Is Plummeting Today | The Motley Fool

Palantir (PLTR -12.28%) stock is getting hit with big sell-offs in Tuesday's trading after the company's first-quarter earnings release yesterday. The company's share price was down 13.7% as of 10:30 a.m. ET. Palantir published its Q1 results after the market closed yesterday and delivered a profit that was in line with Wall Street's expectations and sales that beat the average forecast. The company also raised its full-year performance targets, but the stock is pulling back because the new forecasts fell short of some higher-end expectations. For Q1, Palantir posted non-GAAP (adjusted) earnings per share of $0.13 on sales of $884 million. The company's profit was in line with the average analyst estimate, and revenue came in significantly ahead of Wall Street's target for sales of $863 million. Overall sales were up 39% year over year in the quarter, and sales to U.S. customers increased 55% to $628 million. Meanwhile, adjusted net income surged 70% annually to reach $334.4 million. Adoption for the company's Artificial Intelligence Platform (AIP) software suite helped drive strong growth in the quarter, and Palantir raised its performance targets for the year. Despite big sell-offs for the stock today, Palantir's forward guidance updates suggest that momentum for the business will remain very strong in the near term. Palantir's valuation pullback following strong Q1 results and big guidance updates highlights the risks associated with the company's extremely growth-dependent valuation. Shares could continue to be volatile in the near term as investors rerate the software specialist's growth outlook and respond to interest rate news and other macroeconomic factors.

Palantir Stock Crashes After Earnings but It Could Still Soar 300%, According to a Wall Street Analyst | The Motley Fool

Palantir Technologies (PLTR -12.18%) stock had plunged 14% as of 10 a.m. ET on Tuesday, May 6, as investors reacted to its first-quarter financial results. The company reported solid results amid continued demand for its artificial intelligence (AI) platform, but the market clearly had higher expectations. Nevertheless, technology analyst Dan Ives at Wedbush Securities thinks Palantir stock will surge 300% over the next two or three years. Here's what investors should know. Palantir reported strong first-quarter financial results that exceeded estimates on the top line. Its customer count climbed 39% to 769 and the average existing customer spent 124% more. Revenue increased 39% to $884 million, the seventh consecutive acceleration, driven by strong momentum across the commercial and government segments. Meanwhile, non-GAAP (adjusted) earnings increased 62% to $0.13 per diluted share. Chief Revenue Officer Ryan Taylor attributed the strong results to "unrelenting demand" for its artificial intelligence platform, AIP. Importantly, the company believes AIP is unique in its ability to operationalize AI, meaning it helps businesses move AI capabilities from prototype to production more effectively than other solutions. After seven quarters of accelerating sales growth, that claim is clearly resonating with buyers. Importantly, management also raised its full-year guidance, such that revenue is forecast to increase 36% in 2025. The company initially anticipated 30% sales growth this year, but ferocious demand for AIP has already exceeded management's expectations. Nevertheless, the stock fell sharply following the report, indicating that investors expected more from Palantir. What makes Palantir's data analytics platforms unique is an ontology-based architecture. An ontology is an analytical framework that defines the relationship between digital data and real-world objects, letting clients find nuanced patterns in complex information. "Our foundational investments in ontology and infrastructure position us to uniquely deliver on AI demand," Chief Technology Officer Shyam Sankar told analysts. Certain analysts share that opinion. Forrester Research recently recognized Palantir as a technology leader in artificial intelligence and machine learning platforms, awarding AIP better scores than similar products from Alphabet's Google and Microsoft. "Palantir is quietly becoming one of the largest players in this market," wrote lead analyst Mike Gualtieri. Dan Ives at Wedbush believes that advantage positions Palantir as a major beneficiary of the AI revolution. "Look, I believe this is going to a trillion-dollar market cap in the next two to three years," he told CNBC after the company's first-quarter financial report. That forecast implies 300% upside from its current market value of $250 billion. However, most Wall Street analysts are far less optimistic. The consensus estimate says Palantir's adjusted earnings will increase at 26% annually through 2026. That makes the current valuation of 230 times earnings look absurdly expensive. Not surprisingly, most analysts see the stock as overvalued despite its post-earnings decline. The median target price of $98 per share implies 8% downside from its current share price of $107. Personally, I think Ives is correct in predicting Palantir will eventually be a trillion-dollar company. But I also believe the stock is wildly overvalued at its current price-to-earnings multiple. So, patient investors can buy a small position today, provided they plan to hold the stock for several years and are comfortable with the idea of a sharp decline.

Palantir Bounced Back From Sell-Offs Today -- Is the Stock a Buy Right Now?

Palantir Technologies (PLTR 2.15%) stock ended Wednesday's trading in the green despite opening with a substantial valuation pullback. The company's share price wound up climbing 2% in the day's trading, but it had been down as much as 4.8% earlier in the session. Palantir saw sell-offs along with the broader market to start today's trading as investors reacted to first-quarter gross domestic product (GDP) data from the U.S. Commerce Department. While economists had forecast growth of 0.4%, GDP unexpectedly contracted 0.3% annually in the period. The decline for GDP stemmed from a large increase in imports ahead of new tariffs implemented by the Trump administration, which should be a one-time event, but investors also reacted negatively to growth of 1.8% for consumer expenditures, falling well short of the 4% growth recorded in the prior-year quarter. But the market's substantial early sell-offs were erased by the end of the day thanks to a social media post associated with a state-run Chinese channel that said U.S. officials were reaching out for tariff negotiations. With today's gains, Palantir stock is now up 56.5% this year. Is Palantir stock a buy right now? Following a continued valuation run-up in 2025, Palantir is now trading at roughly 214 times this year's expected earnings and 74 times expected sales. At these incredibly high forward valuation multiples, the stock looks pretty much untouchable for investors without very high levels of risk tolerance. The bull case for Palantir basically hinges on the thesis that the company has built a foundation-level role in the artificial intelligence (AI) software revolution -- and that it's still in the early stages of benefiting from strong competitive advantages, prescient strategic positioning, and secular demand tailwinds. To Palantir's credit, the company has been absolutely knocking it out of the park -- and its approach to AI software seemingly has the business poised to continue racking up wins down the stretch. For long-term investors willing to take on big risk in order to get a piece of a growth play that still has explosive potential, I think Palantir has promise even though it trades at very rich valuation multiples. But with expectations running high heading into the company's first-quarter report on May 5, even risk-tolerant investors may want to dollar-cost average into the stock rather than buy in all at once.

Should You Buy Palantir Technology Stock Before May 5? Wall Street Has a Nearly Unanimous Answer That Might Surprise You. | The Motley Fool

Analysts rarely see eye to eye on anything, but an astonishing number share a similar view on the data mining and artificial intelligence (AI) specialist. The dawn of artificial intelligence (AI) in late 2022 caused a paradigm shift in technology that is still ongoing. The potential of generative AI to increase productivity and streamline processes has business leaders lining up to reap the rewards of this veritable financial windfall. But many executives simply don't know where to start. That's where Palantir Technologies (PLTR -1.91%) comes into play. The company provides the systems and expertise to deliver real-time, data-driven solutions -- and it's hard to argue with the results. The stock has gained more than 415% over the past year (as of this writing) and is up 1,710% since AI went viral to kick off 2023. Unfortunately, the surging stock price has seen a commensurate increase in Palantir's valuation, and some investors have become justifiably skittish. Despite the nearly universal sticker shock, some believe that Palantir's epic run is just getting started. Let's review what's fueling Palantir's current success, what could drive the stock to new heights, and what Wall Street believes. While generative AI stole the spotlight in recent years, Palantir has a long and storied history of AI development. The company has worked behind the scenes for more than 20 years, developing sophisticated algorithms for U.S. intelligence agencies and law enforcement. Palantir was founded out of the rubble of 9/11 with the idea that an AI-powered system could pore over information from disparate systems, linking seemingly random data points that would act as a trail of breadcrumbs and stop potential terror plots in their tracks. Palantir quickly concluded that its data analytics and AI systems would be equally adept at providing elegant solutions to otherwise complex business problems. By diving deeply into siloed enterprise systems, its software can provide actionable intelligence based on data-driven insights. However, when generative AI burst on the scene, Palantir recognized the unprecedented opportunity. Just months later, the company introduced its Artificial Intelligence Platform (AIP), which leverages company-specific data to unearth individualized solutions. However, it was the company's go-to-market strategy that was pure gold. Most managers are eager to benefit from AI but simply don't know where to start. Palantir engineers are paired with executives and developers at "boot camp" forums to solve real-world problems with AI. "These immersive, hands-on sessions allow new and existing customers to build live alongside Palantir engineers, all working toward the common goal of deploying AI in operations," Palantir said. The success of this strategy is undeniable. In the fourth quarter, Palatir's revenue grew 36% year over year, while adjusted earnings per share (EPS) soared 75%. That's just the tip of the iceberg. Palantir's U.S. commercial revenue -- which includes AIP -- rose 64%, while the segment's customer count jumped 73%. Additionally, the segment's remaining deal value -- which provides insight into the company's future growth potential -- increased 99%. This wasn't just a one-off, either. Palantir's revenue and earnings have accelerated in each of the past seven quarters, with no signs of slowing. Given the company's track record of consistent execution and expanding profitability, you might be surprised to find that Wall Street is decidedly bearish on Palantir's prospects - but that requires context. The stock's parabolic move higher in recent years has been accompanied by a commensurate rise in its valuation. Palantir is currently trading for 210 times forward earnings and 57 times forward sales, which many would agree is egregiously overpriced, but those numbers come with an asterisk. The most commonly used valuation metrics tend to fall short when measuring high-growth stocks like Palantir. For example, using the less common and more appropriate forward price/earnings-to-growth (PEG) ratio, Palantir sports a multiple of about 1, which suggests the stock is fairly valued. Nonetheless, many on Wall Street remain leery. Of the 25 analysts who offered an opinion on Palantir in April, only four rate the stock a buy or strong buy, 16 recommend holding, and five rate it underperform or sell. That means 84% of analysts don't believe Palantir is a buy right now. It's worth noting that Wall Street is generally focused on the next 12 to 18 months, and Palantir's growth story is likely to play out over the next decade. One representative view comes courtesy of Argus Research analyst Joseph Bonner, who noted late last year, "The market tends to punish highly valued tech stocks." That call was prescient: between Feb. 18 and March 10, Palantir stock slumped 39%. This helps to illustrate that while the future looks bright, the near term is likely to be marked by wild volatility. To be clear, the current environment is fraught with uncertainty. The backdrop of inflation, tariffs, and fear of a pending recession has some investors battening down the hatches. However, Palantir could actually benefit from the economic uncertainty, according to Ark Investment Management CEO, Cathie Wood. "When businesses and consumers are scared, they'll change the way they do things, and that's usually good for the companies that are helping others do things better, cheaper, faster, more creatively, and more productively," she said. Wood went on to say that Palantir is well positioned for an AI-driven future. "We think Palantir is going to be one of the biggest beneficiaries as companies try and make themselves more efficient and move into the AI age," she said, "You've got the C-suite really trying to figure this out, understanding strategically that if they don't jump into the AI age, they'll be left behind." In fact, Wood goes further. In a post on X (formerly Twitter) on Saturday, Wood said, "CEO Alex Karp believes that [Palantir] will become the largest pure-play enterprise AI software company in the world. I believe him." That said, it's critical that Palantir shareholders adopt a long-term view, as the stock price is likely to continue to be volatile. One strategy for investors who are intrigued but don't yet own a stake is to buy a small position and be prepared to add opportunistically during stock price declines. Another strategy is dollar-cost averaging, in which investors build a position by adding set dollar amounts over time, which results in adding fewer shares when the price is higher and more when the price is lower. Being a Palantir stockholder isn't for the faint of heart, but adopting a long-term outlook and building a stake over time can be effective strategies for what will probably be a volatile but potentially lucrative investment.

Palantir Stock: Bull vs. Bear

In the last 12 months, the tech company delivered a remarkable 425% return to investors (as of writing). Strong financial growth and ongoing strong prospects are teh main driver of its outstanding stock performance. However, for those new to the company, it is essential to consider both sides of the coin before rushing into the stock. Let's consider the pros and cons of investing in Palantir. Why the bulls are excited about Palantir One of the biggest trends in recent years is the rapid advancement and adoption of artificial intelligence (AI) in our individual lives and business environments. To ride this trend, investors generally focus on two major categories of companies: the hardware and software players that are set to ride the AI wave. Palantir belongs to the second category of companies that stand to benefit enormously as corporations and government clients invest in the latest AI technologies. One reason is that Palantir has always been a top player in providing data analytics infrastructure and software solutions to help its clients solve complex real-life challenges, whether in counterterrorism or fraud detection. So, AI software is a natural extension of Palantir's existing services to its customers. For instance, corporations can rely on their existing data infrastructure to train and build customized AI software in areas like machine learning or generative AI. To this end, Palantir launched its proprietary AI product -- Artificial Intelligence Platform (AIP) -- to help customers quickly build and implement customized AI solutions. With a first-mover advantage, Palantir is positioned to leverage the AI wave in the coming years to build a large business. To put the opportunity size into perspective, Statista estimates that the global AI market could reach $1 trillion in 2031, up from $244 billion in 2025. With just $2.9 billion in annual revenue, the tech company is just touching the tip of the iceberg regarding its possibility. Moreover, Palantir is already a profitable company with a solid balance sheet. It generated $1.2 billion in operating cash flow in 2024 and ended the year with $5.2 billion in cash, cash equivalents, U.S. Treasury securities, and no debt. So, unlike most unprofitable growth companies, the software company has plenty of financial resources to invest in its future growth. No wonder Palantir is the darling of growth investors! Why do the bears have reservations about the stock? It's easy to see that Palantir is strategically positioned to exploit the AI growth trend. In fact, the tech company delivered a solid 29% revenue growth in 2024, fueled by strong performance in its government and commercial segments. So, naturally, investors are optimistic about the stock. And herein lies the bears' biggest concern: its stretched valuation. In a year when revenue grew by 29%, the stock price surged by 420%, sending Palantir's stock valuation to the stratosphere. As of writing, the stock has a price-to-sales (P/S) ratio of 99 times. By way of comparison, a blue-chip tech company like Alphabet's has a P/S ratio of only 5.6 times. With such a high valuation, Palantir must execute flawlessly to keep up with investors' expectations or face the risk of downward revaluation in its stock price. Even then, there is no guarantee that investors will remain equally upbeat about the AI industry in the future. If the AI industry loses its appeal or investors find a new investment trend, they may rotate their capital out of AI companies like Palantir. Even if Palantir executes flawlessly, there is no guarantee that it can maintain its high valuation over time. Moreover, the AI industry is likely to attract enormous capital and talent thanks to its vast opportunity size. So, the bears have concerns about whether Palantir can maintain its edge as the tech landscape evolves, especially due to intense competition from start-ups and tech giants alike. While existing customers are unlikely to switch providers easily due to the high switching costs, potential customers will not always find Palantir's offerings the best fit for their needs. For instance, Palantir's platforms are powerful but highly complex, requiring heavy customization for each client. This could limit how easily it can scale to meet market demand compared to more "plug-and-play" AI software solutions. What it means for investors Investors should not underestimate the potential risks of owning Palantir's stock. Palantir is a promising player in the growing AI and data analytics space, with deep government ties and expanding commercial opportunities. While the upside is real, its high valuation and execution risks mean investors should tread carefully. It could be a big winner in the AI race, but its excessive stock price makes it extremely risky for conservative investors to invest in.

Palantir Just Delivered a Monster Quarter, but the Stock Is Plummeting. The Reason Why Is Obvious.

Despite one of its best earnings reports to date, Palantir stock just fell off a cliff. Until recently, the capital markets have exhibited abnormal levels of strength over the last few years. Perhaps the biggest influence fueling stocks during this period is the bullish narrative surrounding artificial intelligence (AI). Since May 5, 2022, the Invesco QQQ ETF -- which tracks the Nasdaq-100 -- has generated a total return of 58% as of this writing (May 6). This handily outperforms the 43% total return seen in the S&P 500 index. While these results might suggest that technology stocks in general have been strong performers, there are some notable outliers that have contributed to the AI trade. Enter data mining darling Palantir Technologies (PLTR 2.28%). Over the last three years, Palantir stock has surged by 953% -- emerging as one of the top performers across the S&P 500 and Nasdaq-100 indexes. Palantir's main tailwind over the last couple of years has been the successful launch and widespread adoption of its Artificial Intelligence Platform (AIP) software suite. AIP has brought in a new era of growth for Palantir -- underscored by accelerating revenue, widening operating margins, and consistent positive net income and free cash flow. Just this week, Palantir delivered one of its most impressive earnings reports in the company's history. And yet, the stock plummeted immediately afterwards. Let's explore how Palantir performed during the first quarter of 2025, and assess why investors are dumping the stock despite such a monster growth narrative around the company's future. How did Palantir perform relative to its guidance? Back in February, Palantir provided investors with guidance around the first quarter and full year 2025. The table below illustrates management's prior guidance relative to how Palantir actually performed. Data Source: Palantir Investor Relations To put it bluntly, Palantir absolutely crushed its Q1 campaign. Both revenue and adjusted operating income came in well ahead of estimates. And to make things even better, management significantly raised guidance for the full year across each of its major reporting categories. What happened to Palantir stock after Q1 earnings? The chart below illustrates Palantir's stock price movements throughout 2025. I've annotated the chart with the company's earnings reports, which are called out by the purple circles with the letter "E" in the middle. PLTR data by YCharts One interesting thing is that Palantir stock started to experience notable momentum throughout April, prior to Q1 earnings. As is often the case with momentum stocks, shares of Palantir cratered immediately following the Q1 report. While this may seem counterintuitive given the company's stellar operating results and encouraging outlook, there is an obvious element at play here with Palantir, and I think investors are finally beginning to realize it. Let's dig in a little deeper and explore what is likely driving the sell-off in Palantir right now. Why did Palantir stock drop despite its monster earnings beat? Even though Palantir is profitable, the company's net income and free cash flow are still relatively small. For this reason, valuing Palantir through earnings or cash-flow-based ratios isn't entirely helpful. Rather, I prefer looking at Palantir on a price-to-sales (P/S) multiple. PLTR PS Ratio data by YCharts In the chart above, I've benchmarked Palantir against a peer set of other leading enterprise software businesses on a P/S basis. The extreme valuation expansion seen in Palantir stock has brought the company's P/S multiple to 92 -- more than three times the next closest comparable stock in the cohort. While Palantir's performance has been quite impressive over the last couple of years, the simple fact is that it is hard to justify a market value of more than $250 billion for a company that's generated roughly $3 billion in sales over the last 12 months. I'm not saying Palantir stock is not a buy, per se. But what I am trying to make clear here is that the price you pay for a stock does matter -- and right now, Palantir trades for an obvious premium relative to its peers in the software realm. I think Palantir is in an interesting spot now, as a monster earnings beat and robust forecast weren't enough to entice investors to buy the stock. Rather, the opposite happened in that many investors likely cashed out and took profits off the table. I still see Palantir as an AI winner in the long run. But right now, investors should be careful around momentum fueling the stock for fleeting periods and the precipitous sell-offs that follow.

Analyst who bought Palantir stock before a 600% rally updates price target

The artificial intelligence boom has been a game changer, helping many tech stocks, including Palantir Technologies, deliver mouth-watering returns. While the S&P 500's 24% return in 2024 is impressive, it pales compared to the 340% return for Palantir's shares. More amazing, while the S&P 500 has slumped 3% in 2025, Palantir's stock price is up 63%-a remarkable accomplishment given this year's tariff-driven volatility. Related: Surprising jobs report resets Fed interest rate cut forecast Palantir's success likely surprised many people, but Wall Street veteran analyst and trader Stephen Guilfoyle wasn't among them. Guilfoyle picked up shares in 2023 when they were about $16, and he's correctly banged the drum on Palantir's potential ever since, including earlier this year when he set a $122 price target. Palantir reached that target on May 2, prompting Guilfoyle to update his outlook, including a new price target investors should consider given his past success. Guilfoyle bought Palantir stock in 2023 because of its strong, debt-free balance sheet, free cash flow, and likely earnings potential. The outlook for the Peter-Thiel-founded company, which CEO Alex Karp runs, has improved even more since then. Related: Iconic fund manager sends shocking 3-word message on stocks After OpenAI's ChatGPT became the fastest app to reach one million users following its launch in December 2022, there has been a flood of interest in developing AI chatbots and agentic AI applications across most industries. Banks are deploying AI programs to hedge risks, evaluate loans, and price products. Drugmakers are considering its use to predict drug targets and clinical trial outcomes. Manufacturers are seeing if it can boost production and quality. AI may also help retailers forecast demand, manage inventories, and curb theft. The U.S. military is even testing AI's use on the battlefield. AI's use cases seem boundless, prompting many companies and governments to leverage Palantir's deep expertise in managing and protecting data to help train and run new AI apps. Palantir (PLTR) started by helping the U.S. government design counterterrorism systems. Its Gotham platform assists governments in those efforts today. The company also sells solutions to manage, interpret, and report data to large companies across enterprise and cloud networks. Its experience managing and securing data has positioned it perfectly to help users design large language models and other AI solutions using its AI platform (AIP). "The demand for AIP is unlike anything we have seen in the past twenty years," said CEO Alan Karp in 2023. More Palantir He wasn't kidding. Demand for AIP solutions has skyrocketed, driving Palantir's revenue, earnings, and stock price higher. "We closed a record-setting number of deals in Q4, including 32 deals worth $10 million or more. Our U.S. business is at the forefront of the AI revolution, growing 52% year-over-year in Q4," said Karp on Palantir's fourth-quarter earnings conference call. In that quarter, revenue rose 36% year-over-year, bringing full-year growth to 29%. It also made the jump to profitability in 2024, reporting adjusted earnings per share of 7 cents and full-year EPS of $0.41. It produced $1.25 billion in adjusted free cash flow in 2024. Those results clearly validated Guifoyle's bullish thesis in 2023, and his optimistic take on shares when he picked Palantir as his favorite stock in 2024, his single best stock pick one year ago, and made it his favorite stock for 2025 in December. Palantir retreats before rocketing higher in April The rapid rise of AI last year included the most research and development and IT infrastructure activity and spending since the Internet boom. The pace of activity was so rapid that many worried that demand was being pulled forward, likely causing a retrenchment in spending this year. Those concerns were amplified by reports of Microsoft and Amazon rethinking their data center buildout plans and the launch of higher-than-expected tariffs by the Trump administration, raising recession risks. That backdrop caused Palantir's shares to retreat significantly. However, the company's stock has rocketed since April 9, when President Trump paused the implementation of reciprocal tariffs for 90 days, kickstarting a significant stock market rally. The volatility in its shares has created plenty of buy and sell opportunities over the past year. "I am buying PLTR for myself, for my kids, and for future generations of Guilfoyles. I have since shaved my long equity position at target prices when met and reloaded even more shares than I had sold on selloff," said Guilfoyle in a TheStreet Pro post. "I sold shares with a $113 handle in February and bought back two and a half times the number of shares sold from $102 down to $68. The stock bottomed at $66.12 on April 7." His early April buys have panned out nicely, and shares have now eclipsed his $122 price target. Guilfoyle says he will sell some of his shares to lock in the recent gains, but Palantir remains a long-term holding, and his new price target is significantly higher. "We'll feel pretty foolish if a stock trades at our target, especially ahead of a known new event, and then sells off," said Guilfoyle. "I will make a small sale with the expectation that I will be able to at some point add what I sold plus maybe a little more at a lower price." Guilfoyle thinks Palantir stock could climb significantly on its next leg higher. "My new $153 target price is now the highest target price for this name on Wall Street by a wide margin," said Guilfoyle. Related: Legendary fund manager makes bold stock market prediction