Burry Maintains Bearish Stance on Palantir Amid Stock Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy PLTR?
Source: stocktwits
- Stock Price Fluctuation: Despite Palantir's impressive Q4 earnings report last week, its shares have declined about 25% from their peak last November, indicating market concerns about its future performance that could impact investor confidence.
- Technical Pattern Warning: Burry highlighted that Palantir's stock chart has formed a head-and-shoulders pattern, signaling a potential end to the uptrend, and a decisive break below the mid-$140s could confirm this bearish pattern, leading to further sell-offs.
- Support Level Alerts: Burry identified two critical support levels at $83 and $54, with the former indicating a nearly 42% drop from the last close and the latter suggesting over a 60% decline, reflecting a pessimistic outlook on Palantir's future.
- Market Sentiment Shift: As of February 9, retail sentiment for Palantir on Stocktwits dropped from 'extremely bullish' to 'bullish', and although the stock rose 5.2% on Monday, it remains down nearly 20% year-to-date, showcasing diverging views among investors regarding its prospects.
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Analyst Views on PLTR
Wall Street analysts forecast PLTR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PLTR is 192.88 USD with a low forecast of 50.00 USD and a high forecast of 255.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
5 Buy
10 Hold
2 Sell
Hold
Current: 135.900
Low
50.00
Averages
192.88
High
255.00
Current: 135.900
Low
50.00
Averages
192.88
High
255.00
About PLTR
Palantir Technologies Inc. is engaged in building software to assist in counterterrorism investigations and operations. The Company has built four principal software platforms, including Palantir Gotham (Gotham), Palantir Foundry (Foundry), Palantir Apollo (Apollo), and Palantir Artificial Intelligence Platform (AIP). Apollo is a cloud-agnostic, single control layer that coordinates ongoing delivery of new features, security updates, and platform configurations, helping to ensure the continuous operation of critical systems. Gotham enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants. Foundry transforms the ways organizations operate by creating a central operating system for their data. AIP enables responsible artificial intelligence (AI)-advantage across the enterprise by using primary, core components built to effectively activate large language models and other AI within any organization.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Palantir's Stock Pullback Amid AI Potential
- Stock Performance Review: Palantir's shares have surged 1,666% over the past three years, yet have declined 10% year-to-date, reflecting market concerns about future growth amid current high valuations.
- Significant Revenue Growth: In Q4 2024, Palantir's revenue soared 93% year-over-year to $1.1 billion, with U.S. commercial sales jumping 137% to $507 million, indicating a successful pivot towards business clients.
- AI Platform Launch: The introduction of Palantir's Artificial Intelligence Platform (AIP) enables clients to securely integrate large language models with internal data, enhancing data querying and analysis efficiency, particularly in public safety and military applications.
- Competitive Landscape Analysis: Despite Palantir's market advantages in data analytics, it faces fierce competition from companies like Microsoft and Snowflake, and its forward P/E ratio of 158 significantly exceeds the S&P 500's 22, limiting future growth potential.
See More
Palantir Stock Valuation Remains Difficult to Understand
- Product Superiority: Palantir's AI-powered software enables real-time decision-making, with government revenue reaching $730 million in Q4 compared to $677 million in commercial revenue, highlighting strong performance in both sectors, although commercial growth at 82% outpaces government growth at 60%.
- Strong Profitability: In Q4 2025, Palantir achieved a 43% profit margin, ranking among the best in the software industry, indicating that the company maintains high profitability while experiencing rapid growth, enhancing its competitive position in the market.
- Valuation Risks: Trading at 80 times sales, Palantir is one of the most expensive stocks on the market; despite being profitable, the effectiveness of using the price-to-sales ratio diminishes, necessitating a focus on future earnings growth potential for valuation assessment.
- Uncertain Future Growth: While Palantir's future prospects appear promising, sustaining the projected rapid growth is crucial; otherwise, the current high valuation may not hold, prompting investors to carefully weigh risks against potential returns.
See More
Burry Maintains Bearish Stance on Palantir Amid Stock Decline
- Stock Price Fluctuation: Despite Palantir's impressive Q4 earnings report last week, its shares have declined about 25% from their peak last November, indicating market concerns about its future performance that could impact investor confidence.
- Technical Pattern Warning: Burry highlighted that Palantir's stock chart has formed a head-and-shoulders pattern, signaling a potential end to the uptrend, and a decisive break below the mid-$140s could confirm this bearish pattern, leading to further sell-offs.
- Support Level Alerts: Burry identified two critical support levels at $83 and $54, with the former indicating a nearly 42% drop from the last close and the latter suggesting over a 60% decline, reflecting a pessimistic outlook on Palantir's future.
- Market Sentiment Shift: As of February 9, retail sentiment for Palantir on Stocktwits dropped from 'extremely bullish' to 'bullish', and although the stock rose 5.2% on Monday, it remains down nearly 20% year-to-date, showcasing diverging views among investors regarding its prospects.
See More
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- Significant Revenue Growth: For the January quarter, Databricks reported annualized revenue exceeding $5.4 billion, a 65% year-over-year increase, which not only surpasses Snowflake's estimated revenue of $3.6 billion for 2025 but also highlights robust demand in the data analytics and AI sectors.
- AI Product Expansion: The company’s annualized revenue from AI products has now exceeded $1.4 billion, showcasing a significant return on investment in AI, especially amid a broader downturn in software stocks, underscoring the attractiveness and competitiveness of its offerings.
- IPO Prospects Under Scrutiny: Despite market volatility, CEO Ali Ghodsi indicated that Databricks is prepared to go public when the timing is right, suggesting a cautious approach to market conditions, particularly if the current correction continues, which reflects a strategic mindset towards potential IPO timing.
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- Market Performance of AI Stocks: In recent years, AI stocks have driven the S&P 500 to three consecutive years of gains, with companies like Nvidia and Palantir reporting double and triple-digit revenue growth, showcasing the revolutionary potential of AI technology across various sectors.
- Valuation Concerns Intensify: Despite strong performance, the S&P 500 Shiller CAPE ratio has reached historical highs, raising investor concerns about a potential AI bubble, leading some to rotate out of AI and tech stocks.
- Sustained Demand: Chip manufacturers like Taiwan Semiconductor and AMD reported double-digit revenue growth, indicating strong demand for AI products, particularly as TSMC's close collaboration with cloud providers offers clear insights into market demand.
- Long-Term Investment Opportunity: Although AI stocks have recently declined, analysts suggest this could represent a once-in-a-decade buying opportunity, especially as AI technology remains in its early stages, with significant future applications in robotics, drug discovery, and autonomous vehicles.
See More
Tech Stocks Retreat Amid AI Concerns
- Tech Stock Retreat: Recent declines in tech stocks, particularly AI names like Nvidia and Palantir, stem from investor concerns over valuations and the potential impact of AI on software businesses, indicating a cautious market sentiment.
- AI Market Potential: Despite risks, AI technology is viewed as a key driver for future growth, with companies like Taiwan Semiconductor and AMD reporting double-digit revenue gains, suggesting strong demand for AI products and the likelihood of increased investment.
- Investor Sentiment Shift: The S&P 500 Shiller CAPE ratio has reached historical highs, raising fears of an AI bubble and leading to declines in certain software and AI stocks, reflecting skepticism about sustained growth.
- Long-Term Investment Opportunity: Although tech stocks are experiencing short-term pullbacks, analysts believe this could represent a once-in-a-decade buying opportunity, especially as AI technology is still in its early stages of real-world application, indicating significant growth potential ahead.
See More
Palantir's Stock Pullback Amid AI Potential
- Stock Performance Review: Palantir's shares have surged 1,666% over the past three years, yet have declined 10% year-to-date, reflecting market concerns about future growth amid current high valuations.
- Significant Revenue Growth: In Q4 2024, Palantir's revenue soared 93% year-over-year to $1.1 billion, with U.S. commercial sales jumping 137% to $507 million, indicating a successful pivot towards business clients.
- AI Platform Launch: The introduction of Palantir's Artificial Intelligence Platform (AIP) enables clients to securely integrate large language models with internal data, enhancing data querying and analysis efficiency, particularly in public safety and military applications.
- Competitive Landscape Analysis: Despite Palantir's market advantages in data analytics, it faces fierce competition from companies like Microsoft and Snowflake, and its forward P/E ratio of 158 significantly exceeds the S&P 500's 22, limiting future growth potential.
See More
Palantir Stock Valuation Remains Difficult to Understand
- Product Superiority: Palantir's AI-powered software enables real-time decision-making, with government revenue reaching $730 million in Q4 compared to $677 million in commercial revenue, highlighting strong performance in both sectors, although commercial growth at 82% outpaces government growth at 60%.
- Strong Profitability: In Q4 2025, Palantir achieved a 43% profit margin, ranking among the best in the software industry, indicating that the company maintains high profitability while experiencing rapid growth, enhancing its competitive position in the market.
- Valuation Risks: Trading at 80 times sales, Palantir is one of the most expensive stocks on the market; despite being profitable, the effectiveness of using the price-to-sales ratio diminishes, necessitating a focus on future earnings growth potential for valuation assessment.
- Uncertain Future Growth: While Palantir's future prospects appear promising, sustaining the projected rapid growth is crucial; otherwise, the current high valuation may not hold, prompting investors to carefully weigh risks against potential returns.
See More
Burry Maintains Bearish Stance on Palantir Amid Stock Decline
- Stock Price Fluctuation: Despite Palantir's impressive Q4 earnings report last week, its shares have declined about 25% from their peak last November, indicating market concerns about its future performance that could impact investor confidence.
- Technical Pattern Warning: Burry highlighted that Palantir's stock chart has formed a head-and-shoulders pattern, signaling a potential end to the uptrend, and a decisive break below the mid-$140s could confirm this bearish pattern, leading to further sell-offs.
- Support Level Alerts: Burry identified two critical support levels at $83 and $54, with the former indicating a nearly 42% drop from the last close and the latter suggesting over a 60% decline, reflecting a pessimistic outlook on Palantir's future.
- Market Sentiment Shift: As of February 9, retail sentiment for Palantir on Stocktwits dropped from 'extremely bullish' to 'bullish', and although the stock rose 5.2% on Monday, it remains down nearly 20% year-to-date, showcasing diverging views among investors regarding its prospects.
See More
Databricks Raises $5 Billion, Valuation Reaches $134 Billion
- Massive Funding Round: Databricks successfully raised $5 billion from investors including Goldman Sachs and Morgan Stanley, along with an additional $2 billion in debt capacity, elevating its valuation to $134 billion, which is more than double that of its closest competitor, Snowflake, indicating strong market confidence in its growth potential.
- Significant Revenue Growth: For the January quarter, Databricks reported annualized revenue exceeding $5.4 billion, a 65% year-over-year increase, which not only surpasses Snowflake's estimated revenue of $3.6 billion for 2025 but also highlights robust demand in the data analytics and AI sectors.
- AI Product Expansion: The company’s annualized revenue from AI products has now exceeded $1.4 billion, showcasing a significant return on investment in AI, especially amid a broader downturn in software stocks, underscoring the attractiveness and competitiveness of its offerings.
- IPO Prospects Under Scrutiny: Despite market volatility, CEO Ali Ghodsi indicated that Databricks is prepared to go public when the timing is right, suggesting a cautious approach to market conditions, particularly if the current correction continues, which reflects a strategic mindset towards potential IPO timing.
See More
Investment Opportunities and Risks in AI Stocks
- Market Performance of AI Stocks: In recent years, AI stocks have driven the S&P 500 to three consecutive years of gains, with companies like Nvidia and Palantir reporting double and triple-digit revenue growth, showcasing the revolutionary potential of AI technology across various sectors.
- Valuation Concerns Intensify: Despite strong performance, the S&P 500 Shiller CAPE ratio has reached historical highs, raising investor concerns about a potential AI bubble, leading some to rotate out of AI and tech stocks.
- Sustained Demand: Chip manufacturers like Taiwan Semiconductor and AMD reported double-digit revenue growth, indicating strong demand for AI products, particularly as TSMC's close collaboration with cloud providers offers clear insights into market demand.
- Long-Term Investment Opportunity: Although AI stocks have recently declined, analysts suggest this could represent a once-in-a-decade buying opportunity, especially as AI technology remains in its early stages, with significant future applications in robotics, drug discovery, and autonomous vehicles.
See More
Tech Stocks Retreat Amid AI Concerns
- Tech Stock Retreat: Recent declines in tech stocks, particularly AI names like Nvidia and Palantir, stem from investor concerns over valuations and the potential impact of AI on software businesses, indicating a cautious market sentiment.
- AI Market Potential: Despite risks, AI technology is viewed as a key driver for future growth, with companies like Taiwan Semiconductor and AMD reporting double-digit revenue gains, suggesting strong demand for AI products and the likelihood of increased investment.
- Investor Sentiment Shift: The S&P 500 Shiller CAPE ratio has reached historical highs, raising fears of an AI bubble and leading to declines in certain software and AI stocks, reflecting skepticism about sustained growth.
- Long-Term Investment Opportunity: Although tech stocks are experiencing short-term pullbacks, analysts believe this could represent a once-in-a-decade buying opportunity, especially as AI technology is still in its early stages of real-world application, indicating significant growth potential ahead.
See More
