:max_bytes(150000):strip_icc()/GettyImages-2242911164-6275bcc369cb4b7b9e0af369b76097a0.jpg "Here’s What Wall Street Analysts Are Saying About Palantir’s Earnings as Its Stock Plunges")
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Key Takeaways
- Palantir shares plunged to lead tech stocks lower a day after the AI software maker posted record revenues that blew past analysts’ expectations and boosted its outlook.
- While longtime bulls said they were encouraged by the strong results, several analysts reiterated worries the stock could be overvalued.
Data analytics software maker Palantir is seeing “otherworldly” growth as companies and governments clamor for its flagship Artificial Intelligence Platform, its CEO told investors yesterday. So why is its stock suffering today?
Shares of Palantir Technologies (PLTR) were down 9% around $189 in recent trading, making it one of the leading decliners on the S&P 500 and Nasdaq, a day after the company posted record revenues that blew well past analysts’ expectations and boosted its full-year outlook for the third straight quarter.
Despite the strong results, several Wall Street analysts said they worry Palantir’s stock could be overvalued after a torrid rally this year. Even with Tuesday’s losses, the shares are up some 150% this year, leaving it among the best-performing stocks in the S&P 500 for 2025.
Why This Matters for Investors
Palantir’s slump comes amid growing worries about an bubble, pressuring tech stocks and the major indexes Tuesday. Recents comments from Goldman Sachs and Morgan Stanley executives suggesting the market could be due for a pullback also weighed on sentiment.
Jefferies analysts said Palantir’s “numbers are great” but called its valuation “extreme” relative to its fundamentals in a note to clients Tuesday. They issued a price target of $70, less than half of its current value.
Analysts at William Blair and UBS, who have neutral ratings for the stock, also voiced concerns Palantir’s valuation would make it one of the more expensive names in software on a free cash flow basis, despite the better-than-expected quarterly results.
Still, longtime bulls at Wedbush led by Dan Ives stood by the stock, saying they were encouraged by the “eye popping” results, and that they’d be buyers of any near-term weakness on a “this is as good as it gets” reaction from the market, with a $230 price target. Bank of America analysts were even more bullish, and bumped their target up to a Street high of $255 from $215, calling Palantir a “best-in-class AI enabler.”
