Palantir Technologies Inc. (PLTR) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
Palantir (NASDAQ: PLTR) shares slid on Monday after short seller Citron Research escalated its criticism of the company, warning that even at significantly lower levels, the stock remains overvalued.
Shares of Palantir Technologies Inc. (NASDAQ:PLTR) lost 5.06% over the past five trading sessions.
The network connects founders and venture capitalists with ‘Palantir Pals' and a Russian River camping trip
I initiate Big Bear Holdings with a Hold. Management cut FY revenue guidance by 22% to $125–$140M, missed revenue by $10.8M in Q2 on federal contract disruptions, and withdrew full year EBITDA guidance. OB3 could aid ConductorOS and Shipyard AI, but I'm not seeing lift for biometrics. I'd rather wait for a ramp in DoD contracts, even if that means paying a premium.
Palantir Technologies stock (NASDAQ: PLTR) has been one of the biggest winners over the past year, surging more than 5x and recently trading near $180 per share. The rally has been fueled by surging interest in generative AI, a string of large government contract wins, and ongoing geopolitical instability, which tends to drive demand for the company's tools.
Any analysis of Palantir Technologies Inc. NASDAQ: PLTR inevitably returns to valuation. Investors are told that fundamentals matter, and then they look at what's going on with PLTR stock.
I am upgrading Palantir to 'Strong Buy' after blockbuster Q2 results, robust contract wins, and explosive AI-driven growth. PLTR's massive government and commercial contracts, expanding AI platforms, and strong execution justify its premium valuation and multi-year growth runway. Q2 revenue surged 48%, with U.S. commercial up 92.5% and government up 53%; margins, cash flow, and guidance all improved sharply.
PLTW offers a superior risk-reward profile versus PLTY, delivering both aggressive income and growth due to its leveraged structure. PLTY's drawdown protection is minimal, and its upside capture is significantly weaker, making it less attractive for long-term investors. I rate PLTW a Buy, especially with a bullish PLTR outlook, while downgrading PLTY to Hold based on recent performance and structural limitations.
Palantir's U.S. commercial AI software growth is impressive, but the scale remains relatively small, and growth rates will dip over time. The enterprise AI software company is benefiting from a confluence of events turning the 20+ year-old business into more of a startup. PLTR stock is so expensive share dilution in the last year alone contributes a market value larger than most software companies.
Palantir Technologies Inc.'s stock has surged over 500% in the past year, far outperforming the S&P 500, driven by strong revenue, margin expansion, and rapid adoption of its AIP and ontology platforms. PLTR Q2 results showed 48% YoY revenue growth, 80.8% gross margins, and more than doubled net income, fueled by defense, healthcare, and industrial wins. Despite exceptional fundamentals and momentum, PLTR stock's current valuation—P/E ~620 TTM and ~420 forward—is extremely difficult to justify, even under aggressive growth assumptions.
Nigam Arora returns to Market on Close to discuss some of the biggest tech moves he's watching in the market. He's impressed with Microsoft (MSFT) continuing to beat "very high" expectations in Azure cloud and Copilot.