Palantir Technologies (PLTR) possesses solid growth attributes, which could help it handily outperform the market.
As markets hit highs and AI stocks dominate the headlines, is the rally running on fumes? The Financial Prophet, Victor Dergunov, breaks down the risks of overheated technicals, stretched valuations, and the growing disconnect between Wall Street and the real economy.
Stock market bulls are digging in their heels to start this week, and technology stocks are back in the driver's seat.
Michael Burry fired back after Palantir CEO Alex Karp attacked his latest bets in a TV interview. The investor of "The Big Short" fame said he's not surprised that Karp "cannot crack a simple 13F.
Palantir continues to see its revenue growth accelerate. U.S. commercial customers continue to flock to its AI platform and expand usage.
Palantir's Q3 results showcased a ninth consecutive double-beat, with U.S. commercial revenue surging 121% and a record $2.8 billion in contract bookings. The company's "Rule of 40" metric hit an impressive 114%, alongside a record 51% adjusted EBIT margin, demonstrating exceptional operating leverage and growth. The company's total addressable market and commercial opportunity seem underestimated, supporting the thesis that PLTR could reach a $1 trillion market cap by 2031.
Palantir is reiterated as a Strong Buy with a $246/share target, driven by rapid AI adoption and robust contract wins across government and civilian customers. PLTR's Q3'25 revenue surged 63% YoY, with US commercial growth at 121% and total customer count up 45%, reflecting accelerating enterprise demand. Defense sector tailwinds, including an expected 13% US defense budget increase for 2026 and new autonomous systems funding, bolster PLTR's government business outlook.
With the broader market starting to retract amid valuation concerns, high-growth tech stocks such as Palantir (PLTR) and AMD (AMD) have been at the center of the pullback despite their enticing AI prospects.
Palantir's stock slumped 11% this week after the company's third-quarter earnings even though results topped estimates. The company's skyrocketing multiples have raised concerns about its valuation and whether it can grow quickly enough to meet expectations.
AI sector stocks like Palantir (PLTR), Nvidia (NVDA), and AMD face valuation concerns despite strong earnings, leading to recent pullbacks. The government shutdown and lack of economic data are increasing uncertainty, with job cuts rising sharply and consumer spending at risk.
Recently, Zacks.com users have been paying close attention to Palantir Technologies (PLTR). This makes it worthwhile to examine what the stock has in store.
Palantir (PLTR) stepped into the earnings confessional Monday after the close of U.S. markets. (This article was written in advance of the report.