{"id":49598,"date":"2026-06-03T11:36:30","date_gmt":"2026-06-03T11:36:30","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2026\/06\/03\/palantir-stock-plunges-14-but-heres-why-analysts-see-60-upside\/"},"modified":"2026-06-03T11:36:30","modified_gmt":"2026-06-03T11:36:30","slug":"palantir-stock-plunges-14-but-heres-why-analysts-see-60-upside","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2026\/06\/03\/palantir-stock-plunges-14-but-heres-why-analysts-see-60-upside\/","title":{"rendered":"Palantir stock plunges 14%, but here’s why analysts see 60% upside"},"content":{"rendered":"
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Palantir has delivered the kind of quarter most software companies would envy, yet its stock is still struggling to win over every corner of Wall Street.<\/p>\n

Revenue jumped 85% in the first quarter, adjusted earnings per share surged to $0.33, and the company lifted its full-year outlook after another sharp acceleration in US demand.<\/p>\n

Still, Palantir stock (NASDAQ: PLTR) remains under pressure this year as investors debate a simple but uncomfortable question: is this one of the strongest growth stories in software, or has the stock already priced in too much perfection?<\/p>\n

Record numbers, falling stock: what\u2019s going on?<\/h2>\n

Palantir\u2019s first-quarter numbers were hard to dismiss as revenue rose 85% from a year earlier to $1.6 billion, while adjusted earnings per share came in at $0.33, ahead of Wall Street expectations.<\/p>\n

US commercial revenue, the part of the business investors watch most closely for private-sector adoption, jumped 133% to $595 million.<\/p>\n

The company also reported GAAP net income of $871 million, giving it a profit margin of 53%.<\/p>\n

It is the kind of performance that usually fuels a rerating.<\/p>\n

The problem is that Palantir was already priced like an outlier as the stock trades at roughly 105 to 110 times forward earnings, far above the broader software sector.<\/p>\n

Its price-to-sales ratio is also close to 50 times, compared with low single-digit levels for many software peers.<\/p>\n

That leaves little room for disappointment. Even after a record quarter, investors are asking whether Palantir\u2019s growth can stay fast enough to justify the premium.<\/p>\n

A broader concern that artificial intelligence may disrupt parts of the software industry has also weighed on sentiment.<\/p>\n

Why analysts still see a long runway from here<\/h2>\n

The bull case is that Palantir is not simply another software company riding the AI wave<\/a>.<\/p>\n

Rosenblatt analyst John McPeake kept a Buy rating on the stock and raised his price target to $225, arguing that Palantir\u2019s Ontology platform gives it a durable competitive moat.<\/p>\n

In simple terms, Ontology helps organisations connect messy internal data with operational decisions. That is the layer many companies still struggle to build on their own.<\/p>\n

From the June 2 close near $152, Rosenblatt\u2019s target implies roughly 48% upside.<\/p>\n

From recent pullback levels closer to $140, the implied upside moves nearer to 60%, which explains why bulls see the selloff as an opportunity rather than a warning.<\/p>\n

Loop Capital\u2019s Mark Schappel is also constructive. He reiterated a Buy rating and a $220 target, pointing to AI-driven revenue acceleration and Palantir\u2019s growing role as critical infrastructure for enterprise customers.<\/p>\n

The government side of the story matters too, as Palantir\u2019s Maven system is set to become an official Pentagon program of record, locking in a longer-term role across the US military.<\/p>\n

Separately, the Department of Defense has reportedly sought $2.3 billion over five years to expand Maven Smart System, making it a structural growth catalyst rather than a one-off contract win.<\/p>\n

Palantir\u2019s own guidance supports the bullish argument.<\/p>\n

Management lifted full-year revenue guidance to $7.6 billion\u2013$7.7 billion and raised its US commercial outlook to more than $3.2 billion, implying growth of at least 120%.<\/p>\n

Is Palantir stock too expensive?<\/h2>\n

The sceptics are arguing that the stock is expensive enough to make even strong execution look ordinary.<\/p>\n

HSBC analyst Stephen Bersey cut his rating to Hold and lowered his price target to $151 from $205, citing rising competition from companies such as OpenAI and Anthropic.<\/p>\n

His concern is that Palantir\u2019s once-rare ability to embed engineers and software deep inside customer workflows may become easier for rivals to copy.<\/p>\n

That is the core bear case. If competition rises and pricing power softens, Palantir\u2019s premium multiple becomes harder to defend.<\/p>\n

The post Palantir stock plunges 14%, but here's why analysts see 60% upside<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Palantir has delivered the kind of quarter most software companies would envy, yet its stock is still struggling to win over every corner of Wall Street. Revenue jumped 85% in the first quarter, adjusted earnings per share surged to $0.33, and the company lifted its full-year outlook after another sharp acceleration in US demand. Still, <\/p>\n","protected":false},"author":1,"featured_media":49599,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-49598","post","type-post","status-publish","format-standard","has-post-thumbnail","category-investing"],"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/49598","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=49598"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/49598\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/49599"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=49598"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=49598"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=49598"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}