Palantir’s AI-Led Growth Sparks Interest Despite Recent Pullback
Palantir Technologies Inc. (NYSE: PLTR) has been riding a wave of AI-driven growth, with its stock surging 250% over the past year. However, despite its impressive run, PLTR shares have pulled back by 33% in the last month, leaving investors questioning whether it remains a buy, sell, or hold.
The sell-off comes amid concerns over government spending cuts, lofty valuation, and ongoing trade war volatility. Additionally, recent insider selling has rattled some investors, raising red flags about potential profit-taking.
Insider Selling Adds to Market Jitters
Notably, co-founder Stephen Cohen sold $310 million worth of PLTR stock in recent days, further fueling bearish sentiment. While insider selling doesn’t always signal trouble, large-scale divestments often make investors wary, especially when coupled with broader market uncertainty.
AI Platform (AIP) Driving Growth
Despite the pullback, CEO Alex Karp remains bullish on Palantir’s future. In a recent letter to shareholders, Karp highlighted the unprecedented momentum in both the government and commercial sectors, fueled by the company’s Artificial Intelligence Platform (AIP).
Palantir’s AIP customer event showcased real-world ROI case studies, demonstrating how its AI tools are helping clients transform their businesses. Analysts were impressed by the platform’s capabilities but questioned whether the optimism is already priced into the stock.
Jefferies Reiterates Sell Rating
On Tuesday, Jefferies analyst Brent Thill maintained a Sell rating on PLTR stock with a $60 price target, citing its premium valuation. Thill acknowledged Palantir’s strong fundamentals and customer success stories but argued that the stock is already trading at a hefty premium, making it “the most expensive stock” in Jefferies’ coverage.
Wall Street’s Hold Consensus on PLTR
Wall Street analysts remain divided on Palantir’s outlook. With 10 Holds, four Buys, and four Sells, the stock holds a Hold consensus rating. The average PLTR price target of $92.13 suggests a potential 10% upside from current levels, indicating that while analysts see moderate growth potential, they remain cautious about its lofty valuation.
