Palantir Technologies (PLTR) appears to have found support after losing some value lately, as indicated by the formation of a hammer chart. In addition to this technical chart pattern, strong agreement among Wall Street analysts in revising earnings estimates higher enhances the stock's potential for a turnaround in the near term.
A stock down 30% on the year has already priced in a fair amount of disappointment.
Palantir is due to report earnings after the closing bell today, with traders expecting a big swing in the software maker's stock.
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Palantir Technologies remains a 'Strong Buy' ahead of Q2 earnings, with robust business activity and improving profitability expected. Q2 guidance implies 79% YoY revenue growth and 130% YoY adjusted operating income growth, supporting a rule of 40 score near 138%. PLTR has historically outperformed estimates, and in Q2, the company continued their strong commercial push to reduce government contract dependence.
PLTR's second-quarter revenues are expected to jump 80% as AI-driven demand lifts its government and commercial businesses.
Palantir CEO Alex Karp said that AI tokens created a "weird kind of slop" that benefited unproductive people. AI companies need forward-deployed engineers "that aren't just masturbating and selling tokens," Karp said in an all-hands.
Palantir is due to report earnings Monday afternoon, with traders expecting a big swing in the software maker's stock.
Palantir heads into Q2 earnings with 80% revenue growth expected, strong customer momentum and a steep valuation after a sharp share-price pullback.
Palantir's surging U.S. commercial growth, larger AI deals and stronger estimates give it the edge over Accenture, which is facing AI disruption risks.