Palantir Shares Plunge 11.72% Amid Valuation Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy PLTR?
Source: Fool
- Significant Stock Drop: Palantir Technologies closed at $139.54 on Wednesday, down 11.62%, indicating that despite strong Q4 results, renewed investor concerns about valuation have pressured the stock price.
- Surge in Trading Volume: Trading volume reached 110.7 million shares, approximately 136% above the three-month average of 47 million shares, reflecting a notable increase in market attention towards the stock despite its decline.
- Strong Performance Support: The company reported a 70% revenue growth to $1.41 billion in Q4 and received upgrades to Buy from two analysts; however, market skepticism regarding its premium valuation compared to other AI software firms led to the stock's downturn.
- Contract Secures Revenue: Palantir secured a $1 billion contract with the UK Ministry of Defence, ensuring multi-year revenue visibility, yet investors are still assessing whether its commercial momentum and expanding margins can justify its high valuation.
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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: 130.010
Low
50.00
Averages
192.88
High
255.00
Current: 130.010
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.
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- Entrepreneurship Philosophy: In a 2015 speech, Thiel emphasized that entrepreneurship should not follow formulas, as each breakthrough company is unique; imitating successful figures like Zuckerberg or Gates overlooks the essence of innovation, which is to create something fundamentally new.
- Importance of Contrarian Thinking: Thiel noted that progress comes from finding unpopular truths and organizing teams around them, a principle he considers one of the best filters for hiring, highlighting the significance of courage in building companies.
- Industry Resonance: Many industry leaders echo Thiel's sentiment, emphasizing that courage is more important than intelligence, indicating that the ability to challenge conventional thinking is a key driver of innovation and success in a rapidly changing business environment.
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- Call for Safety Measures: Employees demand that Google implement urgent measures to protect worker safety, including flexible work-from-home policies and immigration support, emphasizing that employee safety and well-being should be prioritized in the current political climate, showcasing strong expectations for corporate governance.
- Increasing Industry Pressure: The release of this open letter coincides with mounting pressure on tech CEOs to publicly oppose ICE, indicating that employees seek to leverage collective action to drive the company towards ethical and policy changes.
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- Controversial Technical Support: Google Cloud is accused of aiding CBP's surveillance efforts and powering Palantir's ImmigrationOS, prompting employees to call for an end to partnerships with these agencies to safeguard employee welfare and uphold ethical standards in technology use.
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