Shares of Palantir Technologies Inc. (NYSE: PLTR) were hammered in a.m.
Are you a believer in the game-changing potential of artificial intelligence (AI)? Here's a litmus test: Are you willing to make a long-term commitment to one of the market's most compelling AI stocks, even though the underlying company is still miles away from results that justify the stock's presently frothy price?
Shares of Palantir Technologies (PLTR 5.53%) and AppLovin (APP 4.18%) have soared 925% and 1,910%, respectively, in the last two years. However, certain Wall Street analysts still anticipate more gains in the coming months.
Nvidia (NVDA 1.92%) and Palantir Technologies (PLTR 5.53%) delivered terrific gains last year as shares of both companies shot up remarkably thanks to the fast-growing demand for their artificial intelligence (AI)-focused hardware and software solutions. But 2025 is turning out to be different for these red-hot growth stocks.
With its shares up 279% over the last 12 months, Palantir Technologies (PLTR 5.53%) has benefited from two recent hype cycles: generative AI and the election of President Donald Trump. Unfortunately for investors, both of these investment theses seem to be on their last legs.
Palantir's fundamentals are strong, with management focused on maximizing AI potential, making the stock a Strong Buy after the recent dip. The company's AIP platform is rapidly evolving, supported by strategic partnerships and a robust financial position with $5 billion in cash. Palantir's intrinsic value per share is $101, offering a 12% upside, driven by aggressive innovation and expanding revenue from both commercial and governmental segments.
After several sessions of sustained losses, the stock price of American software giant Palantir (NASDAQ: PLTR) is showing signs of recovery, with an artificial intelligence (AI) tool forecasting further gains toward the end of the month.
While it's well off its recent highs, Palantir Technologies (PLTR 5.53%) was one of the best-performing stocks in 2024 and early 2025. However, those gains have led to an extreme valuation, with the stock trading at a forward price-to-sales (P/S) multiple of 52 times 2025 analyst revenue estimates.
"Nothing fundamental has changed" in the A.I. trade, according to Michael Lee.
Palantir said it delivered its first two TITAN systems to the U.S. Army. The company won the $178 million contract last March, beating out competitor RTX Corp.
The recent price weakness in Nvidia and Palantir could mean the proverbial air is coming out of the AI hype balloon. Nonetheless, traders have options if AI does experience a slowdown.
Palantir Technologies Inc. NASDAQ: PLTR continues to sell off. On March 6, PLTR stock fell over 10% on nearly double the daily volume, bringing its 30-day decline to over 27%.